Final Hearings for the Jericho Diamond Project

1
Final Hearings for the Jericho Diamond Project

• Presented in the Nunavut Communities of Cambridge
  Bay, Kugluktuk and Gjoa Haven
• January 5 9, 2004

2
Building a Project Key Steps

• Vision
• Perseverance
• Cooperation
• Dedication
• Commitment
• Success

3

• Material to be Presented or Available
• General Overview of the Jericho Project
• Detailed information to be presented by Taheras
  consultants as per their areas of expertise.
• EIS and Supplementary Information documents
• Posters
• About Tahera Corporation
• Publicly traded on the Toronto Stock Exchange
  (TAH)
• Involved in diamond exploration in Nunavut since
  1992
• Have discovered numerous kimberlites on property

4
Tahera Corporation

• Will develop the Jericho Diamond Project for
  purposes of extracting commercially saleable
  diamonds
• Will be developing the Companys first mining
  project with the aide of experienced mine
  builders (Nuna, SRK, DRA)
• Will utilize local labour and services
• Have an Agreement in Principle for an Inuit
  Impact Benefit Agreement (IIBA) with the
  Kitikmeot Inuit Association (KIA)
• Will develop the Jericho Project with minimal
  impact to the environment

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Tahera Corporation General Project Location
Taheras Diamond Projects
6
Tahera Corporation Project Location - Regional
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About the Jericho Diamond Project

• Proposed 8 year mine life
• 300,000 tonnes of kimberlite processed each year
• Average diamond grade of 1.2 carats per tonne
• 3 million carats of diamonds recovered
• Open pit mining for 4 years
• Underground mining for 2 years
• Processing for minimum of 8 years

8
Project History

• 1992/1993 EXTENSIVE STAKING, EXPLORATION
• 1995 DISCOVERED JERICHO PIPE
• Baseline studies begin
• 1996 MINI BULK SAMPLE JERICHO PIPE
• 1997 DELINEATE BULK SAMPLE JERICHO PIPE
• Underground bulk sample 9,400 tonnes treated
  recovered 10,530 carats
• 1999 PREFEASIBILITY STUDY
• 2000 FEASIBILITY STUDY COMPLETED
• 2001 DRAFT EIS COMPLETED PREHEARINGS CONDUCTED
• 2003 FINAL EIS SUBMITTED

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Development of the Environmental Impact Statement

• Draft EIS written based on the NIRB guidelines
• NIRBs consultants provided a conformity analysis
  of the draft EIS
• Final EIS completed to conform to guidelines and
  comments received from Wilkinson and Associates
• Additional consideration was given to CEAA
  requirements prior to finalizing Final EIS
• Information requests received in April and May
  2003
• Supplementary information provided in October
  2003

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The Jericho Project Section 12.5.5 (NLCA),
Matters Taken into Account (pg. 109-110)

• Whether the project would enhance and protect the
  existing well-being of the residents and
  communities of the Nunavut Settlement Area,
  taking into account the interests of other
  Canadians
• Whether the project would unduly prejudice the
  ecosystemic integrity of the Nunavut Settlement
  Area
• Whether the proposal reflects the priorities and
  values of the residents of the Nunavut Settlement
  Area
• Steps which the proponent proposes to take to
  avoid and mitigate adverse impacts
• Steps the proponent proposes to take, or that
  should be taken, to compensate interests
  adversely affected by the project
• Posting of performance bonds
• The monitoring program that the proponent
  proposes to establish, or that should be
  established, for ecosystemic and socio-economic
  impacts and
• Steps which the proponent proposes to take, or
  that should be taken, to restore ecosystemic
  integrity following project abandonment.

