Kennady Diamonds Reports $52 P/C Average Price From Bulk Sampling

(IDEX Online) – Kennady Diamonds Inc. reports that 2,262.43 carats (+0.85mm) recovered from bulk sampling programs conducted in 2015 and 2016 at the Kelvin kimberlite at the Kennady North project sent to WWW International Diamond Consultants in Antwerp for valuation have an average value of $52 per carat for the total parcel.

The explorer said there was a "very encouraging presence of high value gem quality stones noted in 2015 confirmed in the 2016 bulk sample, including a 2.84 carat sawable diamond valued at US$2,640 per carat. An independent market valuation exercise completed in Antwerp last week arrived at the same average value as WWW."

Kennady Diamonds President and CEO Dr. Rory Moore said: "Based on the results of the bulk sampling programs it's apparent that the quality of Kelvin diamonds improves with size. A similar trend exists at the neighboring Gahcho Kué diamond mine located five kilometers to the southwest of the Kelvin kimberlite. The five highest value Kelvin diamonds represent one percent of the sample weight, but 20 percent of the total value. This trend is a key determinant of overall value."

Dr. Rory Moore added: "Valuation of the combined parcel is slightly lower than expected due to a softened market for diamonds similar to those in the Kelvin sample. However, the population of high value gem quality white diamonds will ultimately lead to higher average prices as the market for rough diamonds recovers."

"The diamond prices for Kelvin are comparable to those historically reported from the neighboring Gahcho Kué Mine for similarly-sized bulk samples at a time when rough diamond prices were at a comparable level. It is very encouraging to note that Gahcho Kué has recently reported the recovery of large, high value gems, including a 50.25 carat gem quality diamond, during the ramp-up stage of mining operations."

The five highest value diamonds recovered from the bulk sampling include:

• A 2.84 carat sawable octahedron from Zone B valued at US$2,640 per carat 
• A 4.22 carat makeable diamond from Zone B valued at US$1,416 per carat
• A 2.56 carat makeable diamond from Zone B valued at US$1,357 per carat
• A 2.58 carat sawable octahedron from Zone C valued at US$1,691 per carat
• A 2.38 carat sawable octahedron from Zone C valued at US$1,290 per carat

Howard Coopersmith, Independent Q.P. for the WWW valuation in Antwerp, noted: "Confirming the trend seen in the 2015 sample, the 2016 sample contains white goods in the largest size fractions that will be received quite favorably by the market."