KENNADY NORTH EXPLORATION PROJECT Proposed Advanced Exploration - - PowerPoint PPT Presentation

KENNADY NORTH EXPLORATION PROJECT Proposed Advanced Exploration Program (AEP)

MV2013L2-0005 MV2016C0030 Technical Workshop

November 10, 2016

Kennady Diamonds Inc.

• Kennady is a public company listed on the Toronto Stock

Exchange (TSX-V) under the symbol KDI

• KDI formed in mid-2012 as a spin-off from Mountain Province

Diamonds Inc.

• Sole focus on the Kennady North Project.
• Outsourcing model – operations sub-contracted to northern

companies, e.g. Aurora Geosciences Limited.

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Kennady North Project – Regional Location

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British Columbi a Albert a Sas k. Manitob a Yukon Territor y Ontari

• Quebe

c Newfoundlan d

• Kennady

North is located 280 km ENE of Yellowknife

Kennady North Project

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• The project consists
• f 16 mineral leases

and 58 claims over 61,000 ha

• Four areas with

diamond-bearing kimberlites: Kelvin, Faraday, MZ and Doyle

At what stage is the Project now?

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Prospecting Exploration Advanced Exploration Mining

(EA)

Finding out where the kimberlite is (the host rock that contains diamonds Figuring out how much kimberlite there is and where it is Figuring out:

• the exact size and edges of the kimberlite deposit
• how many diamonds there are and what their quality is

Including mine construction, operation, closure and reclamation

Main activities associated with Exploration

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Small RC Drilling Camp of <100 people Taking kimberlite samples Diamond Drilling

Transition to Advanced Exploration

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• Drilling from

surface

• Drilling from surface
• Underground decline
• Send bulk sample offsite

for analysis

• Process samples onsite using

portable mill

• Kelvin Camp <100 people
• Kelvin Camp <200 people
• Seasonal access
• All-weather airstrip, laydowns, and

some roads on the site

Exploration Advanced Exploration

Proposed Activities for Advanced Exploration

• Decline
• Quarry
• Lay-down areas
• All-season roads
• Airstrip
• Bulk sample to 5000t/yr
• Bulk sample plant
• Camp ≈200 people

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Earthworks - Quarry

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• Quarry needed to source clean rock.
• Two potential locations.
• Preliminary geochemical results - low potential

for acid generation or metal leaching.

• Associated management plans:
• Quarry Management Plan
• Rock Management Plan
• Explosives Management Plan

Quarry Management Plan

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• Quarry 100 m from waterbodies
• Quarry supply approx. 400,000 bcm for

building roads, pads and the airstrip.

• Quarry approx. 155 m by 335 m & 25-30 m

deep

• Snow collection and overburden adjacent to

quarry

• Quarry floor will be sloped to form a sump

Describes the design, management, execution and closure of quarrying activities

Quarry Management Plan

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After development, the quarry will be used to:

• Collect precipitation

for start-up of the portable bulk sample process plant

• Store processed

kimberlite and associated process/reclaim water

Rock Management Plan

• Objective: minimize potential for environmental effects
• proper characterization and management of various types of rock onsite.
• Describe geochemical criteria for differentiating potentially acid-generating

(PAG) rock from non-PAG rock

• Rock from quarry and decline tested during extraction;
• non-PAG rock used for site earthworks - PAG rock will be managed by:
• Placing it in the quarry perimeter or deeper fill sites on surface and covering with non-PAG
• Placing it in the quarry sump and covering it with water
• Backhauling it to the decline prior to closure

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Describes how different types of rock will be sourced, characterized and used/stored.

Explosives Management Plan

• Practices described are based on the following:
• Transportation of Dangerous Goods Act
• Canada Explosives Act;
• Northwest Territories Mine Health and Safety Act and Regulations;
• Natural Resources Canada – Explosives Regulations and Guidelines for Bulk

Explosives Facilities;

• Fisheries and Oceans – Guidelines for the Use of Explosives In or Near

Canadian Fisheries Waters.

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Outlines management practices for the storage and use of explosives onsite.

Decline Development

• Approx. 4m by 4m decline - depth

150m – 1.5 km drift

• Approximately 30,000 m3 of rock

removed

• rock extraction, use and storage in the

Rock Management

• Decline within permafrost to

minimize groundwater inflow

• analysis of potential groundwater

quality/quantity will be finalized once final location is chosen.

