TODAY'S DISCOVERY, TOMORROW'S FUTURE
Creating shareholder wealth by advancing gold projects through the exploration and mine development cycle.
Message: Is there something I am missing about KXL???
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I just posted on KXL's nouveau run-up on Silicon Investor, and somebody wrote back and asked: "Is there somehing I am missing about KXL? Are there funding issues or difficulties in extraction? The drill results seem to be unbelievable for a stock trading at this level."
Here is my response. I tried to be as level-headed as I could, and to think of whatever weaknesses I could.
They have enuf cash for at least a year, probably longer. no debt, no warrants overhanging the stocks. lot of rich folk including the canadian richardsons bought into a secondary at a much higher level last winter, i think $4.00-plus. hence the cash. they have a great land position, with 100 percent ownership on most of it and one or two jvs, like with alto ventures. i think it speaks to KXL's foresight that premier gold PG.TO has since tagged onto roxmark's holdings (some but not all of them) in the beardmore-geraldton camp. you can go to premier's site and see a flashy new video that spends a lot of time emoting about the wonders of geraldton gold mining district. http://www.premiergoldmines.com/s/Ho... how is that for outside confirmation. Ewan Downie is no fool! as of yet, no major newsletters have glommed onto KXL, but I am sure tht will change soon. Casey International Speculator recently started recommending Premier. bear in mind that KXL is really only a one year old discovery, so lots of volatility can be expected. it had its initial run up last fall and winter, and then the almost inevitable slide due to speculator ennui as they did the hard work of figuring out where the gold is on a huge piece of land. and then the bottom fell out of all gold specs, so here we are at 1.60, up from a buck! 88 mm shs out. looking for weaknesses, KXL really is a one horse pony, even though they have some uranium and base metal exploration here and there, you are really betting on geraldton when you bet on this stock. if geraldton works, it will be a huge stock. maybe the veins turn out too narrow. maybe the majors just want open pits and this has more gold deep down. who knows? It is a drill play, but one that has moved along to the path to the point where a handful of majors have signed confidentiality agreements. that last is according to the rumor mill,not according to the company. the surrounding old-time mines had no trouble processing ore that i know of. it is mostly skinny vein high grade thogh which is labor-intensive. the infrastructure is supposed to be good. power lines, trans-canada highway runnig through it, etc. Michael |
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