bearlybullish wrote:

"Someone was questioning him on why the company was not more focused on defining a resource and Brians answer was that we need to keep in mind that a lot of their peers as well as some of the bigger players (his words) are circling this play and it is really important that they find out as fast as they can just how much they have."

"He referred to the example of Virginia mines selling to Goldcorp without a defined deposit."

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Very interesting comparison... FYI... Virgina sold their Eleonore project (a similar exploration stage (i.e. "a major new gold discovery") to Goldcorp for $406 million in March 2006. Goldcorp released an initial mineral resource calculation on June 25, 2007... 1.8 million indicated and 0.9 million inferred Au oz's using a cut-off grade of 3.5 g/t Au (i.e. ~2.7 million oz Au)... in March 2006 gold was trading at ~$600-650/oz...

National Bank's recent $224 million estimate of the value of Hercules was based on (very conservative estimate IMO) 1.5 million Au oz's at 17.0 g/t...

Both valuations are using the exact same metrics (i.e. $150/oz Au) to calculate deposit value... yet gold is trading at ~50% higher price than it was when the Eleonore project was valued in 2006 (costs have also risen but not 50%). In addition, another Hercules +ve is that it would seem to have a much higher grade than the Virgina's Eleonore deposit. This comparison would seem to support the view many have shared here re: National Banks valuation of Hercules is indeed very conservative.

If (when) KXL manages to boost the accepted quasi-'resource estimate' to 3 million, 4 million, 5 million+?!... using the Virginia/ Goldcorp Eleonore example... IMO we can expect (using conservative estimate of $175/oz Au) to see offers in the range of but at least $525 million, $700 million, $875 million, respectively (i.e. $6/share, $8/share, $10/share), for Hercules project alone... this does not include entire massive land package.

If you have the money all you need is time. Very exciting times ahead. Enjoy these times... if you are in at these levels, plays like this do not come along often.

red911