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

To: Jan A. Van Hummel who wrote (8141)	1/14/1998 5:39:00 PM
From: Millracer	Respond to of 20681

High 7.25 Low 6.25 Close 6.375 Volume 106,900 Whom of you is selling this stock!!!

To: Jan A. Van Hummel who wrote (8141)	1/14/1998 5:59:00 PM
From: Jan A. Van Hummel	Read Replies (2) \| Respond to of 20681

Follow Up Actually, the real value is in what Naxos will take out and that will translate into much more meaningful figures. Jan

To: Jan A. Van Hummel who wrote (8141)	1/14/1998 9:56:00 PM
From: Henry Volquardsen	Respond to of 20681

Jan, good start. I think when valuing the reserves you have to also take in to account the cost of production. I wasn't involved in Bre-X but will assume that they were claiming a standard type of deposit with industry norm recovery costs. From what I remember from looking at valuations for exploratory companies a valuation for such reserves in the $25 to $71 range is not out of the range and seems reasonable if they had actually had 200 mln ounces. Since FL is not a standard ore it is tough to draw extrapolations from another mine. We don't as yet know what our cost of production is, hopefully it is lower. I have spent most of the last two days speaking to people in the mining industry. There is no clear cut standard formula for determining valuation. Each mine has its own charachteristic that must be factored in. As I said before it is more of an art than a science. Henry