FOR IMMEDIATE RELEASE #98-20
FOR: NAXOS RESOURCES LTD.
FOR FURTHER INFORMATION CONTACT
INVESTOR RELATIONS:
Jeff Sharp (913) 894-8509
Russell Smith (603) 891-5743
FOR IMMEDIATE RELEASE #98-20
[Vancouver, British Columbia] July 16, 1998 - Naxos Resources Ltd (O.T.C. Bulletin Board: NAXOF), today announced that Independent check assays of results from Ledoux & Company on 1998 drill program completed by Rocky Mountain Geochemical and Alfred H. Knight have failed to confirm the presence of gold on chain of custody material sent to Ledoux & Company. In order to determine the nature and the extent of the discrepancy, the Company sent representatives from Naxos, Rocky Mountain Geochemical and Ledoux & Company to Alfred H. Knight's facilities. The splits of material previously reported to have high values by Ledoux & Company from the 1998 drill program were re-assayed at Alfred H. Knight. The assay protocol delineated by Ledoux & Company was followed on these samples by Alfred H. Knight and a representative of Ledoux & Company witnessed this procedure and confirmed that the assay procedure was being completed in accordance with their protocol. The results of these tests at Alfred H. Knight failed to show the presence of gold beyond trace levels. Upon inquiry by the Company as to why Alfred H. Knight and Rocky Mountain Geochemical are not able to confirm their results, Ledoux & Company stated that they determined that a problem with their assaying of the Naxos material existed, but Ledoux & Company have not elaborated as to the nature and extent of the problem. The Company is working with Ledoux & Company to ascertain the nature and extent of this problem. Ledoux & Company will be re-assaying the splits of material from holes 98-1 through 98-10.
The Company continues to work with Johnson-Lett to verify the viability of their process. To this end, the Company has retained the services of an independent consultant who is currently independently reviewing the process.
CPM Group has confirmed that it continues to work with Naxos Resources' management as an advisor on issues of new mining opportunities and finance.
Formed in 1986 as a precious metals and development company, Naxos Resources owns mining projects in Venezuela, British Columbia and California.
ON BEHALF OF THE BOARD
NAXOS RESOURCES LTD
Per: "Signed"
Sidney W. Kemp
President
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. |
