The Alberta Stock Exchange has requested that Naxos Resources (NXR-A) conduct an independent audit of the drilling, sampling and assaying procedures performed at the company’s Franklin Lake properties in California.
Naxos has reported encouraging values for gold and platinum group elements from the project. However, these results were obtained using unconventional assaying techniques.
After conducting conventional (certified) fire-assay tests on samples from the properties, the Exchange found that its results “differ significantly” from the results previously disclosed by Naxos.
The Exchange then halted trading in the shares of Naxos, pending further examination and clarification of certain matters. Naxos says it will remain halted pending “clarification of its disagreement with the exchange” regarding these matters.
Matt Walters, spokesman for Naxos, says the company is not surprised by the ASE’s results using conventional techniques. “They are just repeating something that has come back negative before. Franklin Lake has a history of this; other companies that looked at the area before [Naxos] also came back negative.”
The dispute represents the second time Naxos has been scrutinized by securities regulators for its assaying methodology.
In 1990, the company reported high-grade gold results from its Shumway Lake project in British Columbia, using methods other than fire-assay from a laboratory in Hong Kong. These results were not duplicated after the ASE requested additional assays using the fire-assay method.
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