TORONTO TIFFANY & CO. has agreed to purchase or market all of the diamond production from the Jericho project and provide owner TAHERA DIAMOND CORP. with a $35-million loan facility to assist in developing the new mine. The parties expect to sign the definitive agreement on or about Oct. 22, 2004.
The Jericho project is located in Nunavut, 25 km northwest of the former Lupin gold mine and 170 km north of the Ekati and Diavik diamond mines. Site development is expected to begin next year with full production rates achieved in 2006. The deposit will be mined by open pit for the first four years, and for another four years by underground methods. A dense medium separation (DMS) plant will be built at the site.
Tahera continues to advance the project. The Nunavut Water Board has scheduled the final hearing on Tahera’s water licence application for early in December. The company has announced that it will build the processing plant double the size (680,000 tonnes/year) that was first anticipated so that there will be some flexibility for treating lower-grade kimberlite. Consideration is being given to expanding the open pit portion of the project and dropping the underground component. Tahera has also revised its deposit to include 3.43 million tonnes of indicated resources and 2.09 million tonnes of inferred resources.
Complete details of the Tahera/Tiffany agreement are available at www.tahera.com.