Resource estimates must be obtained using a NI 43-101 compliant methodology. If you want to classify your resource amounts as measured, indicated or inferred you must back it up with a geostatistical analysis. An interpolation technique calling kriging was developed specifically for gold deposits and is used to " connect the dots" or interpolate gold assay values between your intercepts. I'm assuming Kodiak would have calculated the variograms from the long section wells to give them a good estimate of the minimum distance apart the next set of wells must be drilled in order to meet a specific resource category. The inferred category could either be a halo around the other categories or in between where the intercept distance is too much. Even inferred resources must be justified using an acceptable calculation. The problem with vein gold mineralization is the high variability over short distances, which means a very tight intercept spacing is required to develop a proper resource estimate.