by Greg Klein | December 14, 2016
It’s “quite possibly a record timeframe in the history of Canadian diamond exploration,” according to Kennady Diamonds TSXV:KDI president/CEO Rory Moore. One of several small dykes discovered by the De Beers/Mountain Province Diamonds TSX:MPV JV in 2000, the Kelvin kimberlite wasn’t drilled until 2012. By that time Mountain Province, preoccupied with the adjacent Gahcho Kué, had created Kennady to investigate the neighbouring turf. On December 12 the spinout released Kelvin’s resource, the first such estimate for the 71,000-hectare Kennady North property.
Using a one-millimetre bottom cutoff, the all-indicated resource shows 8.5 million tonnes averaging 1.6 carats per tonne for 13.62 million carats of diamonds. Average value comes to $63 per carat.
The deposit extends to a depth of 510 metres, with about 85% within a potential open pit to 330 metres’ depth and the rest a possible underground mine.
It’s been a productive four years and five months since Kennady first put rigs to work. The resource considered 175 holes totalling 40,041 metres, microdiamond samples totalling 20.23 tonnes. a mini-bulk sample of 44.8 tonnes and two more bulk samples totalling 1,067 tonnes. The bulk samples gave up 2,262 carats for valuation.
Announced last month, Antwerp’s verdict—actually two separate valuations that arrived at the same amount—came to an average $52 per carat. But Kennady emphasized the lopsided values of bigger diamonds, including a 2.84-carat stone valued at $2,640 per carat.
Moore pointed to a “similar trend” at Gahcho Kué, five kilometres away. “The five highest-value Kelvin diamonds represent 1% of the sample weight but 20% of the total value. This trend is a key determinant of overall value.”
A PEA’s now scheduled for late 2017 and would incorporate resource estimates to come from the Faraday 2 and 3 kimberlites, which will undergo bulk sampling this winter. Kennady also plans geophysics over 4,233 hectares acquired in August just south of Gahcho Kué. The company will consider exploration drilling following the bulk samples.
Earlier this month Kennady, along with Athabasca Basin uranium standout NexGen Energy TSX:NXE, shared the 2016 Exploration Company of the Year award at Mines and Money London.