Hi Ali!

If KXL goes on generating exactly the same kind of results that they have presented so far, I think the stock will bog down.  For an early stage, things are very good.  But if they punch in 60,000m of drilling and a year later are still coming up with the same grades and intervals, then this stock is in trouble. 

What we have is good because the gold is so heavily distributed in the various vein structures that have been tested.  The stock is moving because people expect that sooner or later we will hit a big zone that will have some real clout to it.  Otherwise, even the high grade stuff we have will not amount to much more than a low volume operation. Even a million ounces is not all that attractive if it is spread out through more than a kilometer of veins which average just a meter or so in width.  Its not chopped liver, but its not going to build a higher share value.

My personal expectation is that as more work is done, and the geos learn more about the geology, then we are going to start hitting more continuous zones, and wider intervals of rich ore.  I have pointed out in the past that there are several high grade stockwork zones which have been encountered at surface or in shallow drilling. If KXL gets a deeper intersection with several meters width, a coulpe hundreds meters lateral extension, and continuous to depth, then its game on.  Then, all those higher grade veins that have also been outlined will just become an added resource area to the bulk tonnage high value zone.

I am optimistic that with such extensive gold mineralization encountered across this property, that eventually they will start finding some big feeder zones that will really get the market interested.  With Virginia, it was a similar story of narrow veins with high gold values, and then they started hitting zones of 5-20m when the stock really got going.

I bought more KXL last week, replacing the shares I had to dump cheap from a margin call in January.  I am bullish.  The drills will tell what is going on with this stock this year.  60,000m is a significant program and if there is a big zone near surface, they will find it.

cheers!

mike