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Tahera Reports First Quarter Results |
05/08/2001 |
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Download this Press Release
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Toronto – Tuesday May 8, 2001
Jericho Diamond Project
Tahera Corporation is currently seeking regulatory approval for the development of its wholly owned Jericho Diamond Project as Nunavut’s first diamond mine. The feasibility study completed in 2000 confirmed that the Project is economically robust with forecast diamond production in excess of 3,000,000 carats over a minimum of eight years. The Jericho Diamond Project has an IRR of 50.7% based on the results of a modeled diamond valuation study completed by WWW International Diamond Consultants Limited in early 2000.
Exploration
Approximately $4,800,000 has been budgeted to fund aggressive exploration programs over Tahera’s
wholly owned and joint venture diamond exploration properties in Nunavut and the Northwest Territories during 2001.
Summary of Financial Results
For the three months ended March 31, 2001 Tahera recorded a net loss of $664,000 or $0.003 per share compared to a net loss of $896,000 or $0.005 per share for the first quarter of 2000. Operating expenses for the first quarter of 2001 were $674,000 compared to $853,000 for the comparable period of 2000. Savings for the three months ending March 31, 2001 include reductions in salaries resulting from fewer employees, reduced consulting costs and savings achieved in other general and administrative costs.
Edensor Financing
The closing of the final stage of the Edensor financing occurred on April 23, 2001, at which time Tahera
issued 21,666,667 common shares to Edensor at a price of $0.15 for proceeds of $3,250,000.
Kennecott Joint Venture
Pursuant to a joint venture agreement with Tahera, Kennecott Canada Exploration Inc. has the option to earn up to a 62.5% interest in two diamond exploration properties in Nunavut (Rockinghorse and Hood River properties) by spending at least $25,000,000 and making a development decision by 2008. Kennecott has spent approximately $18,000,000 on the joint venture properties to date. Kennecott recently mobilized its spring exploration program on the Hood River and the Rockinghorse properties, and has budgeted $2,200,000 for the 2001 exploration program.
Hood River Property (100 km north of the Jericho Diamond Project)
The Hood River exploration program will focus on an area within an 8-kilometer radius of the diamondiferous Tenacity kimberlite that was discovered in 2000. Kennecott believes that the Tenacity kimberlite is evidence of a new and separate kimberlite field in the north Slave Craton. At least four separate kimberlite indicator mineral trains have been identified in the area. The spring exploration program will include further geophysical surveys including ground based gravity surveys, followed by at least 12 diamond drill holes to test kimberlite targets.
Rockinghorse Property (120 km northwest of the Jericho Diamond Project)
The Rockinghorse exploration program will focus on the north end of the claim group where at least three prominent unexplained kimberlite indicator mineral trains exist. These indicator mineral trains occur near the Altair kimberlite that was discovered by Kennecott in 1999. Other kimberlites have been discovered in the area. Kennecott will utilize ground based gravity surveys to provide better definition of kimberlite targets near the head of the defined till anomalies, and drill test a number of these targets during the current program.
Tahera’s Annual and Special Meeting of Shareholders
Tahera will hold its annual and special meeting of shareholders at 11:00 a.m. on Tuesday June 19, 2001 at the Trillium Room, Ontario Club, 5 th floor, Commerce Court South, Toronto, Ontario.
For further information, please contact:
Grant Ewing, Vice President Investor Relations and Corporate Development
Tel: (416) 777-1998
Fax: (416) 777-1898
Toll Free: (877) 777-2004
email: investor@tahera.com
www.tahera.com
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