Pretty obvious that with LNY's "record", punters are still happy to adopt a wait and see approach pending (a) the grant of the ML (b) actual commencement of mining operations.
The more one looks at those numbers yesterday, tells you why this company, who are notoriously "boring" with their rare announcements, used the word "outstanding". They would be absolutely delighted seeing the size of those grades and the very relatively shallow sources. One can easily see them having a review of their current JORC which could change the economics of this first project considerably. Remember, Agate Creek is in Kidston territory!!!
And seeing what the COO is saying ,"Chief Operating Officer Scott Hall“We see this as further strong validation of the Agate Creek project both the high-grade deposit and thebroader group of concessions.There are several highly compelling targets at Agate Creek which we wouldlike to follow up. We are excited as to the next few years at Laneway and Agate Creek in particular”.
Again, on what we know, there are 8.2 million tonnes in this initial project with a JORC of 381,000 ounces, probably conservative after yesterday's results.
Say that Maroon's plant continues to be used, surely on a much better than 40/60 basis of this first deal, Black Jack will have the processing capacity of around 340,000 tonnes p.a. or around 24 years of processing for the remaining (at least) 346,000 ounces, just from this first zone, again, just 10% of the entire Agate Creek concession.
Again, simplistically, i.e. most things working out (it's a very simple, shallow operation), that's about 14,000 ounces p.a., or, say, around AUD $25 million p.a. Sure there are several variables in that, but, mostly unpredictable, but, history is telling us that with the major variables being the price of gold and the price of the AUD, both of those could very predictably go either way, so, for this exercise, I don't think that using today's figures is way out unreasonable, in fact, could be extremely conservative. Based on,say, a conservative 50/50 future deal, or better, that would be around .004 per share. just on gross income. Now, what value would the market put on that relative to today's SP of .004 and current Market Cap of just $14.72 million???
