Sorry if someone has already made this point, but you write of our FS study as if were some sort of surprise to management that it was constrained to a starter pit. One thing I don't beleive is that the scope of the FS was constrained by engineering problems any more than I believe that the treatment of the "waste area" was necessary. Remember, it has already been drilled by Teck.

It was done that way, probably by request of Teck, and there are several good reasons to have done it that way. They probably want to get this mine built ASAP and it is a lot easier to get the road approved if the initial operation is smaller, i.e. fewer trucks, less dust and noise. It also requires less initial capital expenditure to start a smaller operation. In addition, the total waste disposal area is smaller, etc. All this helps ease the initial approval process.

As they are actually building the mine, they can, at that time, perhaps increase the size a bit if everything is going smoothly. Certainly, once it is in production they can continue to increase the size as they do more infill drilling and prove to the locals and the government that the extra money is good for them and that they are good corporate citizens.

All this would indicate to me that there is some sort of deal going on where Teck will initially either back in or buy outright a limited amount of Shaft Creek and there will be a new JV of some sort for CUU to continue their exploration of the remainder. This could get very complicated but would keep Teck from looking like they are overpaying, but allow CUU to get full value for their work over the next 2-4 years. It wouldn't surprise me if there is already a mine plan covering most of the "drilled area" and much of the delay in the FS resulted from doing this starter pit FS as strategy to get this thing approved in the quickest time possible.

I think Elmer has known all along where he is getting the money to explore the Arizona properties.

Rip