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

To: Larry Macklin who wrote (12942)	5/17/1998 1:55:00 PM
From: knight	Read Replies (2) \| Respond to of 20681

Larry, good question. Seems to be six of one or 1/2 dozen of the other ;-). This new tack that the company has set is the right one if the assay method is equatable to an extraction method. Proving up reserves will give Naxos more credibility in the mainstream mining community and that's what the company needs if it is going to persue this project through to completion. Major funding will be required and possibly a J/V to meet that objective. This will only be attained through being taken seriously by the mining and financial communities. So, I guess if I were the Prez of Naxos, I'd press on with the drilling and confirmation of the reserves using the standard fire assay method.

To: Larry Macklin who wrote (12942)	5/17/1998 11:00:00 PM
From: Tim Hall	Read Replies (2) \| Respond to of 20681

Larry, I believe that more work needs to done on recovery. Despite what some others might think; ( In addition, assay is very similar to extraction. If a low cost prep process is sufficient to generate results from standard fire assay then it is more than reasonable to assume a low cost extraction process.) the fire assay is not similar to extraction. The fire assay melts everything in the sample and the gold is usually collected with lead. Obviously it won't be possible to melt all of the ore. I also don't believe that this ore can be heap leached. There is too much clay for heap leaching. Clay presents two problems. High clay levels will cause the leach piles to blind up and the leach solution will not be able to flow evenly through the pile. Also, the clay will absorb the leach solution and not let it out of the pile . The clay will also cause similar problems with agitated vat leaching. It is very difficult to recover the pregnant solution from the clay. If the leach solution is toxic it will also compound disposal since the toxic substance will have to be neutralized prior to disposal. It might be possible to use a gravity separation to recover the gold, however, because of the clay, the tailings will be expensive to handle and dewater. Trucking costs to Nevada will be about $.10 per ton mile. If the tailings have to be returned, another dime per ton mile. There could also be some political ramifications transporting that much material from one state to another. For these reasons, I think that recovery could be more important than reserve calculations. Tim Hall