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Message: Message for H-rattle..

Re: Message for Portee..h_rattle

posted on Nov 11, 2009 06:26PM

Obviously we'd all prefer to be discussing something more interesting like assay results but let's try and clear up the difference between material and non-material information. You posted " exploration companies drill many holes but only report the ones that are good (material)". I corrected that statement because a report on all drill hole results is material information, not just the "good" holes. Kodiak has been reporting the results of all wells, usually in the form of summaries in the press releases. Here's an extract from the Jan 22 release:

242 diamond drill holes have been completed on the Golden Mile, with 92 of those drill holes (38%) returning intercepts greater than 3 gpt gold;

Almost 1/3 (30.4%) of the 217 drill holes in the central Golden Mile returned greater than 7 gram*metres of gold mineralization, and 37 of those drill holes returned greater than 10gram*metres of gold mineralization, a high grade “hit ratio” of 17%, or approximately 1 in 5 holes;

This should give you something to cheer about as the hit ratio varies from 1 in 3 to 1 in 5 depending on how you define it and it is high compared to other gold camps. We are told the number of holes drilled, the total length drilled and a summary of the results for all wells in the press releases (which constitutes the material information). The drill tables, technical resource report and long section displays also fill in more details including locations. So we know how many holes were barren, which is the material information that applies to those wells. But then you post “Please can you direct me to where I would find the details on all these holes over the total length drilled.” You’ve now changed the type of information you want. This data resides with Kodiak and is usually not released because it is not material and quite frankly of no interest to investors. If you know a hole does not have economic mineralization then why would investors want to look at the core log? The point is that the pertinent information required by investors is being released and nothing material is being withheld.

On the share valuations I didn’t use inferred resources for Ontex and should have removed them from the Kinross estimate. It gives a very high $/Oz, over $ 200, but it’s not realistic to use a company that big for comparison with Kodiak anyways, at least not yet!

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