a few points ...

1.) Portee I love your idea ... a whorehouse in the deep woods of the north might attract some shady clientele but they would certainly be willing customers. Not sure that we can monetize racoon and mink pelts now as PETA might get it's back up over that. The other problem I see is convincing CRA and Mr Flaherty that a whorehouse and the income generated from that type of business structure would qualify as a REIT. Maybe if we add a couple of floors on top as a seniors residence we might be able to get it past them. Would provide some interesting senior "fun days" if they ventured downstairs.

2.) Regarding the acquisition theory, Sage Gold acquired (is acquiring) a 50% share in Gryphon Gold's Borealis deposit (somewhere around 500k ounces with growth potential). Share price is now 19 cents after a 10 for 1 share consolidation. The market is not interested in small deposits, never has been. Until that project is in production (if it ever gets that far) there will be no or insignificant share appreciation. And even with this "great" company saving project, Sage can't raise money at 22 cents.

IMO KXL is better off saving it's cash than buying into or acquiring a small deposit ... again every project is different so who knows, there may be a diamond in the ruff out there.

3.) KXL has over 20 million in the bank?

Milestone is a potential large tonnage project but with the grades they are getting, they will be burning through most of that cash before they can determine if the project has potential. The drilling they are doing now, will not catch the eyes of a major producer. They are too far away from anything usefull. OSK (another high tonnage low grade) did not start taking off until they were at nearly 2 million ounces and then after that when they found a higher grade zone.

IMO Hercules is the best bet ... but not expanding the shallow narrow vein resource. We know most greenstone belts become richer at depths that KXL hasn't even touched yet (red lake, Abitibi, val d'or etc). IMO they should eb concentrating on turning their statement that the deposit seems to be enhanced at depth into "we now have some nice widths and grades at depth" 1500m? 2000m?

Drilling deep is expensive (maybe $400k - 500k for a 2000m hole?) and some prep work is necessary to improve chances. it definitely takes a leep of faith to drill down half a mile and hitting a dud would definitely not help any one. However, IMO, The leap of faith needs to be taken before they can't afford to do it at all. It is the best chance KXL has, given the properties they have, to create the beginnings of a meaningful deposit AND before they run out of cash.

Maybe they are already thinking about this?