Hi LordHelmet!

The mineralization may extend from Hercules onto adjacent property holdings. KXL may have approached SGX to JV other parcels of land, but the asking price was too high. Keep in mind that the company already controls a huge property area in the district, and there is still very little that is known about the geology. Without having data on hand to ensure that it would have been a value to do a JV deal, the company would have been wise to walk away and just focus on what they already controlled or could add cheaply.

I do not have any info on the extent of the intrusion, or whether KXL tried to JV that parcel or not. I am just saying that it could be true and that it still would not have made a JV deal a necessity. You work with what you have and do deals that make sense.

KXL has done a fantastic job to assemble so much of this district and put together the JV deals that are currently in place. In the years ahead there may be some impressive discoveries that occur just outside our holdings, but you cant hope to get everything. For a junior explorer they have already taken on a big chunk and I am happy that the odds would favour any big deposit occurring within the area we control.

cheers!

mike