Ann: Grant of Mining Lease for Agate Creek Gold Project, page-49

Well as promised I flicked laneway an email asking some questions about the 60/40 split after 3.5g/ton with maroon.  

Recieved a detail response from Scott Hall who only stated what was public knowledge but thru answering my questions cleared up a hell of a lot for someone who sometimes gets lost in all the tables from public announcements 

To summarise his reply 

- laneway have an agreement for first 100,000ton with maroon there is room to renegotiate an extension if required and also both parties can walk away without penalties.  It's in both parties interests to have grades over 3.5g/ton as it's believed the first 3.5grams only covers cost of mining, transport and processing.

- The current jorc for this high grade parcel is 89,000
tons at 6.01grams. Laneway is hopeful they maybe able to improve on this grade but all calculations have been done at 6 grams 

- at a recovery rate of 90percent (assured by agreement) 5.4grams per ton should be achieved in this initial mining.  


If they achieve the 5.4grams and we take away 3.5grams to cover cost we are left with 1.9grams and at 60percent to laneway that leaves us with 1.14grams.  The first 50,000 ton will generate 57,000grams (1800oz of gold).  At today's gold prices that is approx $3million to laneway

For those concerned about long term viability due to transport costs Scott also mentioned laneways long term intention is to still build a stand alone processing plant on site to process global resource once sufficient resources have been found to justify the expense.

I encourage everyone to send him an email if you have any concerns.  The reply I recieved was very detailed 
and I was extremely impressed with his response