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

To: Stoopid who wrote (12853)	5/14/1998 4:21:00 PM
From: Henry Volquardsen	Read Replies (1) \| Respond to of 20681

Mr pid, lets see why not 1,000 or 500 based on .2 oz/ton? Assuming the .2 is throughout the playa and we have 3 bln tons of material that implies a 600 million ounce deposit. Now I have posted in the past that given the current supply demand situation in the gold market, anything in excess of 5 million ounces annual production would seriously impact price. That's a personal opinion and in fact may be on the high side. But if you use 5 million ounces per year you get a mine life of 120 years, probably longer. If you use current interest rates, the present value of much of the estimated life will have a very low value. I did this analysis several months ago and came up with a share price estimate in the low hundreds. It was a very rough estimate. Before anyone takes this as a share forecast, we are a long way from being able to discuss .2 grade across the entire playa. But given the limitations of the gold market, I believe it would be very unlikely to see those kind of levels based on gold alone. But just so everyone doesn't think I have become a complete spoil sport I believe that if after we have proven the gold resource we look at platinum and achieve the kind of numbers we have seen on the recent release we have the potential to see higher values than for just gold. Henry