NAXOS RECEIVES APPROVAL FOR A 1,000 LB/DAY PILOT PLANT AND 205 DRILL HOLES
FROM THE STATE OF CALIFORNIA
1998-02-05
VANCOUVER, B.C.
This week Naxos received approval from the lead regulatory agency in
California to operate a 1,000 lb/day demonstration plant at Death Valley
Junction (DVJ), as well as disturbance permits for 205 drill holes. In
addition, the company is in the process of applying for various permits from
the State of Nevada to allow construction of the demonstration plant at its
Nye County, Nevada facility. These permits will authorize processing of up to
10,000 tons of ore during a one year period. The machinery ordered to equip
the demonstration plant is scheduled for delivery in late March and it is
expected that the Nevada permits will be approved in time to begin a
processing feasibility study in mid-April. If any significant delay in the
Nevada permitting occurs, the equipment can be installed and operated at DVJ.
A stockpile of 400 tons of ore is on hand at DVJ and available for
processing. Naxos continues to enjoy an excellent working relationship with
all related regulatory authorities.
STATUS OF JOHNSON/LETT COMPANY TECHNOLOGY RESEARCH
Due diligence related to the Johnson/Lett process continues to be carried
out. The Colorado Mineral Research Institute (CMRI), of Golden, Colorado, has
been retained to process the ore using the techniques developed by Dr.
Johnson. Following processing, a check sample is sent to Dr. Johnson. Once
Dr. Johnson indicates that the check sample has been processed correctly,
CMRI sends full samples of the processed ore to Ledoux & Company and another
independent qualified lab. The company is negotiating with a third qualified
lab. As of this date, Dr. Johnson has approved the release of a batch of
sample material and it is currently being analyzed by the two labs. All test
samples remain under strict chain of custody at all times. Our goal is to
henceforth provide certified, reliable assay results to the public on a
regular basis. The established testing protocol is a major step in
accomplishing this goal.
STANDARD FRACTION OF COMPLEX ORE REQUIRES ADDITIONAL RESEARCH
In our January 12 (98-2) News Release, Naxos Resources announced significant
certified fire assay results from Ledoux & Company for ore recovered from
chain of custody drill hole #5. Further metallurgical analysis by the Company
and its consultants indicates that this 25-foot intersection of material
contains both fine particulate gold, sometimes called "free gold," and gold
bonded to both quartz and silica. This material generates measurable results
when the untreated ore, referred to as "head ore," is subjected to standard
fire assay techniques.
In conjunction with this new development, the Company has retained the
services of Metallurgical Design and Management (Pty) Ltd. (MDM), of South
Africa, to conduct a thorough study of the metallurgical characteristics of
the ore. To this end, a representative of MDM recovered sample material at
Franklin Lake to a depth of 15 feet. The material was taken under seal by MDM
to Ledoux & Company for analysis by staff members from both organizations.
CLARIFICATION OF ASSAY RESULTS FROM JANUARY 12, 1998 NEWS RELEASE RELATING TO
THE PRESENCE OF PLATINUM GROUP METALS
We wish, also, to clarify our January 12 (98-2) News Release relating to the
assaying of platinum group metals (PGM's). The release indicated accurately
that no platinum group metals were detected by Ledoux & Company. The priority
of these particular tests was to determine if gold was present in the sample
using the Johnson/Lett process. Generally, a lead fire assay is not used to
detect PGM's. Normally, a copper or nickel sulfide assay technique would be
employed to accurately determine the presence and quantity of PGM's. We
regret any confusion this may have caused.
COMPANY FINANCIAL CONDITION
The company's current cash position is $2.1 million US.
DATED at Vancouver, British Columbia, the 5th day of February, 1998.
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.
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I am sorry if this was posted before.
Regards, Lalit Jain |
