The Kennady North Project Investor Presentation Q2 2017

Transcription

1 The Kennady North Project Investor Presentation Q2 2017

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. 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 ~$170 million. Sole focus on the Kennady North Project. Outsourcing model operations sub-contracted to northern companies, e.g. AGL. S l i d e 3

4 The Technical Team Aurora Geoscience Ltd., Yellowknife SRK Consulting, Vancouver Mineral Services Canada, Vancouver JDS Energy & Mining Inc., Vancouver S l i d e 4

5 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 5

6 Location - Regional Kennady North is easily assessable from the winter spur road leading to the Gahcho Kue Mine. Slide 6

7 Kennady North Project The KFC is a NE-SW structural feature that includes the Faraday and Kelvin kimberlites, and continues to the SW to include the Gahcho Kue kimberlites. 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. S l i d e 7

8 Kelvin Faraday Corridor Being the first notable discovery on the property, the Kelvin kimberlite has seen the greatest amount of exploration and evaluation work, as shown in the following figures. S l i d e 8

9 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 9

10 Internal Geology S l i d e 10 KIMB2 KIMB3 KIMB1 KIMB2A KIMB2B KIMB3A KIMB5 KIMB3B KIMB3C KIMB6 KIMB7 KIMB4 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) A range of transitional textures between the two end members Sub-horizontal layering over the length of the pipe

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 Drilling S l i d e 12

13 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 13

14 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 14

15 Kelvin Sheet Complex Lesser-explored sheet complex adjacent to Kelvin kimberlite body 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 N Hobbes Kelvin sheet system in orange. Image looking south-east. S l i d e 15

16 Faraday 2 Geological Model View Looking SE Inclined, non-traditional pipe KIMB1 450 m long, open to the NW Variable width between m KIMB4 Vertical thickness ranges from m Multiple emplacement events Kimberley-type pyroclastic kimberlite (KPK) KIMB3 Hypabyssal kimberlite (HK) A range of transitional textures between the two end members KIMB2 S l i d e 16

17 Faraday 2 Diamond Results Faraday 2 Diamond Recoveries (+0.85 mm): Processed Drill Core Weight (Tonnes) Number of Diamonds According to Sieve Size Fraction (mm) Diamonds Carats Sample Grade mm (c/t) Faraday 2 Diamond Recoveries(+0.85 mm): 2016 LDDH Program Weight (Tonnes) Number of Diamonds According to Sieve Size Fraction (mm) Diamonds Carats Sample Grade mm (c/t) Three largest diamonds: 1.90 carat; 1.73 carat; 1.52 carat S l i d e 17

18 Faraday 1-3 Geological Model 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 S l i d e 18

19 Faraday 1-3 Diamond Results Faraday 1 Diamond Recoveries (+0.85 mm): Processed Drill Core Weight (Tonnes) Number of Diamonds According to Sieve Size Fraction (mm) Diamonds Carats Sample Grade mm (c/t) Faraday 3 Diamond Recoveries (+0.85 mm): Processed Drill Core Weight (Tonnes) Number of Diamonds According to Sieve Size Fraction (mm) Diamonds Carats Sample Grade mm (c/t) , S l i d e 19

20 Faraday 3 Faraday Winter Program 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 03-Mar 07-Apr Finish Date 02-Mar 06-Apr 10-Apr Meters 3,471 m 4,256 m 303 m Kimberlite (Tonnes) Faraday 2

21 Faraday Bulk Sample Diamond Results Weight (Tonnes) Faraday 2 Diamond Recoveries(+0.85 mm): 2017 LDDH Program Number of Diamonds According to Sieve Size Fraction (mm) Diamonds Carats Sample Grade mm (c/t) S l i d e ,406 6,011 2, , Diamond quality is better than Kelvin in all value parameters: colour, size distribution and shape. Size 45 diamonds >1ct from 263 t at Faraday 2 versus 44 diamonds >1 ct from 612 t in the 2016 Kelvin sample. The 3 largest stones are all bigger than the 3 biggest diamonds recovered from the 2016 Kelvin bulk sample. Colour Higher proportion of white stones and the presence of a fancy yellow population. Shape The larger stones show good crystal form, which translates to better yield when cutting and polishing.

22 Faraday 2 High Value Gems S l i d e 22

23 Priorities & Deliverables for 2017 Bulk sample the Faraday bodies - completed. Advanced exploration permit - completed. Financing - completed. Inferred resource for Faraday 2 and 3. Preliminary Economic Assessment. Exploration in the KFC add more tonnes to resource. S l i d e 23

24 Corporate Information Head Office 161 Bay Street, Suite 1410 Toronto, Ontario M5J 2S1 Tel: (416) Vancouver Office 999 West Hastings Street, Suite 900 Vancouver, B.C. V5J 2S1 Tel: (604) TSX-V: KDI S l i d e 24