I was at the presentation today by KXL in Vancouver and thought it was pretty well done.  There were about 80 people in the room, a lot more than showed up during the PDAC last year.  The slide show was pretty much the same material on the website, and the commentary was factual.  Overall I did not learn much that I didnt know before, but a couple things are worth noting:

The geos have put together a cross section the Golden Mile, outlining the resource areas and documenting each drill hole so far in 2-D.  There are very clear zones of enrichment displayed from this data that shows higher grade gold values in ore shoots trending down dip, in regular intervals.  This information is useful since it will help the company to target the higher grade zones as they go to greater depths.  Not every drill core result so far is going to creat a block of ore but they can identify the trends that are ore grade and focus on extending them.  The diagram also clearly demonstrates how the new batch of results recently reported have extended the resource area laterally.

I asked about the presence of several small veins from the last assay batch, that were too far apart to be economic, but perhaps this trend may be for them to intersect and combine at depth, and the geos believe that is possible.  There are other stockwork zones that have been encountered at surface that turned into higher grade intervals to depth in other parts of the vein.  It is important to note that only shallow drilling has been completed so far, yet from the surface to the deeper zones there are remarkable variances in the grades and structure.  So any potential is worth following up, and anyone that was a seller from the news last week could find that they gave up way too soon on this story.  I remain convinced that the news was very good.  I never expected every hole to be multi-ounce wide interval hits, and if anything I am very impressed by the volume of higher grade results that have come at this early stage.

The company will have 3 drills turning by the end of the month and may have 3 more later in the year.  The will continue to target exploration drilling and will not worry about infill work to prove up a resource until they have a better idea of the extent and distribution of gold in the system.  I believe they are spending $12 million on 60,000m of drilling, and they will still have a huge cash position despite one the most ambitious drill programs ongoing in all of Canada this year.

I am disgusted with the market lately, and disappointed that I did not wait a bit longer to begin buying more shares in KXL, but I do not regret my decision to double up, and still expect to net a nice profit on my trading shares later this year.  The capitulation is probably close at hand.  I still cannot believe that I should even be mentioning `capitulation` given the time of year and gold well above $800 but I just accept what is and try to remain realistic for my own objectives.

I bought another 3 ozs of gold today but have not added or sold any shares.

cheers!

mike