Ann: Grant of Mining Lease for Agate Creek Gold Project, page-37

I suppose the question all those on the forum should be asking you eastwest101 is, are we all missing something?

You are correct, the first 3.5grams per tonne goes to Maroon Gold to cover the cost of the blasting, the mining, the hauling, the processing and then the movement of the refined bars. Limiting them to 3.5 grams per tonne should drive them to do it more efficiently, if the costs exceed the value they get from 3.5grams per tonne they have to cover it from their own share. They have to do all the mining, drive 600km with the ore, process it, then deliver the bars. And they're now responsible for the mine site rehabilitation. And they lent us 500,000 dollars!! 

That is if we get over 3.5grams per tonne. I was thinking the opposite to you, they have every incentive to want to get as much over 3.5 grams per tonne as they can. They are only contracted for 100,000 tonnes, there is no after.
The recent assay results showed that we should be able to get 11gpt by diluting the high grade areas with the low grade. It would be more obvious for them to get all the high grade material, because they are only ever going to make a profit after 3.5gpt, thats just to cover costs. 

But you are right, no one has seen the contract. The only reason to think Maroon Gold will do the right thing by us is that we will be supervising them AND IT'S IN THEIR BEST INTERESTS TO IMPRESS US AND OTHER COMPANIES WHO MAY WANT TO USE THEIR TOLL TREATMENT SERVICES. 

Im probably being hopelessly optimistic after a very underwhelming day, but If both sides make money then they continue to use each others services or assets. If they only ever get below 3.5gpt they will never make a profit. Are you arguing they are just going to use LNY for a make work for themselves? They just bought Charter Towers, refurbished it, bought a load of tenements surrounding it, and it seems you are now arguing they didn't do the refurb to mine gold but to use it as a vehicle to screw other companies with.!! You have posted far more than me so it's great you are here posing these questions. 

Correct me if I'm wrong, but wouldn't it be far more likely that they want to test what their recently refurbished plant can do by doing the job they have been contracted to do?