Kennady Diamonds Step-out Drilling Intersects over 80 meters of Kimberlite at Kelvin

$1.5M Private Placement Closes

Shares Issued and Outstanding: 19,693,609
TSX-V: KDI

TORONTO, Aug. 21, 2013 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to announce that over 80 meters of kimberlite has been intersected in step-out drilling along strike to the north-west of the main Kelvin kimberlite. The step-out drilling, which is taking place approximately 50 meters to the north-west of Kelvin Lake, is increasing our confidence in the tonnage potential of the Kelvin kimberlite. Table 1 below details recent drill results.

Table 1

Drill Hole	Target	Azimuth	Inclination from Horizontal	Kimberlite Intercepts (m) Approximate			End of Hole (m)
				From	To	Intercept*
KDI-13-037	Kelvin	035	-45	62.00	66.00	4.00	109
KDI-13-038	Kelvin	035	-60	61.00	99.12	38.12	139
KDI-13-039	Kelvin	035	-75	75.02	155.73	80.71	166

*Not true widths

Patrick Evans, Kennady Diamonds CEO, commented: "We are very encouraged that the step-out drilling continues to intersect kimberlite well to the north-west of the main Kelvin kimberlite body. The delineation and infill drilling is contributing to our understanding of the kimberlite structure and geology and should enable us to develop 3D models of the kimberlite. Delineation drilling to determine the limits of the kimberlite emplacement the north-west of the main Kelvin body is continuing."

Based on the success to date of the summer drill program, Kennady Diamonds has decided to extend the drill program beyond the original planned 2,500 meters to as much as 3,000 meters. The current summer drill program is expected to result in the recovery of more than 2,000 kilograms of kimberlite, which is double the 1,103 kilograms recovered during last winter's 5,000 meter drill program. This reflects the high success rate of the current drill program. At the conclusion of the drill program in September, the recovered kimberlite will be dispatched to the Geoanalytical Laboratories Diamond Services at the Saskatchewan Research Council for recovery of diamonds by caustic fusion.

Mr. Evans concluded: "We expect to release diamond recovery results early in the fourth quarter. The additional data will facilitate progress towards the first resource statement for the Kennady North project and also add significantly to our diamond data base".

Kennady Diamonds also confirmed the closing of the previously announced non-brokered private placement of flow-through and non-flow-through common shares, for gross proceeds of $1.5 million. The Company has issued 34,300 flow-through common shares at a price of $1.80 per share and 958,840 non-flow-through common shares at a price of $1.50 per share. The shares are subject to a four month hold period, expiring on December 15, 2013. Proceeds of the private placement will be used primarily for the Company's ongoing summer drill program at Kennady North and for working capital.

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About Kennady Diamonds
Kennady Diamonds Inc. controls 100 percent of the Kennady North project which comprises thirteen leases and claims located immediately to the north and west of the four leases controlled by the Gahcho Kué Joint Venture between De Beers Canada (51%) and Mountain Province (49%) located in Canada's Northwest Territories.

A 5,000 meter drill program conducted during the winter of 2013 returned an exceptional sample grade of 8.44 carats per tonne. The largest three diamonds recovered were a 2.48 carat off-white transparent octahedral, a 0.90 carat off-white transparent irregular, and a 0.75 carat off-white transparent octahedral. The recovery of diamonds of this size and quality from a 1.1 tonne sample is very encouraging.

Kennady Diamonds aims to identify a resource along the Kelvin - Faraday kimberlite corridor of between 5 and 8 million tonnes, and also to identify new kimberlites outside of the corridor. This 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.

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Qualified Person
This news release has been prepared under the supervision of Carl G. Verley, P.Geo., who serves as the qualified person under National Instrument 43-101.

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.

Kennady Diamonds Inc.
Patrick Evans, President and CEO
[phone]
[email protected]