Operator: Benachee Resources Inc., Tahera Diamond Corporation
Location: 350 km southwest of Cambridge Bay in the west Kitikmeot region, Nunavut

Jericho is a kimberlite deposit located at the north end of Contwoyto Lake, 25 km north of the Lupin gold mine site, in the Slave Geological Province. The deposit is located on Crown land although parts of the proposed project will be on land with Inuit-owned surface rights.

The federal regulatory instruments will be in the name of Benachee Resources Inc., a wholly owned subsidiary of Tahera Diamond Corporation.

The "Part 5" environmental review of the Jericho project was completed in July 2004 with the issuance of the Nunavut Impact Review Board's Project Certificate. An Inuit Impact and Benefits Agreement was signed between the Kitikmeot Inuit Association and the Tahera Diamond Corporation on September 8, 2004. On January 25, 2005, the Minister approved and signed the water licence. Indian and Northern Affairs Canada has executed land lease documents with Benachee Resources Inc. on February 11, 2005 in order to allow the company to use Crown land at the project site.

Development Plans

Tahera Diamond Corporation plans a 900 tonne per day, fly-in, fly-out operation. According to the final environmental impact statement, construction is scheduled to begin in 2005 with materials being transported up the Lupin winter road this winter. The mine would begin commercial operation in 2006, and is expected to have an eight year mine life. Mine infrastructure would include tailings disposal in a lake south of the mine site. The mine site and pit would be located just south of Carat Lake. Northeast of Carat Lake is an airstrip capable of servicing the minesite.

The first four years of production would be from a land-based open pit, followed by about two years of underground mining. A stockpile of ore would be generated during this time so that processing would continue for two years after the end of mining operations. The project would produce an average of 375,000 carats per year, for a total of 2.6 million carats. Mine life may be extended by the discovery of new resources nearby.

Economic Costs and Benefits, Including Employment

The proponent estimates capital costs at approximately C$45 million. The proponent also estimates that up to 60 jobs would be created during construction. Employment during mining would peak at 116 during open-pit mining, decreasing to 48 during underground mining and to 40 while processing stockpiled ore. Benefits to the Crown would include corporate and income taxes and royalties, probably in the range of a few tens of millions dollars. The Inuit Impact and Benefits Agreement will be implemented prior to the start of mining operations.

Cambridge Bay, Kugluktuk and Gjoa Haven as well as the Northwest Territories are best situated to provide services and employees to the project.

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