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Message: Thoughts on KWG and the recent NR

Thoughts on KWG and the recent NR

posted on Dec 05, 2007 08:23PM

Since I initially came across KWG in early October, I admit Ive been intrigued by the versatility offered by their position and by the tangled webs they've weaved. Even the board here is somewhat barren, despite that I suspect there are a lot more people than are posting with a stash of KWG eggs tucked away.

In light of the recent news release, and because the forum needs some action, here are a few of the reasons KWG has had my continued interest these past few months.

i. Historical Performance - Once you develop a taste for the gains made possible with venture companies, it becomes difficult to turn a blind eye toward the allure of a big payday. I suspect a company's management would be driven by similar mechanisms, and knowing that a management has once before delivered their company to a 10,000% increase in share price surprisingly does help me sleep comfortably on occasion. Management's stewardship becomes more and more necessary as share value increases, and I have increased confidence knowing KWG has this kind of experience at the helm. http://www.marketwatch.com/tools/quo...

ii) KWG has been haunting the McFaulds lake area for more than 5 years. The maps which are floating around (One here: http://www.norontresources.com/proje... ) show that KWG has been staking with surgical-like precision throughout the area, and suggest they are well acquanted with the local geography. Wheras many of the Juniors located to McFaulds after the discovery of Double Eagle, KWG has had it's pick for years. Pretty sure Ive recently read on the SPQ forum that they have a lot more land staked in the NW Ring of Fire soon to be revealed... KWG imho is worth the speculative investors time solely upon anticipation of the aerial-mag results to be reviewed (hopefully) in December. The signature behind Noront's DE discovery was a sleeper, and there are many more like it in the area. Since the DE signature has been discovered by Noront, to my knowledge, there haven't yet been any further assays released for this signature pattern by Juniors in MacFaulds. MacDonald Mining has identified DE signature based targets for their November drill program http://media.richmondclub.com/Lunche... , and may be the first aside from Noront to release drilling results. If MacDonald Hits, or Noront hits again, than KWG/SPQ with such a large land accumulation stand to benefit immensely.

iv) Their relationship with DeBeers is a dream... KWG's initial explorations at McFaulds have been on behalf of DeBeers along with SPQ (Spider). Read and reread the recent press releases, as it could not be more clear that if their kimberlite explorations are successful they are going to become mines. Initially I liked KWG because the diamond explorations afforded the share price a second life in the event the 'NOT' premium dissolved. With the Debut Diamonds Dividend, this is no longer the case but imo it gets better...

v) Their ongoing relationship with Neil Novak; CEO of SPQ and #1 Rock Jock for NOT. 'Stand on the shoulders of Giants' - Google

vi) Last but not least, I like KWG because of Debut Diamonds and their decision to split the company's assets. As a small cap company (approximately $30m market cap) KWG is susceptible to market fluctuations for good and bad, up and down. As a split entity, not only will the market fluctuations become more dramatic they will become more precise. Market demand will be relative to a smaller float and a smaller market cap for both KWG and Debut, and as a result you will see demand move the share price of both stocks to new highs when demand becomes apparent.

Through time I believe it will be shown that the most undervalued piece of this puzzle is KWG itself. John Defur posted recently that KWG has renewed interest in the McFaulds nickel projects, and as you know they are JV with SPQ and other co. in multiple properties... Depending on the way KWG is split, there is potential that the KWG portion may briefly trade at a discount to SPQ, which would mean a far greater upside when the long arm of the market adjusts.

Needless to say, Im very excited to see this play unfold over the upcoming months. GLTA

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