market darling 2005, page-10

Just to clarify for anyone not familiar with KMN - San Anton is far from new. it has been around for more than 10 years, the 'discovery' has been healthily drilled; as the non JORC compliant resource estimate atests to!

For mine, San Anton is all about how much of the high grade epithermal hits they can prove up. The porphry unit is well drilled and although it has the potetnial to deliver substantial tonnages of (it is actually a mineralised topo high - hill if you like) 1g/t Au EQUIVALENT, it's hard to see this coming out of the ground in the absence of copper credits imho.

Also worth noting is the high ratio of silver to gold in the resource to date. Silver is a great beasty when trying to bank a resource but once the mills start grinding, it is treated with contempt. For example, since commissioning, Sepon (OXR) has averaged 37% silver recovery.

To complicate things further, the 'various' styles of Ag mineralogoy at San Anton will further complicate the metallurgy and will either require additonal capex or KMN may have to accept lower recoveries imho.

I can't see too much to get excited with a mkt cap of $72m, f/a cash and the need to build at least a 8-10 mtpa plant IF management can bank San Anton.

Some big money has poured into this one since the low teens so it may well go to the moon but now a trading stock more than a medium term play imo. The easy money has been made. I was out at 11c and although I lament watching it forge ahead, no one ever went broke takin a profit.

Market darling in 2005? who knows but they will be praying for a few high grade hits to boost the grade.

Cheers