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

To: Tom Frederick who wrote (11555)	4/7/1998 2:31:00 PM
From: Kim W. Brasington	Read Replies (2) \| Respond to of 20681

Tom: As you have so aptly stated, the drilling has just begun. The size of the property will demand a great deal of drill holes to move the category from inferred to indicated then to measured resources, if done over the whole playa. Market perception seems to be shifting in favor of precious metals (CMF - cross my fingers) and it is this shift of perception that will bring more investors looking at the gold market. A hand full of drill holes do not make a stock. What has worked well in the past for other precious metals exploration equities has been continued good results from multiple drill holes that will first bring the attention of investors, and then hold their interest to be followed by a position in an equity when the results look to be continuing in good grade and value. Size of deposit allows for an extended period of curiosity (drama) in which drill results are looked forward to. A smaller property will be more analogous to a flash than to a ground swell. If the results are over with before it is disseminated into the market place, then the development and therefore interest period is far shorter. Inferred resources greater than any major mining company will very likely bring more attention to Naxos. There are persons and institutions that focus on the mining sector that are always looking for "elephants" (mining slang for large deposits). There is a healthy dose of skepticism that is prevalent in the precious metals sector to date, that should be able to be overcome by a planned strategy consisting of a systematic approach to the proving of resources and reserves at Franklin Lake. A bull market in the precious metals market could add much more interest and buying to exploration companies. I talked with an analyst that said a ball park expectation (from the past) is, that for every 10% rise in the price of gold, you will normally get a 35% rise in the price of mining equities. If the gold price does break through and stay above $500, then - "in a strong wind most anything with or associated with precious metals will fly." Regards, Kim W.