Look behind the overnight market for what is unfolding. KLA up over 6% again last night in Canada yet its main spec investment in Australia (Novo) continues to tank. Why is KLA charging higher? There are over $5m reasons per WEEK why. Thats what KLA make as PROFIT each week from Vic Gold via the Fosterville mine right now. Victorian Gold is the greatest HIGH GRADE HIGH RESOURCE hidden story in the mining world at the moment, (it seems we are the only ones that haven't woken up to it). The latest KLA RELEASED drill reports have gold at 9115 g/t over just short of ONE metre (nearly 1%) and over 991 g/t over 8.2m (Estimated true width). Fosterille has gone from a OK operation to being described by Sprott as "one of the great gold mines of the world". Don't believe me, google it. Eric Sprott has 10 (at last count) drill rigs going flat out trying to find how big the gold vault is that he has drilled into actually is. (See accompanying report). As he goes deeper, the grade and resource widths keep increasing, the latest step out saw the high grade section more than double again. Hopefully there will be a further update before KLA list on the ASX on Thursday. He had reserves of over 530,000 ounces at nearly 20 g/t BEFORE the latest drill results. The great Victorian Gold rush part 2 is officially underway. Where this will lead is anyones guess but the great thing is it is generating immense wealth and jobs right now. Fosterville is ramping up production to at least 400,000 OUNCES PER YEAR while at the same time, having its cost of production collapse. Lowest cost, highest grade, huge resources, it has never been better anywhere in the world that I'm aware of.
Disclaimer; I have shares in adjacent leases via NML and CYL. Why they aren't running like scalded cats is a mystery to me and I'm becoming tired of beating the drum. I may well also buy some KLA when they list, they are the next best thing to buying a share of the reserve bank IMO. Wake up Australia, we really are the lucky country. GL and DYOR.
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Kirkland Lake Gold starts the Great Vic gold rush part 2.
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