Laserfiche WebLink
and geological services, expenditures for transportation and subsistence of the personnel who <br />perform the described work; expenditures for maintenance of unpatented mining claims, <br />including fees paid to the Bureau of Land Management in lieu of assessment work. Any amount <br />expended in or credited to any lease year in excess of the amount set forth in the foregoing <br />schedule shall be carried forward and credited against the work requirement for the following <br />lease year. A lease year is a period of one (I) year commencing on the date of this Agreement or <br />any anniversary of this Agreement. Lessee shall have no obligation, express or implied, to <br />explore, develop, mine, or perform any work on, or for the benefit of the Mining Properties <br />except as required in this Section 4.1. The Lessee may explore, evaluate, develop, operate and <br />mine the Mining Properties at such time and by such means and in such manner as it, in its sole <br />discretion, deems appropriate and may build and place thereon such roads and structures as are <br />necessary for the accomplishment of such activities. <br />5.1 Payment of Royalties. The Lessee shall pay the following royalties to Lessor at such time as <br />net smelter returns are realized from the production of minerals from the Mining Properties: <br />Gold Price $600 or less $600-$700 $701 - $800 $801 - $1000 $1001- $1500 $1501 or more <br />Rate of Net Smelter Return Royalty 5.0% <br />5.5% <br />6.0% <br />6.5% <br />8.0% <br />9.5% <br />(a) The term "net smelter returns" means the net amount of money or other net proceeds <br />received from the sale of ore, concentrates, sponge, bullion, or any other form in which minerals <br />or materials (metallic or non-metallic) are produced from the Mining Properties after deduction <br />of taxes based upon production, all treatment charges, penalties, smelter charges, transportation <br />costs, other charges made by a purchaser of ore or concentrate, other umpire charges which the <br />Lessee may be required to pay and, if any portion of the production is from lands which are part <br />of the Mining Properties covered by unpatented mining claims or federal mineral leases, any <br />rentals, royalties or other consideration allocable to