Kennady Diamonds Inc. yesterday  announced that it had filed a National Instrument (NI) 43-101 technical report titled “Project Exploration Update and Faraday Inferred Mineral Resource Estimate, Kennady North Project, Northwest Territories, Canada” dated   November 16, 2017 (the Technical Report) on SEDAR. 

SEDAR  is the official site providing access to public securities documents and information filed with 13 provincial and territorial securities regulatory authorities (Canadian Securities Administrators or CSA) of  Canada.

Kennady’s Technical Report reiterates the maiden Inferred Mineral Resource of 5.02 million carats for the Faraday kimberlites announced earlier by the Company in early  October, 2017.

“The Inferred Mineral Resource of 5.02 million carats of diamonds declared for the Faraday kimberlites is contained in 3.27 million tonnes of kimberlite, with an overall grade of 1.54 carats per tonne and an average value of US$ 98 per carat,” the Company stated.

Apart from this, the report also provides an overview of exploration work completed on the Kennady North Project to date, as well as a summary of the Indicated Mineral Resource of 13.62 million carats of diamonds for the Kelvin kimberlite that was the subject of previous Technical Report published on January 24, 2017, Kennady divulged.

President and CEO of Kennady Diamonds Dr. Rory Moore stated: “I congratulate our technical team and the authors of the report, Mr. Gary Vivian and Dr. Tom Nowicki for a job well done. The addition of the high-value Faraday resource to the existing Kelvin resource represents another significant milestone for Kennady towards its goal of growing the economic diamond resource on the Kennady North Project.”

The NI 43-101 Standards and Canadian Institute of Mining and Metallurgy guidelines for Mineral Resources and Mineral Reserves stipulate that a Mineral Resource needs to have a “reasonable prospect of economic extraction of the specified ore”, Kennady explained.

The Company elaborated further saying : “Mineral Services concluded that the Faraday kimberlites have reasonable prospects for eventual economic extraction by virtue of their close proximity and similar overall diamond grade and value to Kelvin, for which such prospects have recently been demonstrated. Inferred Mineral Resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.”

The Company is now proceeding to further analyse specific areas at Faraday 1 and Faraday 2,  described as “Target for Further Exploration (TFFE)”.

The Company cautioned  that the estimate of TFFE is conceptual in nature as there has been insufficient exploration to define a Mineral Resource and “it is uncertain if future exploration will result in the estimate being delineated as a Mineral Resource”.

“Neither the TFFE nor the Inferred Resource for Faraday 2 take into account the results from the summer 2017 drilling program, which extends the kimberlite to the north by 150 meters,” the Company concluded.