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Kennady Diamonds Acquires 6 Mining Leases in Canada
Comprising roughly 4,233 hectares in the Northwest Territories, the leases adjoin the southern border of De Beers’ Gahcho Kué mine.
A shot from Kennady Diamonds’ Kennady North project in the Northwest Territories
Vancouver, B.C.--Kennady Diamonds announced that it has acquired six mining leases from GGL Resources Corp. in the Northwest Territories for a cash sum of $200,000.
The leases adjoin the southern border of De Beers’ Gahcho Kué mine, comprising roughly 4,233 hectares to bring the total land position for the Kennady North project to over 71,000 hectares.
They are approximately 168 miles east-northeast of Yellowknife, the capital of Northwest Territories, and also are adjacent to 11 mining leases the company acquired from GGL in 2013.
Of particular interest to the company in its new leases is the “Blob Lake” target, it said, which is located in an unnamed lake a little more than 3 miles southwest of the Gahcho Kué mine. It is defined by indicator mineral and geochemical studies conducted by GGL years ago.
GGL Resources retains a 0.75 percent royalty interest on all mineral products that the property on those six mining leases produces, but at any time before commencement of production, Kennady has the right to purchase one-third of the royalty, or 0.25 percent, for $1 million.
Kennady Diamonds Inc. controls 100 percent of the Kennady North diamond project in the Northwest Territories.
“We are delighted with this acquisition. It is a natural extension to our portfolio and strengthens our land position within the Kelvin-Faraday Corridor,” President and CEO Rory Moore said. “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.”
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