Tahera third quarter results
Tahera Corp TAH
Shares issued 159,300,000 Nov 26 close $0.06
Mon 29 Nov 99 News Release
Mr. Roy Meade reports
Tahera has completed its interim results for the third quarter ended Sept.
30, 1999.
Operations
For the three months ended Sept. 30, 1999, Tahera recorded a loss of
$1,035,000 or .7 cents per share. As the amalgamation of Lytton Minerals
Limited and New Indigo Resources Inc. to form Tahera has been accounted for
as a purchase transaction, Tahera's loss in the third quarter of 1999 is
compared with Lytton's loss for the third quarter of 1998 which was
$35,915,000 or 31 cents per share. Comparable figures for the first nine
months of 1999 and 1998 were a loss of $2,401,000 ($0.016 per share) and a
loss of $35,557,000 (30.7 cents per share) respectively. The most
significant item affecting the 1998 results was the writedown of the
carrying value of the company's mineral properties for $35.6-million which
was recorded in the third quarter of 1998.
Operating expenses for the third quarter of 1999 were $1,079,000, compared
with $1,184,000 in 1998. For the first nine months of 1999, operating
expenses totalled $2,733,000 versus $2,691,000 in the comparable 1998
period.
Financing
On Aug. 4, 1999, Tahera completed a financing consisting of a private
placement of special notes exchangeable for secured convertible debentures
and a secured convertible debenture for a total amount of $3,417,000.
Proceeds of the financing were used for exploration and development
activities at the company's Jericho diamond project and for general working
capital purposes. On Nov. 17, 1999, Tahera received $2.3-million from the
sale of its bulk-sample processing facility to Winspear Resources Ltd.
Jericho diamond mine development project
The Jericho diamond project, wholly owned by Tahera, is located in the new
Territory of Nunavut, approximately 420 kilometres northeast of
Yellowknife, NWT, and 170 kilometres north of Ekati, Canada's first diamond
mine.
Feasibility work to determine the economics of constructing the Jericho
diamond project is continuing, and SRK Consulting and DRA Mineral Plant
Design Engineers are in the final stages of completing a prefeasibility
study for the project. The Jericho diamond project is centred on the
Jericho pipe, a land-based kimberlite located 28 kilometres northwest of
the Lupin gold mine (owned by Echo Bay Mines Ltd.).
Tahera is encouraged by the feasibility work performed to date on the
Jericho diamond project and is planning, subject to completing the
feasibility study and receiving regulatory approvals, the construction of a
full-scale diamond processing plant to treat material from the proposed
Jericho diamond mine. The full-scale plant will be partially located in the
building at the Lupin mine site that is currently occupied by the bulk
sample processing facility, subject to implementing the facilities-use
agreement between Tahera and Echo Bay. The proposed full-scale diamond
processing plant will also enable Tahera to treat bulk sample material from
future kimberlite discoveries.
Exploration
Tahera's wholly owned landholdings in Nunavut Territory are subdivided into
four main properties: the Jericho Group, the Contwoyto Group, the Burnside
Group, and the Northern Group. In total, Tahera has interests in
approximately 700,000 hectares in the Northwest Territories and Nunavut.
Jericho Group
Three diamondiferous kimberlites (Jericho or JD-1, JD-2 and JD-3) have been
discovered thus far on the 93,000-hectare Jericho Group. Tahera's 1999
summer exploration program included a comprehensive mapping and sampling
program, and ground geophysical surveys over a large portion of the Jericho
Group. Two priority target areas -- the Jericho West area and the Bird Lake
area have been selected for followup during the winter 2000 exploration
program. These areas were chosen due to the abundance of kimberlite
indicator minerals present, coupled with the fact that the target areas lie
in close proximity to the Jericho kimberlite. Following further data
analysis, targets will be prioritized for an exploration drilling program
in early 2000.
Tahera is focused on discovering more kimberlites in close proximity to the
Jericho kimberlite to provide additional material for the proposed Jericho
diamond project.
Contwoyto Group
Tahera's 1999 summer exploration program over the Contwoyto Group claims
included a comprehensive mapping and sampling program, and ground
geophysical surveys over selected areas. An extensive kimberlite float
train was prospected and extended to 18 kilometres in a north-south
direction and up to three kilometres wide in places. Due to the abundance
of kimberlite indicator minerals and kimberlite float mapped, the Contwoyto
area has been selected as a priority area for followup during the winter
2000 exploration program.
Contwoyto-1 mini-bulk sample
Tahera completed processing the mini-bulk sample extracted from the
Contwoyto-1 kimberlite in early November, 1999. The 50.1-tonne kimberlite
sample was processed at Tahera's one-tonne-per-hour DMS (dense media
separation) plant in North Vancouver using a square screen bottom cut-off
size of 1.18 millimetres. In total, 13.60 carats were recovered from 50.1
tonnes of kimberlite treated, for a preliminary diamond grade of 0.27
carats per tonne. Due to the relatively low grade indicated, Tahera does
not plan further evaluation of the Contwoyto-1 kimberlite at this time.
