KAT Exploration Inc (KATX)

[holen1]

Following up on US Gold (UXG) comparision, I took a look at their drill results for the Tokin property. The following data is from the (UXG) News posting "Tokin Exploration update, 20 of 26 holes Return encouraging results. Drilling indicates New mineralization at Depth. (December 21, 2006)"
See the following link http://www.usgold.com/news/2010/

From November 14th Annual Meeting, New Directors (October 24, 2005)

"U.S. Gold's Tonkin Springs property includes a 36 square mile property position, strategically positioned on the Cortez Trend in Nevada, and located in the heart of promising exploration and development activity. Tonkin Springs has an existing gold resource of 1.4 million ounces within the upper 250 feet identified within a relatively small area of the property. The exploration potential of this property has increased over the past few years as Placer Dome, which adjoins our property to the north, has continued to discover several multi-million ounce gold deposits, some of which have reached to a depth of 2,000 feet."

At the time the share price of (UXG) was approximately $4.50/share. Jim Bishop noted in response to my previous post that a year prior the O/S for (UXG) was 33,000. They are presently at 106,000 O/S.

U.S. Gold Corporation announces increase in proposed offering to US$75.15 Million by over-allotment (February 8, 2006)
U.S. GOLD CORPORATION ANNOUNCES INCREASE IN PROPOSED OFFERING TO US$75.15 MILLION BY OVER-ALLOTMENT
For Immediate Release
Lakewood, Colorado (February 8 , 2006)- U.S. Gold Corporation is pleased to announce that its previously-announced private placement of US$50.4 million has been increased by reason of an over-allotment to 16,700,000 subscription receipts (the "Subscription Receipts") for aggregate proceeds of up to US$75.15 million . The Subscription Receipts will be sold at a price of US$4.50 per Subscription Receipt.

The remaining terms of the proposed offering remain unchanged. Each Subscription Receipt will be automatically converted into one Unit, subject to adjustment and dilution penalties in certain instances, upon the satisfaction of certain stated conditions (the "Escrow Conditions"). Each Unit shall be comprised of one share of the Company's common stock ("Common Share") and one-half of one Common Share purchase warrant ("Warrant"). Each whole Warrant will entitle the holder thereof to purchase one Common Share (a "Warrant Share") for a period of 5 years following the closing of the offering at a price of US$10.00. The Escrow Conditions include, among other items, the filing of a resale registration statement in the United States and (final) prospectus in Canada qualifying the securities underlying the Units and the listing of the Common Shares on the Toronto Stock Exchange.

Recognize KATX has 3x O/S in value comparisions.

Open Letter to US Gold Shareholders (June 12, 2007)
........ Big Financing $75 Million - 3 Year Aggressive Exploration
In February 2006 we completed an oversubscribed financing of $75 million. The objective was to give US Gold the financial strength it needed to conduct an aggressive exploration program. I often see exploration companies raise just enough money to drill a few holes. If they fail to deliver a discovery, which is normally the case during the early stages of exploration, they have to shut down their work program while they raise additional funds. ........
This model is slow and continues to dilute shareholders ownership. My objective was to raise enough money so that US Gold could explore non-stop for three years.

Now refering to the data from Tokin drilling news above;

UXG undertook an agressive drilling program in June 2006 for $30 million for 425,000 ft of drilling. That is an ave. cost of $70/ft. The Tokin results were 33,500 ft drilled in 26 holes averaging a drill depth of 1,288ft/hole. Of the 26 holes 6 holes (25%)produced 20 gold finds. The high of the finds was 6.17 gpt over 3.05 meters, the low was 0.0845 gpt over 6.10 meters, and an average of 3.13 gpt over and average of 7.73 meters. The results were published 6 months after the program was undertaken.

Now Ken has $1 million presently, so if he were to allocate $750,000 to a drilling program this would represent approximately 10,700 ft at $70/ft. Drilling at 1200ft would represent 9 holes, but I believe 1200ft is pretty deep an not in the initial plans for handcamp. At 800ft this would represent 13 holes or 50% of initial UXG drilling program and from a time perspective this would equate to a 3 month program.

Continue on another post.........