The holes reported yesterday were about average for Goldstorm in terms of grade, but way above average for mineralized widths.  As a result, the average mineralized interval at Goldstorm is now over 550 meters per hole.  This has significantly increased my projection.  I'm now expecting a minimum of 26.3 million oz. AuEq out of 1.25 billion tons of ore at .655 g/t. When I match this against my Iron Cap baseline I get a maximum estimate of 27.9 million oz. AuEq.

For the 300 Horizon I'm at a minimum of 7.87 million oz. AuEq on 289 million tons of material with .847 g/t AuEq.  The maximum estimate for the 300 Horizon is 9.25 million oz.  The increase for the 300 Horizon is due to the larger footprint for the shallow gold.  I'm now at 800 meters in length, the change being mostly due to the "step out" hole GS-20-70 along 115+50NE

The holes being assayed now are in areas that could show slightly lighter results.  However, the last six holes being drilled now I believe will show very strong results to end the exploration season. 

I don't believe we will know the full extent of Goldstorm this year.  The remaining drill holes are mostly infill in nature.  Some could extend to a boundary, but I doubt it. 

I think that the drilling to the northeast will bridge into Orpiment leading to a "wealth of options" for KK between Goldstorm, PSZ and Orpiment next year.

Plugging in to the valuation for Teuton, the update gets me to a value of just under $300 million for the 300 Horizon only, or about $5/share at 58.7 million shares fully diluted.  The value of the NSR on the 300 Horizon is $172 million of the $300 million, the remainder is the value of that gold in the ground at a conservative price of $65/oz. AuEq.  I used $1,900/oz Au as the price of gold.

Do your own DD.  GLTA.  Doug