Hi Cedar!

Welcome back btw! Higher grades would be nice, but I think we are already reporting some extremely high grade numbers. What I think we need to move higher is some bigger tonnage zones. If we get tonnage and high grade, that would be exceptional. Usually when you encounter a larger cavity in a vein system that has been filled with mineralization, the overall grades drop, but the larger rock mass more than makes up for it.

If we hit a breccia zone, where the vein walls have fractured and all the little cracks in between are mineralized, that too could amount to a fairly wide interval of ore grade material. KXL has already encountered a few breccias, including one of the original discovery zones, that measured several meters in width.

Lastly, a stockwork zone, where the wall rock has been altered and mineralized, is also a good bet for higher grade ore across a wide interval. There are several smaller stocks that have been identified near surface, and I am expecting that as exploration goes further to depth we may get some real hits, since the heat and presure at lower depths would be a better environment for a stockwork zone to develop.

The high grade zones so far have been mostly over narrow intervals and are discontinuous. They do not build much tonnage. Once we starting hitting several consecutive drill cores of several meters of good gold values, stepped along strike and to depth to outline an ore shoot of a hundred meters or more, then we can start thinking about a big resource and KXL will probably get a big jump in price.

cheers!

mike