kcn .. is there a rumour ..., page-7

watso cannot be bothered going through all past reports, to verify what has previously been announced on the matter, suffice to say, that watso was firmly under the impression that all that remained to be done previously, was for some signature, as all the relevant approvals were in place. however, all that shareholders can do, is to keep the fingers crossed.

ok - about the report. and why not look at the highlights. ah yes, another magnificent award for the company , when an employee won the "working woman of the year award". watso is going to print out a photo of the woman, and put it in a magnetic photo frame, and place in on the fridge, to constanly remind watso that kcn is the eternal award winner. lots of awards on page 6 of the report. watso is going to call his pet chook "kingsgate", and start entering the chook into exhibitions, and watso is certain that "kingsgate" will win plenty of ribbons, as they seem to have an award for so many categories, that every chook can win a ribbon for something at every event.

now to the lesser highlights. cash costs at us$404, were very good. this has, no doubt be helped by an obvious increase in silver recoveries - eg ore treated this quarter wasmarginally less than the quantity treated in the previous quarter, the silver grade was 21% higher, but the amount of silver produced was 43% higher.

there were some good drilling results, which would probably increase the overall grade of the chatree north leases - and when these are developed, the cost of production will decrease significantly, as the mining and milling costs per tonne of ore, remain at similar levels, but grade doubles.

the reality of life is, is that when the leases are granted, and the company doubles milling capacity, then kcn could be making us$100m (pre tax) per annum from chatree

some poster some time ago, looked at a whole range of issues, and determined that kingsgate won hands down, when it came to a mining operation - eg the benefit of being on the local grid for power supplies (plenty of mines have to develop their own , expensive, power sources). if that