Kennady Diamonds is pleased to announce the successful completion of the Kelvin North Lobe bulk sampling program.
Twenty nine large-diameter reverse-circulation (RC) holes were completed along the strike of the Kelvin North Lobe resulting in the recovery of approximately 580 tonnes of kimberlite, surpassing the Company’s 500 tonne target.
In addition, three ice-based infill large-diameter RC holes have been completed at the Kelvin Southeast Lobe. These holes are designed to support improved geological modeling.
Kennady Diamonds is also pleased to announce that the Company has been able to recover a mini-bulk sample of approximately 20 tonnes from the Faraday 2 kimberlite. Drilling of two ice-based holes by large-diameter RC drilling has been completed.
Warming weather conditions have required the Company to end the Faraday 2 sampling program. The Company will now focus on completing as much ice-based core drilling as possible.
In addition to the RC drilling, Kennady Diamonds is currently operating three diamond core drill rigs, focused on delineation and infill drilling at the Faraday 1 and Faraday 3 kimberlites and exploration drilling at the Hobbes anomaly.
Kennady Diamonds is also continuing ice-based exploration drilling 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.
Mr. Evans commented: "Our focus at the Hobbes anomaly is to find the source of the volcaniclastic kimberlite. Exploration drilling will continue while ice conditions permit."
Based on the success of the 2016 Kelvin bulk sampling program, it is expected to that diamonds weighing more than 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 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.