Mining

Tahera’s wholly-owned Jericho project represents Canada’s third, and Nunavut’s first, diamond mine. Tahera declared commercial production at the Jericho Diamond Mine on July 1st, 2006.

Chronology of Construction Events

Following completion of the permitting and regulatory approval process in early 2005, Tahera commenced mobilization of construction materials and supplies to the Jericho mine-site. The mobilization was completed in an eight-week window, using the seasonal winter road from Yellowknife, Northwest Territories to the Jericho mine-site in Nunavut. Approximately 550 truckloads of construction materials, supplies and fuel were mobilized to the site.

Construction began in March 2005 with the establishment of a camp, workshop, and diesel and explosive storage facilities. Tahera relied on several experienced consulting companies to ensure successful completion of mine construction during 2005. Hatch Ltd. managed the design and procurement of the diamond plant and infrastructure, and Clark Builders Inc. acted as the general contractor, responsible for erection of the diamond plant, fuel storage facility, power generators, camp, water services and processed kimberlite disposal system. Nuna Logistics Inc. a majority Inuit owned company with extensive experience in northern Canada, was retained as the mining contractor for the mining project.

Over the summer months, Tahera took advantage of the long Arctic summer days, making substantial progress in both plant facilities construction, as well as pre-stripping of the open-pit. Construction of the Jericho Diamond Mine was substantially completed by year-end.

During the period the 2006 winter road was open to the Jericho site, Tahera received 60% of its planned loads including over half of its planned fuel supply.

In early April 2006, Tahera announced physical completion of construction of the Jericho Diamond Mine. Tahera began production of rough diamonds during the first quarter.

Jericho Diamond Mine

Completed construction of the Jericho Diamond Mine and related infrastructure in 2006 for a total capital cost of $116 million.

A 59-carat gem stone, which sold for $450,000 USD, was the most valuable diamond recovered in 2006. Also, three low quality stones in excess of 100 carats each were recovered.

Tahera shipped the full requirements for fuel and other supplies to the Jericho mine-site on the 2007 winter road, and commenced measures to improve performance of the Jericho Diamond Mine operations utilizing the Teck technical support agreement. See May 4th , August 7th and November 5th links for 2007 first, second and third quarter press releases.

The operational review of the Jericho Diamond Mine, which begun in March 2007, continued through the third quarter. Improvements commenced with regard to plant throughput, carats recovered, volume of kimberlite and waste rock mined. See November 5th link for 2007 third quarter press release.

Effective early February 2008, mining activities at the Jericho Diamond Mine were suspended and commenced with mining ore-stockpiles. See January 23rd, 2008 press release.