Sigh!....gassed you’re wearing me thin! There are two separate...

Sigh!....gassed you’re wearing me thin!

There are two separate sets of publicly disclosed numbers. Both sets have been provided to the market (on multiple occasions), by way of LNY announments.

1. The 5,472 tonne Sample

“In January 2014, a 5,472 tonne Metallurgical Sample was mined, hauled and toll-treated through a CIL processing plant at Georgetown.
A total of 1,725oz of gold was produced. Recovered grade was 9.8g/t gold from a feed grade of 11.2g/t gold resulting in a 87% recovery.”

So, the previous trial mining and processing produced 1,725oz of gold with a head grade in excess of 11g/t gold and recovered of circa 10g/t.

2. HOA for 200,000 tonne -

“A Heads of Agreement has previously been entered into to mine and process up to 200,000 tonnes of high grade (targeting +8 g/t Au) near surface ore from the Agate Creek Gold Project.
Heads of Agreement provides funding for the mining, transportation and processing of ore through the Georgetown Gold Processing Plant.
Provides Laneway the opportunity to process ore on a commercial scale and produce significant cashflow with minimal capital exposure”

So, LNY’s number (not mine), disclosed to the market, is “targeting +8 g/t Au”.

My conclusion:
200,000 tonne @ +8g/t = circa $32mil net profit (cash).
You will need to read the HOA, ie revenue split occurs above a head grade of 4g/t, 60/40 & 70/30 split etc etc...

I trust you now understand. If not, I’m sorry I can no longer waste my time on this very simple piece of data.