George and I had a chance to meet in New York with Gordon Cummings, the CEO of Kimber for several hours last week, and our meeting provided some very positive news. Gordon went over the most recent Kimber Update from May 6, 2009 line by line, explaining the significance of it. I am going to summarize here. If any of you have any further questions, feel free to email or call me and we can discuss them.

The second paragraph talks about an upcoming 43-101 compliant technical report that will be done by Micon International. I will use an analogy to better explain the significance of this: Imagine that you were researching a new drug. You have seen the new drug work in the lab and in human subjects, you know it will work to cure the disease it is aimed at, but you cannot present it to the public for widespread use until you get some regulatory agency to give it a stamp of approval, so to speak, like the FDA does for drugs. Think of the FDA for drugs as being like the 43-101 compliance instrument used for mining deposits.

In other words, if I had created that drug in the lab, someone might use it because they know me and know that I am a good researcher and they trust me. But most won't. Most people don't know me. They need more. They need something more tangible, like an FDA approval. If my drug becomes FDA approved, it becomes much more marketable. Tthat is what Kimber is trying to do with its deposit, i.e. make it much more marketable. There are many companies out there that might have an interest in taking over Kimber, but they don't have the time or interest in doing all the research themselves to find out if the people at Kimber really have what they say they have. So this report done by Micon will give them an unbiased analysis verifying that the people at Kimber do indeed have all they say they have. This will be good.

Keep in mind, via Eric King's Pac-Man strategy, as other larger gold companies continue to produce gold and profits, and their stock prices rise along with this good fortune, they will start looking for local deposits to buy out with their stock in order to keep up production. Agnico-Eagle, Goldcorp, Minefinders and several others already have producing mines within a 100 mile radius of Kimber's Monterde Property. As well, each of their stock prices have made significant rebounds and are moving up sharply again as the broader markets remain crashed. Agnico is back up at $56 after crashing to the 20's. Minefinders is back up almost to $9 after dropping below $3. Goldcorp and Yamana which also owns property around Kimber's have moved up sharply also. Everything continues to work as Eric King originally laid it out on Puplava's show years ago. Things have not moved as smoothly as one would like, but that is the nature of life and markets as a reflection of life. It appears that patience is a virtue for a reason. It also appears to the careful observer that markets and life often reward patience. At least it has been that way for me in my short investing career.

Another part of the recent Kimber press release spoke about the Pericones property. This is an entirely different property from the Monterde located southwest of Mexico City that Kimber also owns the rights to mine. It is primarily a silver deposit. Initial drill results demonstrated favorable results, large amounts of silver that will be mineable at a profit if silver stays where it is and obviously for much more of a profit if silver advances from here, an event that Eric King and I both believe is forthcoming.

As the dollar continues to weaken or even collapse the potential increases significantly that we could see some sort of a remonetization event involving theprecious metals, if not here, then in China or Russia or somewhere else. (Meaning currencies values could again be tied to gold and silver and no longer allowed just to float.)

As an aside: If this happens, the value of precious metal could increase tremendously, gold somewhere to the levels Alf Field predicts, into the $6,000-$10,000 an ounce range and silver into the levels that James Dines predicts $200-$300 an ounce range. If such a situation occurs over years, Kimber's resources will make us all extremely wealthy. We could see the stock price rise into the $60-$100 range. Sound impossible. I watched PMC Sierra, a small piece-of-crap semiconductor company go from $1.20 to $230.00 in the late 90's, so I know such things can happen. Will they? I don't know, but our government, by cheapening the dollar, day by day by increasing the money supply, is doing everything possible to set the table for a such events. Of course, this is just the best, most optimistic case scenario that I throw out there to add a little flavor to our adventure here. Any of these large companies can still make a lot of money mining Kimber's deposit at the prices gold and silver are at today, so regardless, we own a valuable property, that could easily go to the highest bidder for $7-$20 a share within 12-24 months.

Also, keep in mind that all of our earnings from Kimber stock will be in Canadian Dollars. The Canadian Dollar has a much better chance of standing up to such financial upheavals as lie ahead than does the U.S. Dollar. Canada has a huge natural resource base that can ostensibly back its currency, and it has nowhere near the huge liabilities, i.e medicare and social security that the U.S. does. In Weimar Germany in the 1920's when the currency collapsed, the Germans that did best were those who had relatives in France or Switzerland who could send them Swiss or French Francs or those that owned gold or silver. We will be the same position as those two groups combined with an income of Canadian Dollars coming from gold and silver sales flowing in as the U.S. Dollar continues to weaken and perhaps collapse. If any of you would like to discuss this possibility further or are not completely sure what I am talking about here, please email me.

Kimber in the most recent press release also pointed out that it continues its exploration activities around its major sites. This will build on the 43-101 report that will soon come out and give Kimber an even larger ability to bargain when a suitor comes calling. Essentially Kimber can say, "Look we've got all this and we've got some samples from these areas that are showing us the same things these areas initially showed us before we paid for the feasibility study (Done by Micon) to prove we have what we say we have. So we need more for this property." Very smart on the part of Gordon Cummings.

George and I met with Gordon Cummings for quite some time we both walked away feeling that this is a very competent, intelligent and able leader for our company. Once when asked what Kimber planned to do six months from now, he named off several factors that could influence his eventual strategy at that time. A very intelligent answer I thought reflecting an intuitive understanding of the mining sector and markets in general. To illustrate further: I have always tried to teach my ballplayers that "baseball is a game of adjustments." Gordon understands very clearly that Kimber's strategy is a game of adjustments as well. Anyone who has ever parented understands that every day is a new challenge. To tell someone what you are going to do tomorrow as far as raising your children goes, can be seen rightly as almost pure foolishness. I once heard a great sermon during which the minister asked this question to the congregation, "How can you make God laugh?" The answer was, "By telling Him what you are going to do."

George and I were both very impressed by Gordon's ability to understand this simple truth, that things change and a great leader needs to change with them. Gordon understands the board at Kimber. He understands Kimber's plan going forward, and I feel confident he will take careful steps to insure Kimber is guided, like a ship, away from rocks and storms and into the new world. It was a great meeting.

In conclusion, we should see some substantial returns on our investment in Kimber over the next twelve months. This new study by Micon will be out before September of this year and if gold and gold mining stocks continue to move up in the interim, everything could come together at the end of this year in an almost perfect storm to drive the share price substantially higher.

That's all for today, my first day off in quite some time. Bull