Hi IVL!

Proving up a resource by April? I doubt it will happen that fast. There is enough data on the record right now to prove at least an inferred resource, and by April I would imagine we will have a lot more to work with. But it would probably take at least 3 months of work just to crank out a report with any reputable consulting firm, and it would still not outline very much just because the tonnage is still pretty small. To prove up a vein hosted resource you must have assay data established with several pierce points along the vein to depth. We do not have that yet.

None of that matters much anyway. It is part of the process and every resource is built on a progression of work programs to step out the early discovery. I am confident that a resource of consequence will ultimately come to pass here, and as that data is reported the share price should also rise as the overall level of risk declines.

I think your point is valid. As the months of exploration work go on, the stock should go through several phases of peaks and valleys. I still think its a great idea to trade the volatility and to do that you buy the dips. Some people think that means you have to nail the absolute low. For me, its enough to be buying at a level that I think the stock can surpass relatively easily. I will not at all be surprised if KXL is trading above $10 a share later this year. And getting back above $4 is not out of reach later this MONTH. So buying shares now seems like 'cheap' paper to me. Maybe it goes lower tomorrow, since I still think the Cartel is going to try and bomb gold a bit more before options expiry this week. But its still a pretty good time to be adding trading shares, or averaging down on a core position, and I have done so.

And just for illustration, I bought more MAG Silver several times during the ups and downs that are part of exploration. Originally I was adding below a buck. And then below $3 seemed like a good level. Then I bought even more below $9. The stock is currently above $15. Was it expensive at $3? I guess so at the time, but now it hindsight it looks pretty cheap. I am willing to bet that KXL takes on the same profile. And the reason I point out MAG as a comparison is because MAG came out with several batches of results in 2006/07 and despite the overall exploration success, some of the individual drill holes disappointed the market and the stock went through steep declines at times. It hardly matters now though, and the guys that knew what they were buying did very well, and probably more to come...

I am not disappointed by the latest data from Hercules. Some of the intercepts are thin, and some are lower grade. So what? There is enough there to be really excited about from the good holes, and the vein system has been proven to extend beyond the previously defined limits. Not every drill core to come from this property is going to be multi-ounce wide interval bonanza material. There will be some zoning and some veins intervals are not going to be ore grade. We've got enough targets and enough very good results so far to be optimistic that more is yet to come. So I am biased to buying now, and not concerned that some of the air is let out of the balloon.

cheers!

mike