Mar 09, 2018

Kennady North Winter Drilling Programme Progresses Satisfactorily

Kennady Diamonds Inc., in an  update on its winter drilling programme on the Kennady North Project,  reported that winter infrastructure is now in place and that two core rigs are fully operational. Drilling has been completed to a total of 990 meters.   

The Company presented  initial results on two geotechnical holes and three exploration/delineation holes completed on the Faraday 1-3 kimberlite, with all five holes intersecting kimberlite.

President and CEO of Kennady Diamonds, Dr. Rory Moore commented: “In spite of severe storms and extremely cold temperatures, our winter programme is proceeding smoothly. Good progress has been made on the geotechnical drilling on Faraday 1-3 as we work towards collecting the required data to complete a pre-feasibility level geotechnical study for use in future open pit design work.”

He added: “The kimberlite intercepts in a number of the drill holes completed to date have also been better than anticipated, and will be accretive to kimberlite tonnage potential when the geological model for Faraday 1-3 is updated.”

Now, work to begin delineation drilling of the northwest extension will begin at  Faraday 2, where one rig has been sent. “The northwest extension was discovered in the summer 2017 programme, and extends the Faraday 2 kimberlite by over 150 meters,” the Company explained. “Recently completed logging of the 2017 core confirms that the geologic units within the Faraday 2 inferred resource continue into the northwest extension.” 

For the 2018 winter programme, the  Company has planned a total of around 10,500 meters of diamond drilling. Of this 40% will be assigned “to delineation and geotechnical drilling of the Faraday bodies”; and 60% will be “dedicated to testing high-priority grassroots exploration targets within the Kelvin-Faraday Corridor”, the Company explained.

Once drilling on the Faraday 1-3 kimberlite is completed, the Company will commence    exploration drilling on the high-priority targets.

Kennady also announced that it has closed the second tranche of the private placement of common shares announced in connection with the transaction with Mountain Province Diamonds Inc. “The Company has issued 1,000,000 common shares at a price of $2.50 per share for proceeds of $2,500,000,” the Company elaborated. “The shares are subject to a four month hold period expiring on June 29, 2018.”

Proceeds of the offering will be used to fund the Company’s 2018 winter exploration programme on the Kennady North Project and for general corporate purposes, Kennady stated.