Ann: Pilbara Gold Project Mineral Resources Jump to 643000 Ounces, page-34

Unfortunately the market was totally predictable yesterday. Just the day before came an announcement from DEG (which is not too far away) which clearly stated that conventional gold was their priority, and this was reinforced by a statement from DGO which bought into DEG through a capital raising.

Coupled with this is a number of small players in the Pilbara who very recently who disposed of their potential conglomerate leases to Pacton.

To quote Middlecamp (loosely) recently "if it looks like a duck, quacks like a duck, then it probably is a duck"

The message to an already sceptical market is obvious.

"Nearology" might have worked in raising the SP of potential conglomerate juniors back in late 2017, but it is working against KAI at the moment.

Thats not to say KAI conglomerate tenements should be written off by a market perception, the market does not always get things right. But we will soon get an indicator from KAI as to the potential prospectivity of their tenements....the vigour with which they pursue further exploration. The quarterly report states further work will begin late this month, so watch for further information.

The upgrade was a good one, deserving of market attention. But many recent KAI share purchases were made on the basis of conglomerate gold, and with little recent work done by KAI and the aforementioned "nearology" news then an exit from some on any SP uptick is to be totally expected.