I know you shouldn't fall in love with your investments, but KATX is a stunner - what is there not to like? I've done a lot of DD and read post after post from the likes of 911, Matty, Er0ck and the indestructible one man explosion that is our one and only BirdMan Mr "I quite like KATX" Bob himself. Every time I do more DD I end up buying more KATX! :o)
Here's my DD summary which I posted a few days back...
KATX: Canadian junior explorer finds GOLD and COPPER
KAT Exploration (KATX) is a Canadian mining exploration company on the brink of massive, MASSIVE success. KATX has staked no less than SIX claims, attracted private investment of $5m ($1m now and $4m upon meeting investors’ criteria) and is (almost certainly) in partnership discussions with the world’s second largest mining company. Here’s the exciting news – because they have not yet filed their NI 43-101s or announced the partnership, the current PPS DOES NOT REFLECT THE TRUE VALUE OF KATX and as such KATX makes for a fantastic investment opportunity! The PPS for KATX is 0.068. My immediate target is 0.50 (735%), my near term target is $2 (2,941%) and my long term target is $5 (7,353%).
First I’ll summarise the two most important of KAT Exploration’s six claims and then I’ll review the company itself (thanks to Investor911 from $heff’s Station of Stocks and DD and KATX board moderator and to Er0ck, a KATX board assistant moderator and contributor, from both of whom I have plagiarised some of this content):
Claim 1: Handcamp
Handcamp is a very special and unique type of gold deposit known as a "Felsic" VMS deposit. World wide there is only something like 800 VMS deposits and only the best of these are "Felsic". According to the USGS, Handcamp is the highest grade VMS gold site in all of Newfoundland. Surface rock and soil samples show a level of gold FAR higher than any of the surrounding mining sites owned by other companies and to find these levels of gold in just the surface rocks implies FAR more gold in deeper deposits. Test drilling has just begun and initial results look very, very exciting.
Claim 2: Lucky
Lucky is one of KAT’s copper claims and the reason why Lucky is so exciting is that on 23 November, KAT announced the results of initial sample and analyses for Lucky and by 11 December, VALE Inco, the world’s second largest mining company had staked claims all around it. Now why would a billion dollar company like VALE want to do that? :o) Are VALE and KAT in negotiations for a JV? KAT CEO Ken Stead says he “cannot answer that question”. A JV with a mining company like VALE is the Holy Grail for junior exploration companies like KAT. KAT is on the brink of an amazing partnership – but the news hasn’t been announced yet!
The Company
KAT Exploration is managed by brothers Ken and Tim Stead who have excellent tracks records and experience and between them own a controlling interest, making for a very safe and trustworthy investment. KATX is a fully reporting OTC with “Current” status on pinksheets.com.
• A/S = 730m with 500m maximum for common issuance • O/S = 463m • There are 143m restricted shares • Float = 320m
Recent Events
• January 5th KAT meets pink sheets requirements and achieves “Current” status • January 14th KAT massively reduced its A/S from 3bn to 1bn • January 15th KAT secured $5m investment to fund operational support • January 19th KAT reduced its A/S from 1bn to 730m, appointed private independent consultants and announced its intention to dual list on an Asian exchange • January 27th KAT discovers more copper at its Lucky site • February 1st KAT discovers more gold at its Handcamp site
Why will PPS increase from $0.068 to around $2 to $5?
Junior exploration companies are worth pretty much nothing at all until they find file a claim, analyse what’s in the ground and file their 43-101 to prove it. Most exploration companies would be over the moon with just one good claim, but KAT has six! Not only that, but early sample analysis from Handcamp suggests KAT is sitting on an incredible amount of gold and recent activity around Lucky not only show the same thing for copper, but also hint strongly at a JV partnership with a world leading mining company. KAT Exploration is therefore something out of the ordinary.
One year ago an exploration company called US Gold (UXG) were in a similar position to where KAT is now, with a similar share structure. They were trading at around 0.30 and were waiting on the results of test drilling so they could file their 43-101. Within weeks of filing their 43-101 the PPS went from 0.30 to $1.20 and a few months later hit $3.00. UXG’s best results were 2.9 g/t Au. By comparison, KAT’s initial sample analysis indicates 158g/t Au, 94g/t Au and 82g/t Au. Not only this, but as well as Handcamp, KAT has Lucky and four other claims as well. If UXG can hit $3.50 there is absolutely no reason why KAT cannot hit $5 OR MORE if we get a DOUBLE announcement – a 43-101 for Handcamp and a JV with VALE for Lucky.
It's very common for these type of companies to go from a few cents to multiple dollars on great drill results alone. This is because the NI 43-101 basically confirms exactly how much gold is in the ground and how much it's worth. So there’s no need to actually be mining it to make this stock go up, once people know exactly what they are sitting on and what it's worth, this will shoot up accordingly to reflect that.
My short term target PPS is $2 and I believe we could hit that once we get the test results back. Longer term, this could easily be a $5 to $10 dollar stock. They have six properties, two of which look to have massive amounts of gold, three of which look to have massive amounts of copper and at least one appears to have massive amounts of silver. So when you factor in all of the properties and the potential JV with VALE, this company "could" be worth quite a bunch of money. I expect KATX to continue a slow and steady rise with spikes on good new until the test drill program is complete and the results are released for Handcamp or one of the copper properties, when I expect this to move up to around the $2 mark, which could be just 2-4 weeks away.
Call to Action
Look at the list of recent events and draw your own conclusions, but I believe KATX to be a once in a lifetime investment opportunity. This is a fully reporting OTC with an open, transparent, communicative CEO and fantastic announcements imminent. It’s all there in terms of the provable DD and to my mind it’s a complete no brainer once you’ve done the research. Here’s where to go:
Market Data 
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