I've been trying to figure out Rosemont and its value and how it compares to Schaft Creek.

Schaft Creek Annual Production

Copper 232 million pounds

Gold 200,600 oz

Silver 1.19 million oz

Molybdenum 10 million pounds

Rosemont Annual Production

Copper 243 million pounds

Silver 2.9 million oz

Molybdenum 5.4 million pounds

Production wise, these two mines are pretty comparable.

Augusta has sold off the gold (I don't see where they have gold?) and silver to Silver Wheaton for $230 million as upfront cash payments and payments of $3.9 per oz of silver and $450.00 per oz of gold during mine life.

http://www.augustaresource.com/News/News-Releases/News-Release-Details/2010/Augusta-Signs-Precious-Metals-Agreement-with-Silver-Wheaton/default.aspx

In this article, the 2009 FB states the mine would produce 2.4 million oz of silver and up to 15,000 oz of gold.

So say if CUU sold off our silver and gold production to Silver Wheaton?

200k oz of gold, CUU share would be 50k oz of gold per year.

Out of the 1.19 million oz of silver, CUU share would be almost 300k oz of silver per year.

How much would CUU get if we sold off our gold and silver? I don't know how to break down the cost analysis August/Silver Wheaton did but we can compare the production payments during mine life.

Rosemont - 2.4 million oz of silver sell for $3.90 = $ 9,360,000

- 15,000 oz of gold sell for $ 450.00 = $6,750,000

Total annual payments during mine life = $16,110,000

Schaft Creek - 300k oz of silver at $3.90 = $1,170,000

-50k oz of gold at $450.00 = $22,500,000

Total annual payments during mine life = $23,670,000

I guess even though CUU owns 25% of SC and the 25% produces less silver than Rosemont, the math above IMO is a safe way to compare the two projects and that SC should be worth equally or more.

So should SC 25% of silver and gold is worth a min of $230 million or more?

Then you have Hubday now paying $440 million for the copper and moly production. (Even though Augusta thinks they are undervaluing the entire project)

Since the production of copper and moly are pretty close, we will just assume the value of CUU 25% is 25% of the $440 million or $110 million.

This sort of puts the two values of $340 million for CUU 25%.

BUT! here are other factors to consider.

-Rosemont still requires financing by owner. SC will have Teck take it to production.

-Optimization studies not finished. SC may produce more metals than what the FS is telling us currently.

-Waste in the FS. The 171 million tonnes of waste where we know it is mineralized.

IMO, these factors should add more value to CUU 25% of SC.

So after all my math now, I figure $340 million is the low end of how much SC is worth in today's market?

Feel free to critique or add input. I find it very though to compare mines, it's almost like comparing apples to oranges.