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

To: mark silvers who wrote (8405)	1/22/1998 10:15:00 AM
From: Henry Volquardsen	Read Replies (1) \| Respond to of 20681

Mark, That is definetly a big question. We are definetly in the realm of pure hypothetical here since Max and I are both extrapolating from one very brief comment by Kim and we may be misreading him. But hypothetical musing is always fun so with all due caveats about this being entirely the product of my overactive imagination and 8 cups of coffee in the last 3 hours I will play this parlour game. If, and this a huge if, there is one or more band of metal bearing alluvial ore processing would be much easier and cheaper. However it would bring many questions with it. First off it would shoot the hell out of the idea that this is a homogenous deposit. It would say that you have different strata each of which will need to be tested. If the deposit were homogenous it would presumably be easier to to the drill program and create a statistical estimate of total reserves. If the deposit is not homogenous and consists of several distinct formation then I assume a more extensive drill program would be needed to get a true estimate of total reserves. This would lengthen the timeline for this aspect. Also if you have several ores you cannot go with a singlr processing facility and probably need a more complex appraoch. So it is probably premature to assess what it does to the timeline. As far as market acceptibility. Tough question. At one level you go out and say 'hey guys we are just a regular old gold mine' and that should make it much easier to communicate. The problem is you can't do that until you have had extensive testing to proovr out what you have. I say this because everyone knows Naxos is a desert dirt and if all of a sudden there is a different type of ore it actually raises more questions. This is not a huge problem however in that it has been my long held belief that the average investor will never believe the Naxos story until there is significant institutional support. So we don't need broad market acceptance. We need institutional acceptance. If this is the story, I think it can with great effort be communicated to institutional accounts. Again this is all pure extrapolation based on one minor comment by Kim. If nothing else it shows that I could have a future working for Kenn Starr. Henry