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 (98-3)
Trading Symbol: NAXOF Date: February 5, 1998
Naxos receives approval for a 1,000 lb/day pilot plant and 205 drill holes from the State of California.
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. |
