New kimberlite found on Rockinghorse

Drilling by Kennecott Canada Exploration on Tahera‘s (TAH-T) Rockinghorse property in Nunavut has uncovered a new kimberlite body.

The so-called Anuri kimberlite was discovered near the head of the prominent Tak Lake kimberlite indicator mineral train. Angled at 45, the discovery hole intersected 134 metres (true width) of kimberlite from 71.4 to 260.7 metres down-hole. A second hole is being drilled, in order to provide a preliminary outline of the body. Results from microdiamond analysis are awaited.

Grant Ewing, Tahera’s vice-president of investor relations, says the Tak Lake indicator mineral train shows encouraging diamond inclusion chemistry.

Anuri is the second kimberlite found this year at the Rockinghorse property, which lies 120 km northwest of Tahera’s Jericho project. In the spring, Kennecott cut a shallow dipping kimberlite sill with eight widely spaced holes over an area of 1,400 by 600 metres. The sill varies in width between 0.1 and 2.5 metres. Microdiamond results are pending.

Under a revised joint-venture agreement, Kennecott (a division of Rio Tinto [RTP-N]) can earn an initial 25% interest in the Rockinghorse and Hood River properties by spending $25 million on exploration by 2008. Kennecott can earn up to a 62.5% stake by funding all costs up to, and including, a bankable feasibility study. The company has spent more than $18 million to date and has budgeted a further $2.2 million for 2001.

In the meantime, Tahera is drawing up a formal joint-venture agreement with BHP Billiton (BHP-N) on the junior’s Ranch Lake kimberlite pipe and ICE claims, 75 km northwest of the Ekati diamond mine. BHP will have the right to earn a 55% interest in the Ranch Lake pipe by taking a 200-tonne bulk sample within two years and completing a feasibility study.

Separately, BHP will have the right to earn an initial 51% interest in any new discoveries on the surrounding 1,200-sq.-km ICE property by completing a 200-tonne bulk sample. BHP can boost its interest to 65% by funding a feasibility study. By arranging project financing for Tahera, BHP will have the right to an additional 5% equity interest. BHP will retain the exclusive diamond marketing rights for the first five years.

The Ranch Lake pipe was discovered in 1993. An initial six macrodiamonds and 38 micros were recovered from samples weighing a total of 208.1 kg. A 28.45-tonne mini-bulk drill sample in 1994 yielded 112 diamonds weighing 5.384 carats, for an implied grade of just 0.189 carat per tonne. Despite the grade, Ewing says the stones look quite good.

Based on 35 drill holes, the pipe has an estimated surface area of 12.4 ha and contains a resource north of 40 million tonnes. The deepest hole was drilled to 362 metres. The pipe exhibits three main geological units, with apparent distinct diamond grades and stone frequency distribution.

Tahera believes the limited amount of work done to date on Ranch Lake is not sufficient to assess the economic potential of such a large, multi-phase body. In addition to Ranch Lake, four other kimberlites have been discovered on the ICE claims.

Tahera is gearing up to begin a half-million-dollar exploration program at its wholly owned Jericho project in Nunavut, 430 km northeast of Yellowknife. The program will include further till sampling, ground geophysics, staking and some drilling using a small portable rig. BHP has proposed to make available its proprietary airborne gravity gradiometer Falcon system to fly a test survey over the Jericho property, at Tahera’s election and cost. In exchange, BHP would receive a 2% gross revenue royalty on any new discovery developed as a result of the Falcon survey.

Tahera has $4 million in cash and 291 million shares outstanding, or 400 million fully diluted. The company has arranged a $2-million flow-through financing with Dundee Securities for the placement of up to 11.1 million units priced at 18 apiece.

In the boardroom, Tahera recently announced the appointment of Hugo Dummet as a director.