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

To: mark silvers who wrote (15396)	8/11/1998 9:41:00 AM
From: Kurt R.	Read Replies (1) \| Respond to of 20681

To All: I recently returned from my four week summer vacation. I nearly fell off my chair when I first checked the post-AGM stock price and I am still trying to understand what really happened. I also read Jerrard's report on the AGM, which he entitled "To the Winners and Losers of the AGM". Well, with a stock price well under one Dollar, you can sure count me in as a loser. My only question would be, who are the winners? On a more serious note, the talk about shifting focus and/or acquiring new properties in other countries makes me very nervous. I hope I am wrong, but these announcements sound like an exit strategy in case the Brian report turns out unfavorable. Why would Naxos management start speculating about other properties, if they had full confidence that the FL property is indeed what we were led to believe in the past years? What gives me confidence in the FL property is this excerpt from Jay Taylor's report on Naxos from his July 1998 news letter: Early Exploration Work Included on the company's claims are two old borate mines operated in the past by the U.S. Borax Company. So far as Naxos is concerned, these old mines and surrounding areas in the Franklin Lake playa became of interest for its precious metal potential in 1988 and 1989. It was during those years that samples gathered by Mr. J. T. Crowder, a mining engineer from Dallas, Texas revealed high grades of gold mineralization from some 70 random samples taken from the tailings pile and settling pond on the old U.S. Borax property. Using a halide leach to assay this material, the average grade from these 70 random samples was 0.58 oz gold per ton. A second set of samples using cyanide leach and zinc as a percipitant returned 0.18 oz gold per ton. A third set of samples, submitted to D. M. Specialty Company, was split into two parts: the first part was assayed as received and the second part was ground to 800 mesh and gold recovered by amalgamation. These assayed 0.549 oz gold per ton and 1.19 gold per ton respectively. A fourth set of samples, including material from the settling pond, was assayed at RG & L Barstrow, California by cyanide leach and zinc percipitation. Assays of 0.006 oz gold per ton and 0.12 oz gold per ton were returned from the settling pond material and concentrates. Tailings material returned values of 0.11 and 0.16 oz gold per ton. According to this report, Mr. J. T. Crowder was able to show significant concentrations of gold, albeit not by SFA. It also gives some credence to the theory that finer mesh ore samples yield higher gold numbers. This, if I understand it correctly, is one of the main notions of the J/L technology. Since these early exploration work, countless attempts to prove the reserves by "conventional" means have failed. So it should not be a surprise that the two other labs have failed to confirm the numbers provided by Ledoux. Naxos has exhausted a nearly endless list of so-called "top notch experts" who all failed to provide hard facts about FL. What reason do we have to believe the report from Mr. Brian is going to be any different? I believe the company owes its share holders a clear explanation of what the current situation is. I am sick of this lawyer talk in the press releases - "encouraging but inconclusive." Why is there not one single person on the board with - at least marginal - expertise in either mining, chemistry or process engineering? My concern is that the board will continue to make bad decisions if they don't have the professional knowledge and experience required to deal with the issues at hand. Outside consultants can not compensate this deficit. Enough for now. Kurt