Canadian Jr. Miner Kennady Diamonds' Bulk Sampling Valued at $109 Per Carat

Mining and Exploration
09/08/2017 09:44

Canadian junior miner Kennady Diamonds reports a collective average price of US$109 per carat from its bulk sampling program of diamonds recovered from the Faraday kimberlites at the 100 percent-controlled Kennady North project located in Canada’s Northwest Territories. Valuation results included a 7.78 carat sawable diamond recovered from Faraday 3 valued at US$2,967 per carat. A total of 1,259.16 carats (+0.85mm) recovered from the 2017 bulk sampling program was sent to WWW International Diamond Consultants (‘WWW’) in Antwerp for valuation. In particular a population of high value white gem quality stones was noted in all three of the Faraday bodies.

President and CEO of Kennady Diamonds, Dr. Rory Moore said Kennady is "delighted" with the results of the bulk sampling program, noting, "Our previously reported grades that range between 1.67 and 2.91 carats per ton for the three Faraday kimberlites, combined with these valuations, provide a strong foundation on which to build a high-value resource at the Faradays. It is also gratifying to see strong prices for larger white gems represented in the parcel, as evidenced by the $2,967 per carat value assigned to the 7.78 carat gem recovered from Faraday 3.” The valuation results for Faraday 2 and 3 consist of two sub-parcels from each body. WWW determined market values of US$60 and US$83 per carat for the Faraday 2 sub- parcels that were 456.76 carats and 269.71 carats respectively, and US$184 and US$124 per carat for two Faraday 3 parcels of 268.45 and 188.20 carats respectively.

For the Faraday 2 kimberlite, WWW recommends using a modelled average price of $73 per carat with a ‘low’ value of $56 per carat and a ‘high’ value of $100 per carat. For the Faraday 3 kimberlite, WWW recommends using a modelled average price of $87 per carat with a ‘low’ value of $65 per carat and a ‘high’ value of $125 per carat, while for the Faraday 1 kimberlite, WWW recommends using a modeled average price of $164 per carat with a ‘low’ value of $108 per carat and a ‘high’ value of $267 per carat. WWW noted that due to the small size of the sample, "there is a high degree of uncertainty in the models.” In addition to the 7.78 carat sawable octahedron, five highest value diamonds on a dollar per carat basis from the Faraday bulk samples include 4.02 carat sawable octahedron valued at US$2,526 per carat, a 3.08 carat sawable octahedron valued at US$1,966 p/ct, a 4.72 carat sawable octahedron valued at US$1,667 p/ct and a 2.37 carat sawable diamond valued at US$1,502 p/ct.