blastoff, page-13

KRM doesn't have much in the way of reserves but I get the impression that it's because they are not and haven't been focused on exploration while the plant is being built. I guess the managers are pretty confident that they are sitting on good ground and will recommence exploring once they get into production so they can fund the exploration with cash flow. The ore stockpile they've built up certainly suggests they are literally sitting on a gold mine but until they do further drilling we won't know.

I'm still annoyed that they are wasting time and money chasing Zinc tailings in Sardinia though. With gold at an all time high but the zinc price tanking (dropped about 35% over the past 6 months by my reckoning), it to me just seemed like a vanity project for the Chairman/MD, who used to run a Sardinian mining company.

I too am thinking of selling out as the past two weeks have been a bit too good but I also think the price of gold will continue head upwards. Because of the low cash costs, KRM has good leverage to increases in gold prices (which I'm backing to keep going up) so I may only just take profits.