Re: some numbers (question)
in response to
by
posted on
Jan 26, 2013 11:29AM
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%)
They take the 75% and decides to shelve it for a while - where does that leave us (CUU) in regards to "enhancing" our 25%?
I think this question has been dealt with before. They cannot shelve it because under the agreement with Salazaar they will be under a time constraint to get the mine up and running within 4yrs. They have to act within the spirit of the original agreement even if a new time constraint ( let's say 5yrs is renegotiated ) to get a mine up and running.
Some lead items take up to 3 or 4 years so they have to start ordering these items asap. Imho, as a PE, I don't thing this option is going to be chosen by Teck. Most likely they will need at least another 2 years to fine tune SC to make a "real production decision" based on better recoveries, revised mine plan and BFS. That means more drilling to define the Paramount zone where better grades were found at a shallower depth, ugrade the 171m tons, and find other cost cutting measures etc. So add 2 years plus 5 to build and we are looking at 2020 for the actual mine to be in production. No way will they meet a time constraint of even 5 years.