TORONTO, Oct. 11 /PRNewswire-FirstCall/ -- Tahera Diamond Corporation (TSX-TAH) announced today that its Jericho Diamond Mine continues to experience operational issues. The mine has not yet achieved the nominal design production rate of 2,000 tonnes per day. The process plant throughput rate averaged approximately 1,700 tonnes per day during the third quarter, or approximately 85% of nominal capacity. A new crusher arrived at the site in August as planned, and was operational by late September. The Company's longer-term goal is to achieve an average processing throughput rate in excess of 2,000 tonnes per day.
The average grade of kimberlite mined and processed to date is approximately 25% lower than forecast. The number of carats produced to date is lower than expected due to the shortfall in tonnes processed and the lower than anticipated grade. The majority of tonnes mined have been sourced from low-grade resource material, and from additional low-grade kimberlite material that was not included in the resource model.
Tahera is assessing additional financing arrangements to fund its working capital requirements in the first quarter of 2007, as the fuel and other bulk supplies for the full year are purchased at that time. The Company is also discussing the deferral of certain payments due to Tiffany & Co. with respect to the existing credit facility.
The Company expects to release its third quarter financial results at the beginning of November.
Mr. Dan Johnson is Tahera's qualified person as defined in National Policy 43-101 who has supervised the preparation of the technical information included in this press release. Mr. Johnson is an employee of Tahera and is not considered independent of the Company.
This press release contains "forward looking information" that reflect Tahera Diamond Corporation's current expectations. When used in this press release, words such as "estimate", "intend", "expect", "anticipate" and similar expressions are intended to identify forward-looking information, which is based on the opinions and estimates of management at the date the statements are made. By their very nature, they are not guarantees of Tahera's future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause Tahera's actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by forward-looking information. These risks, uncertainties and factors may include, but are not limited to the risks and uncertainties identified in Tahera's latest Annual Information Form filed on http://www.sedar.com/. Actual events may differ materially from current expectations. Tahera disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
Tahera Diamond Corporation
R. Peter Gillin - Chairman and CEO
Grant Ewing - Executive Vice President
