COULD THIS BE THE REASON WHY STOCK IS SHOWING SUCH UPWARD MOVEMENT.
Diamond models received up North
Tahera, Monopros up estimates
02/01/2000
Tahera (TAH-T) has received two separate modeled diamond values for its Jericho diamond project in Nunavut, 420 km northeast of Yellowknife, N.W.T.
The project is centered on the Jericho Kimberlite, which hosts an open-pit mineable resource of 2.3 million tonnes grading 1.13 carats per tonne. A 10,527-carat parcel of diamonds previously extracted was valued by the Central Selling Organization and HDM laboratories at US$65 per carat.
A previous study by SRK Consulting indicated an 8-year mine life for Jericho, based on an annual production rate of 300,000 tonnes, at an operating cost of $63 per tonne.
Tahera retained WWW International Diamond Consultants to provide an independent diamond analysis and valuation. WWW arrived at an overall modeled diamond valuation of US$88 per carat. Using this figure, Jericho would generate revenue of $338 million and an operating cash flow of $190 million. The internal rate of return (IRR) would be 74% and the payback period would be 1.1 years.
SRK Consulting conducted a feasibility study and recommended an average modeled diamond valuation of US$74 per carat, which would result in $281 million in revenues and $132 million in operational cash flow. The IRR would be 44% and payback would take 1.6 years. SRK's US$74 per carat figure would be used in the base case cash flow analysis. A final feasibility study is expected in the second quarter of 2000.
A four-hole definition drilling program is ongoing, aimed at better defining the kimberlite and converting from inferred to indicated the resources between the 100 and 300 metre levels.
In November, Tahera filed a project proposal and application for a water permit with the Nunavut Water Board. The company hopes the project will be approved by the end of June.
Meanwhile, in the Northwest Territories, Monopros has upped the modeled revenue and grade estimate for the Hearne kimberlite pipe on the AK property, 320 km northeast of Yellowknife and 115 km southeast of Lac de Gras.
The AK property (with the CJ claims) is a joint venture between Monopros, Mountain Province Mining (MPV-T) (36% carried interest) and Camphor Ventures (CFV-V - 4% carried interest). Monopros, the Canadian exploration division of De Beers Consolidated Mines (DBRS-Q), can earn a 60% interest in the properties by advancing them to production.
The Hearne pipe hosts 6.9 million tonnes to a depth of 300 metres. A 469-tonne bulk sample yielded a previously reported 846 carats for an indicated grade of 1.8 carats per tonne. The largest diamonds recovered were 3.37 and 3.16 carats, respectively. Based on last year's test sample, Hearne was modeled to grade 2.33 carats per tonne at US$44 per carat.
Monopros' latest modeled value has increased to US$65 per carat and US$111 (from US$103) per tonne. The company will combine these values with those from the 5034, Tuzo and Tesla pipes to develop a mine model.
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