Toronto, Ontario, July 30, 2012
– Kennady Diamonds Inc. (“Kennady Diamonds”, the “Company”) (TSX- V: KDI) is pleased to announce that the first drill hole at Kelvin Lake in the Northwest Territories of Canada has intersected kimberlite over more than 70 meters from a down-hole depth of approximately 102 meters to a depth of approximately 173 meters. The inclined hole was drilled from the northwest shore of Kelvin Lake at an angle of approximately minus 45 degrees to the east-southeast.
Kennady Diamonds President and CEO Patrick Evans commented: “This is a very encouraging start to our drill program at Kelvin Lake. The current drill program is designed to provide an understanding of the size, shape and grade of the Kelvin and Faraday kimberlites. Information gained from the summer drill program will guide us as we design the 2013 winter drill program at Kennady North”.
Kelvin Lake is located immediately to the south of Faraday Lake where Kennady Diamonds has intersected kimberlite in two core holes. Kennady Lake, site of the Gahcho Kué joint venture between De Beers Canada and Mountain Province Diamonds, is approximately 9 kilometers to the southwest of Kelvin Lake.
Core recovered from the Kennady North summer drill program will be sent to Saskatchewan Research Council analytical laboratory for microdiamond testing by caustic fusion. The results will be released as soon as they become available.
About Kennady Diamonds
Kennady Diamonds controls 100 percent of the Kennady North project which comprises thirteen leases and claims located to the west and north of the four leases controlled by the Gahcho Kué Joint Venture between De Beers Canada (51%) and Mountain Province (49%) located in Canada’s Northwest Territories.
Exploration at Kennady North commenced in the late 1990’s and resulted in the discovery of the diamond-bearing Kelvin, Faraday and Hobbes kimberlites. The number of diamonds recovered from these kimberlites and the size-frequency distribution indicate that they may be of comparable grade to the 5034 (1.77 carats per tonne) and Hearne (2.10 carats per tonne) kimberlites at the Gahcho Kué JV. Exploration samples from Kelvin and Faraday returned a relatively large number of macro diamonds with the two largest being a 0.4 carat diamond from Faraday and a 0.09 carat diamond from Kelvin.
The known kimberlites at Kennady North do not explain all the kimberlitic indicators previously recovered from glacial till sampling. Exploration at Kennady North was suspended in 2004 when Mountain Province focused its attention on the Gahcho Kué pre-feasibility and feasibility studies.
Exploration at Kennady North recommenced during 2011 with a 50-meter line-spacing airborne gravity gradiometry (AGG) survey over the entire 123.6 square kilometer project area. The survey identified 106 geophysical targets. Mountain Province recently completed a 560-line-kilometre total magnetic field (MAG) ground survey over all 106 geophysical targets identified by the AGG survey. The 39 high priority targets identified through the AGG and MAG surveys will be drilled as part of the current summer drill program (approximately 20 drill targets) and 2013 winter drill program (approximately 20 drill targets).
This news release has been prepared under the supervision of Carl G. Verley, P.Geo., who serves as the 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.
For further information, please contact:
Kennady Diamonds Inc.
Patrick Evans, President and CEO (416) 640-1111