Better maps - KXL/SGX/Alto
in response to
by
posted on
Sep 02, 2008 11:23PM
Creating shareholder wealth by advancing gold projects through the exploration and mine development cycle.
Here is a zoomed-in set of images of Hercules and surrounding plays, put together from multiple map sources. There are 6 views, which all show the same property area. However, each of the 6 views have different map sources laid overtop (lake outlines, fault lines and lat/long were used to georeference and orient the sources):
1. Top LHS shows the geologic provinces and township borders for this area.
2. Top middle shows a higher-res KXL geomag overlaid.
3. Top RHS shows the Alto properties plus the original Golden Mile and Sage discoveries.
4. Bottom LHS shows the corresponding legal property holdings and historic mines & deposits.
5. Bottom middle shows KXL geomag from greater altitude plus the SGX property outline.
6. Bottom RHS shows a different view of geologic provinces with historic mineralization and the original KXL Hercules claimsite in yellow (now of course much larger).
You can also access the image here.
The map sources were assembled by me last Fall. Overall this small vignette shows how the assays which have since come in from the various exploration companies interlock, how the whole area is shot through with gold, and how KXL has assembled its land package in a very cohesive way.
It is somewhat sad that we are in a market environment in which KXL's value is poorly seen. Very nearly every drill hole turns up gold and per mzsmith's recent calculation here KXL's market cap is a small fraction of the found-gold that could be mined profitably with what we know now.
If I were doing KXL's explorations plans quite frankly I would wish to do it exactly as Chornobay, Maher et al rae doing in that there is a keen need to see just how far the veins extend and what the "big picture" is. Unfortunately, with limited drilling resources that means that the "cherry picking" route is not followed, i.e. we miss out on exciting drilling deep right away under the intersection of Yellow Brick Road and Lucky Strike, for example. Low hanging fruit, but ...
There is no doubt at all that this is a very high quality property and the company is unusally well funded for exploration, with nearly all of the drill program outlined last year already completed now but only 1/3 of the cash spent - leaving lots to show up the good stuff in a market environment when it would be much harder to raise the cash we have now. Very good timing on the PP.
It does appear that with a tiny float, a few players can push this one around, and the price suffers as well with all the juniors being beat to death. But in the weeks to come I believe that some tides will turn and there will be a reawakening of appreciation for this very good play.
I hope the pretty picture helps.