Some folks Golf, some folks Fish, many up here are into Wood Craving etc. as a hobby and for me, I like to surf Mining/Investment reports and news to decipher various actions relating in the search for Stocks ready to become attractive for investment purposes.

In this regard, late one night just before shutting down, I came across news that the head of Kennady Diamonds, Patrick Evans, had been purchasing more shares on the open market at around $1.30 per share. This was intriguing to me as the KDI shares outstanding were only around 19 million shares.

Next morning, I did more digging into this Company unknown to me before, and liked what I was finding so bought KDI shares that morning. Nothing really happened for days and I was paying little attention when: Boom…. KDI came out with exceptional and almost unheard ratings ever published in the world for diamond grades.

Will it become better than Botswana or others in the world?

There is only speculation at this time.

Today, Aug.22/13, the price closed at: $4.69 per share.

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Below is some interesting material borrowed from SH:

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Here is a paragraph from one of the Salman Partners report read recently. It is interesting where Salman mentions "TENS of MILLIONS of TONS!"

Right now people, and the market are salivating about just 5 million and 8 million and possibly 10 million tons....... try and wrap your mind around TENS of MILLIONS of tons and what the blue sky potential might be. KDI is truly a diamond in the rough right now but the potential is so far beyond the $20.00 you mentioned. Way beyond.

It is my opinion that there will never be a need to have more than 25 million shares outstanding with KDI. Never. Funding is not a problem going forward at all, ever.

Here are some figures, you can change the numbers any way you want to, but the KDI shareholders that it was spun out to have enormous faith in the new management behind KDI and just love drinking all the Kool-Aid that Patrick Evans can get into the pitcher!!

KDI
10 million tons
10 million x 4 carats per ton = 40 million carats
40 million x $300 per carat = $12 billion total diamond value
12 billion x 100% KDI ownership = $12 billion KDI
12 billion x 20 million KDI Float = $600 per share
600 x 11.4% discount rate = $68.40 per share

(again, change the numbers anyway you want to.......right now there is 20 million fully diluted shares outstanding)

Here is what Salman thinks regarding tonnage,

"We add that there appears to be the potential for tens of millions of tonnes of mineralized rock at Kelvin and Faraday ."

Subject: Kennady Diamonds, Salman Partners

Diamond Exploration Drill results that, by a very healthy margin, merit more evaluations

Background: Kennady Diamonds Inc. (KDI – TSXv; 18.7 M shares outstanding) was spun out of Mountain Province Diamonds

Inc. (MPV – TSX) in a deal that closed in July 2012.*

Kennady Diamonds explores the 100%-owned Kennady diamond property, a property that the company describes as “immediately adjacent to the De Beers/Mountain Province Diamonds joint venture property in Canada’s Northwest Territories....[Kennady North] hosts three known kimberlites [kimberlites are rocks that typically host diamond deposits]—Kelvin, Faraday, and Hobbes—which were discovered between 2000 and 2003. A 2011 airborne gravity survey flown by Fugro Airborne Surveys identified 106 geophysical anomalies, of which 39 are considered high priority.”

Event (1): On August 6, Kennady announced “exceptional diamond recovery results from [a total of 1.103 tonnes] ... of drill core from the Kelvin and Faraday kimberlites: ... [a] sample grade of 8.44 carats per tonne ...[and ] that the Kelvin-Faraday kimberlite cluster has a coarse diamond size distribution as well as the potential to host a high grade diamond resource.” (We understand that 8.44 ct/tonne is the average of transects of each of the Kelvin and Faraday kimberlites, representing about a 1 km extent of each kimberlite body. The drill core for this analysis was obtained between March and April this year.)

“The largest three diamonds recovered are a 2.48 carat off-white transparent octahedral, a 0.90 carat off-white transparent irregular, and a 0.75 carat off-white transparent octahedral... approximately 64 percent of the recovered diamonds are classified as white and transparent.”

