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

To: mark silvers who wrote (10224)	3/16/1998 7:14:00 AM
From: Max Haber	Read Replies (1) \| Respond to of 20681

Does 1 share of Naxos equal 2.92 oz AU reserves? Help me with the math. All number are guesses and estimates. 1.)From the last press release, I added up all the tests from both Ledoux & Co. and Rocky Mountain Geochemical and then divided by 28. The number of samples, excluding for this exercise the small sample from hole #5. I came up with the mean result of 0.117 ozAu/ton (rounded). 2.)From the last press release. I took the smaller figure of the amount of material contained at Franklin Lake. 1,000,000,000 tons. 3.)Multiplied average grade/ton by tonnage (0.117 X 1,000,000,000)= 117,000,000 ounces of gold reserves. 4.)Then I took the 117,000,000 ounces and divided by the amount of shares outstandidng 40,000,000 (my guess) and came up with; 117,000,000/40,000,000= 2.92 ounces of gold reserves per share. 5.)I kept going. Taking the market cap of Naxos $3.125 X 40,000,000=$125,000,000 6.)Dividing the market cap by the reserves; $125,000,000/117,000,000=$1.06 Does this tell me that for every $1.06 I have invested in Naxos I have 1 ounce of gold reserves in the ground? An ounce of gold reserves for $1.06? Missing something. 7.)Multiplied the reserves per share (my calculations) by the recent price of gold. 2.92 X 295=$862.88 Stock is at $3.125 ? Whats wrong here? 8.)Need to discount the above figures for four good reasons; 1.) gold is still in the ground 2.) testing not completed 3.)productions cost are unknown 4.)I'm probably missing something big. Mark, my question is this, what is the standard discount, for reserves used by the mining industry? I.E. What is the dollar value per ounce for gold still in the ground? Max Haber