Post by
ekim on Apr 11, 2016 12:51pm
Jericho Mine
Went back and revisted the numbers for Jericho mine.
Some details:
Circa 2003/2004
2.4 million carats open pit and 673K carats by underground.
Resource @ 7.1 million tonnes @ 0.84 cpt
Reserve @ 2.6 million tonnes @ 1.2 cpt
Diamond valuation - US$81/carat
Operating cost of CAD$56/carat
8 year minelife
CAD$65 million to develop the mine.
Tiffany - CAD$35 million LOC
Tahera received expressions of interest from several parties with regard to a diamond marketing and purchase agreement for its Jericho Diamond Project, and after careful consideration, has selected Tiffany.
Life of Mine Operating cash flow (not per year) = CAD$300 million
NPV @5% = CAD$142 million
Chidliak is a monster compared to Jericho.
Tahera had money coming in from Teck cominco, Dundee Precious Metals, and Tiffanys over the years leading up to construction fo the mine.
All for a tiny operation and a single pipe. Didn't work
11.39 million carats at CH-6 at US$200 per carat
compared to 3 million carats at US$89 per carat.
Quite a material difference between those 2 sets of numbers eh?
Relatively speaking, Tahera had it quite easy to raise funds to explore and construct the doomed mine. Chidliak is in a different world..both in fundamentals and ability to raise funds to explore and construct a mine.
anyway..just a quick revisit to the past with Nunavut and diamonds.
LONG...PGD
EKIM
ps. even though Jericho was in Nunavut, I'd still consider it part of Lac De Gras area of kimberlites..it is just past the border in Nunavut. That also made it having a much longer iceroad trip compared to the other diamond mines.
Comment by
aea257 on Apr 11, 2016 1:30pm
Speaking of Jericho and Shear... does any one know if Shear Diamonds has any glimmer of hope of coming back?
Comment by
Kodiboy on Apr 11, 2016 2:04pm
Hmmmm, interesting question aea257, somehow that thought about Shear coming back was mentioned sometime in the recent past, just can't remember if I read that in one of Will p's stockwatch write ups, or?