reserve statement. not really high grade, page-8

Those selling KCN down to $3.50 obviously have no idea.

Firstly, KCN's operation is so efficient that KCN was able to profitably mine ore feed to the plant averaged just 1.1 grams/tonne gold for the full year ending June 30, 2008 at a full year cash cost of just US$457 per ounce.
(See June quarterly.)

People either have not understood what KCN has released to the market or during a time of market distress are deliberately scaring some investors out of KCN.

KCN's gold grades at Chatree North HAVE NOT suddenly become lower. Due to the higher gold price, KCN have used a lower cut off grade of 0.5 g/t for their gold resource statement compared to their previous resource statement.
Importantly KCN are also looking at "larger mining blocks" which of course means more feed, more gold mined but also more dilution, which means a lower grade.

Some people failed to read or understand. KCN told us: if "similar assumptions had been used as in the prior statement
a similar average grade ... would have been generated."

Repeating, KCN's gold grades at Chatree North HAVE NOT suddenly become lower.

KCN have also indicated that initially they will be mining gold at a grade of around 2g/t - see August presentation.
This should be highly profitable, low cost, unhedged production.

Now add to that the fact that there has been no recent drilling on Chatree North, so it is reasonable to expect plenty more high grade gold resources to be discovered there.

Also don't forget that KCN are getting their green fields gold exploration up and running with good prospects of discovering more Chatree like gold deposits.