Common use of Commingling of Ore Clause in Contracts

Commingling of Ore. 15.1 The Contractor may mill ore produced from the Mining Properties and from other mining properties operated by him in the same general area in a mill located on the mining property operated by him or under his control and may commingle for milling purposes ore produced from any of the mining properties as well as ore produced from the Mining Properties subject hereto with ore from other properties not subject to this Operating & Exploration contract. In such event the Contractor shall establish procedures for determining the content of metal in the ores produced from such properties by calculating on a metallurgical basis in accordance with sampling and mill efficiency experience, so that the production royalties applicable to ores produced from each of the properties from which ores are commingled may reasonably be determined. Records relating to comingled ores shall be available for inspection by Owner at all reasonable times. Such procedures and the records thereof may be questioned by the Owner at any time and submitted to arbitration in accordance with the rules of the American Arbitration Association if Owner believes that such procedures are resulting in a disadvantage to its property.

Commingling of Ore. 15.1 The Contractor Lessee may mill ore produced from the Mining Properties and from other mining properties operated by him in the same general area in a mill located on the mining property operated by him or under his control and may commingle for milling purposes ore produced from any of the mining properties as well as ore produced from the Mining Properties subject hereto with ore from other properties not subject to this Operating & Exploration contractMining Lease. In such event the Contractor Lessee shall establish procedures for determining the content of metal in the ores produced from such properties by calculating on a metallurgical basis in accordance with sampling and mill efficiency experience, so that the production royalties applicable to ores produced from each of the properties from which ores are commingled may reasonably be determined. Records relating to comingled ores shall be available for inspection by Owner Lessor at all reasonable times. Such procedures and the records thereof may be questioned by the Owner Lessor at any time and submitted to arbitration in accordance with the rules of the American Arbitration Association if Owner Lessor believes that such procedures are resulting in a disadvantage to its property.