The Quellaveco Copper Project Vette and I referred to has equivalent of about 16bn lbs copper (7221 kt -kilo tonnes). I am not sure where Vette got the figure of approx $1 billion but lets assume this is correct.

[do check it out and do also check the resources figures in the 2011 Anglo America 2011 Accounts I have used which shows the resource figures for this project]

This means the Quellaveco project has an estimated acquisition value of about $0.36 per lb of copper.

So if you simply take the additional copper that is above the resource figures used in the Feasabilty of 5bn (5bn x 0.36) and ignore the credits from gold,silver and mol (to be conservative) you get a value of about $1.8bn on top of the feasibility value. So you can add the Feasibility value of 1.5bn (5%) or $0.5bn(8%) to get a total value.

Value $3.3bn at 5% seems fair to me for the whole Shaft Creek project including areas outside the "area of interest", but you may beg to differ.

This is very crude but is one way of looking at acquisition values.

You may ask why $0.36. This makes sense to me if you take into account time value of money, costs to build and produce a well as as risks. Its another way of looking at a crude NPV value.

Its up to you folks now to take the debate further and come up with opinions on the buyout option. But for me this looks like the most obvious one if they want a "liquidating event".

It would be good if someone could check what the Buyout option means in terms of Copper Fox, if Teck just wanted to buy 100% and rip up the JV agreement. Does someone know what the right of first refusal clauses are?

Hope this helps put some perspective on the whole Project, not just the Feasibility itself.