My Only Post of the Day - Bash This
Okay, so we have some new arrivals on the board that are less than enthusiast about KBG and / or the opinions of some of the posters on this board. Let take a different look at this. Right now the focus in on the Headway property. As far back as mid July 2002 the Headway property was stated as "being approximately 1200 meters SW of Goldcorp's High Grade Zone".
BASHER: FINE BUT CLOSE DOESN'T COUNT IN THIS BUSINESS.
Well let's see what Goldcorp has been up to shall we? I think most would agree that they are pretty bright folks.
I reference the following Goldcorp Press Release from Feb 11, 2003:
https://www.goldcorp.com/pdf/news_releases/02-11-03_3.pdf
On page 1, the announcement of a major expansion of the mine with a new $85 million shaft (#3) and a $3 million mill expansion to process the additional ore. Why would they be doing this, has the known ore body been increased?
At the bottom of page 3, top of page 4
"Exploration during 2002 successfully replaced approximately 550,000 of high grade ounces mined and added a net 650,000 ounces indicating a total of 1.2 million new high grade ounces discovered during the year."
So where are these new resources? First scroll down to figure 1 and picture in your mind where the Headway property is to the SW of the #3 shaft. Now look at figure 2, a cross section of the mine. From the positions of the shafts it would appear that the new workings (in red) are to the west of the original HGZ.
BASHER: FINE, HEADWAY MIGHT BE CLOSER THAN 1200 METERS FROM THE NEW HGZ EXTENTION BUT IT IS STILL ONLY CLOSE.
So has Goldcorp given up on finding any more reserves? From the same PR, first paragraph on page 5.
"The total exploration budget for 2003 in the Red Lake Mine is $13.2 million, which will support more than 430,000 ft (131,000 m) of drilling and 8300 ft (2530 m) of underground development."
Well I guess that answers that question.
BASHER: SO WHAT THEY MIGHT BE EXPLORING ONLY TO THE NORTH OR EAST.
Well I wonder if Goldcorp would be so good as to tell us. I now refer to their Press Release of Sept 22, 2003:
https://www.goldcorp.com/pdf/news_releases/09-22-03.pdf
Scroll down to figure 1 on page 9. Another cross sectional view which runs NW to SE. Check out the cross hatched area on the left, the "West Target Area". That would be to the WEST I believe.
Now check out figure 2. Check out the size of this zone using the scale in the lower left. Hmmm... Or should I say "Wow".
BASHER: FINE, BUT LOOK HOW DEEP IT IS.
Lets refer back to the first PR shall we. This stuff is so rich that even at these depths Goldcorp is mining it for $60 - $70 per ounce! That works for me.
BASHER: FINE, SO HOW COME NO ONE HAS EVER FOUND ANYTHING BUT TINY HIGH GRADE SAMPLES ON THE HEADWAY PROPERTY?
Well the Goldcorp property has been actively mined and explored for over 50 years and only in the 90's did they first discover the HGZ. The Headway property has had an minuscule amount of work done on it by comparison.
BASHER: FINE BUT I WANT TO SEE SOME HGZ LIKE ASSAYS FROM HEADWAY BEFORE I BUY.
Well, that is what Rick and his team are working on. Lots of inexpensive shallow holes to better define drill targets before undertaking much more expensive deep holes.
And if, IF, they are successful in finding anything nearly as good as the Goldcorp HGZ on Headway I would guess that you will no longer be able to buy KBG shares for $0.70
That is why they call it Speculative Investing.
Good Night All,
Herve