Kennady Files NI 43-101 Faraday Resource Report on SEDAR
Inferred Mineral Resource of 5.02 Million Carats
3.27 million tonnes at 1.54 carats per tonne and US$98 per carat
Toronto, Ontario: November 20, 2017 – Kennady Diamonds Inc. (“Kennady”, the “Company”) (TSX-V: KDI) is pleased to announce the filing on Sedar of a National Instrument (“NI”) 43-101 technical report titled “Project Exploration Update and Faraday Inferred Mineral Resource Estimate, Kennady North Project, Northwest Territories, Canada” dated effective November 16, 2017 (the “Technical Report”). The Technical Report describes the maiden Inferred Mineral Resource of 5.02 million carats for the Faraday kimberlites announced in the Company news release dated October 3, 2017. The report also provides an overview of exploration work completed on the Kennady North Project to date, as well as a summary of the Indicated Mineral Resource of 13.62 million carats of diamonds for the Kelvin kimberlite that was the subject of previous Technical Report published on January 24, 2017.
President and CEO of Kennady Diamonds Dr. Rory Moore stated: “I congratulate our technical team and the authors of the report, Mr. Gary Vivian and Dr. Tom Nowicki for a job well done. The addition of the high-value Faraday resource to the existing Kelvin resource represents another significant milestone for Kennady towards its goal of growing the economic diamond resource on the Kennady North Project.”
Faraday Inferred Mineral Resource
The Inferred Mineral Resource of 5.02 million carats of diamonds declared for the Faraday kimberlites is contained in 3.27 million tonnes of kimberlite, with an overall grade of 1.54 carats per tonne and an average value of US$98 per carat. The resource has been calculated with a 1mm diamond bottom cutoff size, which is considered a reasonable cutoff for a commercial mining scenario. The resource was determined through the collective efforts of Aurora Geosciences Ltd., Mineral Services Canada Inc., and SRK Consulting Inc., who were engaged by the Company to participate in the exercise.
The Faraday Mineral Resource estimate is based on four main components: –
- A geological model that defines the boundaries of the deposit (external pipe shell) as well as the geologically distinct domains of which it is comprised;
- Estimates of average bulk density for each domain which, in combination with volumes derived from the geological model, provide estimates of the tonnes of kimberlite present;
- Estimates of average grade (carats per tonne) for each domain based on LDD grades corrected for recovery efficiency in a commercial-style process plant; and
- Estimates of the average value of diamonds within each domain.