Kennady Releases Preliminary Valuation for Kelvin Kimberlite

Kennady Diamonds Inc. (TSXV:KDI) announced the results of a preliminary valuation of diamonds from the Kelvin kimberlite, located at its Northwest Territories-based Kennady North project.
According to the company, generally 2,000 carats are needed for reliable revenue modeling. Kennady is planning a 500-tonne bulk sample for next winter, and that should allow it to surpass that level.
As quoted in the press release:

Four separate diamond parcels were valued by [WWW International Diamond Consultants (“WWW”)], representing Zone A (442.82 carats), Zone B (447.05 carats), Zone C (80.44 carats) and a small mixed parcel (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. It is not yet possible to report an average modeled value for the composite Kelvin kimberlite due to the small size of the Zone C parcel.
WWW noted that while there are only 88 diamonds greater than 0.66 carats per stone in the combined parcel, “it is encouraging to see so many good colour white gem stones especially in the C sample, with five of the eight stones being good colour and gem quality.” The three highest value diamonds are:

1. 4.22 carat diamond from Zone B valued at US$1,603 per carat;
2. 2.58 carat diamond from Zone C valued at US$1,366 per carat; and
3. 2.38 carat diamond from Zone C valued at US$1,196 per carat.

Patrick Evans, president and CEO of Kennady, commented:

We are very pleased with the results which confirm that Kelvin hosts a population of high value gem quality white diamonds. These good results were achieved despite the valuation being done at a challenging time with the rough diamond price index at multi-year lows.
The Kelvin diamond prices reported are comparable to those reported from the neighboring Gahcho Kué diamond mine when the rough diamond price index was at a comparable level. This is very encouraging, particularly as Gahcho Kué is widely recognized as the world’s highest margin new diamond mine. Based on these positive results, we are now proceeding with preparations to take a further 500 tonne bulk sample from the Kelvin North Lobe during the winter of 2016.

Click here to read the full Kennady Diamonds Inc. (TSXV:KDI) press release.