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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: Elmer - Exercise of options
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Jul 12, 2014 11:30AM

What is the plan to get shareholders money back from Schaft Creek?

I understand the frustration but I don't understand the question.

We know that Teck is in charge and working on the optimization and that Elmer/CUU gets reports at their meetings only. The next meeting is September so I don't expect anything before then.

We know that the price of metals has tanked in general below those figures used in our FS. We know the economy as a whole tanked. This has nothing to do with Elmer/Teck.

We know that our FS as it stands does not look good enough for us to put it up for sale. Unless Teck buys us out now, we can't sell to a third party with these results. If we could, we would have.

(I feel that this is because the steep east wall of the pit plan excluded a lot of material previously showing up in the Resource Estimate. We lost depth because we couldn't open it up enough at the top. That's why the technical drills were so important last year.)

We know our only hope for a quick(ish) return is for the optimization studies to improve the project sufficiently that we can sell our share. We also know that Teck has to want to put this into production or a buyer of our share, if it's not Teck, won't want to buy us out.

I believe that Teck has to improve the pit plan to improve the economics. They drilled on the east wall last year which will allow them to go deeper and capture some of that waste. Also, they drilled about 300m east to convert waste to mineralization.

All of this is now in Teck's hands and all we can do is wait. Our only option, through Elmer, is to wait and see what Teck comes up with and then put the project up for sale. I don't understand what people expect him to do in the meantime with SC? What are you looking for?

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