"the problem... is lack of decent drill results, period."
It actually is that simple.
The market has said loud and clear is is not impressed with KXL properties and results to date. Until they start releasing some extraordinary results we could very easily move down from here. $44M market capitalization... is it warranted? I am not too sure anymore especially with reports here from PDAC that Hercules may not even be economic. That's a serious blow IMO. To me it would seem the market has been pricing this in for some time and continues to do so.
Another concerning reality re: KXL over the past year has been it's obsession with acquiring more and more land... while land is obviously a good thing for a junior explorer you don't see that degree of land being acquired by juniors who have a solid potential 'company-maker' property or 2 to exploit... which we all thought Hercules was... and still may be at some point in the future... but just not now. I think KXL recognized this reality and has been working hard to find other properties to take some of the pressure and expectations from Hercules. On a positive note, I have noticed the land acquisitions have seemed to stopped... this could be a good sign IMO. No idea.
All that said, however, it would only take a couple of nice hits (gold and/or uranium) to get some real momentum back. KXL has the money to do lots of drilling and sooner or later their 'new strategy' could/should pay off. That could come at anytime.
red911
