Hi Tau!

Actually the question of the assays was raised during the meeting. The geos explained in detail how they ensure quality control by inserting known sample blanks into the batches they send for testing. If a sample value does not come back within a very narrow tolerance of the known blanks, then they know that the lab screwed up and they reject the entire batch. There were too many rejections lately so they decided to change to a new lab. That resulted in a delay, but in the long run it is a feather in the KXL cap.

Keep in mind that the likely endgame for Hercules is a deal with a major. If the other players do not have complete confidence that KXL is right on top of the QC for the assays, then their integrity is compromised and no one will believe the resource estimates that come from the combined assay results. It confirms to all that KXL is serious and reputable by rejecting sketchy data and insisting that things are done right.

The second point is that the company is not interested in just putting out high grade holes anymore. They will release data in batches that defines new resource blocks. So even if there may be a multi-ounce, multi-meter interval in any zone, they will still wait until they have all the assays from that section before releasing them. Again, its a bit longer between NRs that way, but its more significant in that the company is in the resource definition phase now and individual drill cores are less important.

As for my personal situation, I was trading very small batches of KXL as I have reported on this forum, buying dips and selling rallies to earn a few hundred bucks a trade. I can do without that, and I still short the financials for my income. I also am paid advertising revenue on my website from a number of companies (KXL is not one of them). So I am not missing any meals by refraining from trading. And on every property tour I go on I take the same precaution. My reputation would be shot for good if the market decided I was insider trading off my site visits, so its just not worth it. I have held a core position in KXL for 2 years that I do not trade.

The only loss for me is an opportunity loss. KXL is right in the sweet spot right now for accumulation and I would definately be a buyer if I could. In a few weeks, it may be breaking out again. Too bad for me, but for anyone else that has the nerve to be buying when the market is spooked, its a good situation. The most important fact that the people selling KXL lately seem to have forgotten is that there is about $40 million in cash in the treasury. This company can afford to be the most active junior in Canada for many years, and they have the properties and management to do just that. Why worry about a credit crunch that will blow over sooner or later?

cheers!

mike