Worth a read. (Scroll down from diagram at top of article) The...

Worth a read. (Scroll down from diagram at top of article)

The article illustrates the problem faced by every conglomerate explorer, including KAI, and may explain the reluctance of many to explore further.

If Hennigh can work out a way of defining the resource, the others can use similar methods to work on their own projects. It might take years of meticulous study, thorough work like Novo is doing now and getting huge criticism for doing so.

Meanwhile the only other option is small scale mining, a small plant like Black Cat talks about. And because you can never justify going upscale, at least in the medium term, your small production can never justify a large market capitilisation, despite the likelyhood you might have a large resource available.

In KAIs case further exploration is needed to see if its likely there is viable gold...unless this is done the conglomerate is basically worthless from a market perspective.