*** News Release 97-19 ***
NAXOS RESOURCES LTD.
409 - 808 Nelson Street
Vancouver, B.C., Canada
V6Z 2H2
(604) 669 - 8078
N E W S R E L E A S E (97-19)
Trading Symbol: NAXOF
Date: December 10, 1997
High Gold Values Reported by Ledoux & Company on Behre Dolbear,
Chain of Custody, Franklin Lake Playa Material, Inyo County, California.
The Johnson Methodology Followed by Standard Lead Fire Assay Used to Achieve Results.
After three months of evaluation by Ledoux & Company, the Company
has determined that the "Johnson Methodology" greatly enhances the
recovery of precious metals from the Franklin Lake property. The
following report, from Ledoux & Company dated December 10, 1997,
summarizes the gold values achieved from testing the first five (5)
holes drilled under the supervision of Behre Dolbear; namely hole #5,
located approximately in the middle south portion of the playa.
Behre Dolbear delivered a report to Naxos on October 24, 1997 which
states that "Behre Dolbear is of the opinion that the samples it
collected at the Franklin lake project have been reasonably secured
against tampering by anyone associated with Naxos from the time the
samples were collected until their delivery to Ledoux. To Behre
Dolbear's knowledge, all samples have been maintained in good
condition and have not been tampered with by anyone or handled in any
unauthorized way between the time of their collection and their
delivery to Ledoux." "Behre Dolbear is unaware of the specific
analytical procedures being used on the samples at Ledoux and,
therefore, expresses no opinion regarding the results of those
procedures."
During the month of November, Dr. Al Johnson and one of his assistants
Richard Baker spent two weeks at the Ledoux & Company laboratory
providing additional instructional guidance to the Ledoux staff. They
addressed and corrected certain aspects of the preparatory process as
well as the assaying procedure.
Chain of Custody Assay Ledoux & Company Report (not yet certified)
Hole #5
Depth (feet)...... Au (average oz/Ton)
130 - 135 ......... 3.383
230 - 235 ......... 2.800
330 - 335 ......... 2.917
Ledoux & Company has requested and the Company has agreed that the
tests on this material will be repeated for final confirmation and
certification. Ledoux & Company will initiate the new tests on
Friday, December 12,1997.
In addition to the high values of gold, Ledoux & Company has reported
significant values for the platinum group metals. Due to the fact
that these values were inconsistent and varied widely, Ledoux will
repeat tests on the chain of custody material for the platinum group
metals.
The Company has ordered the necessary equipment to set up a 5 ton/day
pilot plant at the new 12,000 square foot facility located in Nye
County, Nevada, approximately 18 miles North of Death Valley Junction,
California. Delivery of the equipment is expected in March 1998. This
pilot plant has been designed by Dr. Johnson for the purpose of
demonstrating to independent engineering firms the economic
feasibility of the Johnson Recovery Methodology.
The blackout on insider and employee trading of shares will continue
until certified assays on chain of custody Franklin Lake drill samples
are reported.
Venezuela
A small alluvial mechanical plant remains in operation on the Hoyada
property. The total diamond production to date is approximately 120
carats. Work has commenced on the larger mechanical plant which is
projected to process 25 to 30 cubic yards per hour. Estimates are
that this plant will be completed by the end of December and in
operation by the first of the new year.
The Company's mill at Kilometre 88 has, since starting up in mid-
October, remained in production for all but five days processing
between 85 and 90 tons of material per day from the adjacent property,
which the Company has agreements to mine and mill material. During
the month of November at least 375 ounces of gold have been produced
at Kilometre 88. As further improvements are completed to the mill,
production will increase to 125 - 150 tons a day. The Company has
been advised by its Venezuelan counsel that all necessary permits are
in place so that the operation can continue on an ongoing basis.
DATED at Vancouver, British Columbia, the 10th day of December, 1997.
ON BEHALF OF THE BOARD
NAXOS RESOURCES LTD.
Per: "Jimmy John"
Jimmy John
President & CEO
All forward-looking statements made by Naxos involve material risks
and uncertainties and are subject to change based on factors beyond
Naxos' control. Accordingly, Naxos' future performance and financial
results may differ materially from those expressed or implied in any
such forward-looking statements. Such factors include, without
limitation, those described in Naxos' filings with the United States
Securities and Exchange Commission. Naxos does not undertake to
publicly update or revise its forward-looking statements even if
experience or future changes make it clear that any projected results
expressed or implied therein will not be realized. For further
information, please contact our Investor Relations Department at
(603) 891-5743 or (702) 372-1712 or (913) 894-8509. |
