Tahera (TAH-T) has pulled five diamonds from 7.6 kg worth of material collected from a kimberlite dyke discovered on the Jericho claims during summer exploration.
The new kimberlite is situated in the Bird Lake area, 9 km south of the Jericho pipe in Nunavut. The steeply dipping dyke measure around 0.6-1 metre in width based on six diamond drill holes that have tested around 20 metres of strike.
The largest diamond was retained in the 0.3-mm square mesh; two diamonds were also caught by each of the 0.212-mm and 0.15-mm sieves following caustic dissolution at Kennecott’s diamond laboratory in Thunder Bay, Ontario.
Tahera intends to continue exploration, including the collection of more kimberlite for analysis, during the upcoming 2004 exploration program. The company also says that several kimberlite indicator mineral trains in the area remain unexplained.
Tahera filed a final environmental impact statement for Jericho with the Nunavut Impact Review Board earlier this year. The project is centred on a land-based multi-phase pipe with resources totalling 7.1 million tonnes grading 0.84 carat per tonne, equivalent to 5.9 million carats.
Plans at Jericho call for an open-pit/underground mine capable of producing 3 million carats over eight years, based on a probable reserve of 2.5 million tonnes grading 1.19 carats per tonne. The project’s diamonds have been valued at US$75-88 per carat. Capital costs for the open-pit operation are pegged at $44.5 million, with another $10.4 million required for underground and sustaining costs. Operating costs over the life of mine are projected at $52 per carat.
Tahera hopes to wrap up permitting and project financing during 2004.
Tahera shares were up a penny at 15.5 in heavy afternoon trading in Toronto following the news on Oct. 20.
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