Re: Question for the board
in response to
by
posted on
Aug 06, 2008 08:27AM
Focused on becoming a near-term Gold Producer
I think your last question about explorers drilling shallow is valid, and I have to answer it from a KXL perspective as it relates to the Golden Mile because Sage's drill program at Jacobus is delayed until the fall.
I think it's fair to say that KXL knows that the best targets are deep; there were some early results that were excellent at surface, but most economical gold deposits are deep, not at surface. I know they have been itching to sink a deep drill, but are not about to waste the time, energy, and capital to just drill willy-nilly.
What I believe they have pointed out in their most recent presentation is the "excellent deep target " ( their words) when discussing the impression that the Lucky Strike vein and the Golden Mile structure appear to converge at depth.
It seems to me that they have been drilling shallower targets UNTIL they could identify an opportunity such as this one presents. In all likelihood, they will probably drill this one deep, once they are darned sure the chances of success are greater than the chances of failure.
Believe me when I say that although the methodical approach can be maddening if one is short on patience, it really is better for the shareholder in the long run. The stock market is swift to punish a bad news release...there was one in particular that lost 47% in a day, yesterday.
Just some thoughts.