Tahera Jericho Diamond Mine Produced 296,000 cts in 2006

Canada’s newest diamond mine, Jericho, produced 296,000 carats in 2006 for a grade of 0.55 carats per ton, according to owner Tahera Diamond Corporation. The mine opened in 2006. The mined diamonds were sold for an average of $93 per carat, for a total production value of $27.53 million.

539,000 tons of kimberlite were processed.

A 59-carat gem, which sold for $450,000, was the most valuable diamond recovered during the year. The largest diamonds recovered include three low quality stones in excess of 100 carats each.

The level of production was below expectations, hurt by the early closure of the 2006 winter road, and the resulting fuel and explosives shortage.

The company recorded a net loss for the year of $25.596 million ($0.16 per share), compared to a loss of $2.77 million ($0.02 per share) in 2005. 

Tahera's cash and cash equivalents balance was $27.557 at year’s end.

Diamond inventory at December 31, 2006 of $10.5 million represents diamonds produced and held for sale at the balance sheet date.

Company revenues totaled $5,618,000, while reporting an operating loss of $24,358,000 for the six-month period in 2006 following the start of commercial production on July 1.