Kennady Diamonds Adds 5M Cts Inferred Resource to Kennady North Project

Mining and Exploration
04/10/2017 15:39

Kennady Diamonds, a Canadian diamond exploration company headquartered in Toronto, has reported a maiden Inferred Mineral Resource (IMR) of more than 5.02-million carats for the Faraday kimberlites at the Company’s 100 percent owned Kennady North Project in Canada’s Northwest Territories, the company announced in a press release. The IMR result builds significantly on their Kelvin Indicated Resource of 13.62 million carats and, "represents another significant step in the advancement of our Kennady North Project", said President and CEO of Kennady Diamonds Dr. Rory Moore. They state tha an IMR of 5.02 million carats of diamonds is contained in 3.27 million tons of kimberlite, with an overall grade of 1.54 carats per ton and an average value of US$98 per carat.

Kennady said more drill work is needed at the Faraday 1 kimberlite and two minor domains of Faraday 2 to define a compliant mineral resource. According to CEO Moore, "Continued upside potential exists for the Faraday Resource from the additional strike added to Faraday 2 during our successful summer 2017 program, which is not included in the current resource estimate. This additional tonnage, together with that from Faraday 1 and the high-grade sheets associated with the Faraday 1-3 Complex have potential to materially increase the overall Faraday resource, particularly in view of the robust modelled diamond values obtained for the small sample of Faraday 1 of US$108, US$164 and $267 per carat for the ‘low’, ‘base case’ and ‘high’ values respectively.”

History

The Kennady North Project has been the focus of numerous exploration programs since 1992, culminating with the discovery of the Kelvin and Faraday kimberlites. Exploration activity was suspended in 2003 and resumed in 2011. Exploration work has been performed by a number of operators. Initial exploration was conducted under the direction of Mountain Province Diamonds as the 100 percent owner. Subsequent to the formation of a joint venture with De Beers in 1997, De Beers Canada conducted exploration activity. In 2005, Mountain Province resumed 100 percent control over the Kennady North Project and supervised exploration through to May 2012, when Kennady Diamonds Inc. was established.