Good stuff folks. Special thanks to those who can attend the conferences and report back to us.

Here are my own Monday Morning Musings...

The whole Geraldton-Beardmore region is shotgunned with gold. KXL is trying to find the "center mass". At this point, they seem to be finding the scattered pellets.

The majors will only part with their hard earned cash for the center mass deposit. In Canada, it simply costs too much money to buy a discovery and build a hardrock mine over it. We don't have the low costs associated with the Third World (fuel, wages, benefits, etc.). We also have much better environmental policies and regulations. While this is good at the societal level, it adds costs to the project.

Goldcorp recently spent over a billion dollars for the Bruce Channel discovery in Red Lake. It will probably cost over a billion dollars to build a new hardrock mine in Northern Ontario. The Barrick-Goldcorp project in the Dominican Republic called Pueblo Viejo is expected to cost $2.7 billion.

So....a major producer is looking at spending 2 billion dollars (ish) before an ounce of gold is poured at the Hercules project. For that kind of outlay, they will want to see a resource estimate in the 5-10 million ounce range. 2 million scattered ounces does not help our cause.

As for me, I'm holding KXL at a 60% loss right now. It represents a small fraction of my investment portfolio. So I'm going to sit back and wait (and take my lumps). Hopefully a 43-101 estimate starts high and goes higher!

"Patience is a not a virtue, its a necessity"

Be well KXLers.

KG