Steve:
Going by the Clyde Davis geological report on Franklin Lake, I would say that the clay is about 60%+ and that sand/gravel makes up the rest. What we are finding out is that the Johnson/Lett process seems to work equally well on both clays and sands. I am uncertain at the moment of the exact make up of this intersection, but I will try to find out for you.
My understanding is that concentration of effort on this test was for the Au. Lead fire assay would not be the normally used assay for platinum metal groups, a copper sulfide one would be used. That having been said we have received certified platinum values from Ledoux in the past. Further testing, which Naxos will be doing, will give us a better idea of the platinum to gold ratio. The Johnson/Lett 2 and 3 process steps are used for platinum and gold - once finished then you can subject the finished material to multiple types of tests.
The equipment has been ordered and paid for. Installation of the equipment shouldn't be a major problem due to the fact that it is not a chemical process as much as a mechanical process, so you can normally do away with the horde of piping and vat works and exhaust fans and all other paraphenalia that deal with a chemical process. As long as you have the electricity and some bolts to bolt down the machines and water for the cooling jacket and one or two chemicals and a certain gas, then it should be ready to go. I know of no hold up on the pilot plant so that if all continues well, then the beginning of the second quarter should see the pilot plant starting up.
Steve, there appears to be two proofs that people want to know - 1. Is it there? and, 2. Can it be recovered economically?
The latest certified COC numbers indicate that Franklin Lake has gold. Continued results like this last one should only enhance the perception of massive amounts of gold. The platinum numbers are not as of today as well developed as the gold, but we have certified numbers on them also. When more evidence comes rolling in, then there will be many persons who will take a position in the stock, because the evidence for them has enough weight to balance out the risk. With anything close to the numbers that were quoted today, then Naxos can have a recovery system with multiple bells and whistles and still have a very economic process.
Let me give you an example - with the average grade in North America being around .2 ounces per ton/Au, that would indicate that at todays price range, a recovery process would have to be under $56 a ton to be economic. Now, depending on how you crunch your numbers the $56 dollars could be an "all in" cost or just the cost of the recovery itself and not inclusive of the mining. The problem with some mines has to do with something they call the stripping ratio - the removing of "x" amount of tons of overburden to get to the "y" tonnnage of paydirt. Franklin Lake has a "0" stripping ratio meaning that they don't have to remove any "trash" dirt to get to paydirt. Have bucket and shovel - can mine :0)
Dr. Johnson gave an estimate of $100 a ton for his process. At this moment he would know best. Naxos, however would not be putting money into buying equipment if they thought that the cost would be above the recovery grade. So, although there is not an absolute body of proof concerning recovery costs at this moment, indications seem to point in the direction of economic recovery.
Hope this helps,
Kim W.
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