Here is a buyout example from Gold corp..

They bought the whole company to aquire one gold property..the Bruce Channel..which is under a lake and deep down so it will not be an open pit recovery..the cheepest ..but a mine shaft under a lake..and high risk and EXPENSIVE to recover..

http://www.goldeaglemines.com/_bin/p...

Here is Gold Eagles web site to give you an idea of mine development expenses to come...

PERMITTING PROCESS

AMEC Earth & Environmental, a Division of AMEC Americas Limited (“AMEC”)

AMEC will provide engineering, analytical and supervisory services for the Environmental Permitting and Approval work required for the Advanced Underground Drilling Program.

Initial scope of work will include:

• Description of current site conditions;
• Existing environmental data;
• Preparation of an overall site plan outlining major facilities and infrastructure;
• Description of each facility and its characteristics;
• Presentation of the operation and maintenance plan, and;
• Frame work for best practices and procedures to be used at site during the advanced exploration stage.

The second phase of work will include:

• Public consultations
• Obtaining necessary information and documentation to acquire the environmental permitting and approvals.

Upon completion of the permitting process, construction and shaft sinking will commence. Based on guidance from AMEC, Gold Eagle expects to commence the construction phase around mid-2008.

PERMITS REQUIRED

Phase 1 – Shaft Collar Construction

• Closure Plan
• Fisheries Act authorization for the barge landings (Department of Fisheries and Oceans)
• Ministry of Natural Resources

Phase 2 – Shaft Sinking

• Industrial Sewage Works for water treatment plant and ponds
• Certificate of Approval – Air
• Certificate of Approval – Noise
• Permit to Take Water – dewatering of shaft
• Permit to Take Water – take water from surface water to supplement drilling water
• Other permits as required
• Municipal building permits for all surface construction.
• Waste Generator Registration
• Amended Closure Plan

All this comes before any mine construction begins,so the price of the recovered gold will be expensive...

Compared to KXL properties,you can add a huge premium to accessible ,open pittable gold recovery..

SHAFT DESIGN and CONSTRUCTION....cost...??????

And the shares of GEA went for $13.60 a piece..!!

They aren'tgetting my KXL shares that cheep..

have a great trading day..

Portee

Goldcorp Inc.

TSX: G
NYSE: GG

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 25, 2008) - Goldcorp Inc. (TSX:G)(NYSE:GG) and Gold Eagle Mines Ltd. (TSX:GEA) announced today that the acquisition of Gold Eagle by Goldcorp has been completed.

Under the Plan of Arrangement, shareholders of Gold Eagle were entitled to receive at their election and subject to proration either C$13.60 in cash; 0.292 of a common share of Goldcorp and $0.0001 in cash; or any combination thereof, for each Gold Eagle common share held. Gold Eagle shareholders elected to receive a cash amount greater than the maximum available according to the terms of the Plan. As a result, shareholders will receive approximately 52.7% of the cash amount that they elected or were deemed to have elected. In aggregate, C$725.8 million in cash and 15.6 million common shares of Goldcorp will be paid and issued to Gold Eagle shareholders. The common shares of Gold Eagle will be de-listed from the Toronto Stock Exchange effective at the close of markets on Tuesday, September 30, 2008.

Goldcorp's acquisition of Gold Eagle's Bruce Channel discovery secures control of eight kilometres of strike length along the prolific Red Lake trend in Ontario, Canada. Bruce Channel is southwest of Goldcorp's Red Lake mine and contiguous to its Cochenour-Willans Project.

"The Gold Eagle transaction is consistent with our strategy of adding high quality gold reserves and pursuing responsible growth in the districts where we already operate," said Kevin McArthur, Goldcorp President and Chief Executive Officer. "Our focus now turns to maximizing Red Lake's potential through productivity initiatives, open pit opportunities, enhanced milling alternatives and exploration success already achieved at this world-class mine."

Macquarie Capital Markets Canada Ltd. acted as financial advisor to Goldcorp and J.P. Morgan Securities Inc. acted as strategic advisor. Cassels Brock & Blackwell LLP acted as Goldcorp's legal counsel.

Goldcorp is the lowest cost, fastest growing senior gold producer. Located entirely in the Americas, its gold production and reserves are 100% unhedged.