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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: Clarity

So we have clarity now. SC is not even a medium term project for Teck. Corridor is a medium term and requires 2-3 years of a PFS and an FS. It appears SC could be bundled with Galore and Novagold has not been able to sell their 50%. SC had the exchange rate, gold and low country risk going for it. I thought the gold in particular would interest Teck but they made that great deal to combine their copper only Relincho with Goldcorp's gold/copper El Morro. So the only way for SC to move up the ladder is Chile doing something extreme to discourage foreign investment. Is CUU really contemplating waiting it out for another 3 years to cash out? Not likely so they may be considering cashing out now for whatever they can get, which won't be much. Hardballing Teck with the leverage in the Salazar agreement had a risk of ending up with 100% of SC and no money. Signing the JV agreement had a risk of ending up with 25% and, if Teck had no plans to develop the property, no money. It looks like the only way to get value for SC is to invest in Teck. Time to think about what to do next as the trading opportunity that's existed over the past year may no longer be available.

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Mar 31, 2016 01:21AM
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