Burnside Group
A regional program of mapping and till sampling was performed during the
summer over the Burnside claims. Sample processing and data interpretation
are continuing.
Kennecott joint venture
Kennecott Canada Exploration Inc. is entering the fourth year of a joint
venture agreement with Tahera. Under the agreement, Kennecott can earn a
50-per-cent interest in three extensive properties located in Nunavut and
the Northwest Territories by making expenditures of $50-million by 2008, of
which approximately $14.9-million has been spent to date. Seven kimberlites
have been discovered on the Kennecott joint venture properties thus far.
The 2000 exploration program, budgeted at approximately $2.5-million
(Canadian), will focus on target generation followed by drilling priority
kimberlite targets.
Roundrock property joint venture
Tahera has a 24.5-per-cent interest in the Roundrock property. Ashton
Mining of Canada Inc., as operator of the joint venture, conducted an
exploration program focused on heavy mineral sampling and field
investigation of geophysical anomalies in 1999. The winter 2000 exploration
program will concentrate on the area of the diamondiferous Aquila
kimberlite, and will consist of ground geophysical surveys and drilling of
priority targets.
Corporate matters
As reported in Stockwatch Sept. 27, 1999, Tahera appointed Andre Louw as a
director of the corporation. Following the completion of certain regulatory
matters, Mr. Louw will also be appointed president and chief operating
officer. Mr. Louw brings a wealth of diamond operations and marketing
experience to Tahera. Glenn Laing resigned from his position as president
and a director of Tahera effective Sept. 23, 1999.
In addition to the above appointment, Roy Meade was appointed as a director
and deputy chairman of the corporation in September, 1999. Mr. Meade, a
professional mining engineer with 26 years experience in the mining
industry, will provide technical expertise as co-ordinator of the Jericho
diamond project feasibility study. Patricia Sheahan, a geologist and
president of Konsult International Inc., has also been appointed as a
director of the corporation and will assist in directing Tahera's
exploration programs in the future.
The above appointments reflect Tahera's continued focus on developing its
wholly owned Jericho diamond project and continuing diamond exploration
activities over its extensive and prospective landholdings.
CONSOLIDATED STATEMENT OF LOSS
Three months ended Sept. 30
1999 1998
Revenues
Interest $ 8,583 $ 137,366
Contract
processing 62,227 -
---------- -----------
70,810 137,366
---------- -----------
Expenses
Salaries and
benefits 389,025 154,880
Legal and
audit 149,670 381,885
Financing
costs 44,809 -
Office and
general 135,543 104,949
Directors'
fees
and expenses 18,014 8,532
Depreciation 106,372 186,653
Debenture
interest
and financing
costs 65,080 -
Travel 130,741 46,768
Transfer
agent and
listing fees 33,391 7,029
Capital tax 5,445 9,000
Interest on
short-term
borrowings 698 1,892
Amalgamation
costs - 255,378
Consulting - 27,331
---------- -----------
1,078,788 1,184,297
---------- -----------
(Loss) before
other items (1,007,978) (1,046,931)
Other items
Share of
(loss) of
equity
affiliates - (392,333)
Gain on sale of
shares of equity
affiliates - 970,236
Writedown of
exploration and
development
projects - (35,577,221)
Gain on dilution
of investment in
equity affiliate - 165,440
---------- -----------
(Loss) for the
period before
income taxes (1,007,978) (35,880,809)
Provision for
income taxes (26,709) (34,000)
---------- -----------
(Loss) for the
period ($1,034,687) ($35,914,809)
Earnings
(loss)
per share (.7 cents) (3.1 cents)
CONSOLIDATED STATEMENT OF LOSS
Nine months ended Sept. 30
1999 1998
Revenues
Interest $ 105,991 $ 228,894
Contract
processing 347,561 -
---------- -----------
453,552 228,894
---------- -----------
Expenses
Salaries and
benefits 912,713 421,158
Legal and
audit 299,101 477,104
Financing
costs 126,093 -
Office and
general 377,017 657,312
Directors'
fees
and expenses 178,002 83,532
Depreciation 386,782 246,653
Debenture
interest
and financing
costs 65,080 -
Travel 241,908 208,396
Transfer
agent and
listing fees 98,897 39,075
Capital tax 29,445 27,000
Interest on
short-term
borrowings 2,302 4,020
Amalgamation
costs - 255,378
Consulting 16,085 271,701
---------- -----------
2,733,425 2,691,329
---------- -----------
(Loss) before
other items (2,279,873) (2,462,435)
Other items
Share of
(loss) of
equity
affiliates - (47,426)
Gain on sale of
shares of equity
affiliates - 1,936,679
Writedown of
exploration and
development
projects - (35,577,221)
Gain on dilution
of investment in
equity affiliate - 695,510
---------- -----------
(Loss) for the
period before
income taxes (2,279,873) (35,454,893)
Provision for
income taxes (120,709) (102,000)
---------- -----------
(Loss) for the
period ($2,400,582) ($35,556,893)
Earnings
(loss)
per share (1.6 cents) (3.07 cents) |
