The Kennady North Project
Investor Presentation
Forward Looking Statement
This presentation may contain “forward-looking statements.” These forward-looking statements are
made as of the date of the presentation and Kennady Diamonds Inc. does not intend, and does not
assume any obligation, to update these forward-looking statements. Forward-looking statements
include, but are not limited to, statements with respect to the timing and amount of estimated future
exploration, success of exploration activities, expenditures and requirements for additional capital.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by the forward-looking
statements. Such factors include, among others, risks related to actual results of current exploration
activities; changes in project parameters as plans continue to be refined; the ability to enter into joint
ventures or to acquire or dispose of property interests; future prices of mineral resources; accidents,
labour disputes and other risks of the mining industry; ability to obtain financing; and delays in
obtaining governmental approvals or financing.
The technical contents of this presentation have been reviewed by Dr. Tom E. McCandless, P.Geo. and
independent director for Kennady Diamonds.
Slide|2
Kennady Diamonds Inc.
• Kennady is a public company listed on the TSX-V under the symbol
KDI.
• Formed in mid-2012 as a spin-off from Mountain Province
Diamonds Inc.
• 47.3 million shares outstanding trading in the range $3.60 to $4.00.
• Market capitalization ~$180 million.
• Sole focus on the Kennady North Project.
• Outsourcing model – operations sub-contracted to northern
companies, e.g. AGL.
Slide|3
Team Acknowledgement
• Overall Project Management - Aurora Geosciences
Ltd.
• Geology and 3D modeling - SRK Consulting.
• Diamond modelling and resource calculation Mineral Services Canada Ltd.
• Engineering support by JDS Energy & Mining Ltd.
Slide|4
Location
The Kennady North
Project is located 300
km ENE of
Yellowknife, NWT
Yukon
Territory
Northwest
Territories
Kennady North Project
Yellowknife
Nunavut
British
Columbia
Alberta
Sask.
Newfoundland
Manitoba
Quebec
Ontario
Slide|5
Location - Regional
Kennady North is positioned on the
winter spur road leading to the Gahcho
Kue mine.
Slide|6
Kennady North Project – Land Position
Slide|7
•
100% owned by
Kennady Diamonds
(KDI)
•
Located adjacent to the
DeBeers Canada Inc.
and Mountain Province
Inc. Gahcho Kué Mine.
•
Property consists of 22
mining leases and 58
mineral claims totaling
67,164 ha.
•
Six kimberlite bodies
(to date) – Kelvin,
Faraday 1, 2 & and 3,
Doyle and MZ.
Kelvin – Faraday Kimberlite Corridor
The Kelvin kimberlite as the earliest notable
discovery has seen the greatest amount of
exploration and development as shown in the
following figures.
Slide|8
Kelvin Pipe Morphology
• In plan view the body exhibits a subhorizontal “L” shaped morphology
• The upper contact is inclined 12-15
degrees to the NNW
• Strike length is 750 m
• Vertical thickness ranges from 75 m in
SE limb to 200 m in the north limb
• Horizontal width is 30 to 60 m wide
• Remains open to the northwest
Slide|9
Internal Geology
KIMB1
KIMB2A
•
•
KIMB2
KIMB2B
KIMB3A
KIMB5
Multiple emplacement events
Seven kimberlite phases have been identified
based on kimberlite texture, juvenile
component characteristics and abundances,
country rock dilution and alteration,
diamond grade and interpreted emplacement
•
Kimberley-type pyroclastic kimberlite
(KPK)
•
•
Hypabyssal kimberlite (HK)
KIMB3
KIMB3B
KIMB3C
KIMB6
KIMB7
KIMB4
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•
A range of transitional textures between
the two end members
Sub-horizontal layering over the length of
the pipe
Kelvin Geological Model
View looking W
KIMB1
KIMB2A
KIMB2B
Zone
A
KIMB3A and KIMB5
KIMB3B
KIMB3C
KIMB6
Zone
Bx
KIMB4 and KIMB7
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Zone
B
Zone
C
Kelvin Bulk Sample Drilling
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Kelvin – Bulk Sample Results
Kelvin 2015 (South Limb)
Kelvin
+11
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Kelvin 2016 (North Limb)
Sample
Weight
Sample
Grade
Sample
Weight
Sample
Grade
(tonnes)
+0.85mm (c/t)
(tonnes)
+ 0.85mm (c/t)
Zone A
143.35
2.85
184.2
2.87
Zone B
119.13
2.46
200.2
2.57
Zone Bx
143.04
0.82
183.5
0.84
Zone C
37.02
1.98
44.0
1.81
TOTAL
441.54
2.02
612.0
2.09
Kelvin
+11
Kelvin +9
Kelvin +9
Kelvin Resource
•
•
Indicated Resource of 13.62 million carats announced December 12, 2016.
•
High-value population of white gems present in the larger size fractions (Dcolour potential).
•
8.5 million tonnes of kimberlite grading 1.6 carats per tonne and an average
value of US$63/carat (1mm cutoff).
