The Kennady North Project. Corporate Presentation H1 2018

Transcription

1 The Kennady North Project Corporate Presentation H1 2018

2 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 McCandless, independent director of Kennady Diamonds and Qualified Person under National Instrument NI S l i d e 2

3 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 million shares outstanding. Market capitalization ~$155 million. Sole focus on the Kennady North Project. Outsourcing model operations sub-contracted to northern companies (e.g. Aurora Geosciences Ltd.). S l i d e 3

4 The Kennady - Mountain Province Transaction On January 29, 2018 Kennady (KDI) and Mountain Province Diamonds Inc. (MPVD) announced that they had entered into a definitive arrangement agreement pursuant to which MPVD will acquire all of the issued and outstanding shares of Kennady by way of a courtapproved plan of arrangement. Consideration Kennady (KDI) shareholders will receive of a Mountain Province (MPVD) share for each KDI share - transaction value of C$176 million. The exchange ratio represents the equivalent of C$3.46 per KDI share, based on the closing price of MPVD shares on the TSX on January 26, Implies a premium of 26% to KDI s closing price and a premium of 15% based on the 20-day volume-weighted-average-price of MPVD shares on the TSX and KDI shares on the TSX-V, both as of close on January 26, 2018 MPVD shareholders will own 76% of the combined company with the remaining 24% owned by KDI shareholders Timeline Shareholder meetings to vote on the transaction for both MPVD and KDI to be held in Vancouver on April 9. Transaction expected to close around April 13, 2018 Further details on the transaction can be found at: S l i d e 4

5 The Technical Team Aurora Geoscience Ltd., Yellowknife SRK Consulting, Vancouver Mineral Services Canada, Vancouver JDS Energy & Mining Inc., Vancouver S l i d e 5

6 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. Manitoba Newfoundland Quebec Ontario S l i d e 6

7 Location - Regional Kennady North is easily accessible from the winter spur road leading to the Gahcho Kué Mine. Slide 7

8 Kennady North Project The Kelvin-Faraday Corridor KFC is a NE-SW structural feature that includes the Faraday and Kelvin kimberlites, and continues to the SW to include the Gahcho Kué kimberlites. Property consists of 22 mining leases and 58 mineral claims totaling 67,164 ha. 100% owned by Kennady Diamonds (KDI) Located adjacent to the DeBeers Canada Inc. and Mountain Province Inc. Gahcho Kué Mine. Five kimberlite bodies (to date) Kelvin, Faraday 1-3, Faraday 2, Doyle and MZ. S l i d e 8

9 S l i d e 9 Kelvin Faraday Corridor

10 Kelvin Pipe Morphology In plan view the body exhibits a subhorizontal L shaped morphology. The upper contact is inclined degrees to the NNW Strike length is 750 m Vertical thickness ranges from 75 m in the SE limb to 200 m in the north limb Horizontal width is 30 to 60 m Remains open to the northwest S l i d e 10

11 Kelvin Geological Model View looking W KIMB1 KIMB2A KIMB2B Zone A KIMB3A and KIMB5 Zone B KIMB3B KIMB3C Zone Bx KIMB6 KIMB4 and KIMB7 Zone C S l i d e 11

12 Kelvin Bulk Sample Results Kelvin 2015 (South Limb) Sample Weight (tonnes) Sample Grade +0.85mm (c/t) Kelvin 2016 (North Limb) Sample Weight (tonnes) Sample Grade mm (c/t) Zone A Zone B Zone Bx Zone C TOTAL Kelvin +11 Kelvin +11 Kelvin +9 Kelvin +9 S l i d e 12

13 Kelvin Resource Indicated Resource of million carats announced December 12, million tonnes of kimberlite grading 1.6 carats per tonne and an average value of US$63/carat (1mm cutoff). High-value population of white gems present in the larger size fractions (D-colour potential). 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) cts 2.84 cts 2.38 cts S l i d e 13

14 Kelvin Sheet Complex Lesser-explored sheet complex adjacent to Kelvin kimberlite body The sheet complex strikes SSW and dips WNW 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 N Hobbes Kelvin sheet system in orange. Image looking south-east. S l i d e 14

