Originally posted by dugsab
Sorry Guys,
I'm away from home atm, with limited access to a laptop.
If you remember I mentioned Maroon Gold as a potential processing and mining partner, six months ago when EOPL didn't meet there timelines (please see posts back that far).
The agreement appears (on the face of it), to be very similar to the EOPL HOA.
Except :
- Maroon agreement is for 100kt
Vs EOPL's agreement for 200kt
- presumably LNY are still targeting
+8g/t
"
Pursuant to the HoA, the Company plans to process initially up to 200,000 tonnes of high grade ore (+8 g/t)..."
- Maroon's plant (Black Jack) has a capacity to process up to 340,000tpa
Vs Georgetown 100,000tpa
- Maroon's plant recoveries of 90% to 95%
Vs EOPL (Georgetown) 87%
- Maroon's revenue split occurs above a 3.5g/t head grade
Vs EOPL 4.0g/t
- Maroon revenue split 60/40
Vs EOPL 70/30 for 80kt & 60/40 for 120kt
- Maroon to provide an interest free unsecured loan to Laneway for an amount of up to $500,000 (this is a big plus).
I haven't had time to do the numbers, but essentially it's a similar deal. We loose time and money in transport costs, but the dirt is processed 3.5 times quicker and 6% more efficiently.
Presumably the deal with Maroon is for 100kt only, since EOPL's mill may be commissioned sometime after the deal with Maroon terminates, allowing LNY the option of switching Mills if the board sees fit.
Cheers,
Thanks very much for that Dugsab, much appreciated.
From my eye the very most important factor is " presumably LNY are still targeting +8g/t".
How confident are you that that 8g/t covers the entire 100k tonnes?
It would be considered reasonable to think that if management were "looking for" 8g/t for that EOPL deal (200k/t) that you would expect them to be more confident of achieving that 8g/t, if not more, from that lesser amount?
Am I being too "positive" in inferring that? The actual answer to that involves + or - $millions to LNY and us shareholders.
