I thought KXL had good strength yesterday considering the recent moves up from the low 60’s and on a particularly down commodities trading day. My presumption is news is not long off. Some here have suggested there must be a news release before the Toronto showing and I would have to agree although my guess is it may come before the AGM Sept 9th. The obvious question is what will be included in it and what will be discussed at the AGM?

The following is from the Kodiak Annual Report and is what I am looking for updates to.

Plans 2009

• Continue our aggressive exploration of the Hercules gold project and the Golden Mile vein system.
• Advancing the Hercules project and the Golden Mile towards pre-feasibility
• Additional exploration is also planned for the balance of our Beardmore-Geraldton land holdings, advancing our drilling targets to resource delineation.
• Continue exploration at West Millennium as a follow-up to our highly successful initial drill campaign.
• An active acquisition program
• Management is also focused on conserving capital in these trying economic times.

Drill Plans - Hercules

• Concentrate on establishing the ultimate dimensions of the Golden Mile vein system.
• Further explore the untested parts of the vein and adjacent veins
• Surface exploration elsewhere in the Elmhurst Lake intrusion will test numerous additional gold-quartz veins that are geologically similar to the Golden Mile.
• Evaluate our options for bulk sampling the Golden Mile as we advance this project towards pre-feasibility.

Elsewhere in the Beardmore-Geraldton gold camp

• Drilling planned for at least five additional target areas including West Geraldton-Portage Shear, Wildgoose, Brenbar, Kaby Lake and Sturgeon Bridge.
• Continue surface exploration of our property package, other targets will unfold and necessitate additional drilling as well.

West Millennium

• Additional drilling is being planned to offset the uranium mineralized zone already discovered at West Millennium and to test additional geophysically similar conductors.

Otish Mountains uranium property

• We have brought in a joint venture partner to continue exploration of the area while mitigating our financial risk at this remote project.

My views going forward

There is no doubt Kodiak has some very impressive properties. Drilling has slowed down significantly from the 2008 pace of “270 diamond drill holes totaling nearly 70,000 metres at Hercules alone, with an additional 72 drill holes being completed at multiple gold targets in our extensive land package”, as one of management’s criteria is to conserve cash. The last time I had an in depth talk with Brian was at the Vancouver show and at this time the current cash was to last approximately 3 years. At the end of 2008 the cash pot tallied $23,722,823, or about ½ of the Private Placement. Now that we are 2/3 of the way through 2009 it would be prudent to update this status.

One reason I look closely at this number is it points to the next real timed event on the horizon – another private placement 1 - 2 years down the road. Although each PP adds further dilution to the total shares outstanding, it is also a huge motivator to have increased the share price prior to it. Here in lies the key, how will they plan to do this? Most people here will say let the drills do the work, and for the most part I do agree, however, since the last PP the market valuation rules have changed dramatically. The market no longer inflates exploration stock prices simply on great potential. The market is evaluating the likely hood of producing a mine and more importantly how far away in the future will it bring cash flow to the company. Cash is king especially in a recession. Drilling is obviously extremely important and in my opinion Brian will have to use the drills to develop a NI 43-101 not just to “establishing the ultimate dimensions of the Golden Mile vein system”. Developing a NI 43-101 on the entire vein system is years away. Brian will have to pick the richest part of the mile and begin moving this forward. The market should reward this kind of progress. I'm sure this is why they have talked about "Advancing the Hercules project and the Golden Mile towards pre-feasibility" I'm looking forward to hearing more of this.

I could go on but I think I’ll wait for the next update. I’m sure it’s not too far off - right?

Doug