15 Faraday 2 Geological Model Faraday 2 Extension Faraday 2 Kimberlite View Looking North Inclined, non-traditional pipe 450 m long, open to the NW Variable width between m Vertical thickness ranges from m Multiple emplacement events Kimberley-type pyroclastic kimberlite (KPK) Hypabyssal kimberlite (HK) A range of transitional textures between the two end members 2017 Summer drilling successful in extending strike length by 150 m ( the NW Extension ) Adds ~0.8 to 1.2 Mt to resource tonnage potential. Delineation drilling od NW Extension underway and will be completed in Q S l i d e 15

16 Faraday 1-3 Geological Model View Looking SE Non-traditional pipe plunging to the NW 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 Summer 2017 drilling established that the two pipes are joined at the NW tip of Faraday 1. Longer than anticipated kimberlite intercepts in current drilling will be accretive to tonnage potential when the geological model is updated. S l i d e 16

17 Faraday 3 Faraday Faraday Bulk Sampling Objective - advance Faraday 2 & 3 to inferred resource status and acquire a mini-bulk sample from Faraday 1. Faraday 2 Faraday 3 Faraday 1 Holes Start Date 20-Jan 01-Mar 08-Apr Finish Date 28-Feb 08-Apr 11-Apr Meters Total 3,471 m 4,256 m 303 m Kimberlite (Tonnes) Faraday 2

18 Bulk Sample Drilling S l i d e 18

19 Colour 2017 Bulk Sample Diamond Results The quality of the Faraday diamonds is better than Kelvin in all value parameters. Significantly higher proportion of white stones and the presence of a fancy yellow population. Size Avg. Grade Avg. Value Kimberlite Tonnes # Stones Carats (ct/t) (US$/ct) Faraday # , $144 Faraday # , $75 Faraday # , $159 Average $109 Faraday #3 recovered a high-quality 7.8 carat white gem, the largest diamond on the project to date. Faraday #2-45 diamonds >1ct from 262 t compared to 44 diamonds >1 ct from 612 t in Kelvin sample. A notable trend of increased quality with diamond size. Shape The larger stones show good crystal form, which translates to better yield when cutting and polishing. S l i d e 19

20 Faraday Unsorted Lots Faraday #2 Faraday #3 S l i d e 20

21 Faraday Resource Inferred Resource of 5.02 Million Carats ( c.p.t. and US$98/ct (1mm cutoff). Faraday 2 = 3.13 Million Carats ( c.p.t. and US$112/ct). Faraday 3 = 1.90 Million Carats ( c.p.t. and US$75/ct). Target for Further Exploration (TFFE): Faraday to to 3.7 c.p.t. S l i d e 21

22 Priorities and Objectives for H Winter program consisting of ~10,500 m of diamond drilling (60% exploration and 40% delineation & geotechnical). Grassroots exploration drilling to discover new kimberlites initially focused in the Kelvin-Faraday Corridor. New targets, immediately southwest of the Gahcho Kué Mine, will be tested subsequently if time permits. Infill drilling between the two limbs of Faraday 1-3 to add high-grade hypabyssal kimberlite to resource potential. Delineation drilling on the NW-extension of Faraday 2 to advance this portion of the pipe shell model to an inferred level of confidence. Exploration drilling on Faraday 2 to further advance the NW extension discovered in summer Geotechnical drilling to advance the Faraday kimberlites from a scoping-level to a pre-feasibility level of confidence. Environmental baseline studies as well as a new program to evaluate the geochemical behavior of the kimberlites and associated country rock that might be expected in a mining scenario S l i d e 22

23 Corporate Information TSX-V: KDI 52.9 M shares outstanding. Market capitalization ~$155M. Head Office 1145 Midland Avenue, Scarborough, ON, M1K 4H2. Vancouver Office 999 West Hastings Street, Suite 900 Vancouver, B.C. V5J 2S1 Tel: (604) rmoore@kennadydiamonds.com Tel: (416) investors@kennadydiamonds.com S l i d e 23