King River Resources Ltd T.KRR.W

Spargos resource should be under 165,000 ounces

[Farquar]

Krr should be coming out with a new resource estimate for Spargos sometime soon.. When they stole Spargos, I mean when they bought it, the resource was roughly about 131,000 ounces...about 940,000 tons of ore at average 4.3 g/t. If they exceed 165,000 in this next RE, they will have to pay the former owners one million $ cdn in shares, so I think the original drill program was designed to mostly infill drill, with a limited step out drilling..So, my guess is they will come out with a 1,100,000 tons ore X 4.6 g/t which will give them about 163,000 ounce resource....or something below this threshold for the time being...Why pay that 1 million dollars in shares now, when it's not necessary? They also need to pay the former owners 1.5 million cdn in shares once they start production of Spargos.. I think they may attempt to delay Spargos just until they can get the share price up as much as they can to minimize the amount of shares to be given.. They may be able to report higher grade production very soon from other deposits which will jack the share price before putting Spargos online...