Kennady Diamonds Updates Kelvin - Faraday Kimberlite Drilling

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TSX-V: KDI

• Wide kimberlite intercept to the north of current Kelvin geological model
• Faraday delineation drilling underway
• Over 9 tonnes of kimberlite recovered from Kelvin

TORONTO, April 15, 2014 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to provide an update on resource drilling at the Company's 100-percent controlled Kennady North diamond project located in Canada's Northwest Territories.

Kennady Diamonds CEO, Patrick Evans, noted: "Delineation drill hole KDI-14-018 intersected kimberlite over 80 meters with substantially all of the kimberlite to the north and beyond the current Kelvin geological model. This is an exciting development and confirms the potential for substantial additional tonnage at the Kelvin kimberlite". Mr. Evans added: "We are also very encouraged by the wide intercept of over 23 meters of kimberlite in the first Faraday delineation drill hole".

Delineation drilling at the Faraday kimberlite is currently taking place in the area known as Faraday 2 where recently completed ground geophysics has identified anomalies comparable in size to the Kelvin main kimberlite and northwest lobe. Delineation drilling is also planned in the areas known as Faraday 1 and 3 where encouraging geophysical anomalies have also recently been identified. Limited drilling at the Faraday kimberlite in the spring of 2013 resulted in the recovery of approximately 116 kilograms of kimberlite, which returned an exceptional sample grade of over 11 carats per tonne.

Eighteen delineation drill holes have been completed at the Kelvin kimberlite with kimberlite intersected in seventeen of the eighteen drill holes. Drill hole KDI-14-018 intersected over 80 meters of kimberlite in an area to the north of the current Kelvin geological model.  As this is an area where the Kelvin kimberlite is below land, further delineation drilling is being planned for the summer of 2014. Table 1 below details the latest delineation drill results.

Table 1

*Not true widths
**Includes minor country rock intercepts

Table 2 below details the results from six further Kelvin larger diameter drill holes where drilling is focused on the recovering of a mini-bulk sample.

Table 2

*Includes minor country rock intercepts

Approximately 4,000 meters of drilling has been completed at the Kelvin kimberlite to date, resulting in the recovery of over 9 tonnes of kimberlite.

Mr. Evans concluded: "The Kelvin larger diameter drilling is continuing to recover wide intercepts in vertical and near vertical holes, which is very encouraging".

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About Kennady Diamonds
Kennady Diamonds Inc. controls 100 percent of the Kennady North diamond project located immediately to the north, west and south of the Gahcho Kué diamond mine currently under development by De Beers and Mountain Province Diamonds.

Kennady Diamonds aims to identify a resource along the Kelvin – Faraday kimberlite corridor of between a 5 and 8 million tonnes and also to identify new kimberlites outside of the corridor. This tonnage estimate is based on the drilling completed to date. The potential quantity is conceptual in nature as there has been insufficient drilling to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

An 8,500 meter drill program conducted in 2013 returned exceptional sample grades. A 4.3 tonne sample from the Kelvin kimberlite retuned a grade of 5.38 carats per tonne. A smaller 116 kg sample from the Faraday kimberlite returned a sample grade of 11.23 carats per tonne. The three largest diamonds recovered from the Kelvin kimberlite were a 2.48 carat off-white transparent octahedral, 1.06 carat off-white broken aggregate and a 0.90 carat off-white transparent irregular. The recovery of diamonds of this size and quality from a 4.3 tonne sample is very encouraging.

Qualified Person
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.

SOURCE Kennady Diamonds Inc.