$3 million for exploration
Doug Ashbury
Northern News Services
Yellowknife (Feb 12/01) - Owners of what could be the next new mine in Nunavut are gearing up for exploration work at their carat camp, says spokesperson Grant Ewing.
Tahera Corp., owners of the Jericho diamond deposit in the Kitikmeot, have ear-marked $3 million for exploration work this year.
The company is to complete the final phase of a $13-million financing plan March 1. Ewing said the company is looking to use debt financing to raise the additional money needed to bring the project to production.
Tahera estimates capital costs of $45 million for the project. Underground costs are estimated at $8 million. The underground component of the project kicks in at around year four.
Last summer, Tahera described Jericho and economically robust. The Jericho kimberlite pipe has an estimated three million carats or 1.19 carats per tonne. Carat value is estimated at $112 ($75 US).
Mine life is estimated at 80 years. Through additional exploration, Tahera is hoping to add to Jericho's resource, its land-based diamond-bearing kimberlite pipe.
"We will be drilling kimberlite targets within a 10-kilometre radius of Jericho," Ewing said Thursday.0
While exploration work continues, Tahera is hoping to get permits later this year from the Nunavut Impact Review Board. The company submitted water and land-use permits last September.
If all goes according to schedule, Jericho could be in production in 2003.
Prior to that, the company will have to buy and move a kimberlite processing plant up the 2002 Lupin ice road. The plant, which will process 50 tonnes of kimberlite per hour, will be built in South Africa.
