Drilling north of the Kidd Mine is progressing nicely. The last I heard, the crew had achieved a depth of 486meters, on an inclination of -.85 degrees. That means we are maintaining an optimal vertical depth range in the order of 1,500meters, which would translate to about 4,920feet, possibly deeper. During previous drilling, the thick Exhalite layer was encountered at about the 800meter (2,625ft) level, so, given we continue to maintain vertical, true to current inclination, everyone is hopeful we will encounter more Exhalite, and then, the fabled mirror VMS deposit. Are we feeling lucky? The drill is currently plowing through Graphitic Argillite. The crew is anticipating a transition to Mafic Volcanics at any time now, hopeful the various layers of strata at depth are relatively stable, to be better able to hold the drill inclination to achieve greater depth. All the information developed prior to the June start up of drilling at this property told us we are in the right place, so, hopefully, with a little cooperation from mother nature, this will become our ‘Glory Hole’.

Kal Kotecha, PhD, met with CD in Timmins, and spent the day last Tuesday visiting the TPW site. Apparently, a Teck crew was on site prepping for the fall drilling program, estimated in the $2-$4million range. That unto itself would translate into 10-20 individual holes, if drilled to depth. More on that later. Kal & CD visited the core shack as well, reviewing the extensive work done to date. I had a long discussion with Kal after his visit, and he seemed very excited about what he saw, and heard. Tweaking his submission to The Junior Gold Report, his subscribers should be reading about EXS/EXSFF by the end of this week. As an investor with a formidable position, I’m hopeful the Newsletter will bring new forces to bear on the equity, both on the Canadian, as well as the US side of the border.

I’m still convinced outside interests are doing their utmost to maintain a relatively low price on EXS/EXSFF. Maintaining a 20day Volume Weighted Average Price (VWAP) at the .12-.13 range means the rumoured .60 offer gives investors five times their money. If timed right, as was the case with the Lake Shore (LSG) takeover, Tahoe probably paid about one third of what the LSG assets are worth today. If a .60 offer was accepted by shareholders of EXS/EXSFF, my estimate is they would be getting the company at about one fifth of what it is really worth. I, for one, would NOT be supporting an offer in that range.