Replies to post #91385 on KAT Exploration Inc (KATX)

[Rick-UK]

Hi trawets. Cyprus was lovely thank you!

I think it's useful to make the comparison between KATG and other companies that have also made gold discoveries, because they show the potential for share price growth and also because they give some indication of the types of timescales and patterns for growth that we might expect. But I also think it would be a mistake for us to think that purely because company X grew by Y percent in Z months we would do the same, or because company A announced B g/t of gold in C number of holes we would do as well or better than them. There are just too many variables for us to be able to make direct, like-for-like comparisons with any other company, but we can at least draw parallels and spot trends.

By "final product getting to the customer", do you mean gold ore being passed to the mill for extraction? That will be years away. There will need to be futher exploration, then finding a partner to JV with, a lot of planning, raising the necessary finance and obtaining the permits. The development of the mine and infrastructure required will also take a fair amount of time. Finally after all of this, we get to start actual production. I am not expert enough in gold mining to say which specific factor is the most important, but we do have a number of things on our side...

1. The gold appears to be uniform in distribution, making it easier to extract

2. There is gold relatively near the surface, also making it easier to extract

3. There are other metals (silver and base metals) that will contribute to the viability of any mine

4. The Newfoundland government is keen to promote mining and there are no known environmental or political factors to get in the way of obtaining a permit

5. There is good road infrastructure nearby

6. There are a couple of mills nearby that would make it reasonably straightforward to take Handcamp's ore

Regarding being in the right place at the right time, for KATG I assume from the recent announcement about the KATG shares being unrestricted that Ken is very confident that KATG will be doing well by the time these shares hit our accounts, as of course the last thing he'd want is for the share price to take a dive as everyone sells. He therefore must be anticipating that whatever news he releases at the time we receive our shares will be good enough to create a large buying demand.

With KATX, right now we are at the bottom of a long consolidation phase. My DD tells me that this consolidation phase must end once the market regains its confidence in KAT Exploration. I think the market is waiting to understand KAT Exploration's plans for each of its existing properties, and how these plans will be financed. Once this is made clear i think we will see a steep rise in PPS.