Company looks to add more ore at Jericho
Doug Ashbury
Northern News Services
Yellowknife (Apr 30/01) - Tahera Corp. is optimistic it will discover more ore on its Nunavut property.
The company is aiming to turn its Jericho diamond property, located in the Kitikmeot region near Contwoyto Lake, into an operating mine.
"Tahera's vast land holdings in the Jericho area are considered highly prospective for additional kimberlite discoveries," the company said in its recently released fiscal-year financial results.
Kimberlite from a recent discovery, located six kilometres from the Jericho kimberlite pipe, is currently being evaluated for diamond content.
The company has budgeted $2.6 million for its summer 2001 exploration program, Tahera said.
Company spokesperson Grant Ewing was not available for comment as of press time.
Tahera is amid a regulatory review, and submitted a revised environmental impact statement to the Nunavut Impact Review Board earlier this year.
The Jericho mine has the potential to produce three million carats over eight years.
The diamonds are worth an estimated $345 million while development costs are estimated at $53 million. Tahera is targeting production of its small, land-based deposit during 2003.
In its year-end financials, Tahera reported a cash balance at Dec. 31, 2000 of $4.2 million, up from $1.1 million a year earlier.
Bottom line improved but still fell into the red. For the year, the company lost $4.6 million compared to a $7.3-million loss in the prior year. Deficit at the end of the year totalled $13.1 million.
Separately, Tahera announced Thursday BHP World Exploration Inc. is looking into a possible joint venture with Tahera on Tahera's Ranch Lake and Ice claims.
Tahera and BHP have signed an agreement that gives BHP 45 days to review the Ranch Lake and Ice claim data. BHP will then advise Tahera if a joint venture is possible.
Ranch Lake, with an estimated 40 million tonnes of kimberlite, was discovered in 1993. Diamonds were found in a small sample but with just 28 tonnes taken, the diamond grade, distribution and quality "are very weakly defined."
Tahera's share price has, over the past month, moved up to 15 cents from 11 cents but is still trading below its 52-week high of 23 cents.
Hearings scheduled
The eight-member Nunavut Impact Review Board has scheduled pre-hearings for the week of June 4 in Cambridge Bay and Kugluktuk.
"The possibility of a third venue (Gjoa Haven) is on the table but no decision has been made," NIRB executive director Stephanie Briscoe said.
The pre-hearings are an opportunity for the board to not only discuss Tahera's draft environmental impact statement but also decide on the timing of the hearings at which intervenors will make presentations. Timing of the latter has not been determined but may occur in late August.
Once all hearings are complete, the board -- Elizabeth Copland of Whale Cove is currently NIRB acting chairperson -- will make recommendations with terms and conditions to Indian Affairs and Northern Development Minister Robert Nault.
After the NIRB panel review is complete, the project moves to the water licensing phase.
