Kennady Diamonds Announces Completion of Successful 2013 Winter Drill Program

• 24 out of 26 infill drill holes intersect kimberlite
• Intersects up to approx. 100 meters
• Preparation of maiden geological resource statement to commence
• Potential for follow-up summer drill program

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TSX-V: KDI

TORONTO, May 28, 2013 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to announce the successful completion of the plus 5,000 meter Kennady North 2013 winter drill program. Kimberlite was intersected in 24 out of 26 infill drill holes completed at the Kelvin and Faraday kimberlites with most intercepts ranging from a few meters to approximately 100 meters.

Commenting on the programs results, Kennady Diamonds CEO Patrick Evans said: "We are pleased with the very high success rate that we've had with the infill drill program at the Kelvin and Faraday kimberlites. All but two of the completed drill holes intersected kimberlite. The results of our infill drill program have provided us with a significant data set which will enable us to commence modeling of the Kelvin and Faraday kimberlites in preparation for a maiden geological resource statement".

A preliminary interpretation of the drill results suggests the Kelvin kimberlite body and the Faraday kimberlite body should be treated separately.  Both the Kelvin and Faraday kimberlites each have a strike of over 1 kilometer, trending southwest to the northeast, and appear to be steep dipping dyke/sheet structures.

Of significance in the main Kelvin kimberlite area are the broad intersections of 33.04 meters, 99.13 meters and 51.6 meters in three different holes (KDI-13-001, KDI-13-025 and KDI-13-027, respectively).  The geometry of this area has yet to be confirmed, but indications are that these wide intersections are due to possible blows along the dyke/sheet system or the main Kelvin kimberlite may be coincident with a small kimberlite pipe. 

The Faraday kimberlite contains two reasonable intersections of 19.31 meters and 6.43 meters in KDI-13-009 and KDI-13-012, respectively, both in the same central section.  The geometry of the Faraday kimberlite is not yet as well understood as the Kelvin kimberlite.  The full strike length of both the Kelvin and Faraday kimberlites has yet to be determined, but the results of the winter drill program will aid in defining the strike length to a higher degree of confidence.

Mr. Evans added: "Based on our preliminary interpretation, it appears that the Kelvin - Faraday kimberlite corridor has significant exploration potential.  Although preliminary, a conceptual model might be De Beers' Snap Lake deposit, which is a 1 to 3 meters wide kimberlite dyke with an indicated resource of 2.5 million tonnes (grading approx. 1.90 carats per tonne) and an inferred resource of 23.1 million tonnes (grading approx. 1.77 carats per tonne). It would be premature to compare the Kelvin - Faraday grade and tonnage to the Snap Lake deposit, but the significant widths encountered along the Kelvin - Faraday corridor exceed those present at the Snap Lake deposit."

Table 1 below summarizes the drilling results.

Table 1
Kennady North 2013 Drill Results

*Not true width
*KDI-13-023 stopped at 56m due to drifting. Re-drilled as KDI-13-023a

All but two of the above drill holes were infill holes designed to define the Kelvin - Faraday kimberlite corridor. Two geophysical targets to the northwest of the Faraday kimberlite were selected for drill testing. The first drill hole (KDI-13-026) did not intersect kimberlite. Drilling of the second target (KDI-13-028) had to be abandoned on May 25, 2013, due to unstable ice conditions.

Kimberlite recovered from the 2013 winter drill program will be prepared for dispatch to the Saskatchewan Research Council Geoanalytical Laboratories for the recovery of diamonds by caustic fusion. Results of the analysis are expected to be available during the third quarter. Combined with the diamond recoveries from previous drill programs, this data should be sufficient to undertake grade modeling of the Kelvin - Faraday kimberlites.

Once analysis of the winter drill results has been completed, Kennady Diamonds and Aurora Geosciences Ltd., managers of the Kennady North exploration program, will assess the potential for a follow-up summer drill program. The potential exists for further infill drilling of the Kelvin and Faraday kimberlites to be conducted from land, particularly to the northwest of the main Kelvin kimberlite and along the southwest trend of the Faraday kimberlite. A decision in this regard will be made before the end of the current quarter.

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.

Qualified Person
This news release has been prepared under the supervision of Mr. Gary Vivian, M.Sc., 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.

SOURCE Kennady Diamonds Inc.