Kennady Diamonds Announces Kelvin Diamond Recovery Results

Kelvin total sample grade 2.16 carats per tonne

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TSX-V: KDI

TORONTO, Oct. 6, 2014 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) today announced the diamond recovery results from the Kelvin 25 tonne mini-bulk sample. The sample was processed by dense media separation at the Geoanalytical Laboratories Diamond Services of the Saskatchewan Research Council ("SRC").

Commenting, Kennady Diamonds CEO Patrick Evans said: "The Kelvin total sample grade of 2.16 carats per tonne is in line with our guidance of 'better than 2 carats per tonne' and confirms the potential for Kelvin to host a high grade diamond resource. It's apparent, however, that the number of larger diamonds in the sample is lower compared with previous Kelvin samples. A higher frequency of larger diamonds in previous samples resulted in sample grades well above 2 carats per tonne. The sampling and treatment methods used for the mini-bulk sample will be reviewed to understand the reasons for this."

Mr. Evans added: "In the meantime, we expect to recover a further 28 tonne mini-bulk sample as part of the current summer/fall Kelvin drill program and this sample will be dispatched to the SRC for processing as soon as possible. We expect the diamond recovery results from this second mini-bulk sample to aid in understanding the diamond size frequency distribution of the Kelvin kimberlite."

The 25 tonne sample was recovered by drilling from ice in an area where the Kelvin kimberlite outcrops at surface or where the country rock cover is relatively thin. Prior to processing, the Kelvin sample was divided into four batches based on four distinct kimberlite phases.  These four phases were defined in consultation with SRK Consultants, Vancouver, BC. The thickness of the four phases is variable along strike. Table 1 below describes the four phases.

Table 1 – Kelvin Kimberlite Phases

Table 2 below summarizes the diamond recovery results from the four Kelvin phases and provides details of the total Kelvin sample.

Table 2 – Kelvin Diamond Recovery Results

*Includes DMS and recovery cleanup
**2013 sample processed by caustic fusion at the SRC. Results reported December 16, 2013

The three largest diamonds recovered from the Kelvin mini-bulk sample are described by the SRC as:

• 1.27 carat off-white, transparent, broken, irregular with inclusions;
• 1.00 carat white/colorless, transparent, dodecahedron, twin with minor inclusions; and
• 0.70 carat white/colorless, transparent, dodecahedron, twin with minor inclusions.

Photographs of the above diamond can be viewed on the Company's website at www.kennadydiamonds.com.

As part of the summer/fall exploration program, delineation, infill and bulk-sample drilling at the Kelvin kimberlite is continuing. Approximately 14,000 meters of drilling has been completed to date and approximately 25.3 tonnes of kimberlite has been recovered. Based on the success of the summer/fall drill program the Company is reviewing its tonnage target for the Kelvin – Faraday kimberlite corridor, which currently stands at 7 to 10 million tonnes.

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 7 and 10 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.

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.