Tahera Corporation ('Tahera') is pleased to announce the updated resource estimate for the Jericho Diamond Project. The Jericho Diamond Project, wholly owned by Tahera, is centered on the land based Jericho kimberlite. The Project is located in the new Territory of Nunavut, approximately 420 km northeast of Yellowknife, Northwest Territories. A prefeasibility study was completed in late 1999 indicating that the Jericho Diamond Project was economically viable.
The updated resource estimate incorporates data from the recent deep drilling program conducted at the Jericho kimberlite. Approximately 2,200 meters of diamond drilling were completed from December 1999 through February 2000 to provide better definition of the geometry of the Jericho kimberlite at depth, and increase the Indicated Resource.
The previous resource estimate was based primarily on the results of the large underground bulk sample (10,500 carats of diamonds) extracted from the Jericho kimberlite. In order to estimate the current resource, SRK Consulting (Steffen, Robertson and Kirsten Canada Inc.) utilized Tahera's extensive PQ diamond drill hole database (approximately 10,000 meters of 8.3 cm diameter core), the results of a recent review of the geology, the extensive bulk sample database and the results of the recent drilling program. A detailed analysis of the micro-diamond and macro-diamond distribution has identified a very good correlation between the PQ drilling and the bulk sample, resulting in a high degree of confidence in the estimated resource. The diamond distribution within the PQ drill holes and the bulk sample database were correlated to arrive at an estimated 'recovered grade' for the Jericho kimberlite.
The previous resource was estimated at 6.5 million tonnes grading 0.81 carats/tonne, of which 2.8 million tonnes grading 1.08 carats/tonne were classified as an Indicated Resource. The current Indicated Resource is approximately 30% higher in terms of tonnes (3,667 Mt versus 2,829 Mt), 37% higher in terms of recovered carats (4,176 M ct versus 3,055 M ct) and 5.5% higher in terms of overall grade (1.14 ct/t versus 1.08 ct/t). The majority of the Indicated Resource has been added near the base of the Central Lobe (i.e. approximately 200 meters below surface), as a result of the recent deep drilling program.
The chart below summarizes the classified resource estimated for the Jericho Diamond Project:
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Lobes Tonne Recovered Grade Recovered Carats Value
(Millions) (Carats/tonne) (000's) (US$/tonne)
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Indicated Resource
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North - upper Lobe 603 0.77 467 46.20
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North - lower Lobe 908 0.71 647 42.60
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Central Lobe 2,156 1.42 3,062 109.34
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Total 3,667 1.14 4,176 82.50
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Inferred Resource 3,401 0.52 1,757 31.54
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Total Resource 7,068 0.84 5,933 57.98
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A portion of the Inferred Resource falls within the proposed open-pit outline, although it will not form part of the mining reserve. This material, which requires further analysis to determine its value, will be assessed by bulk sampling when the commercial diamond plant is operating. Following bulk sampling, some of this resource may be converted to mining reserve.
In preparation for the final feasibility study, the updated resource model will be used in the estimation of the new mining reserve for the Project. The feasibility study is well advanced and is scheduled for completion during the second quarter of 2000.
SRK Consulting have approved the contents of this release in so far as it relates to them. SRK Consulting has prepared the resource estimate under the supervision of Tinus Oosterveld and Michael Michaud, P.Geo., the qualified persons for the estimate. Mr. Oosterveld was employed by Anglo American Corporation and De Beers Consolidated Mines Ltd. from 1961 to 1994, during which time he was in charge of the Mineral Resource Department, and responsible for the assessment of kimberlite deposits throughout the world.
Tahera Corporation (TAH:TSE) is focused on bringing its wholly owned Jericho Diamond Project in Nunavut Territory to commercial production by 2002. In tandem with this development focus, Tahera will continue to explore its highly prospective landholdings in close proximity to the Jericho kimberlite. Any new discoveries in the project area could enhance both the scale and economics of the Jericho Diamond Project.
CONTACT: please contact: Grant Ewing, Vice President Investor Relations & Corporate Development Tel: (416) 777-1998, Fax:
(416) 777-1898, Toll Free: (877) 777-2004, Email: investor(at)tahera.com,
www.tahera.com
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