July 2018 "I'm disheartened", page-74

Gassed, I would say it would be incorrect to "extrapolate that 1,725 ounces from that sample 5,472 tonnes to 100,000 tonnes".

From LNY's website, the high grade resource at Sherwood is 89kt @ 6.01g/t which would be an average grade. Some areas would be higher and some lower. Given that the plan is to mine 100kt, at this stage you would expect that LNY would start to eat into the lower grade resource.

Although there may be 6.01g/t not all of this is going to be recoverable. If we presume 92% recovery rate the produced gold will be at 5.53g/t. If Maroon is getting the first 3.5g/t for their troubles then LNY will be left with 60% of 2.03g/t or 1.22g/t.

Presuming 100kt are mined and milled then LNY has 121,752g or 4,295oz of gold. At a gold price of, say $1650, equals approx. $7 mill. From this they will need to pay their share of state govt and third party royalties, then land owner compensation and run HO. Won't leave much for drilling/expansion

I wonder what happens the following year when they start to mine the lower grade resource. LNY"s resource of 381,000 oz is based on an average grade of 1.4g/t. Need to get some exceptional results from their next set of drilling.