Mining News: Northern Neighbors: Kelvin diamond values similar to Gahcho Kué

Kennady Diamonds Inc. Nov. 15 reported the results of a valuation of 2,262.43 carats of commercial sized diamonds recovered from the Kelvin kimberlite at the company’s Kennady North project in Northwest Territories. Belgium-based WWW International Diamond Consultants reported an average value of US$52 per carat for the parcel, with the very encouraging presence of high value gem quality stones noted in 2015 confirmed in the 2016 bulk sample, including a 2.84 carat diamond valued at US$2,640 per carat. “Based on the results of the bulk sampling programs it's apparent that the quality of Kelvin diamonds improves with size,” said Kennady Diamonds President and CEO Rory Moore. “A similar trend exists at the neighboring Gahcho Kué diamond mine located five kilometers to the southwest of the Kelvin kimberlite. The five highest value Kelvin diamonds represent one percent of the sample weight, but 20 percent of the total value. This trend is a key determinant of overall value.”

The five highest value diamonds recovered from the bulk sampling include: a 2.84 carat octahedron valued at US$2,640 per carat; a 4.22 carat diamond valued at US$1,416 per carat; a 2.56 carat makeable diamond from Zone B valued at US$1,357 per carat; a 2.58 carat octahedron valued at US$1,691 per carat; and a 2.38 carat octahedron valued at US$1,290 per carat. Kennady North was expecting a slightly higher valuation for the diamonds but is encouraged that it is similar to early evaluations for Gahcho Kué, a mine being ramped up to commercial production by De Beers Canada (51 percent) and Mountain Province Diamonds Inc. (49 percent). “The diamond prices for Kelvin are comparable to those historically reported from the neighboring Gahcho Kué Mine for similarly-sized bulk samples at a time when rough diamond prices were at a comparable level,” said Moore. “It is very encouraging to note that Gahcho Kué has recently reported the recovery of large, high value gems, including a 50.25 carat gem quality diamond, during the ramp-up stage of mining operations."

-Shane Lasley