RAPAPORT... Canada-based Tahera Diamond Corporation first half revenues, ending June 30, 2007, were CAD15.3 million ($14.6 million) -- up from nil one year ago. The mining company's fiscal losses grew to CAD31.7 million ($30.1 million) from a profit of CAD2.6 million one year ago.

Cash and cash equivalents at the end of the first half grew 15 percent to CAD12.8 million, but from the start of fiscal 2007 the figure is down by CAD14.7 million.  The six-month decrease was due primarily to negative cash flows from operations and the significant expenditures made in early 2007 to mobilize fuel, explosives, and other supplies on the winter ice road.

Tahera's Jericho Diamond Mine realized an average grade of 0.78 carats per tonne of processed ore, resulting in production of 74,000 carats.  Overall, total tonnes processed decreased by 42 percent from first quarter of 2007 and the grade increased by 73 percent.

The value of production for the second quarter of 2007 (Government Diamond Valuation "GDV") was $6.4 million, or when applying exchange rates in effect at the GDV valuation dates, the equivalent would be $6.9 million. The total cash operating cost related to the production of these goods was $15.2 million.

Already during the month of July (first month of third quarter) Tahera processed 40,000 tonnes of kimberlite at an average grade of 0.88 carats per tonne, resulting in  approximately 35,000 carats.

Jericho is not yet running at full capacity, but Tahera has implemented numerous testing and improvement measures to the mine operations. "[D]ue to the various tests being performed, additional financial losses have been incurred, leading to the need for a comprehensive financing plan involving all of the company's major stakeholders," Tahera reported in its financial statement.

Tahera sold 22.5 million units from treasury at CAD1 per unit. Each unit is comprised of one common share and one-half of one common share purchase warrant.  Also during the quarter, Tahera drew funds totaling CAD2.5 million under the working capital facility with Tiffany & Co.