Hi Alibaba!

I think that post is written with the best of intentions, but unfortunately it is nonsense.  With a bulk tonnage style deposit, where you have relatively continuous dissemenated mineralization that has been mapped over a large area, it is acceptable to make broad generalisations for grade and tonnage as a rule of thumb.  To do so for a narrow vein deposit like Hercules, on the basis of a cross section in 2 dimensions, and project an average grade where the observed values are widely varying makes no sense at all.  And I do not even think the calculations are accurate, since he has used square meters and not cubic meters.  Sorry, but it just doesnt work that way.

Here is how I look at Hercules:

A very large property area has at least preliminary evidence that it could host gold mineralization.

Some of that large area has seen early stage exploration in trenching and sampling work that identify a mineralized corridor.

A smaller part of that mineralizaed corridor has underdone shallow drilling to demonstrate the existance of pockets of high grade gold. The is a great variance in the grades and as more data points come in, the geos are working to build a geologic model in terms of where the higher grade trends within that overall system may be found.

To put it all down in a condensed version:  there is a lot of smoke so far, and at least some fire.

Sooner or later I believe KXL is going to find a higher grade concentration of gold within this system and then its game on.  They have so much area to cover and such high intensity early stage results that the laws of probability seem to be on their side.  Maybe they will hit an intersection of some veins at depth that will develop into a big zone of extremely high grade gold.  Maybe they will find a breccia zone of 10-20m in width with consistant gold values in the teens and higher.  Maybe they will find that as the veins plunge to depth, the continuity of the higher grade zones increases and the widths of the veins increases.  Whatever...  Its too early to say, I just think that sooner or later a system that has so much going on will develop into a much bigger deposit area.  Then we can talk about ounces.

cheers!

mike