Mining News: Northern Neighbors:

Kennady Diamonds Inc. Dec. 1 reported the completion of 33,400 meters of drilling during its 2015 exploration program at the Kennady North diamond project in Nunavut. Highlights include the discovery of two pipe-like kimberlites at Faraday 1 and Faraday 2, as well as confirmation of continuity of the strike of the Kelvin kimberlite beyond the current geological model. A 443-metric-ton bulk sample recovered from the Kelvin Southeast Lobe returned an average grade of 2.02 carats per metric ton. In addition, roughly 12,600 meters of core drilling was completed at the Kelvin pipe, 1,400 meters at the Kelvin sheet, 10,700 meters at Faraday 2 and 2,370 meters at Faraday 1. Samples from this drilling are currently being processed. Outside the Kelvin–Faraday corridor, 1,300 meters of drilling was completed at the MZ kimberlite and 940 meters at the Doyle kimberlite. Core recovered from the MZ kimberlite will also be processed by caustic fusion. Results from the Faraday and MZ samples are scheduled to be released in the first quarters of 2016. Planning is underway to recover a roughly 500-metric-ton bulk sample from the North Lobe in the first quarter, with results expected by mid-2016. The combined samples are expected to provide a sufficiently large diamond parcel to support revenue modeling for the Kelvin kimberlite. Subject to the successful completion of the North Lobe bulk sample, the Kennady North also plans to recover about a 200-metric-ton bulk sample from the Faraday 2 kimberlite. Additionally, Kennady Diamonds will begin a preliminary economic assessment in early 2016 for the planned “first mine” at Kelvin that will provide the project description necessary to file an application for a Class A water license during the second half of the year. Subject to the results of the PEA, the company plans to initiate a feasibility study for Kelvin during the latter of half of 2016. Kennady Diamonds President and CEO Patrick Evans said, “The achievements of 2015 have laid the groundwork for an exciting field program at Kennady North during 2016. Thanks to the successful completion of the recent C$48 million non-brokered private placement, Kennady is fully funded to the end of 2017 at which time we expect to be a in a position to make a decision to build the first mine at Kelvin.”

- Shane Lasley