Forgive me...My brain may still be on holidays but if recalled hashing this out early last summer. I may have forgotten a better revelation on the Agreement and the treatment of adjacent properites.... ?

IMHO, Any 2km adjacent properites would be subject to be "on offer" to TCK under the Earn-in Agreement - we believe offered before the purchase is made. However, the $ spent acquiring the properties does not qualify as a "qualified mining expense" under the agreement. I wish they were.

Qualified Expenditures described in Section 1.2 https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=0B1opssTdj4BuY2FkMmQzMDctNzdiZC00Njg1LTg3YzUtNTY2MzhjODRlMGFl&hl=en_US&authkey=CPLqmtQO&pli=1

Section 11 of the agreement speaks on 2km rule for adjacent properties and 'offer'

We hashed this out early last summer or so July 5th...with a lot of various angles.... but I believe that this is how property acquisitions are handled.

The Agreement speaks to the original properties' boundaries - which is key since we have steadily added more claims along the years since 2002. This image shows the earliest claim configuration I could find. The blue squares are 2kmx2km from the earlier boundary in 2004 (purple):

http://www.flickr.com/photos/60356448@N04/5905999102/in/photostream/

Check out this old thread on Stockhouse: http://www.stockhouse.com/Bullboards/MessageDetailThread.aspx?p=0&m=29924460&r=0&s=cuu&t=LIST