Thorunn Howatt
Northern News Services
Iqaluit (Aug 27/01) - Production of Nunavut's first diamond mine could be held up by environmental reviews.
"Right now it's not looking like it's going to happen. More than likely it's going to be delayed for a year," said Tahera Corporation's vice-president of finance, Andrew Gottwald, who added that a clearer picture of the mine's future would be known in about a month.
| Tahera's Anuri sparkles Tahera Corporation reported new diamond results from its Anuri kimberlite which was discovered last July. The find is near the head of a prominent kimberlite indicator mineral train on the Rockinghorse property in Nunavut. The Rockinghorse property is a joint venture between Tahera and Kennecott Canada Exploration Inc. It is 120 kilometres northwest of Tahera's Jericho diamond project. The 489 kilograms of kimberlite processed at the Kennecott diamond lab returned 730 diamonds. Forty-seven of those were greater than .5 millimetres. One three-quarter carat diamond was recovered from the latest samples. Tahera (TSE: TAH) also has interests in joint venture exploration land holdings in Nunavut and the Northwest Teritories. |
Original projections saw the mine producing by 2003.
"The key is to get the permits," said Gottwald.
He explained the environmental review still has to go through a process of public hearings before any approvals are granted. Tahera has re-estimated its projections and is hoping to see production in 2004.
The company has made it known that it's looking for major mining companies to act as joint venture partners to develop the Jericho Diamond Project.
Second quarter losses
Tahera recorded a second quarter net loss of $838,000, or one-third of a cent per share for the three months ended June 30, 2001, compared to a net loss of just more than $1 million for last year's second quarter.
Operating expenses for this year's second quarter were $904,000 compared to $997,000 for the same period last year.
Exploration
In early August exploration on the Jericho properties was mobilized. Regional and follow-up till sampling and geophysical surveys are expected to define priority kimberlite target areas with a portable drill rig.
Kennecott Canada Exploration Inc. has the option to earn a 62.5 per cent interest in Tahera's Rockinghorse and Hood River exploration properties by funding all costs up to and including bankable feasibility studies.
"They have to incur at least $25 million then they will have a 25 per cent interest," said Gottwald.
A joint venture on Tahera's Ranch Lake and ICE claims with BHP Diamonds Inc. is being finalized. The agreement will commit BHP to funding exploration and development programs on the property to earn up to a 70 per cent interest in the claims.
Tahera Corporation (TAH) is listed on the Toronto Stock Exchange.
