One of the only times a junior explorer turned up a rough diamond while drilling, shares in Gren Thomas’s Aber Resources climbed from pennies to nearly $50 per share. That was 20 years ago.
This morning Kennady Diamonds Inc (TO:KDI announced that they had found a .94 ct diamond while drilling their project in NWT, and so far the stock has done nothing, and no other media have picked it up.
This is not to say that Kennady’s stock is about to skyrocket – the market is already aware the project has significant potential – and has given the company a market cap of near $180 million. The find is however very encouraging for the exploration project, which is immediately adjacent to the De Beers / Mountain Province joint venture to develop the Gacho Kué diamond mine.
Kennady was originally spun out of Mountain Province and was thought to be a potential source of feeder material to Gacho Kué, however drilling is starting to suggest Kennady’s project could be a standalone mine in its own right (Just announced today, drilling has uncovered another 161 meters of Kimberlite at Kelvin north lobe).
CFO Bruce Ramdsen says the plan for Kennady is to keep drilling right through the winter. A resource estimate may come later in the year or early next, and with roughly $7 million on hand as of the last quarter, the company may need to finance soon to keep the drills turning.
With Irish billionaire Dermot Desmond behind the company, finding money shouldn’t be a problem.
Regardless, a very promising project is developing at Kennady and today’s find is nothing short of spectacular for a diamond explorer.
Here’s the news release: Kennady Diamonds Updates Kelvin Kimberlite Drilling.
(It’s a shame the company didn’t hype the find in today’s news release headline).
No position in KDI.v yet and always do your own due diligence.