Resource World Magazine

D E C E M B E R / J A N U A R Y 2 0 1 5 www.resourceworld.com 31 Initial sampling of Kelvin drill core in 2013 yielded 4.31 carats/tonne based on a 4,301-kilo kimberlite sample which yielded 474 diamonds greater than 0.85 mm in size. The Faraday kimberlite gave 9.93 carats/tonne from a 115.86-kilo sample with 26 diamonds greater than 0.85 mm in size. Further grade results for Kelvin, which combined results from a 25-tonne mini-bulk sample of drill core with the prior 4-tonne sample, yielded 2.16 carats/tonne. Kelvin has a unique shape compared to many other kimberlites. It crops out under a shallow lake then plunges gently to the northwest as a tubular body 40 to 60 metres in diameter; after 200 metres it turns to the north and widens. Systematic drilling has traced Kelvin out for about 600 metres, but has not yet determined the total of extent to the north where kimber- lite drill intercepts in excess of 100 metres have been reported. Preliminary mapping of the drill core has outlined four pyro- clastic phases of kimberlite within Kelvin. Management speculates that Kelvin is an off-shoot from a larger body, buried at depth, that they expect to find with further drilling. Of significance was the discovery of a 0.94-carat diamond in drill core measuring 7.0 mm by 4.5 mm by 3.50 mm and described as a white/ colourless, transparent, octahedral, dis- torted, twin with etched trigons and no inclusions. The diamond was found at a depth of 75 metres in the hole drilled at the north end of the Kelvin pipe. The presence of a macro diamond in drill core is a very rare discovery. Preliminary tonnage estimates of the Kennady North Project, based on diamond counts from the Kelvin and Faraday kimberlites, are 9 to 12 million tonnes with grades of better than 2.0 carats/tonne. Based on the exploration successes achieved to date, the company is pursuing an aggressive development program for the Kelvin kimberlite as well as an expanded exploration program for Faraday, MZ and Doyle and other targets defined by multi-parameter geophysical surveys and indicator mineral till sam- pling. As the project proceeds, its full potential as a stand-alone operation or under some undefined arrangement with one or both Gahcho Kué partners or others will depend on exploration results in the coming years. Based on the Gahcho Kué, successes of one diamond mine in a pre-production mode and a second project demonstrat- ing exceptional promise to be viable, Gahcho Kué has become a diamond camp comparable to the Lac de Gras camp and could rival and maybe exceed the production level of currently produc- ing Ekati and Diavik. The current exploration and development activities at Gahcho Kué has precipitated a mini- staking rush with a number of companies about to embark on exploration programs to duplicate the two principal projects of Mountain Province/De Beers and Kennady Diamonds. n otheR diamond exPloReRs North Arrow Minerals [NAR-TSXV] has farmed out a 55% interest in its Lac de Gras diamond project to Dominion Diamonds. The Diavik Mine is 10 km northeast and Ekati is 20 km north. The ice road comes through property bound- ary. North Arrow is also exploring the Redemption diamond project 32 km southwest of, and 47 km west of the Ekati and Diavik diamond mines, respectively. Canterra Minerals [CTM-TSXV] has farmed out a 49% interest in the Marlin diamond prospect to Margaret Lake Diamonds [DIA-TSXV] that lies contigu- ous to the north and west of the Kennady Diamonds project and west of Margaret Lake's Margaret Lake property where a HeliFALCON® survey, flying grav- ity gradiometry and magnetics, has been completed on 75-metre line spacings. On the Marlin property, 126 till samples were collected by Canterra, and results have produced a 1.0-by-1.0-by-1.4-mm off- white, modified octahedral diamond, as well as several anomalous indicator min- erals, including pyropes, recovered from neighbouring samples. Margaret Lake Diamonds also holds diamonds prospects near Snap Lake, including Gwen, Hilltop, King and Prism. Prima Diamond [PMD-TSXV] can earn a 100% interest in the 42,000-hect- are Godspeed diamond prospect that borders Gahcho Kué and is immediately east of the Kennaday Lake kimberlite clus- ter. In August, Prima acquired a 100% option on the14,000-hectare Munn Lake diamond property located approximately 35 km east of the Snap Lake Mine and 40 km northwest of the Gahcho Kué Project. Between 1996 and 2007, SouthernEra Resources spent over $5.7 million as oper- ator at Munn Lake where 14 diamonds were recovered, including two macro diamonds and 12 micro diamonds from a drilling sample of kimberlite. Mountain Province/De Beers recovered a 25.13-carat diamond valued at $20,000 /carat from a drill core bulk sample at the Tuzo pipe on the Gahcho Kué diamond project. Photo courtesy Mountain Province Diamonds Inc. A diamond recovered from the Kelvin kimberlite pipe of Kennady Diamonds at a depth of 75.19 metres (KDI-HQ14-30a). Photo courtesy Kennady Diamonds Inc.

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