Signs are definitely improving for KNL. Sellers seem to have...

Signs are definitely improving for KNL.

Sellers seem to have left too early with the true potential only starting to be realised. Recent share price activity tells the story.

KNL’s share price hit a recent low of 10 cents only 3 days ago (20 November), Castillian sold the majority of its 5,000,000 shares at an average of around 11 cents per share (9 November) and following the Epanko announcement, the share price has rebounded to close at 15 cents today. Ironically, this is the same price as when the horrible announcement on 16 October was released.

Epanko results are definitely promising and its blue sky potential could add another dimension to Kibaran’s graphite plays.

Assay comparisons (1 new hole on 22/11 vs 4 previously reported holes 31/10):
- 3% more graphite intersections (>1% TGC) [72m vs 70m]
- 22% higher average grade (>1% TGC) [6.38% vs 5.24%]
- Equates to 25% more contained graphite (>1% TGC)
- This is with 35% less depth (metres) reported [200m vs 310m]
- Like for like results based on total depth reported, it is almost a 2 fold improvement based on contained graphite (>1% TGC)

Investors now have a much better outlook:
- improved assays released on 31 October (4 fold improvement to the announcement on 16 October)
- even more promising initial blue sky assays results at Epanko on 22 November (2 fold improvement to the announcement on 31 October with only 1 hole released)

Hopefully the best results to date are still on the way (looking more likely now):
- still awaiting Epanko assays for remaining 5 holes. MHRC023 in particular looks very promising.
- 6 holes at Ndololo Central and 3 holes at Ndololo Eastern remain pending.
- 22/11 confirmation that RC drilling has resulted in loss of graphite (hopefully diamond drilling will result in better grades)
- diamond drilling to commence at the Ndololo Eastern zone (location of confirmed graphite sample) shortly
- I believe KNL management are taking the right steps following the initial debacle and I applaud the fact that Director and Advisor option resolutions were withdrawn due to the events of recent months.

IMO, Epanko results are going to attract more interest from investors. However, loyal holders (and potential cornerstone investors) will be eagerly awaiting assays at Ndololo Central and Eastern zone assays as these will be the catalyst for the future share price direction.

Don’t forget that Kibaran’s market capitalisation is at $15.8m vs Syrah’s at $385.5m (still only 1/24).

Should these 9 holes deliver outstanding results, KNL may be looking for a major re-rate in the near term.

GLTA