Industry News by Nemesis

Kennady Diamonds Acquires Six Mining Leases

August 23, 2016

Kennady Diamonds Inc. has acquired six mining leases from GGL Resources Corp.

 

The leases adjoin the southern border of the Gahcho Kué Mine and portions are within the structural corridor along which the Gahcho Kué, Kelvin and Faraday kimberlites have been emplaced (the Kelvin–Faraday Corridor).

 

The new leases comprise roughly 4,233 hectares, bringing the total land position for the Kennady North Project to over 71,000 hectares.

 

President & CEO of Kennady Diamonds, Dr. Rory Moore said, “We are delighted with this acquisition. It is a natural extension to our portfolio and strengthens our land position within the Kelvin-Faraday Corridor. Although our primary focus will remain the Kennady North area, we look forward to testing kimberlite targets within the new leases, beginning with an in-depth review of the historical data.”

 

The six mining leases in the Kennady Lake area are located approximately 270 kilometers east-northeast of Yellowknife, Northwest Territories. They are adjacent to 11 mining leases acquired from GGL in 2013 that included the diamondiferous Doyle Lake kimberlite.

 

Of particular interest on the new leases is the ‘Blob Lake’ target, located in an unnamed lake five kilometers southwest of the Gahcho Kué Mine, the mining firm said.

 

"The anomaly is defined by indicator mineral and geochemical studies conducted by GGL in 2007 and lies exactly within the Faraday–Kelvin Corridor, making it a highly attractive target."

 

Kennady paid GGL $200,000 for the sites, and GGL retains a 0.75% royalty interest on all mineral products produced from the property. Kennady Diamonds has the right at any time prior to commencement of production from the property to purchase one-third of the royalty, being 0.25%, for the sum of $1,000,000.

 

Source: Idex

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