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Kennady, Margaret Lake update Lac de Gras diamond projects

by Greg Klein | September 16, 2014

The most advanced of the juniors in the Northwest Territories’ diamond-rich Lac de Gras region, Kennady Diamonds TSXV:KDI announced a $5-million private placement September 16, one day after releasing a progress report for its Kennady North project. Approximately $3.5 million of the placement has already been subscribed to by Bottin International Investments, Kennady’s largest shareholder.

The project lies adjacently north and west, and to the southwest, of Gahcho Kué, scheduled by De Beers and Mountain Province Diamonds TSX:MPV to start producing diamonds in the second half of 2016.

Kennady, Margaret Lake update Lac de Gras diamond projects

Four known kimberlites and about four exploration targets
have drilling scheduled this season at Kennady North.

Kennady reported a delineation hole that added another 215 metres (not true width) to the project’s Kelvin kimberlite, surpassing last July’s 183-metre intercept that the company had called the project’s longest to date. The new result started at a shallower-than-expected downhole depth of 157.5 metres and remains open at 373 metres in depth. A “fan” of three holes at different angles has delineated Kelvin “well beyond the current geological model,” said CEO Patrick Evans. “Preparations are now underway for the drilling of a fan of three further delineation holes to continue tracking Kelvin to the north.”

That will follow four other delineation holes, two drilling to the east and two to the west, with the three-hole fan in the pipe’s centre.

Of the other recently reported holes, one showed 32.15 metres of kimberlite starting at 215.7 metres. Two holes at different angles from the same collar found 161.5 metres starting at 127 metres in depth, and 164 metres starting at 152.25 metres.

When diamonds are found in Canada, they’re in kimberlites. But few kimberlites actually host the gems. Earlier this month, however, staff logging Kelvin drill core noticed a “high-quality” 0.94-carat diamond that Kennady described as “white/colourless, transparent, octahedral, distorted, twin with etched trigons” and without inclusions. The stone came from a depth of about 75 metres.

Expected in Q4 are lab results for the 25-tonne mini-bulk sample extracted from Kelvin last spring. The summer program has pulled out another 22.5 tonnes of Kelvin kimberlite. In addition to delineation and mini-bulk sampling, the season’s agenda calls for exploration drilling at Kelvin.

Kennady North’s Faraday, MZ and Doyle kimberlites also have drilling scheduled this season, as do approximately four new exploration targets. Early last month Kennady lauded Faraday results of 5.1 carats per tonne as among Canada’s highest-ever sample grades.

Also on September 15 Margaret Lake Diamonds TSXV:DIA reported from two nearby properties. Margaret Lake lies immediately north of Kennady North, with a thin southward extension that partly divides its neighbour. West of Margaret Lake, the eponymous company optioned 49% of Canterra Minerals’ (TSXV:CTM) Marlin property.

Airborne gradiometry and magnetics have been completed on Margaret Lake and part of Marlin. The latter property will also get “a digital terrain model together with detailed bathymetry using WorldView2 high-resolution satellite imagery,” the company stated.

On reviewing Margaret Lake’s historic ground geophysics, the company identified three targets in the property’s narrow southern extension. As for the recent survey, preliminary analysis “shows a gravity response that relates to the two historic ground gravity targets,” the company added. “These three targets exhibit characteristics similar to known kimberlite bodies and will be subject to further evaluation.”

Besides the Gahcho Kué mine-in-progress, Lac de Gras hosts three of Canada’s four diamond producers, Diavik (60% Rio Tinto NYE:RIO/40% Dominion Diamond TSX:DDC), Ekati (80% Dominion) and De Beers’ Snap Lake.

Other companies exploring Lac de Gras include Canterra, North Arrow Minerals TSXV:NAR, Arctic Star Exploration TSXV:ADD and Prima Diamond TSXV:PMD.

Read more about Lac de Gras exploration and Prima Diamond.

Read about diamond markets, geology and exploration.

Disclaimer: Prima Diamond Corp is a client of OnPage Media Corp, the publisher of ResourceClips.com. The principals of OnPage Media may hold shares in Prima Diamond.

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