To all those worried: You have to come to a definitive conclusion for yourself. Not for everyone else...for yourself. Do you believe, based on ALL past testing, that there are PM's at the FL property?
If no, then sell everything and call it a write off for 98'.
If yes, then you go through the decision tree.
Knowing that SFA did NOT work, will other methods become reliable and repeatable enough to provide clear proof of PM content? (The Brian Russel report for example, will answer this to some degree)
If yes, keep going. If no, sell.
If non standard methods of testing must be used, do you believe that this will be sufficient for any medium to large money partner to fund full development of the property?
If yes, keep going. If no, sell.
If non standard methods must be used, how long will it take to get any large partner interested enough to write checks?
If a time period I can live with, keep going. If too long, sell.
Will other Naxos operations provide sufficient cash flow to allow for an ongoing testing and small scale recovery program to prove up whatever PM's are at FL that will get them to the point of getting interest from partners?
If yes, keep going. If no, sell.
Am I willing to wait to find out the final answers to any and all of the above questions?
If yes, hang in there. If no, sell.
Being invested in Naxos will be based on very different criteria in the next few months than it was a year ago. However, being invested in Naxos MAY be a more sound investment than it was a year ago depending on what we hear in the next announcements from the company regarding additional properties and the plan for how FL will be managed and funded.
Mr. Pearsons comments about "don't fear the reaper" in my opinion reflect a bottom line belief that the PM's are there and for those willing to hang in, the reward just might come after all. But, the key will be the time frame. Because NO one can say at this point, how long our new journey of discovery will take.
One thing is clear. Naxos is no scam. They have bared it all for the stockholder in terms of releasing the worst testing information in the history of the company. If this were a scam, Sid and company would have released the rest of the 8 holes from their test run with good numbers, let the stock run (which it would have) and then, after many weeks of screaming and leaks released the bad check lab results, and in the mean time, sold off their positions, made a killing and went home rich. They didn't do that. They have suffered with the rest of us. This is NOT a glowing endorsement of all actions by management. In my opinion, when Ledoux told Naxos that they figured out the SFA problem, this should have been checked with multiple labs FIRST, before the extended drilling was started. But that is water under the bridge. Now it is time to take stock of where we are.
For those still on board, it is decision tree time.
Regards to all.
Tom Frederick |
