Ann: Update on Gold Production from Agate Creek Gold Project, page-39

Ok, so Im going to go against the tide of relentlessly negative postings, as we are all going by circumstantial evidence and the only conclusion reached so far is “We are all going die!” I want to add my own two cents.

Gold production

Three dore bars weighing approximately 22kg of gold AND silver production. Three blue serial numbers on the bars, illegible but 6 digits long, possibly MDD256 and MDD276, one very silver looking bar, Announcement 23^rd of April

Three dore bars - one blue serial number two black serial numbers MGO030G, MGO031, MGO032 appears to be on the same trolley that the previous picture was taken on, 20^th of May.

So… Im going out on a limb here, might the bars in the new picture have come from May production? Could it be that they are new bars? But the gold has disappeared we are told. Are they doctoring the photos? They could be, then again they might not be and the gold bars in the picture are newly refined bars. They are larger than the previous ones and of course they should be if production has continued at around the same g/t.

Another gripe was that the April 23^rd announcement says 22kg of gold AND silver = 2208 ounces, then the 20 May Announcement says 2,220 ounces of gold for the month of April. So if a quarter of the April 23 ^rd announcement was silver, there only would have been 1650 ounce of gold on April 23^rd, so in one more week they gathered another 558 ounces of GOLD to make 2,208 ounces total for the month.

Refined gold sold during the month totalled 57,821g or 1,859 Oz 99.999 of 99.999 gold. Charts show that the AUD gold price was 1810-1820 at that time, so unless they took the gold to the local shopping center to gold swappers that would be the price that we would get. Any deviation from that price, especially below that would bring ASIC down on their heads, we haven’t been told of any hedging contracts so management can’t suddenly introduce that into the mix. They should have included the average price received for the gold, they didnt but any figure outside ot 1810-1820 would definetly be material.

We still don’t know when the cash will be disbursed to LNY and Maroon, is it when the 100,000 tonne contract is closed? Surely it will be because the split occurs over the entire 100,000 tonne amount, I wouldn’t think they would get the first 8000 tonnes in and start disbursing the money only to find that the 13.91 g/t has become 12 g/t, or, and I know I’m bucking the trend on hotcopper here, maybe it would actually be positive and become 14.91 g/t and it would actually be good for both parties.

So, if this was the case, maybe it is in the contract that the g/t is calculated at the end of each month, trucks must be coming in all the time, grades would be variable, and everyone on hotcopper wants the figures done, what daily? Weekly? The announcement was made on a Monday, wouldn’t some of Sundays ore still be going through the mill? It could even be that the price received for the gold has to be factored in at the end of the 100,000 tonne contract, and the split occurs of the cash received on a g/t basis over the entire period of time, it wouldn’t make much sense for the blocks to be split and separately given to the two parties. We simply don’t know the terms of the contract, and they are unlikely to be given.

The director selling, what can I say, he has a modest amount of shares, Tomato69 to his credit, has raised some very valid points and has sold out more than the director has. People seem to be claiming the director has some insider information. He sold 12,308,893 shares… Right smack bang at tax time and after the quartley was released. Not every company director is a financial mastermind, he could have tax problems, like buying new cars or just be a financial disaster, or he might just be financially prudent, maybe he was an unwilling investor but was given a friendly shove in the first place. On the scale of the holdings of other directors it doesn’t worry me at all that he has sold.

I don’t understand the rage against our other assets. We have multiple assets and ever since I have owned LNY shares they have always been mentioned in the quarterly.

NZ – I think the government is against further mining and won’t let any new mines be built. I spoke to someone from the Coromandel and they said that the ground collapses from time to time because of historic mining. The school netball court has apparently collapsed several times or something. We can’t forget that Newcrest sole funded us to the tune of over 2million dollars for that ground. The permit has minimum work requirements, if we want to keep the permit we have to spend the money required. There would be economies of scale when drilling, we have to drill to keep the permit, if we double the amount of the minimum spend we probably get three times the amount of metres drilled and if we hit something big Oceana gold is nearby and they could potentially use their processing plant to process the ore. No new mine needed and it would possible be quite deep below ground. One thing the Kiwi said, the communities that are sustained by the mines are keen to see more mining go on. Governments change, and if their prime minister goes too Leftist on everyone and starts taking away everyone rights when they were getting along fine before some sicko came in from Aus to destroy their way of life, well, she should watch overreacting and treating the citizens she is meant to represent like the problem.

Ashford – So again, lets say one of the posters is right, and the coking coal is worth AUD$1 in the ground to a potential buyer, in its entirety it would be worth say AUD$15million, well management were the ones that bought half of it from New Hope Coal for AUD$350,000. So it’s a twenty bagger for us already. What would happen if we went through the labourious, time consuming, and yes expensive process of getting a mining lease on it? Well Coking coal prices might crash in the meantime, they could continue to get even more valuable, no one knows. But if you want to create value you have to take risks.

So the shareprice is getting smashed, on what? The fear that the g/t have plummeted, the company didn’t disclose the figures. People expect more from management, but its pretty much par for the course of how they run things. I'm not an apologist for managment, they should know better and everyone that holds shares in the company pay the price when they leave doubt in the minds of investors. Are we all going to die? Well so far the results have been stellar, maybe the g/t have sunken. But maybe they haven’t, time will tell.