Shares Issued and Outstanding: 54,012,599
TSX-V: KDI
New 51.8-meter intercept on Faraday 2 NW
Extension
Third rig arrives on site to drill
exploration targets
TORONTO, April 5, 2018 /CNW/ - Kennady Diamonds Inc.
("Kennady", the "Company") (TSX-V: KDI) is pleased to provide an
update on the winter drilling program at their Kennady North
Project. Drilling is progressing steadily with a total of 2,597
meters completed to date. Included in today's release are one
delineation hole and one geotechnical/delineation hole completed on
the Faraday 2 kimberlite. All thirteen drill holes completed
on the program to date have intersected kimberlite.
Both drill rigs are currently drilling on the northwest
extension to the Faraday 2 kimberlite. The northwest extension was
discovered during the summer 2017 program and extends the Faraday 2
kimberlite by over 150 meters (see news release, September 11, 2017). Detailed core logging
has confirmed that the geologic units within the inferred resource
continue into the northwest extension (see news release,
March 7, 2018). Information from
the current drilling will be used to advance the pipe shell model
to an inferred level of confidence. A preliminary plan map of
drilling to date at Faraday 2 can be seen on the Company's website
at www.kennadydiamonds.com.
Table 1 summarizes the 2018 winter drill results on the Faraday
2 kimberlite since the last update.
Table 1: Faraday 2 2018 Winter Drill Program
Drill
Hole
|
DH
Purpose
|
Azimuth
|
Inclination
|
Kimberlite
Intercepts (m)
|
End of
Hole
(m)
|
From
|
To
|
Intercept*
|
KDI-18-010
|
Geotech/Delineation
|
220
|
-65
|
270.91
|
322.70
|
51.79
|
346
|
KDI-18-011
|
Delineation
|
040
|
-65
|
280.74
|
311.96
|
31.22
|
350
|
*Intercepts are not true widths.
President and CEO of Kennady Diamonds, Dr. Rory Moore commented: "While the delineation and
geotechnical programs on the Faraday kimberlites have been very
successful, we are anxious to take advantage of the improving
weather conditions and longer daylight hours to move on to
exploration drilling as soon as possible. For this reason, the
decision was taken to add a third drill rig to the program". He
went on to say, "The new rig arrived on site on March 30 before the winter road was closed for
the season, and we expect to be drilling the first of several
exploration targets in the Kelvin-Faraday Corridor on the
weekend". Dr. Moore emphasized that the addition of the third
rig will not require a budget revision as program timelines will be
shortened with the improved production rate.
Financing
Kennady has also closed the third tranche of the private
placement of common shares announced in connection with the
transaction with Mountain Province Diamonds Inc. (see news release
dated January 29, 2018). The
Company has issued 1,000,000 common shares at a price of
$2.50 per share for proceeds of
$2,500,000. The shares are subject to
a four month hold period expiring on July
29, 2018.
Proceeds of the offering will be used to fund the Company's 2018
winter exploration program on the Kennady North Project and for
general corporate purposes.
About Kennady Diamonds
Kennady Diamonds Inc. controls 100 percent of the Kennady North
diamond project located in Canada's Northwest
Territories. Kennady North is adjacent to the Gahcho Kué
Diamond Mine, a joint venture between De Beers Canada (51%) and
Mountain Province
(49%). Kennady is focused on expanding its high-grade diamond
resources along the Kelvin–Faraday kimberlite corridor, as well as
identifying new kimberlites outside of the corridor. To date an
indicated resource of 13.62 million carats of diamonds contained in
8.50 million tonnes of kimberlite, with a grade of 1.60 carats per
tonne and an average value of US$63
per carat has been defined for the Kelvin kimberlite and an
inferred resource of 5.02 million carats contained in 3.27 million
tonnes of kimberlite, with a grade of 1.54 carats per tonne and an
average value of US$98 per carat has
been defined for the Faraday kimberlites using a 1mm diamond bottom
cutoff size. The Kelvin – Faraday corridor is also a target for
further exploration.
Qualified Persons
This news release has been prepared by Dr. Rory Moore, P.Geo., President and CEO of Kennady
Diamonds. The technical contents of this news release have been
reviewed and approved by Dr. Tom
McCandless, P.Geo., an independent director of Kennady
Diamonds and Qualified Person under National Instrument 43-101.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) has reviewed or accepts responsibility for the
adequacy or accuracy of this release.
FORWARD LOOKING INFORMATION
This news release includes certain information that may
constitute "forward-looking information" under applicable Canadian
securities legislation. Forward-looking information includes, but
is not limited to, the Company's strategic plans, future
operations, future work programs and objectives. Forward-looking
information is necessarily based upon a number of estimates and
assumptions that, while considered reasonable, are subject to known
and unknown risks, uncertainties, and other factors which may cause
the actual results and future events to differ materially from
those expressed or implied by such forward-looking information.
There can be no assurance that such information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such information. Accordingly,
readers should not place undue reliance on forward-looking
information. All forward-looking information contained in this
press release is given as of the date hereof and is based upon the
opinions and estimates of management and information available to
management as at the date hereof. The Company disclaims any
intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, except as required by law.
SOURCE Kennady Diamonds Inc.