Re: NPV Model
posted on
Sep 14, 2012 01:12PM
CUU own 25% Schaft Creek: proven/probable min. reserves/940.8m tonnes = 0.27% copper, 0.19 g/t gold, 0.018% moly and 1.72 g/t silver containing: 5.6b lbs copper, 5.8m ounces gold, 363.5m lbs moly and 51.7m ounces silver; (Recoverable CuEq 0.46%)
Elmer has repeatedly said that mineralization can't be confirmed without drilling. He did also comment that they have 1-to-1 correlation between the Titan model and drilling on the Paramount/Main systems. Discovery zone is apparently a different system or mineralization event so things may not correlate so nicely as in our heavily undestood Paramount/Main zones.
I would think that we would need to take the Mira product and insert a few key drills into each zone we can reach this year and demonstrate mineralization and some relationship to the Mira. I dont' see that happening with this year's bizarre (my opinion) drilling season.
The lack of drilling this year was telling me that a deal was pretty much done. Hints of restarting the drills is throwing that idea out.
TCK staked its 80k hectares for something like $150k - peanuts. I see it as more as cheap insurance against loosing control of this area of the district and as something that will add value to either Galore or Galore and Schaft (given an CUU buyout).
I don't have a running tally for how much CUU spent on its claims expansions since spring 2011 but I'd guess it is well under $1M.
So... I think we will get a bit more than 'squat' for our undrilled zones and district but I don't think it will add more than a few dimes (10cents X 406M shares = $40.6M) to a buyout price unless a really compelling case can be made with the Mira product covering the undrilled zones and the drills to date or, better yet, demonsrating the SC Mineralized Trend all the way north to where it meets up with Edziza Prov. Park.