Kennady Diamonds Updates Kelvin Kimberlite Drilling

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• Kelvin vertical delineation hole intersects 195 meters of kimberlite
• Kelvin diagonal delineation hole intersects 167 meters of kimberlite
• 14 meters of kimberlite intersected at Kelvin Dyke
• 16,600 meters drilled to date
• 28.7 tonnes of kimberlite recovered to date
• 5 tonne Kelvin kimberlite sample dispatched for diamond recoveries
• 24 tonne Kelvin mini-bulk sample to be dispatched by end November

TORONTO, Oct. 30, 2014 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to announce the latest results from the 2014 fall drill program at the Company's 100 percent controlled Kennady North diamond project located in Canada's Northwest Territories.

Commenting, Kennady Diamonds CEO Patrick Evans said: "The Kelvin drill program continues to delivered excellent results. Exploration and delineation drilling has increased the strike of the Kelvin kimberlite pipe to over 600 meters and the volume continues to increase on strike to the north."

Mr. Evans added: "Despite good progress, unfavorable weather conditions, principally dense fog, limited our ability to safely service the drill rigs by helicopter. Accordingly, the fall drill program was stopped temporarily this week while construction of the nearby Kelvin camp is completed. The Kelvin camp is expected to be commissioned by mid-November, following which drilling will recommence."

Table 1 below details the results of delineation holes drill at the Kelvin kimberlite pipe.

Table 1

Kelvin 2014 Fall Delineation Drill Program

*Includes minor country rock intercepts

**Intersects in sub-vertical holes not true widths

The second of three northerly "fan" delineation drill holes (KDI-14-033b), which was drilled from the same collar and at the same azimuth as KDI-14-033a, but at an inclination of -80 degrees, appears to have drilled over the top of the Kelvin pipe intersecting a narrow seam of kimberlite at depth.  Preliminary analysis of available exploration data indicates that the Kelvin pipe may be turning from north to northeast in the direction of the Faraday kimberlite, which is approximately one kilometer to the northeast. Exploration data will continue to be analyzed to ensure optimal positioning of the next "fan" delineation hole when drilling recommences in November.

Table 2 below details the results of two exploration holes drilled at the Kelvin dyke/sheet structure to the south of the Kelvin pipe.

Kelvin 2014 Fall Exploration Drill Program

*Includes minor country rock intercepts

**Intersects in sub-vertical holes not true widths

Mr. Evans commented: "We are very pleased with the wide intercepts at the Kelvin dyke/sheet holes drilled to the south of the Kelvin pipe. The Kelvin dyke/sheet structure strikes southwest from the Kelvin pipe over a distance of about one kilometer and dips gently to the northwest. Drilling to date indicates good continuity and the potential for substantial kimberlite tonnage."

To date, approximately 16,600 meters has been drilled at the Kelvin kimberlite as part of the 2014 summer/fall drill program. Based on the continuing success, the Company's target has now been increased to 18,000 meters. In addition, approximately 28.7 tonnes of kimberlite has been recovered from Kelvin and the Company has now increased its target to 30 tonnes.

The Company is also pleased to announce that approximately 5 tonnes of kimberlite from Kelvin has been dispatched to the Geoanalytical Laboratories Diamond Services of the Saskatchewan Research Council ("SRC") for processing by caustic fusion. In addition, preparations are underway for a further 24 tonnes of Kelvin kimberlite to be dispatched to the SRC by the end of November for processing at the dense media separation plant.  The diamond recovery results from these samples are expected by the end of the year.

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 define a resource along the Kelvin – Faraday kimberlite corridor of between 9 and 12 million tonnes at a grade of more than 2 carats per tonne 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.