kzl risk reward, page-3

Major,

If i were able to sink a decline and infill drill for the same price as drill from the surface and at the end of the day if the mine went ahead i would then already have a decline in place, why would i spend $100m on drilling and then sink a decline for $150m.

Going back when they were drilling quite some time ago this was basically what the company told us was the reason for doing the decline. They said they had stopped drilling because of the cost and would resume drilling from underground after the decline was down, money saved on not drilling from surface would pay a good deal of the decline cost, estimated to be $100m to $150m

Also at the AGM they told us they had a company already planning and designing the decline so they could continue drilling out from underground, the PFS will be completed before the decline starts anyway, i think it is supposed to be announced soon.