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Gold/Mining/Energy : Naxos Resources (NAXOF)

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To: Tom Frederick who wrote (15785)	8/20/1998 12:48:00 PM
From: BGM	Read Replies (2) of 20681

Tom: Again, the main backbone of all of our investment and comfort in Naxos for 2 years has been the testing and relationship with LeDoux. There is nothing to indicate where we are at with them. Two years of work and "oops". Has management directed confirmation work on prior testing (before 1998 drill program)? Is this being done by LeDoux? Is this being done by 3rd parties? Is LeDoux advising us as to the correct steps? Are we advising LeDoux? Are we advising the third party labs? Are not the prior results verifiable? Did Johnson help on these others? Will he help now? If we can't direct this with our management and mining expertise, how are we expected to believe we can evaluate and develop additional properties? Are we not doing this because there are no PM's there? Are we not doing this because we don't know how? The confusion is obvious. The steps that could be taken are obvious. Even a mining rookie knows how to be thorough and direct. What is the problem here? Where is the plan? What are Norton and the others doing? Brad Mertz

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