"On August 30, 1996, a meeting was conducted with the ASE and an agreement was reached whereby AMCL would
supervise a drill hole at the Franklin Lake Property, material collected sealed and then tested at Ledoux and Company and a
designated Canadian Lab. The drill hole was completed on September 17, 1996, tested at Ledoux and Company and
published to the market. Testing at Ledoux and Company was supervised by AMCL, Jack Stanley, an outside assay
consultant employed by AMCL, Paul Blumberg, technical director of Ledoux and Company and Fred Arkoosh Jr, Chief
Operating Officer of Naxos Resources Ltd. Jack Stanley, after his analysis of Naxos' assay methodology, stated in the
presence of Paul Blumberg, Fred Arkoosh, Jr and several other witnesses that "Naxos' assay methodology falls well within the
boundaries of a conventional fire assay."
Despite this statement and the positive results achieved at Ledoux and Company not only in the month of October 1996, but
throughout 1997, the ASE never acknowledged nor approved Naxos' methodology." |
