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

To: Richard Mazzarella who wrote (12944)	5/17/1998 5:12:00 PM
From: knight	Read Replies (2) \| Respond to of 20681

Richard, good points, it's an interesting mineralization to be sure. Let's assume for arguments sake that the current assays are showing only the free gold and this free gold is extractable using heap-leach processes that are currently in use in the Nevada Carlin Trend; if the reserves are proven we could still make a mine out of FL. Newmont recovers 60% from .015 OPT from their Nevada operations as per "The Gold Book" by Pierre Lassonde. Leaching costs around US$6.00 per ton. The other major costs would be labour and ore-moving. PS: From the last release: >>>A total of 11 blank samples were submitted blindly to Ledoux & Company, which are randomly introduced throughout RC holes 1 through 5, averaging 0.008 oz/t.<<< Does this mean what I think it does? An average grade of the 5 holes?

To: Richard Mazzarella who wrote (12944)	5/17/1998 5:13:00 PM
From: Henry Volquardsen	Read Replies (1) \| Respond to of 20681

Richard, You state the lower assay numbers cast some doubt about economic recovery. That is only the case if you are pursuing this theory of elemental gold. They are getting results from standard fire assay using a simple prep. Other mines have shown lower grades with a standard fire assay and been viable. Taseko Mines is pursuing a gold and copper mine at their Prosperity property that has a gold grade of .0136 oz per ton and a copper grade of 5.014 pounds per ton. At current prices this is a gold equivalent of .027 opt. It is considered a viable property. The current results for Franklin Lake have come from a low cost process and strongly imply low cost extraction. Microfine or elemental gold is an interesting theory. But it does not appear to have been cracked yet. I have no problem pursuing research in this area but I don't want to bet the company on it. Prove out a conventional deposit and that will elevate the price and give us the credibility and resources to either exploit it or pursue higher yield extraction techniques. Henry