KAT Exploration Inc (KATX)

[Biochemist2002]

Re: Aren't we "LUCKY"
Yes. Yes, we are. I would not be surprised if we get an update on the Vale option agreement. The company has stated on the homepage that we're "working with" Vale on the Lucky property.

It looks like another company's previously announced "option agreement" has turned into a very nice drill program. I like the fact that Vale was interested in acquiring an 80% interest in the Luckies, versus only 60% interest in this company's properties. See my comments and comparison below.

note, they announced their option agreement just 1 month prior to our announcement, and we're currently 1 month after Vale initiated their drilling, so we could hear an update any day now...

May 4th they announced the option agreement:

Mount Pearl, NL, Canada: XXX announces that it has signed an option agreement with Vale Exploration Canada Inc. ("VEC"), a wholly-owned subsidiary of Vale S.A. (NYSE-VALE) ("VALE"), respecting its...copper properties in eastern Newfoundland. VEC will make an initial payment of C$25,000 and has committed to a minimum first year expenditure of C$165,000. Thereafter, VEC may elect to make further cash payments totaling C$75,000 over the first two years of the option and incur additional exploration expenditures totaling C$2,850,000 over three years in order to earn a 60% interest in the properties. The parties will then form a joint venture to further explore and develop mineral resources on the properties, with each party contributing to approved exploration programs as per their interest. VEC will operate the exploration programs during the option period in consultation with Cornerstone.
"We are extremely pleased to be working with Vale on these copper projects," said ...President & CEO. "XXX has been exploring for copper in this area since the company's inception, and VEC's recent interest through its own claim staking and optioning of our properties confirms our view of the potential of this environment to host significant copper deposits".
http://www.cornerstoneresources.com/s/NewsReleases.asp?ReportID=397834&_Type=News&_Title=10-08-Cornerstone-options-sediment-hosted-stratiform-copper-projects-in-New...

and the commencement of drilling on those properties was announced November 4th:

Mount Pearl, NL, Canada: XXX is pleased to announce that Vale Exploration Canada Inc. ("VEC"), a wholly-owned subsidiary of Vale S.A. (NYSE: VALE and VALE.P; BM&F BOVESPA: Vale3 and Vale5; Euronext Paris: Vale3 and Vale5) ("Vale"), has commenced a 1,500 metre diamond drilling program on the XXX copper property. As previously announced (see news release dated May 04, 2010), VEC has the option to acquire a 60% interest in XXX's...properties which are located on the Bonavista Peninsula in eastern Newfoundland. VEC is the operator of the exploration programs during the option period in consultation with XXX. The properties are targeting sediment-hosted stratiform copper (SSC) deposits similar to those of the prolific Central African Copperbelt, also of Late Neoproterozoic age
http://www.cornerstoneresources.com/s/NewsReleases.asp?ReportID=426671&_Type=News&_Title=10-23-Cornerstone-announces-start-of-diamond-drilling-on-the-Red-Cliff-copp

Granted, Vale will be spending more money on XXX's properties, but those properties total 181 claims, versus KATX's 55 claims on the Luckies (North and South Lucky combined). So, perhaps that has something to do with it. Vale may elect to spend $750,000 on exploration over the option peiod with KATX, versus $2,850,000 over the period with XXX (which is approximately 3.8 times the dollar amount). BUT...they do have approximately 3.2 times the number of claims. SO...our "option agreement" does appear to be comparable (even comparing the intitial signing payment ($25K versus $20K, and further cash payments of $75K for both companies). I did notice we boast 17 kms of up to 2.5% copper in some areas though, which is not too shabby at all. I will grant Gump the fact that our PR did not mention a firm work commitment within the first year, but I'm confident Vale will drill the Luckies in the relatively near future...AND for all we know, Vale could be doing exploration work there as we speak. We just do not know for certain what the company means by "KAT Exploration, Inc. is working with Vale,on its Lucky Copper properties." After all, the other company didn't announce Vale was drilling until 6 months after the option agreement was first announced. Six months later for KATX would mean December 11th (for a general idea). Of course, there's no guarantee that this is indicative of the timeline we can necessarily expect. I'm just speculating.

See our option agreement announcement (bottom):

http://www.otcmarkets.com/otciq/ajax/showFinancialReportById.pdf?id=37337

KAT Exploration Signs Three-Year Option Agreement Contract With Vale

MOUNT PEARL, NL--(Marketwire - June 11, 2010) - KAT Exploration Inc. (PINKSHEETS: KATX) ("KAT") is pleased to announce that it has signed an option agreement with Vale Exploration Canada Inc. ("VEC"), a wholly-owned subsidiary of Vale S.A. ("VALE"), on its North and South Lucky copper properties on the Bonavista peninsula in eastern Newfoundland. Under the terms of the agreement, VEC has committed to an initial C$20,000 cash payment on signing and may elect to make further cash payments totaling C$75,000 over the three-year option period, and may elect to incur a minimum of C$750,000 in exploration expenditures within the option period to earn an 80% interest in the Lucky properties.

Upon VEC's exercise of the option, a joint venture will be formed to further develop the properties, with each party contributing to further approved exploration programs as per their interest. VEC will be the operator of the exploration programs during the option period.

The Lucky properties are in a geological setting with the potential for sediment-hosted stratiform copper (SSC) deposits. The Lucky properties have the potential to produce low-grade, large tonnage copper deposits similar to those of the Zambia copper belt.
Ken Stead, President/CEO of KAT, states, "The very fact that a company of Vale's caliber has enough interest in the area and sees enough potential in the Lucky properties to warrant an option with KAT, leaves us very excited. We are very pleased to be exploring these copper properties with Vale and look forward to bringing them to their full potential."

The Lucky properties are located on the Bonavista Peninsula in eastern Newfoundland, and are accessible by well-maintained roads, allowing for exploration programs to be carried out fairly quickly and comfortably.
Copper mineralization is quite visible in an old pit near a gravel road with impressive malachite staining along with chalcocite strata bound within the more sandy beds of the sediments with assay results of 2.5% Cu in the more concentrated areas. The most recent discovery was on our North Lucky property where well-disseminated chalcopyrite was found in exposed outcrop approximately 10km north of the South Lucky property.
http://www.marketwire.com/press-release/KAT-Exploration-Signs-Three-Year-Option-Agreement-Contract-With-Vale-1274884.htm

I would also encourage new shareholders to read up on the Luckies (and specifically Ken Stead's comments on the significance of the deal) in the sticky:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=56146784