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Gold/Mining/Energy : Naxos Resources (NAXOF) -- Ignore unavailable to you. Want to Upgrade?

To: Dave Wahl who wrote (19620)	7/30/1999 2:58:00 PM
From: Tom Frederick	Respond to of 20681

Mr. Wahl, I believe that the current tests from Naxos revolved around clay based drill samples already at hand, which did not require the expense of any drilling, but provided a clear indication if Lithium existed at all under the surface. The previous Govt. studies did indeed test the brines back in 1980 which proves positive results based on those tests. The new wells would go below previous drill hole depths into the brine. Remember that the clay was the goal before, now the brine would be the goal. I would think that a company wanting to maintain a position as one of two major suppliers of Lithium could not afford to pass up an offer on a large, profitable deposit of Lithium regardless of other resources if for no other reason than to ensure their leadership position. Even current large gold producers are still buying promising deposits. If the clay has results of 405 ppm, the brine has a good chance of offering similar concentrations in which case the property could offer significant resources and likely profitable operations based on the Lithium alone. The big difference between this property and the Venezuela property, as far as I understand, is that the Venezuela property does not offer the opportunity to extract a wide variety of additional materials. I would assume that once recovery operations begin, and a recovery method is refined during that time for PM's, there are significant economies of scale and potential agreements for all parties involved who help to maximize the output of each ton of ore. The upside potential for Naxos, and I emphasize potential, is quite significant if companies who partner with Naxos on Lithium, or Boron or in Neals case, worms and clay, if the final result speeds the general recovery operations to produce the ultimate goal of FL, which are PM's. Tom F.