Event (2): On August 7, Kennady announced “that the first five Kelvin infill drill holes have intersected kimberlite over widths ranging from 21.49 meters to 116.10 meters. ... Diamond recovery results from the kimberlite recovered during the current drill program are expected to be released early in the fourth quarter of 2013....

Besides the above Kelvin infill drill holes, one geophysical target to the northwest of the Kelvin–Faraday cluster was drill tested without intersecting kimberlite.” (We understand that this drill core was obtained from the current drill program, which began in July 2013.)

Event (3): After the press releases of August 6 and 7, Kennady’s share price rose 98%, closing at Cdn$4.00 on Friday afternoon.

Event (4): Yesterday, Kennady announced “ that over 100 metres of kimberlite has been intersected in two further drill holes at the north lobe of the Kelvin kimberlite”. (We understand that this drill core was obtained from the current drill program, which began in July 2013.) “The current summer drill program is expected to result in the recovery of approximately 2000 kilograms of kimberlite, which is nearly double the 1,103 kilograms recovered during last winter’s... program”.

Event (5): After the press release of August 12, Kennady’s share price fell 8%, closing at Cdn$3.69.

Source: Thomson ONE

Analysis: The most important news in Kennady’s three press releases so far this month was that two 1 km transects of kimberlite bodies averaged 8.44 ct/tonne. (For comparison, the Ekati™ and Diavik diamond mines in Canada have processed grades of between 1 and 4 ct/tonne.) The August 6 press release also noted that the 8.44 ct/tonne were contained in coarse diamonds that seem to have good colour and clarity (size, colour and clarity are the major determinants of the value of diamonds). Indeed, if the largest stone found in the 1.1 tonne sample reported August 6, (the 2.48 off-white octahedral diamond) were to be of medium (H) colour and to be “slightly included”, we estimate that it could be sold, wholesale, for about US$3,000.

We add that there appears to be the potential for tens of millions of tonnes of mineralized rock at Kelvin and Faraday .

Another point of reference is our rule of thumb for initial evaluation of a diamondiferous kimberlite. That rule of thumb is that a kimberlite should, to merit further investigation, have at least 3 stones, per 100 kg that are “macro diamonds” (which are larger than a sieve size of 1mm; when, as is the case with Kennady’s results, the company reports the number of stones between 0.85 mm and 1.18 mm, we assume that half of them in this size range are larger than 1 mm).

In the August 6 press release, Kennady reported , from the combined sample of Kelvin and Faraday kimberlites, 1.103 tonnes with 78 stones between 0.85 and 1.18 mm sieve size and 60 stones over 1.18 mm in size. That works out at 9.0 macro diamonds per 100 kg, which is well in excess of the 3 macro diamonds per 100 kg that is required by our rule of thumb.

Conclusion: The Kelvin and Faraday kimberlite bodies clearly merit both the continued evaluation that is currently underway, and a subsequent expansion of the program. And these results are likely to capture the attention of De Beers next door!

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Patrick was brought into MPV for the reasons you mentioned regarding DeBeers and to take the company forward without the games, and looked after the best interests of the shareholders. He has done that and we are feeling in spades. Been a trip for sure but coming to fruition now.

If you want the co-ordinates and the drill holes on a map for KDI drilling, email or call Patrick himself, and if they are available he will gladly share them with you, or if they are not he will give the reason why.

He's a straight-up guy and a great shareholder as well. I have met him in person at the AGMs in Toronto and he is a class act and a true professional imo. His bio speaks for itself.

The last 10 years with MPV had its ups and downs, but with them the rewards as well. I am referring to the time post 2008/2009 when the stock fell down to the .70 cent range and provided a great opportunity to load up, if one felt the need to do so...(those shares are perking now)

Majority shareholders are happy with Patrick's performance, and until a resource update is announced/filed (43-101 tech report) maybe there will be no co-ordinates made available, I don't know. Know this though, that powers greater than I, are true believers in KDI and the way it is being tended to and drilled up. Early days, but if the dykes are one kilometer long, and taking into account the pinching and swelling, I do not think they are drilling down the throat of it at all.