I went through the Resource Estimate(RE) but didn't find anything to get excited about.

1) I compared the 3D zone map( figure 14, p.84) against the long section display in the Dec 18 presentation. Both displays have the survey grid so you can check that all of the high grade zones shown in the long section were in fact used to calculate the RE. A lesson learned was that you can't use the long section to get any reasonable estimate of the gold in place.

2) A lot of drilling and trenching was done on the west side of the Golden Pond but I don't recall any assay results released. They have evidence that the GM structure turns north under the pond and intend to test that theory in the next round of drilling but that's a purely exploratory shot.

3) Kriging was not used for interpolation so no variograms were presented and therefore no analysis of the nugget effect as it applies to this deposit was done.

4) The upside appears to be directed towards drilling extensions to known zones and under-drilled zones like the Bobby Ore vein. The best intercepts were drilled in 2007 and 2008. If they don't find more zones with high grades with the current program then I don't see much point in continuing.

5) The plan is to spend $ 4 mil on the Phase 1 drill program and then calculate the economics as part of the phase 2 program with a Scoping Study. Only then will they know if it's even worth doing a bulk sampling program.

I think the market has largely written off the Hercules project potential. Even if the resource estimate is doubled that only amounts to about 1/4 million oz. Kodiak had a number of high potential exploration projects like Caribou, Hercules and West Millenium that haven't turned out. If they didn't have bad luck then they wouldn't have any luck at all.