K2 Gold (KTO) - Gold Explorer Hits 87m of Gold @ 4g/t
Matthew Gordon, Ptolemy Capital
4 Months ago
A spectacular announcement from K2 Gold this week. Three holes announced, one of them at 87m at 4g/t. Core from a further 14 holes is due over the next few weeks. Even if we treat the 4g/t hole as an outlier, the average of 1g/t to 2g/t average, operators in the district are able to get into production. Equinox has an average of 0.6g/t with an open-pit heap leach project Castle mountain. We discuss California as a mining jurisdiction and Swatton talks about the other operators and producers in the area. He outlines his plans for next year, and, with about $2M in the bank, Swatton talks about the need to go to the market to raise more money for the drill programme next year.
At $26M market cap, it is early days, and the drill bit will have to do the talking next year. But as one of the Discovery group of companies, this one has the back and access to cash to deliver on a clear and simple plan.
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