Northern News Services

Yellowknife (Sep 30/02) - Nunavut will have its first diamond mine by 2006 if Tahera Corporation gets permits on time.

"We sent a letter to the regulators on Monday just saying we are planning on resuming the environmental review for Jericho," said Tahera's Greg Missal.

The Jericho diamond claim includes six kimberlites located about 420 kilometres northeast of Yellowknife, close to Lupin Mine. A 2000 feasibility study said Jericho is economical enough to mine.

The company plans to start construction as soon as permits are in hand and it secures financing. Tahera's mine is expected to cost about $60 million -- a small project compared to the only existing Canadian mine Ekati, and the under-construction Diavik. Both those mines cost around $1 billion to build.

Two years ago Tahera was moving full steam ahead on the Jericho mining project but plans slowed after the company made a business deal with Kennecott Canada Exploration. Kennecott wanted to do more research on the project before it committed to a mine.

But now, after spending $1.6 million, Kennecott has decided to back out.

"They had until September 2002 to decide whether they would incorporate Jericho into the existing joint venture that we have with them."

Tahera and Kennecott have a different agreement involving other properties that will still stay in place.

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.

Tahera will gain from the money and exploration that Kennecott put in.

"The work they did will benefit us and it rules out areas we probably would have looked at," said Missal, who added Tahera is still very optimistic about unexplored areas surrounding Jericho.

Kennecott's tactics focused heavily on making a big find. Tahera, on the other hand, has more modest goals. It is going to focus on finding economic kimberlites close to Jericho, hoping to enhance what it already has.

Tahera said its priority will be hiring qualified, trained people to staff the project but the mine will undoubtedly mean jobs for people in the Kitikmeot region.

"We would be wanting to get as many people as possible from Nunavut. The obvious communities in the area are Kugluktuk, Cambridge Bay and Gjoa Haven," said Missal, who noted the mine won't be as giant-sized as Ekati or Diavik.

"But at the same time, it's a viable little project that's worthwhile developing."

Tahera plans to submit an environmental impact statement (EIS) within the next four months.

"We've already completed a draft EIS," said Missal.