Project Manager - Creating Trimmed Project w Handles, still leaving me with Huge Project

I'm trying to create a trimmed version of a completed Premiere Pro project, via "Project Manager...",
but I'm confused why I'm not getting a more condensed resulting project size.
This project consists of a completed 3.5 minute edit of a 2-camera conference video.
The majority of clips in the sequence are drawn from several hour-long clips in the master media folder, but the project I'm trying to archive and share
is this 3.5 minute highlight/digest piece. I was hoping I could send a trimmed project (sequence) to my finishing editor, without having to transfer all the media, and all the unused parts of some of these long clips,
and was under the assumption that "trimming" would accomplish this, however trying to make a trimmed version with handles in Project Manager, is still leaving me with a 90+gig project.
Exporting this sequence when selecting "Match Sequence Settings" produces a 694.7 MB .mpeg movie, culled from .mxf files (PMW300) and .mts files (C100).
What am I missing?
I also attempted to create an AE project by importing this PP project (1 selected sequence) into AE,
and reducing/consolidating and collect files, and was still being left with a 90+gig project (see attached)
Would love any insight or workflow tips!
(settings in Project Manager)
("Collect Files" folder from an AE export of the same project, creating 96+gig footage folder for 3.5min .mpeg video )

As Richard noted, Create New Trimmed Project is limited in the formats that it supports/trims. All MPEG formats will be copied in their entirety. i.e.: not trimmed.
Starting with Premiere Pro CC 2014.1 (8.1), Consolidate and Transcode was added, which may suit your needs. More information can be found at:
Adobe Premiere Pro Help | Copy, transcode, or archive projects
Consolidate and transcode to work with mixed video formats | Adobe Premiere Pro CC tutorials

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Any ideas? Anyone?

Project Manager - Creating Trimmed Project w Handles, still leaving me with Huge Project

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