Toronto Conference On Saturday, Oct 4/2008

Posted by: PaulTiger on October 05, 2008 02:54AM

At the Toronto Conference On Saturday morning I had a long chat with Brian Maher. While I was talking with him we were joined by Alto’s president Mike Koziol. Later on mzsmith and his neighbour joined the conversation. Later on I talked to Nigel Lees, president of SGX. The following information was captured from these conversations.

The Golden mile strike is potentially 9km long. It looks like 4 of these 9 kilometres are in Sage’s property. The GM changes directions from NW to North to NW and so on. Every time this happens the alteration and mineralization seem to get stronger.

One statement that I like from the “HERCULES GOLD PROPERTY, FOCUSED ON GOLD – ON TRACK WITH DISCOVERY” is in the middle of the last paragraph on page 1: “Kodiak believes that the Hercules project has strong potential to host a major new gold resource. 90% of exposed strike length at Hercules remains untested, and the system remains open in all directions”. Page 2 of this handout in the middle of the third paragraph has the following statement: “According to a common mining rule of thumb that states a vein extends downward for half of its strike length, this means the Golden Mile system could easily extend down to a depth of 2000 m“. So given the GM strike length and the potential depth any concerns about narrow interceptions should be put to rest. When I asked Brian about the narrow intercepts he pointed out the strike length of the GM as his answer.

The “unnamed lake” in the middle of the GM strike zone is now referred by Kodiak as the Golden Pond. There will be drilling on the Golden Pond this winter once the pond is frozen.

Maki is now called Maki Midas (page 30-32 of the new KXL presentation reflects this new name). If you look at the map on page 30, the longer black line at the bottom of the map shows the 120km (Brian mentioned 120km as opposed to 140km) of Maki Midas and the current drilling activity is where the Mackie Bear Paw is. Note also that page 30 last bullet lists the regional exploration places and new names: Maki Midas, West Geralton Golden Boomerang, Sturgeon-Bridge Caviar, the Kaby Lake Gold Rush and Solomon’s Pillars. There is potential that one or two of these areas can be equal or better than GM, we just have to wait and see! (I added this last statement for vehatzlacha).

The new drill cores at the core house shown in one of Cedar’s pictures are from Maki Midas and Sturgeon Bridge Caviar.

Check page 29 of the presentation if you have questions related to the stage (initial exploration, target generation, mineral zone definition or resource delineation (including deep drilling?)) of any of the 30 potential targets.

Most of the KXL drilling activity will be stop around the middle of December and will start again in February next year. During this time KXL will be busy processing all the data that they have on hand at the moment. When drilling starts next year it will not necessarily start with 5 drills as KXL will be really careful with drilling. The idea behind this approach is to preserve capital during this current financial situation, and KXL’s objective is to still have about 20 million left by the end of 2009. So this means not immediate deep drilling other than GM. And reading between the lines, this also probably means no NR until all the data is processed.

KXL is quite aware of the details of the deal when Goldcorp bought the Eleanor mine. We can rest assure that whenever comes the time, KXL will try to get a similar or better deal. If you don’t know the details, I am sure Portee (or somebody that got Goldcorp shares out of this deal) will be able to describe it. Related to this, Brian sort of confirm that there were at least 8 confidentiality agreements.

Brian will be busy presenting at conferences for the next 3 months, starting with the Dubai conference after the Toronto conference (so no more phone calls Cedar, LOL). This part of the promotion and hopefully will help increase the SP (just think that there are a lot of middle east investors not knowing were to put their US dollars from oil sales).

Nigel Lees (SGX president) is very happy with the GM extension on the SGX property. This NW GM extension is located on the same geophysical structure and is similar in mineralogy and geological setting, but the veins are getting wider (page 11 of the new KXL presentation indicates that the “alteration and mineralization are getting stronger to the NW). Also, Nigel is pleased that investors can come to visit both the SGX and KXL properties at the same time. This is good promotion for both companies. Lastly, Nigel indicated that after announcing results from the GM extension it will probably be good time for more financing. It sounds that he already has financing arranged (flow through shares) and is just a timing matter.

PaulTiger

P.S. I will not be attending the presentation on Sunday at 3PM, but I might be at the conference during the morning.

P.S.S. I just have one little concern about Brian being a helicopter dare devil, but don’t ask me for details. Ask him and mention PaulTiger.