Highest value stones 2.84 ct ($2,640/ct); 4.42 ct ($1,416/ct), 2.56 ct ($1,357/ct)
and 2.38 ct ($1,290/ct).
2.56 cts
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2.84 cts
2.38 cts
Kelvin Sheet Complex
• Lesser-explored sheet complex
adjacent to Kelvin kimberlite
body
N
Hobbes
• The sheet complex strikes S-SW
and dips W-NW
• Strike length of 1 km
• Thickness ranges from 0.5 up to
17 m
• Predominantly diamondiferous
hypabyssal kimberlite
• Volcaniclastic kimberlite has been
confirmed along the sheet at
Hobbes
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Kelvin sheet system in orange. Image looking south‐east.
Faraday 2 Geological Model
View Looking SE
KIMB1
KIMB4
Inclined, non-traditional pipe
•
Vertical thickness ranges from
30-80 m
•
Multiple emplacement events
450 m long, open to the NW
Variable width between 20-50
m
• Kimberley-type pyroclastic
kimberlite (KPK)
KIMB3
KIMB2
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•
•
•
• Hypabyssal kimberlite (HK)
• Transitional textures between the
two end members
Faraday 2 – Diamond Results
Faraday 2 Diamond Recoveries (+0.85 mm): Processed Drill Core
Number of Diamonds According to Sieve Size Fraction (mm)
Total Weight (Tonnes)
+0.850 +1.180 +1.700 +2.360 +3.350 +4.750
‐1.180
‐1.700
‐2.360
‐3.350
‐4.750
‐6.700
6.86
316
142
46
23
4
Total Diamonds
Total Carats
581
20.90
0
Faraday 2 Diamond Recoveries(+0.85 mm): 2016 LDDH Program
Total Weight (Tonnes)
21.1
Number of Diamonds According to Sieve Size Fraction (mm)
+0.850 +1.180 +1.700 +2.360 +3.350 +4.750
‐1.180
‐1.700
‐2.360
‐3.350
‐4.750
‐6.700
266
383
137
54
16
1
Total Diamonds
Total Carats
857
56.64
Three largest diamonds: 1.90 carat; 1.73 carat; 1.52
carat
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Sample Grade +0.85 mm (c/t)
2.69
Sample Grade +0.85 mm
(c/t)
3.03
Faraday 1- 3 Geological Model
•
Non-traditional pipe plunging to
the NW, similar to Kelvin
•
Faraday 1: 200 m long by 50 m
wide and 20 m thick
•
Faraday 3: 375 m long by 80 m
wide by 30m thick
•
Multiple emplacement events
• Main pipe infill is Kimberley-type
pyroclastic kimberlite (KPK)
• Hypabyssal kimberlite (HK) within
the pipes and associated sheets.
• Diluted marginal breccia
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Faraday 1-3 Diamond Results
Faraday 1 Diamond Recoveries (+0.85 mm): Processed Drill Core
Total Weight (Tonnes)
Number of Diamonds According to Sieve Size Fraction (mm)
+0.850 +1.180 +1.700 +2.360 +3.350 +4.750
‐1.180
‐1.700
‐2.360
‐3.350
‐4.750
‐6.700
1.605
12
44
80
5
0
Total Diamonds
Total Carats
Sample Grade +0.85 mm (c/t)
142
5.80
3.61
1
Faraday 3 Diamond Recoveries (+0.85 mm): Processed Drill Core
Total Weight (Tonnes)
3.029
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Number of Diamonds According to Sieve Size Fraction (mm)
+0.850 +1.180 +1.700 +2.360 +3.350 +4.750
‐1.180
‐1.700
‐2.360
‐3.350
‐4.750
‐6.700
80
43
20
8
2
0
Total Diamonds
Total Carats
Sample Grade +0.85 mm (c/t)
6,122
6.61
2.18
Faraday 1
Faraday 3
Faraday 2
2017 Winter Program
Faraday 2
Faraday 3 /1
Holes
30
52
Start Date
20-Jan-17
5-Mar-17
Finish Date
4-Mar-17
25-Apr-17
Meters Total
3594 m
5888 m
Meters Water/Overburden
330 m
613 m
Meters Country Rock
1464 m
2975 m
Meters Kimberlite
1800 m
2300 m
Kimberlite Extracted
259 tonnes
341 tonnes
Kimberlite Recovered
156 tonnes
205 tonnes
Priorities & Deliverables for 2017
•
•
•
•
•
Bulk sample the Faraday bodies.
Advanced exploration permit.
Exploration in the KFC – add more tonnes to resource.
Inferred resource for Faraday 2 and 3.
Preliminary Economic Assessment.
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Corporate Information
Head Office
Vancouver Office
161 Bay Street, Suite 1410
Toronto, Ontario
M5J 2S1
999 West Hastings Street, Suite 900
Vancouver, B.C. V5J 2S1
Tel: (416) 640‐1111
Tel: (604) 558‐6238
www.kennadydiamonds.com
[email protected]
[email protected]
TSX‐V: KDI
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