Kinross just purchased Underworld Resources for $ 135.3 mil USD which represented a 36 % premium to the last closing share price, but I wanted to know how that translated into $/oz and how does Underworld compare to Kodiak. UW has a deposit in the Yukon which they started drilling in 2008( 3400 m), had a 26,000 m drill program in 2009 and released a NI43-101 resource estimate with 1.58 mil oz ( about 1 mil indicated and .58 mil inferred). Quite the model of efficiency because they planned to continue expanding the resource with more drilling this year but have been purchased. They have posted their 3D model on : http://www.corebox.net/properties/white/index.php?deposit=353 which is helpful to investors. I calculate a resource value of about $ 85/oz, which is within the range of values I've seen. The deposit is mostly open pittable, so we can compare it to Milestone. So far Kodiak has drilled about 3300 m at Milestone, which is about 1/10 of the drilling by UW. The average grades from UW were 3.2 g/t indicated and 2.3 g/t inferred for the open pit deposit so it's clear that the Milestone grades have to trend higher. I get the following table with the Milestone results to date:

An average grade of 0.7 g/t is marginal. What we need on the current drill program underway is some intercepts greater than 20 m with grades above 2 g/t to generate some excitement. Kodiak is due to release a resource estimate for the Hercules project before the end of March. I believe they have drilled more than 80,000 m on that project, so we'll see if it was worth the effort.