LNY (ASX) Ann: Quarterly Activities Report

Originally posted by dugsab ↑

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.

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Simplistic (net profit, cash) and hypothetical (HOA??). i.e. useless.
Only numbers upon which anyone can draw substantive conclusions is the JORC of 381,000 tonnes @ .05 oz/t and an Issued Capital of around 3.6 Billion.
Even if your numbers do come up, it will have an EPS of around .009 and with the dregs to follow, everyone will be bailing out very quickly because it will be years before any more actual productive mining takes place at Agate Creek and certainly many many years IF NZ gets a j/v.
Have you even noticed that the price of gold has been in a tail spin since April and to make it worse, the A$ is increasing while the US$ price of gold is dropping!!!! Worst case scenario!!
I'm wearing you thin??? You've worn me out trying to counteract your irresponsible theorizing.
Until some real (new) numbers are officially announced by the company, commencing with the TOA and ML, together with any HOA re mining and processing, when I'll be delighted to compare notes with you. Until then, goodbye and good luck.

Simplistic (net profit, cash) and hypothetical (HOA??). i.e....