Mining News: Northern Neighbors: Initial valuation of Kelvin diamonds intrigues

Kennady Diamonds Inc. Oct. 19 reported encouraging preliminary valuation of diamonds recovered from the Kelvin kimberlite at its Kennady North project located in Northwest Territories. Kennady Diamonds retained the services of WWW International Diamond Consultants to value and model a diamond parcel weighing 989 carats recovered from sampling of the Kelvin kimberlite. This parcel represents 442.82 carats from Zone A, 447.05 carats from Zone B, 80.44 carats from Zone C and a small mixed parcel of 16.79 carats. For Zone A, WWW has recommended using an average modeled price of US$56 per carat and for Zone B US$70 per carat. The parcel from Zone C was too small for WWW to create modeled values, so an average price of US$123 per carat was reported. The three highest value diamonds are: 4.22 carat diamond from Zone B valued at US$1,603 per carat; 2.58 carat diamond from Zone C valued at US$1,366 per carat; and 2.38 carat diamond from Zone C valued at US$1,196 per carat. Howard Coopersmith, Kennady’s independent external qualified person, said, “Recovering stones of this quality in small parcels lends one to get excited about seeing larger parcels. Further bulk sampling is clearly warranted.” Modeling indicates that the Kelvin kimberlite consists of three geologically distinct zones. WWW found consistency in the quality and value of the diamonds across the three geological zones but has recommended further sampling to confirm this. Kennady Diamonds President and CEO Patrick Evans said, “With the 500-tonne (metric ton) bulk sample planned for next winter, we expect to more than double the size of the Kelvin diamond parcel to more than 2,000 carats. This will enable us to complete revenue modeling for the planned Kelvin feasibility study.”

- Shane Lasley