Drills

Posted by: coach247 on July 20, 2008 11:33AM

I am not all that interested in where the drills will be deployed. The most interesting fact is the rapid advancement of exploration. I was told of at least two project areas where sampling work was done and then a drill was mobilized within a week to follow up. That is extremely rare in this industry folks. The fact that we may have 8 drills turning is even more impressive when you consider that most companies wait months to line up a drill, and the vast majority of juniors do not have sufficient financial resources to do a more aggressive program even if they could find drills.

I mentioned last week how many high priority targets are being indentified in the project generation stage, and how the group tourning the project was able to get out and walk on several diffferent properties where the vein had been recently stripped and washed. The pace of exploration is awesome, and yet they have still only even looked at a tiny fraction of the property area that is controlled.

To my mind, KXL is like a mini-mutual fund. Its like owning a basket of 5 or more juniors in the area that each control a great project. As more recco work and geophiz surveys are completed, I could even imagine that this area could support more than a dozen separate projects and still have untapped potential. That is where all the extra drills will eventually be going. And if they hit just one more 'golden mile' with similar grades and extension on one of these other targets, look out above.

There are lots of "IFs" in the story and that is why it is speculative. I am simply betting that with so many rockets in the launcher, and a great team running the show, at least one of them is going to go to the moon.

cheers!

mike