Nov 27, 2014

Kennady Diamonds: New K2 Camp will Boost Drilling at Kelvin Kimberlite

Canada’s Kennady Diamonds has commissioned a newly-constructed 50-person advanced exploration camp adjacent to the Kelvin kimberlite and commenced mobilisation for drilling as well. The new location is closer to the Kelvin – Faraday kimberlite corridor, and will enable the copmany to conduct drilling for most of the year, as well asaccelerate delineation of the Kelvin and Faraday kimberlites.

Earlier, drilling activity was co-ordinated from the Bob camp which isabout 20km away. This camp will now be transformed into the a regional exploration camp for the Company's 100 percent controlled Kennady North diamond project located in Canada's Northwest Territories.

Unfavourable weather conditions which limited the company’s ability to safely service the drill rigs by helicopter from Bob camp had led to the suspension of drilling at the Kelvin kimberlite.

Kennady Diamonds CEO Patrick Evans said: “The drilling set to resume this week will continue to delineate the Kelvin kimberlite to the north-northeast in the direction of the Faraday kimberlite which is approximately 1 kilometer to the northeast."

Kennady Diamonds aims to define a resource along the Kelvin – Faraday kimberlite corridor of between 9 and 12 million tonnes at a grade of more than 2 carats per tonne and also to identify new kimberlites outside of the corridor.

Approximately 16,600 meters has been drilled at the Kelvin kimberlite during 2014 summer/fall. Based on success to date, the Company's target has been increased to 18,000 meters. In addition, approximately 28.7 tonnes of kimberlite has so far been recovered from Kelvin and the Company has increased its target to 30 tonnes.

Approximately 5 tonnes of kimberlite from Kelvin is currently being processed by caustic fusion at the Geoanalytical Laboratories Diamond Services of the Saskatchewan Research Council and a further 24 tonnes is to be dispatched shortly.