profit accumulating, page-16

Gold is up more just now, and I guess it will be up over the coming month too. The fed sounds likely to do more QE, saying that they will be doing more QE unless the ecomomy improves (which seems unlikely in the next few weeks).

AUD gold off the 1 year low of AU$1520 to AU$$1595 as I type. A 5% rise from the lows...not a huge rise, but it's better than falling, plus I expect it to rise a bit more.

KCN, fundementally, should be up again tomorrow. Here's hoping for another good day.

Silver is up about 3% in the past 12 hours too, 10% above its 1 year lows.

There should be a feasibility study or two due for completion soon, but right now the focus is on the rising gold price, and whether Challenger comes good.

Bowdens: With the current backlog at analytical laboratories, the metallurgical testing is now expected to be completed by the end of the September quarter.

The data and analysis from these programs will be included in both a preliminary EIS document and the bankable feasibility study which should be completed in the December quarter 2012.

Nueva Esperanza: Following the upgrade, the Nueva Esperanza project has a mineral resource of 75.3-million ounces of silver and 227 000 oz of gold.

“This result confirms our confidence in the quality and opportunity at the Nueva Esperanza project and supports our initial view that the project timeline can be fast-tracked by mining parts of the Arqueros deposit and the Teterita deposit first,” said Kingsgate MD Gavin Thomas.

He noted that the final feasibility study would now be expanded to include the Teterita results, as this was anticipated to have a positive impact on the overall project economics.

“The feasibility study is now due for completion during the September quarter,” said Thomas.

I'm interested to see the results of the Nueva Esperanza feasibility study. 1.6moz AUeq resources @ 1.6g/t AUeq.

Compare that to Chatree's 4.0moz AUeq @ 1.0g/t AUeq and Nueva Esperanza could be comparable to Chatree. It's higher grade, but slightly under half the ounces. How about the depth? I didn't check that.

I'm thinking Nueva Experanza will be more similar to Chatree than Challenger, bringing back some investor confidence to KCN, but it is a while away yet.