The target at Milestone is bulk-minable gold. The low grades will only be economic if the tonnage is very large and the deposit is shallow. The January 15 press release mentions two similar deposits with average grades of 1.1 and 0.47 g/t. Another example I've found of a resource estimate for this type of gold deposit is : :http://www.alkane.com.au/projects/nsw/peak-hill/

The cut-off grade was 0.5 g/t for 2006 gold prices so it may be lower now depending on operating costs. Kodiak has established a minimum strike length of 400 meters and hope to extend that with the current drilling program. So the 0.98 g/t over 41.2 meters at Milestone is encouraging.