DIAMOND PAGE — Jericho aims to join ranks of producers

The development of diamond mines in Canada’s North continues apace, with Tahera (TAH-T) proposing to build an operation in the new territory of Nunavut.

Canada’s first diamond operation, the US$700-million Ekati mine of BHP Minerals, opened this year, and Rio Tinto is currently spending $30 million on a feasibility study at its Diavik project. Both projects are in the Northwest Territories.

A feasibility study for the proposed Jericho mine began last month, and Tahera’s proposal clears the way for the environmental assessment and regulatory approval stages to get under way.

The proposal is based on an open-pit operation on the JD-1 kimberlite pipe, situated fewer than 200 km from the Ekati mine, and a deal with Echo Bay Mines (ECO-T) for the construction of a diamond-processing plant at its nearby Lupin gold mine.

Under the proposal, kimberlite would be treated at the plant year-round using standard processing techniques. The operation has a current life expectancy of 10 years, though Tahera says the recent discovery of a nearby pipe, dubbed Contwoyto-1, could extend operations. Current resources at JD-1, down to 300 metres, stand at 6.1 million tonnes grading 0.91 carat per tonne.

The current feasibility study at JD-1 is updating that resource based on recent delineation drilling and diamond valuations. A 10,500-carat parcel was appraised last year at US$731,000, or about US$69.65 per carat.

According to Tahera, capital costs will be low, owing to the Echo Bay deal and the land-based nature of the deposit. These are also cited as reasons the project is expected to have a minor impact on the environment.

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