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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: jackjc who wrote (103156)	1/13/2008 3:59:10 PM
From: E. Charters	Respond to of 313059

The hype issue I hear from parties. It has promotion. However in order to hype you have to have ammunition. You just don't create drill holes of this nature from thin air, or set up drills on just any greenstone belt and recreate this sort of result. The real question is, on 20km of strike do they have a chance of finding a higher grade underground mine, of decent width, which will allow easy mining, and/or sufficient continuable lenses/parallel zones near surface of wide enough character to allow pit mining. I would say they are in a new area with slightly different character than the main Geraldton Beardmore Iron Formation hosted gold belt, although in the same greenstone belt. This allows them to extrapolate that the gold occurences that they are finding are open to explore towards these parameters. They are not limited by other deposits of kind. However when one does compare some of the zones of the southerly belt we find that a high degree of parallelism was the rule and wide zones grading outward to lower grade areas was also a common occurence as much as was cut off quarts veins. The Dik Dik was a a confined quartz stope area, with folded veins that worked their way right back along strike in horseshoes. But if one wanted to shallowly open pit the whole Dik Dik structure I would say it would have been possible. The McLeod Structures were very wide shear zones in places as well as being horseshoe veins. Some grade areas of the McLoed, notably the F zone were 150 feet wide. In fact penetrating one such area back in the 1930's was what gave them the Impetus to start the mine. The main thing holding people back from more exploration up there in the 80's was believe it or not the lacklustre price of gold (300 to 400) and the general prejudice against old gold areas. The market is a hellish hard case to convince to re-explore a property. They all think there are reasons never to go back if company A B or C left. Sheesh! Even companies that should know better have that attitude. I would say given KXL's long strike and spectacular holes they have an even chance of expansion and mine development. They certainly have the money. I don't want to just toot toot toot, but I could pull holes in certain areas that duplicate the KXL holes very near. I don't have however 20 Km of strike to drill at or 55 million dollars. hmmmmm..... EC:<-}