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Site Infrastructure and Mining of the Jericho
Diamond Project
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Existing Jericho Site

• Camp Site 50 person capacity
• Portal Site Developed by mining contractor
  during bulk sampling program
• Airstrip Approximately 1 km in length with
  landing lights
• All-season roads Approximately 3.5 km

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Existing Jericho Camp
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Jericho Portal Location of Jericho Kimberlite
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Jericho Project Site Plan
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Schematic of the Jericho Pit Underground
Workings
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Jericho Mine Site Animation
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Baseline Studies
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(No Transcript)
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Depth of Baseline Studies Completed

• 1995 - water quality, water chemistry,
  vegetation, wildlife, fisheries
• 1996 meteorology, hydrology, water sediment
  quality, bathymetry, acid-base accounting,
  fisheries, wildlife, heritage, socio-economics
• 1997 meteorology, snow depth, hydrology, water
  quality, and wildlife
• 1998 meteorology, water and sediment quality,
  and fisheries
• 1999 meteorology, hydrology, snow depth, water
  and sediment, quality, vegetation, wildlife,
  fisheries, heritage, geotechnical investigations,
  ore and waste rock characterization, spray
  irrigation
• 2000 meteorology, hydrology, water and sediment
  quality, geotechnical investigations, vegetation,
  wildlife, spray irrigation
• 2001 meteorology, hydrology, water and sediment
  quality, geotechnical investigations, vegetation,
  wildlife, spray irrigation
• 2002 meteorology (operating under proposed
  joint venture)
• 2003 meteorology, permafrost, soil and bedrock
  conditions, water quality of small streams

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(No Transcript)
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Incorporation of Traditional Knowledge
Elders Site Visit
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Incorporation of Traditional Knowledge

• Elders visits to Jericho Site in 1996 and 1999
• Allowed elders to see site first-hand
• Provided opportunity to discuss concerns
• Opportunity to bring elders together from
  different communities
• Opportunity for elders to view archeological /
  heritage resources work
• Elders knowledge confirmed and complimented
  scientific data for area
• Ongoing community consultations in the
  communities of Kugluktuk, Cambridge Bay, and Gjoa
  Haven. Consultations have also taken place in
  Bathurst Inlet, and Bay Chimo
• Valuable information collected regarding Inuit
  culture and values

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Incorporation of Traditional Knowledge

• Influence on mine site development
• Planned mine infrastructure was altered due to
  caribou migration routes
• Management Plans reflect significance placed on
  wildlife by the Inuit culture
• Right of way on roads
• Special diversions to minimize impact of
  migrations
• Monitoring committees to ensure TK is adhered to
• Future additional insight from
• Kitikmeot Traditional Knowledge Study.
• Ongoing community meetings
• IIBA will insure that TK continued
• Information gained by other mining companies

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Heritage Studies

• Conducted by Fedirchuk, McCullough and
  Associates in 1996 and 1999, coupled with two
  site visits by Inuit elders from West Kitikmeot
  communities.
• Used to Identify and Evaluate heritage resources
  at the Jericho site that might be disturbed or
  destroyed by project development.
• Summary
• one artifact of scientific and cultural interest
  was identified in 1996 and further study
  recommended
• the one artifact, consisting of an arrowhead and
  stone chips, was excavated and mapped in 1999
  the artefacts were curated by FMA and deposited
  in Prince of Wales Heritage Museum pending
  establishment of an Inuit heritage museum in
  Nunavut
• Inuit elders did not identify any sites that were
  potential graves, nor express any special
  concerns about project development.

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Taheras Team
Cam Scott SRK Consulting Geotechnical
Kelly Sexsmith SRK Consulting Water
Quality Pete McCreath Clearwater Consultants
Ltd - Water Bruce Ott AMEC Vegetation and
Discharge Andre Sobolewski Microbial
Technologies - Water Treatment Rick Pattenden
Mainstream Aquatics Aquatics Bob Humphries
Levelton Engineering - Air Quality Ben Hubert
Hubert and Associates Wildlife Court Smith
Nuna Logistics Abandonment and
Reclamation Robert Hornal Robert Hornal and
Associates - Socioeconomics Andrew Gottwald
Vice President and CFO, Tahera Corp. Letha
MacLachlan Legal Counsel