I wouldn't put any weight into the sale of shares myself but people base their decisions on different factors. Keep in mind he did replenish his holdings and probably only sold some because his options were fully vested this month. Being that it has been 18 months since they were granted.
Here is an excerpt from the bottom of the NR dated Jul 12, 2006. Its relevant as it outlines when Robert Harrington was appointed director and granted options:

--"The Company has granted options to Company directors to purchase up to an aggregate of 4,129,707 shares. The options vested as to 25% on granting and will vest as to an additional 12.5% each three months thereafter, so that all options will be fully vested at the end of eighteen months. The options are exercisable from and after the times at which they vest until July 12, 2011 at the price of $0.42 per share."--

FYI - Here is the link:
http://www.kodiakexp.com/news/index....

Either way the 60km drill program hasn't even begun yet and neither has this story. Had multiple insiders dumped their shares and not re-purchased any more I may be concerned. Big ol' Bob Harrington selling some and re-buying at a lower price using options is just smart IMO. I would probably do the same thing if I could pocket $300k (after tax) and keep the same number of shares for next to nothing.
JMHO.

Cheers.
Gamblor.