Hi Tau!

I do not think its a great idea for KXL to work towards a resource estimate at this time. My comments were to point out they are working towards building a resource, but to put out a formal esitmate now would be a huge mistake, IMO. The stock is trading as if the company has already established at least two million ounces of gold, and therefore anything less would be a disappointment. I think they will ultimately prove up much more gold resource, but at this stage I think they are well below the market implied resource. Its a process and they are going about it the right way, and in time it will be appropriate to put that on paper.

I may have also mentioned that the company has a full support staff of geos just logging the data and keeping in front of the exploration planning. This whole story is developing in real time and they learn something from every core that is pulled out of the ground. In time that data set will factor into a resource calculation.

I would agree that all geos are optimists. However, I think the body of evidence from the results so far warrant that optimism. This is not a situation where people are irrational. And the geos that I met have been around for a long time. I think these guys know the difference between a promising spec and a real emerging discovery.

I just got back from a goldbugs group meeting in Toronto this evening, and the topic today was just how many good stocks have been crushed lately. I think KXL has done better than most of the others. Sure its frustrating to put up with the current correction, especially given all of the positive fundamentals overall. But thats the market. What separates investors from gamblers are the people who can assess the situation and stay invested with the good companies even when the market is selling off. Good companies will eventually recover.

Again, its not my intention to provide investment advice. I have given my reasons for my outlook, but that does not mean it will be acceptable for everyone else to behave the way I do. If you have reservations about the future and lack confidence in the story then sell down until you are at a level where you can sleep well at night. For me, I lose sleep at night trying to figure out where the money will come from to buy the dips. That is probably different from most here on this forum.

BTW, I will be facing a margin call tomorrow and will have to sell something. I am not complaining, if you trade long on margin, then sometimes you get caught. But I will not be selling my KXL, nor would I want to. Its just that I am sure other investors are getting the same phone call and KXL may be the only stock they can sell. An ugly bear market is hurting a lot of people right now, and even if KXL is the best company in the world, I am sure some of the selling today was margin related.

cheers!

mike