The BarkerLetter

December 19, 2007

Greetings investors.

Friends of this column know we’re following a prospective gold play within a few hundred kilometers of Canada’s famed +20 million ounce Hemlo gold complex in Ontario Province.

That’s the Golden Mile project, operated by Kodiak Exploration which trades as KXL on the TSX Venture exchange. The stock had a nice pop after a trading halt earlier this month, and a subsequent news release that announced the discovery of another vein system which had the effect of extending the strike length substantially.

To date, Kodiak has been selectively drilling targets pinpointed from their geophysical data. According to the company, the geophysics point to a potentially bigger system, or systems, that could encompass the entire 300 square kilometers of their Hercules portfolio: 

‘Geophysical data indicates that the Golden Mile, Yellow Brick Road and other significant vein systems at Hercules may be several times more extensive than the five plus kilometres of gold bearing veins that have been exposed on surface to date. The geologically accepted rule of thumb for Archean veins is that they typically have a vertical depth extent equal to 50% of their surface expression, underlining the potential of the entire Hercules project. Large gold bearing veins have been confirmed to occur frequently within the Elmhurst Lake intrusion. Early results indicate it contains multiple significant parallel and ladder structures outside the Golden Mile discovery area that remain to be tested.’

That is a very bold statement. But is it true? We’re getting closer to finding out. Kodiak has wrapped up the first 3,000 meters of that drill campaign. Most of the results are now in, and I doubt the as yet unreleased assays will tell the whole tale.  However, they could offer some more clues, and have a short-term effect on the stock price.

Kb