Makes sense to me. I read on the SGX forum same idea - do just a shallow pit to get something into a mill.
The big money mgmnt at KXL probably knows the pros/cons of this very well. Maybe it's a good idea (would look fantastic to have even a little bit of production!), but on the other hand, maybe the marginal cost of mining just a big is too expensive.
By the way, I got in at some of the same stock prices, so you're not alone / cedartree