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

To: Richard Mazzarella who wrote (19626)	7/30/1999 4:29:00 PM
From: Tim Hall	Respond to of 20681

Richard, The published price of $2.03 for lithium carbonate is the price listed by the two suppliers. They have held this published price for several years. However, the USGS estimates that they are actually selling lithium carbonate for $.76 per pound. This is based on data that the USGS receives from Cenusus data and Customs values of imports. It is not unusual for some of these industrial minerals to behave this way. The list price is just the point where they start negotiations with their customers. If Naxos were to start construction today, they would be a minimum of two years from having their first lithium carbonate. It would probably be closer to three years. Based on the way this market works, I wouldn't lend them money for such a project and unless they had signed contracts for all of their production. Given the state of the market today I don't think either one of the two big producers would be interested in such long range contracts. I said the process would be simple, not necessarily cheap. The real determining factor will be the concentration of the brines. Since the two major lithium suppliers research reserve information, I am sure they are aware of the earlier studies about the brines at Franklin Lake. Remember, the only producer in the US is only 100 miles north. Tim Hall