Ann: Initial Gold Resource of over 200,000oz for , page-8

re: Ann: Initial Gold Resource of over 200,00... I said their was no "compelling" reason to "BUY". Compelling meaning their are other stocks that can and did return similar amounts over that timeframe. You had two shorts in ADO and BCC do well. The money could be used elsewhere to trade two or three times, making 10% on each trade.

Also I said BUY as opposed to HOLD, and pointed out that their was very limited downside(due to cash backing). So no damage in buying/holding other than opportunity elsewhere.

At 8.5c and a clear negative sentiment it could have got stuck for awhile. As it stands it was a good week overall for ASX and KGL seriously outperformed. As you say about 30% in 2weeks. But their was plenty of 10c on offer which is 10% less than now.

So if it fell to 10c it would be marginal whether using the money elsewhere was the better option.

Obviously when I say 'drilling will not add much value' I mean short term. And I mean relative to other opportunities. Obviously you can never have too much resource.

With IAU it took awhile for the penny to drop and it took insto buying to kick start the run. KGL is yet to see that insto support. But its good to know RBS have been onboard. Intersuisse too. And now it appears Shaws. Things are looking up.

The big issue is derisking the project. All the assets have a previous mining history, so permits and native rights arent issues. It all comes down to digging the ore out as quickly as they promise.

Cost over runs and pit design can seriously hamper estimates. Look no further than NAV for how you can totally under deliver.

So until we produce at or near our estimate we wont reach anywhere near the derisked valuations.

Even your former fav JPR had issues(mainly regulatory so not applicable to KGL, but some technical too) getting the oil out. Great asset, great NPV. Great estimated bopd. Still nothing and still low sp.

Needing to recommission the plant and upgrade is alot lower risk than starting from scratch.

You know as well as I do that had KGL announced a higher grade with a smaller resource, which they could have legitimately done. The market would have responded better. If thats not disappointing I dont know what is.

I think they 'tried' to do that by pointing out the previous operator visually sorted the ore and achieved 5% Cu.

You still standing buy the "Jinka is a bargain" despite being down about 10% several months after acquiring, when you thought Andash was already worth zero?

Or would you say the market will revalue KGL as it transitions from explorer to producer and that Jinka was and still is worth market value and will continue to rise as we add value and not before.