If Walhalla proves up to hold the amount of gold which is suggested by initial exploration then I believe it's almost certainty that KCN will make a move on them, and it may not be all that far into the future if we keep seeing positive results from their drilling such as we've been seeing. The amount of gold they have may well exceed even their expectations.
What also will have a positive bearing on KCN's thinking in looking for acquisitions is the ever increasing POG. I fully expect that gold is now about to go over $US600 an ounce and then on to 700 later this year. By 2008 I fully expect to see the POG over $US1000 and on it's way to $US1500+ an ounce. Just imagine what the SP's wil be of low cost, unhedged goldies by then, and believe me it's going to happen, it's already started the next leg of this gold boom, so just wait till the barmaids and taxi drivers start giving out tips on gold shares. The euphoria we've seen lately in small U comapnies will be nothing compared to the coming 'gold rush'.
Jenny.
GDR
goldstar resources nl
