Tahera’s new kimberlite fails to impress

Microdiamond analysis of 100.4 kg of core sample has returned only two small stones for Tahera (TAH-T) from a recently discovered kimberlite body at the company’s wholly owned Jericho project in Nunavut, 430 km northeast of Yellowknife.

The kimberlite lies under a small lake, 6 km west of the Jericho pipe. It was the fourth target tested during the 2001 program, which is scheduled to continue through the summer after a shutdown during the spring breakup.

Tahera plans to spend $2.6 million on exploration at Jericho during 2001.

The company processed 100.4 kg of kimberlite (about 50 kg from each hole). Two diamonds were recovered by caustic dissolution. One measured greater than 1 mm in two dimensions. The other measured less than 0.5 mm in its longest dimension. A cutoff size of 0.15 mm was used.

Tahera says that, while the preliminary results suggest the kimberlite may not have economic potential, the company will process more core to further the assessment.

The discovery of the new kimberlite was based on a re-interpretation of existing airborne geophysical data, combined with new ground magnetic results. The discovery hole was angled at -50 and intersected 94 metres of kimberlite from 9 metres of depth to 103 metres.

The 120-by-280-metre Jericho pipe has been traced by drilling to a depth of more than 350 metres. It is covered by 10-50 metres of unconsolidated overburden. Earlier this year, the junior submitted a revised project proposal and draft environmental impact statement (EIS) for a combined open-pit and underground mine on the land-based pipe, along with a 1,200-tonne-per-day processing facility.

A feasibility study was conducted by SRK Consulting in June 2000. It concluded that such an operation could produce an estimated 3 million carats over an eight-year mine life. The study was based on a probable mining reserve of 2.5 million tonnes grading 1.19 carats per tonne. The pipe’s total estimated resource is 7.1 million tonnes grading 0.84 carat per tonne, equivalent to 5.9 million carats.

The current mining plan entails the open-pit mining of about 1.9 million tonnes of reserves, averaging 1.26 carats per tonne, during the first four years at an overall stripping ratio of 8.4-to-1. This would be followed by underground mining (with sub-level caving and open-bench mining methods) of a diluted 614,000 tonnes grading 0.99 carat per tonne from the central lobe.

Operating costs over the life of mine are projected at $52 per carat.