I think such a pattern makes sense. Realistically, in terms of hard news nothing has really changed the last 4 to 6 months. We have had reasonable good news, but not enough to make a mine yet. Some feel the widths are a little short while others are happy, the same with grades. Therefore the SP will go up and down like the tide. It is like fishing, you get them while the tide is rising. Unfortunately, it is not as easy as when fishing where it is pretty easy to look up the times of high and low tide at various locations around the world.

I also think that the gold price make very little difference at this point in time. If you are a producer, yes high prices increase your profits. Also, if you are a junior that needs additional financing, again a high gold price is good. However, for a company like Kodiak the price does not make much of a difference. In fact a high gold price will only make it difficult to keep and find qualified people, as well as finding cheap spare parts and equipment. A high gold price basically drives up costs by allowing everyone to get into the business. Assay times will also increase.

The same problem for nickel producers, the price is great but the costs have gone up as well, in particular the capital costs for new projects. A lot of good prospects will not take off in this cycle due to these increasing cost. That may also hurt KXL as we get into mine development and production. It is like buying a house, it is better to buy it when everything is down not when there is a frenzy.

I hope and feel that by the end of this summer we will have had a lot of solid news and my expectation is at least 5$ SP by the end of the year, with much more to come in 2009.