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

To: Anne Lamb who wrote (9291)	2/27/1998 10:41:00 AM
From: Tom Frederick	Respond to of 20681

Anne, You are right on the money. It does come down to economic extraction. I am of the opinion, having spoken to people familiar with assay vs. extraction, that the concentrations that Naxos has shown (1.7 avg. opt on gold alone) will almost certainly be very profitable. It is hard to imagine an extraction process that would cost 24 times current methods (industry averages of .07 opt or higher are considered economically viable based on current recovery methods). Especially because Naxos will not have expensive overburden removal, roads are already close to the property, electric and water are available, etc.. It really is very simple to get at the ore. I have also heard that there are hundreds of mines working in wet environments (the wet clay under the surface was mentioned as a problem a while ago) so that issue is easily addressed based on well established practices. If the next Naxos release replicates a similar range of the last Ledoux tests, and they can continue regular output of testing from the rest of the BD holes, it will not take long for the market to sit up and take notice and look at Naxos much more seriously. Naxos does have a black cloud over it. The ASE was successful in that attempt to make life difficult for Naxos. However, once the fact of the the concentrations and range of PM's in this ore body are clear to the market, all the history will be irrelevant. What will matter is proving just how big it is and then it will be a scramble for who is going to be part of mining the richest deposit of PM's ever found. Regards, Tom F.