Just left the conference, never have I seen so many 4x4's in the parkade.
Had a nice chat with Elmer and Jason.
First question I asked was why the BFS wasnt out before conference, they really had hoped but TT just didnt deliver. Expectations high for next week.
One large piece of info that I learned was that after delivery to Teck, Teck has up to 30 days
to check off all the requirements to meet the contract and sign off then the 120 day clock starts. Elmer stated that they have worked with Teck on all the requirements so it is unlikely that it will take that long, but that puts it at a max of 4 months.
Do they have a price in mind for the buyout ... no but seeing as the majority shareholder is the one that will have to be pleased it should not be for anything less than true value.EE would not leave any money on the table. Elmer has not asked EE what he would want and if he did he wouldnt tell me.
Buy out would probably be in Teck shares which is really smart as you are getting a strong company with a dividend and Schaft just adds value to Teck anx their share price.
Ea is the main objective at this moment, it has had alot of work done but needed the mine plan to be able to work towards completion.
Strong possiblity that when Teck buys out the Schaft Creek deposit that Cuu might work out a new JV to "explore" the rest of the property to the north, the teams there they know the property. The areas that the drills had to stop because of harsh rock conditions will be able to be drilled they just need to approach it differently and would direct the drili g company the right way.
Cuu does not need to drill the waste rock as they have met the requirement with a concervative BFS . That area will be drilled and worked into what would most likely be atleast two more mine plans. Tecks job not CUU unless we still own a portion of the project and it would be funded by the approx 360 million Teck needs to spend.
Ea is the main objective as it changes the numbers from 8% to 5%.
Elmer really walked through Schaft Creek vs Galore and it boils down to location location location.
Schaft has 1 metre of precipitation vs 3-4 for Galore. Galore has to ship 40 km to mill Schaft is very close. The waste area is good for i beleive 900 million tons ane if they raised the dam walls on the ends it would be i think the number was 2 billion, so lots of room to expand.
Has to pick up wife before she spends to much shooping in Vancouver, talk later to you all.
JA
