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

To: ShoppinTheNet who wrote (8542)	1/25/1998 2:31:00 AM
From: sh	Read Replies (3) \| Respond to of 20681

S.K.: Here goes, what I expect are my controversial 2 cents worth. The question is not what is wrong with present management. Present management has brought us a long way since the discovery of this property many years ago. If it was not for their foresight and persistence, even under the most excruciatingly difficult circumstances, the company would have folded long ago. Nonetheless, a company has to go to the next level of its development and that usually requires the infusion of new blood that can give the company a better blueprint for the next stage (which for Naxos is a very crucial stage). The Johnson process requires only 2-3 days (we can even be generous and say a week) to complete an assay. However, it took us over four months to obtain certified results from none other than a world renowned referee lab like Ledoux. We only have been able to obtain certified results on a small section of one drilled hole. There has to be a firmer grip on what the test labs are doing. We need to keep track of their developments on a daily basis. We cannot afford to let them go through their own trial and errors without constant monitoring and input from the company. Dr. Johnson tested Naxos material and apparently came up with excellent results from the outset. His input is invaluable throughout the test labs' assaying of the Franklin Lake material. Did we monitor their progress constantly? I don't have the answer to that, I would hope so. I do know this requires hands on management that will insure the steady pace of the testing. I hope we are getting that now but the slow process indicates otherwise. We have a pilot plant ordered and ready to begin work within a few months. Yet, we don't even know how homogenous the property is. We need to make sure proper use is put to the pilot plant. What good would it do to run material through the pilot plant from areas that have not been adequately assayed? We would be setting ourselves up for constant disappointment and the need to wait the proverbial two more weeks to get positive results. I may be over anxious, but we have to be well prepared before the test lab is put into operation. That requires adequate knowledge of the makeup of the property. We cannot assume it is homogenous. We need a widespread drill program that will give us a good handle on where and to what extent precious metals exist in the playa. Right now we only have samples from five holes and have only tested a small portion of one of those holes. In my lay opinion we need a much better idea of the makeup of the playa before we embark on the crucial pilot plant operation. That is not to say the plant should not be ordered and ready to operate for when we do obtain a proper handle on this. If mining experts were in charge of this, I would be much more comfortable than I am now of what the future pilot project holds for us. Going beyond this, where are the major investors, some of whom have been monitoring the progress of Naxos for years? We need to convince them that we are competently going about proving up the Franklin Lake property. They apparently are not convinced yet. What are we doing with pending allegations by the ASC that are equivalent to those settled between Naxos and the ASE? All issues should have been resolved at once. Because of this apparent blunder, we are still not listed on any exchange. As a shareholder, it's frustrating not being able to obtain a real time quote whenever I want it (forget about volume during market hours). Maybe a more experienced management team could have avoided this problem. What are we doing with private placements at $5 and $6? The company was trading in the $9 to $10 range before we had any certified results. The private placements at lower prices invariable depress the value of the stock. Something seems wrong here. The bottom line is our company, as it apparently indicated during the presentation at Franklin Lake not too long ago, needs the addition of seasoned mining and business professionals. As many have hypothesized based on reasonable assumptions, we probably have a very rich property, if not one of the richest. It's time to go beyond the growing stages and into the development stage and I believe that requires the addition to our management team of very experienced professionals. I in no way am implying that Jimmy John and the rest of our management team are not competent. There just comes a point in a company's development that it must realize it cannot go it alone and proper assistance must be sought. I believe we have arrived at that moment and should not be reluctant to take the next critical step for everyone's betterment. JMHO. sh