Shares Issued and Outstanding: 50,867,933
TSX-V: KDI
Collective average price of US$109 per carat
7.78 carat gem
from F3 valued at US$2,967 per
carat
TORONTO, Aug. 8, 2017 /CNW/ - Kennady Diamonds Inc.
("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to
announce the valuation results for diamonds recovered from the
Faraday kimberlites at the 100 percent-controlled Kennady North
project located in Canada's
Northwest Territories. A total of
1,259.16 carats (+0.85mm) recovered from the 2017 bulk sampling
program was sent to WWW International Diamond Consultants ('WWW')
in Antwerp for valuation. WWW has
reported a collective average value of US$109 per carat for the entire parcel. In
particular a population of high value white gem quality stones was
noted in all three of the Faraday bodies, including a 7.78 carat
sawable diamond recovered from Faraday 3 valued at US$2,967 per carat. Summary results are
presented in Table 1 below.
Table 1: Summary of the Faraday Diamond
Valuations (0.85 mm bottom cutoff)
Zone
|
Parcel Size
(carats)1
|
Parcel
Value2
(US$)
|
Average
Price2
(US$/carat)
|
Faraday 1
|
76.04
|
$10,974
|
$144
|
Faraday 2
|
726.47
|
$54,124
|
$75
|
Faraday 3
|
456.65
|
$72,738
|
$159
|
TOTAL3
|
1,259.16
|
$137,835
|
$109
|
Notes: 1 – Only diamonds greater
than +1 DTC sieve size are reported. 2 – Based on WWW price book as
at July 31, 2017. 3 – Some rounding error may occur in the
values reported.
|
President and CEO of Kennady Diamonds, Dr. Rory Moore commented: "We are delighted with the
results of the Faraday bulk sampling program. Our previously
reported grades that range between 1.67 and 2.91 carats per tonne
for the three Faraday kimberlites, combined with these valuations,
provide a strong foundation on which to build a high-value resource
at the Faradays. It is also gratifying to see strong prices for
larger white gems represented in the parcel, as evidenced by the
$2,967 per carat value assigned to
the 7.78 carat gem recovered from Faraday 3."
The five highest value diamonds on a dollar per carat basis from
the Faraday bulk samples include:
- 7.78 carat sawable octahedron from Faraday 3 valued at
US$2,967 per carat
- 4.02 carat sawable octahedron from Faraday 3 valued at
US$2,526 per carat
- 3.08 carat sawable octahedron from Faraday 3 valued at
US$1,966 per carat
- 4.72 carat sawable octahedron from Faraday 2 valued at
US$1,667 per carat
- 2.37 carat sawable diamond from Faraday 2 valued at
US$1,502 per carat
Images of select diamonds are available on the Company's website
at www.kennadydiamonds.com.
The valuation results for Faraday 2 and 3 consist of two
sub-parcels from each body. The sub-parcels represent
broadly-defined geological divisions that may have importance as
the bodies are advanced to resource status. WWW determined
market values of US$60 and
US$83 per carat for the Faraday 2
sub-parcels that were 456.76 carats and 269.71 carats respectively,
and US$184 and US$124 per carat for two Faraday 3 parcels of
268.45 and 188.20 carats respectively. The relevance of these
geological divisions will be assessed as the Company advances the
Faraday bodies.
Based on sample weight and diamond size frequency distributions,
modeled values were produced for the five individual samples and
then for each of the three kimberlites. For the Faraday 2
kimberlite, WWW recommends using a modelled average price of
$73 per carat with a 'low' value of
$56 per carat and a 'high' value of
$100 per carat. For the Faraday 3
kimberlite, WWW recommends using a modelled average price of
$87 per carat with a 'low' value of
$65 per carat and a 'high' value of
$125 per carat, while for the Faraday
1 kimberlite, WWW recommends using a modeled average price of
$164 per carat with a 'low' value of
$108 per carat and a 'high' value of
$267 per carat. In their
report, WWW noted: "Given the combined sample weight of only 1,259
carats, with the largest sample of just 457 carats and the smallest
of 76 carats, there is a high degree of uncertainty in the
models."
The results of the Faraday bulk sample valuation, combined with
grade and modeling results, will be used to prepare an independent
NI 43-101 resource statement for the Faraday kimberlites that is
expected to be released before the end of the current quarter.
Dr. Moore concluded: "It is gratifying to see a notably higher
proportion of white gems together with a coarser size distribution
of Faraday diamonds relative to Kelvin, which translates into
significantly higher average diamond prices. These results
represent a major step forward for Kennady towards its goal of
defining an economic diamond deposit on the Kennady North
Project."
About Kennady Diamonds
Kennady Diamonds Inc. controls
100 percent of the Kennady North diamond project located in
Canada's Northwest Territories. Kennady North is
adjacent to the Gahcho Kué Diamond Mine, a joint venture between De
Beers Canada (51%) and Mountain
Province (49%), which achieved started production in late
2016. Kennady is focused on expanding its high-grade diamond
resources along the Kelvin – Faraday kimberlite corridor, as well
identifying new kimberlites outside of the corridor. To date an
indicated resource of 13.62 million carats of diamonds contained in
8.50 million tonnes of kimberlite, with a grade of 1.60 carats per
tonne and an average value of US$63
per carat has been defined for the Kelvin kimberlite using a 1mm
diamond bottom cutoff size. The Kelvin – Faraday corridor is also a
target for further exploration.
Qualified Persons
This news release has been prepared
by Dr. Rory Moore, P.Geo., President
and CEO of Kennady Diamonds. The technical contents of this news
release have been reviewed and approved by Dr. Tom McCandless, P. Geo., an independent director
of Kennady Diamonds and Qualified Person under National Instrument
43-101.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) has reviewed or accepts responsibility for the
adequacy or accuracy of this release.
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.