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Primary Laydown Area – Conceptual Layout

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Waste Management –

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Camp-related waste:

• Combustible waste will be incinerated onsite; other garbage, recyclables or

hazardous wastes will be sent to Yellowknife for disposal.

• At the New Kelvin Camp: sewage and greywater directed to sewage

treatment plant; treated effluent discharged to land at a location approved by the Inspector. Sewage solids will be incinerated.

• At the Old Kelvin and Bob Camps: blackwater collected daily from Pacto

toilets and incinerated; greywater directed to a sump. Help quantify uncertainty, verification, and early problem detection.

New Kelvin Camp

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Equipment

• Additional equipment

needed for AEP (see lists in Project Description)

• Additional fuel will also be

required.

• Major equipment includes:
• A portable bulk sample

processing plant

• Rock crusher

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Waste Management Plan

Camp-related waste:

• Combustible waste will be incinerated onsite; other garbage, recyclables or

hazardous wastes will be sent to Yellowknife for proper disposal.

• At the New Kelvin Camp: sewage and greywater directed to sewage

treatment plant; treated effluent discharged to land at a location approved by the Inspector. Sewage solids will be incinerated.

• At the Old Kelvin and Bob Camps: blackwater collected daily from Pacto

toilets and incinerated; greywater directed to a sump.

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Describes waste management requirements, infrastructure, and processes.

Waste Management Plan

Hazardous waste:

• Stored safely onsite then backhauled on winter road; shipped to

appropriate waste facility by KBL Environmental.

Drill cuttings:

• Placed in a natural land depression at least 100m from the high water

mark.

Processed kimberlite and process water:

• Pumped from the portable bulk sample process plant to quarry sump;

process water will be recycled to the plant in a closed loop.

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Spill Contingency Plan

• Provides details of spill response

procedures to minimize potential health and safety hazards, environmental damage, and clean-up efforts for spills of any size

• Identifies roles/responsibilities of key

personnel in the event of a spill

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Closure & Reclamation Plan

• Buildings taken apart and shipped offsite with equipment, vehicles, waste, and any

chemicals or leftover fuel.

• Surfaces of gravel pads, all-season roads and airstrip will be scarified to blend with the

natural landscape and allow natural plants to regrow.

• Contaminated soils will be bagged up and shipped offsite for treatment.
• Any PAG rock will be sequestered: either underneath clean rock, underwater within

the quarry or within the underground decline.

• Processed kimberlite and process water will remain in quarry sump.
• Quarry allowed to fill naturally to form a pond not connected to any waterbodies.
• Quarry in competent rock and wholly within permafrost.
• Studies show water quality at non-harmful levels (after TSS settles).

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Wildlife Mitigation and Monitoring Plan

• Describes the kinds of wildlife present or expected in

the region

• Describes mitigation for:
• Direct and indirect habitat loss
• Wildlife mortality or injury
• Species at Risk
• Describes monitoring for:
• Winter road public use
• Wildlife sightings
• Site surveillance
• Wildlife incident reporting
• Considers current monitoring at Gahcho Kue Mine

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Screening of Impacts

• Valued Ecosystem Components:
• Wildlife
• Fish
• Aquatic ecosystem
• Traditional land use
• Socio-economic well-being
• Human health
• Conclusion:

Temporary land disturbance, confined area, no direct discharge to water, additional mitigations to reduce or eliminate impacts to be included in permit/licence and management plans.

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Corporate Information

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Head Office

161 Bay Street, Suite 2315 Toronto, Ontario M5J 2S1

Tel: (416) 640-1111

www.kennadydiamonds.com investor@kennadydiamonds.com

TSX-V: KDI

Vancouver Office

999 West Hastings Street, Suite 900 Vancouver, B.C. V5J 2S1

Rory O. Moore, President & CEO Tel: (604) 558-6238

rmoore@kennadydiamonds.com

END OF PRESENTATION

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Preliminary Project Schedule

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Kelvin Kimberlite Geology Model

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N

Image of 3D Kelvin Kimberlite model with drill hole traces. Image looking SW.

• Sub-horizontal boomerang shaped

kimberlite pipe

• Plunges 12-15 degrees to the NNW
• Strike length 610 m
• Vertical thickness 75 m in SE limb to

200 m in the north limb

• 30 to 60 m wide
• Remains open to the northwest

Kelvin – Faraday Corridor

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2.3 km 0.5 km

Faraday 1-3 Faraday 2 Kelvi n

Kelvin Camp

• Most of our

exploration work in the last year has focused on the diamond-bearing kimberlite formations found near Kelvin and Faraday Lakes