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Message: 1 million ounces...

The long section shows the numbers for the wells drilled to that date. The thickness of 1.5 m is exactly what I came up with after averaging 100 intercepts(don't ask). The average grade value of 17 g/t is too high in my opinion as that translates to a 25 gm*m value on the long section which is not supported. Remember that was an estimate produced before the long section results were out. My numbers right now are 400,000 oz on the GM after I revised my average vein thickness and I would just guess 100,000 for the YBR and 50,000 for the Bobby Ore veins for a total of 550,000. The numbers will probably split equally between indicated and inferred as it's unusual to have only inferred numbers( there has to be clear evidence that it's going to be big). Aurelian had an inferred number released with a drilling cut-off in June 2007. They had a 100 m spacing along strike so they couldn't calculate indicated numbers but the drill spacing across strike and down dip was adequate enough to justify a resource estimate. The offer from Kinross was a year later after a number of wells were drilled at a 50 m spacing.Virginia only had 212 holes in the Eleonore deposit but 70% of them returned assays > 10 gpt. The problem that the shareholders faced for those two companies is what would be fair value for the deposits. Without a resource estimate you could leave a lot on the table. The NI 43-101 estimate that Kodiak will produce next year is just the next stage in the development process. There will be a lot more drilling and more estimates as this gold camp develops. The results to date show we moving in the right direction, just not as fast as we would like.

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