I am enjoying reading the reports coming out the latest KXL presentation to shareholders.

Particularly revealing was vp exploration brian maher response to impatient shareholder who wanted to see a resource calculation from KXL. He indicated the company felt it was more important to outline the scope of the deposits in genral, and there was some indication that major players were already "circling."

Although I have no knowledge, I would not be surprised to learn that Goldcorp GG G.TO is one of those circling. They really like their gold home-grown.

They acquired VIRGINIA GOLD Mines in neighboring Quebec Province in 2006 just to get their hands on the Eleonore deposit, without even waiting for the first resource number. I know somebody already pointed this out but I think it bears repeating.

VIRGINIA, like Kodiak is now, was drilling like crazy those last few months of 2005 before the takeover was announced. Punching holes everywhere they could.

Whether or not Goldcorp is involved, I believe it is quite possible, given the scope of Kodiak's Beardmore-Geraldton claims, that we could see a repeat of the Goldcorp-Virginia acquisition model regarding Hercules, which occupies a small portion of KXL overall claims but is the most advanced prospect thus far.

To get Eleonore, Goldcorp acquired Virginia Gold Mines (then known as VIA, now VGQ) in its entirety for Goldcorp stock. Goldcorp then separated out the Eleonore claims. Then, as part of the same pre-determined deal , Goldcorp spun out the New Virginia to the old Virginia shareholders, who had already received the Goldcorp stock.

So Virginia shareholders got their cake and ate it too -- shares in a blue-chip producer, and a chance to keep exploring with the same management team as before and all the other prospects as before.

Plus, as a colleague on Silicon Investor just reminded me, Virginia also was given a royalty against future production at Eleonore. And that is likely to start generating cash in the not too distant future, as Goldcorp is proceeding at high speed to develop Eleonore. Also, Goldcorp invested cash in the new Virginia and became a shareholder.

I think that deal set a high new standard for how deals can be accomplished when the are done with respect for current management and current shareholders.

http://findarticles.com/p/articles/m...

Michael