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Message: KXL Value

Good question, Aliblaba. I had to go searching to find the answer for you.

The current $40/oz value for gold in the ground came from the latest Canaccord report this fall on metals and mining - the REP_Metaland report that comes out regularly.

The .pdf is not publicly available yet, but the .html equivalent is. I hope the following link works for you, but no guarantees:

Link to Canaccord REP_Metaland report for Oct 7 2008

Here is the graph from that report that shows the drop in "gold in the ground" price from $100 down to $40 in the last year:

Sorry if the picture of the chart from the Canaccord report is a bit big and you have to scroll.

All Canaccord is saying here is that the stock prices of the explorers have gone down to the extent that the gold they have proven can be calculated at that price.

I don't believe $40/oz will be a lasting value. It's just a number that falls out of the current stock prices. When prices get more "normal", the normal range of $100-$200 for gold in the ground will return.

In any case, even if gold in the ground were worth only $40/oz, just the Golden Mile would still be worth $3.01 a share for KXL (per my recently published calculations on Agora).

I hope that helps.

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