Kennady Diamonds Inc. has announced that the results of a preliminary valuation of diamonds recovered from the Kelvin kimberlite confirm that Kelvin hosts a population of high value gem quality white diamonds. The average values of the sample were estimated at US$ 123 per carat.

The valuation study was carried out in Antwerp by WWW International Diamond Consultants in the presence of Howard Coopersmith, an independent consultant.

Four separate diamond parcels were valued, representing Zone A (442.82 carats), Zone B (447.05 carats), Zone C (80.44 carats) and a small mixed parcel (16.79 carats). For Zone A, WWW has recommended using an average modeled price of US$56 per carat and for Zone B US$70 per carat. The parcel from Zone C was too small for WWW to create modeled values, so an average price of US$123 per carat was reported. It is not yet possible to report an average modeled value for the composite Kelvin kimberlite due to the small size of the Zone C parcel, the company said.

WWW noted that while there are only 88 diamonds greater than 0.66 carats per stone in the combined parcel, “it is encouraging to see so many good colour white gem stones especially in the C sample, with five of the eight stones being good colour and gem quality.” The three highest value diamonds are:

• 4.22 carat diamond from Zone B valued at US$1,603 per carat;
• 2.58 carat diamond from Zone C valued at US$1,366 per carat; and
• 2.38 carat diamond from Zone C valued at US$1,196 per carat.

Kennady Diamonds President and CEO Patrick Evans commented: “We are very pleased with the results which confirm that Kelvin hosts a population of high value gem quality white diamonds. These good results were achieved despite the valuation being done at a challenging time with the rough diamond price index at multi-year lows.”

Independent consultant H.  Coopersmith noted: “An encouraging proportion of the larger gem quality diamonds show very high colour and clarity characteristics. Recovering stones of this quality in small parcels lends one to get excited about seeing larger parcels. Further bulk sampling is clearly warranted.”

The company said it is now proceeding with preparations to take a further 500 tonne bulk sample from the Kelvin North Lobe during the winter of 2016. With this it expects to achieve the generally accepted level of approximately 2,000 carats are required for reliable revenue modeling.