All i have to say is if you dont like dont buy/dont watch. I'm going on past info as follows:
Kings passes San Anton milestone
Tuesday, December 13, 2005 Michael Vaughan
KINGS Minerals has passed the first expenditure milestone of its San Anton joint venture in Mexico with Goldcorp to earn 51% in the project which the company's managing director sees as basically risk free at this stage.
King's has spent the initial $US3 million required to earn a 51% interest in the project with a further $US10 million to be spent in order to extend its interest to 75%.
At this point Goldcorp can then clawback its stake, first to 50% by spending $US19.5 million and then to 70% by spending a further $US19.5 million.
The company's managing director Dudley Leitch told MiningNews.net he expected the $US10 million would see the project drilled out and a feasibility study completed, hopefully by mid-2007.
Kings has outlined a resource of 9.74 million ounces of gold equivalent at the Cerro del Gallo deposit within San Anton and is currently conducting a scoping study on the project which is expected to be finished in March.
Leitch said he believed the resource estimate had the potential to rise to at least 20Moz and pointed to a September report from brokerage Hartleys which said it believed San Anton had the potential for a 25Moz resource.
Leitch said at this stage he saw no real risk associated with the project other than a steep rise in energy prices in Mexico which would have an impact because of the crushing demands of the project.
"I can't see any risk quite frankly," Leitch said.
"You've got low labour costs, it's a very uniform ore deposit with almost no strip ratio.
"At this stage the early metallurgy seems to be simple.
"(Mexico) would have to be the best country in the world to work in, better than Australia because you don't have native title or environmental issues."
Leitch said the company was acquiring a third rig which would be on site by February, with up to six rigs expected to be operating at San Anton by mid-2006.
KMN Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
