For sale: one slightly used Nunavut diamond mine

The Tahera Diamond Corp. announced this week that its Jericho diamond mine in the Kitikmeot is now up for sale.

The small Jericho mine, which operated between 2006 and 2007, was the first new mine to open in Nunavut after 1999.

But high fuel prices, lower than expected diamond grades and a melting ice road pushed Jericho’s operating costs far above revenues.

In the first three quarters of 2007, the company posted losses of $143 million. In January of 2008, they halted operations and later in the year, Tahera mothballed the mine and sought bankruptcy protection.

Because of Tahera’s insolvency, about 40 Nunavut residents lost jobs and training opportunities when the mine shut down.

Following approval by a court, Tahera put the Jericho mine up for sale Jan. 18 to raise money to pay various creditors.

A new economic study estimates that the main section of the Jericho kimberlite pipe contains 1.14 million tonnes of ore, with a grade of about 1.4 carats per tonne. Other kimberlite pipes hold an estimated 3.79 million tonnes of ore, with a grade of .68 carats per tonne.

The company will entertain offers for either a sale of shares or a sale of assets.

They have also created a new website that compiles most existing information about the Jericho project.