North 2003
Section Index
Mining in Northern Canada
Tahera adds glitter to Nunavut futureTerritory's first diamond mine on track for 2006 opening / $60 million mine may yield $390 million
Tahera Corporation is on track to be the first diamond mine in Nunavut by 2006.
The company's Jericho diamond claim includes six kimberlites located about 420 kilometres northeast of Yellowknife, about 30 kilometres northeast Lupin gold mine.
Last year, Tahera Corporation presented the government of Nunavut with a 2.2 carat diamond as a symbol of an emerging industry. The gem from Tahera's Jericho kimberlite will added to the territorial mace. It was the largest of 43 diamonds from a 10,000 tonne bulk sample taken in 1996.
Tahera Corporation signed a diamond-polishing deal with Lazare Kaplan International, of New York earlier this year. Lazare Kaplan will purchase all of Jericho's stones, subject to Tahera's option to market up to one-quarter of its production independently. Jericho mine is expected to cost about $60 million -- a small project compared to the North's existing diamond mines, Ekati and Diavik, that cost close to $1 billion each to build.
Tahera was moving full steam ahead on Jericho, but the project slowed three years ago when it made a deal with Kennecott Canada Exploration to do more research on the project. Kennecott's tactics focused heavily on making a big find.
Exploration of the Jericho area began in 1993 but activity increased sharply in 1997.
An initial 9,400-tonne bulk sample taken at the time yielded 10,539 carats of diamonds. One stone tipped the scales at 23.8 carats.
After spending $1.6 million, Kennecott decided to back out of the Jericho partnership.
Tahera has exploration agreements with Kennecott on other properties. Those will stay in place.
Gain for Tahera
The Jericho feasibility study said the site will produce three million carats over the mine's eight year life. Based on a diamond valuation of US $75 to $88 per carat, gross revenue for the project is $330 million to $390.
The total resource at Jericho was estimated at about six million carats. The indicated resource is 3.7 million tonnes at 1.14 carats per tonne and an inferred resource of 3.4 million tonnes at 0.52 carats per tonne.
Tahera said its priority will be hiring qualified, trained people to staff the project - the mine will undoubtedly mean jobs for people in the Kitikmeot region.
Earlier this spring Tahera completed a final environmental impact statement for Jericho. Regulatory agencies are reviewing the submission. Tahera's wants to get approved for mining before the end of 2003. It trades on the Toronto Stock Exchange under the symbol TAH.
-Updated August 2003
