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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%)

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Message: Re: Economics of SC
3
Oct 06, 2013 03:34PM

Yes, imho, everything improves if we expand the size of the pit. The larger the pit, the deeper material that can be mined. Alot of the M&I resources are found further down to depth but you need the pit area to be larger so that the deeper material can be mined safely. A much larger pit will also mean a much larger rate of extraction 180K - 250K t/day operations become feasible. With larger scales of materials being mined, the better the economics become and the better the NPV will be.

As a comparison, look at Panama Cobre. The mine plan at PC envisions a 240K t/day operation from 3 pits at the same time. The capex to build the mine will be 6B but the payback will be 3-4 years and the NPV is over 3B at 8%. The grades at PC are also similar to the grades found at SC. So our grades at SC are not an issue. What is an issue is can we expand this deposit to make it much more economically attractive. This is what Teck is going to find out with this drill program. Imho, if it is successful, I can see us being bought out in the new year.

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Oct 07, 2013 10:43AM
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Oct 07, 2013 03:25PM
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Oct 07, 2013 03:35PM
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