Kennady Diamonds is pleased to announce that the Kelvin North Lobe bulk sampling program is progressing well with 26 of 28 planned large-diameter holes completed and 540 tonnes of kimberlite recovered to date, surpassing the Company's target of 500 tonnes.
Following completion of the Kelvin North bulk sample, Kennady Diamonds plans to drill three infill reverse-circulation holes at the Kelvin Southeast Lobe to support improved geological modeling.
The total Kelvin 2016 bulk sample is expected to be approximately 600 tonnes. In addition, an ice pad has been built at the Faraday 2 kimberlite to allow the possibility of bulk sampling of that kimberlite if conditions permit.
Based on the success of the 2016 Kelvin bulk sampling program, it is expected to that diamonds weighing approximately 1,200 carats will be recovered. Processing of the bulk sample will take place at the Geoanalytical Laboratories Diamond Services of the Saskatchewan Research Council ("SRC") commencing in mid-May 2016.
The valuation of the diamond parcel, which will be used for revenue modeling of the Kelvin North Lobe, is expected to be completed during Q3 2016
Kennady Diamonds is also pleased to announce that delineation drilling at the newly discovered Faraday 3 kimberlite pipe is progressing well with the strike of Faraday 3 having so far been defined over approximately 150 meters and an apparent dip to the northwest.
Kennady Diamonds President and CEO, Patrick Evans , commented: "Faraday 3 is the fourth kimberlite pipe that we have discovered at Kennady North over the past three years. Methodical exploration over the Kelvin – Faraday corridor has increased our confidence in the potential for the discovery of further kimberlite bodies within the corridor."
Kennady Diamonds also announced that exploration drilling has commenced at the Hobbes anomaly, which is located approximately 150 meters south of the Kelvin kimberlite. Hobbes was initially thought to be part of the hypabyssal Kelvin Sheet that extends to the southwest of the Kelvin pipe. However, the presence of volcaniclastic kimberlite was discovered at Hobbes during the winter of 2015, warranting further exploration.
Finally, Kennady Diamonds announced that the Company has commissioned a preliminary economic assessment ("PEA") for the Kelvin kimberlite. The PEA is being led by JDS Energy and Mining and is expected to be completed by the fourth quarter of 2016.
Kennady Diamonds Inc. controls 100 percent of the Kennady North diamond project located in Canada’s Northwest Territories immediately adjacent to the Gahcho Kué diamond mine currently under development by De Beers and Mountain Province Diamonds.
Kennady Diamonds aims to identify a resource along the Kelvin – Faraday kimberlite corridor of between 13 million and 16 million tonnes at a grade of between 2 and 2.5 carats per tonne and also to identify new kimberlites outside of the corridor.
The Kelvin – Faraday corridor is a target for further exploration. The tonnage estimate is based on the drilling completed to date. The potential quantity is conceptual in nature as there has been insufficient drilling to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.