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MANAGEMENT DISCUSSION AND ANALYSIS QUARTER ENDED
OCTOBER 31, 2008
Description of Business
Navasota is an exploration stage mineral property interest company engaged in the evaluation and exploration of mineral property interests. On February 28, 2007 Navasota signed an option agreement with La Société AMIG Mining International S.A.R.L. (“AMIG”) and its shareholders to earn and acquire up to 100% of the issued share capital of AMIG. AMIG is the legal and recorded holder of a mineral exploration permit granted by the Ministry of Mines and Geology of the Republic of Guinea on May 10, 2006, covering two contiguous areas aggregating 1064 square kilometres, located in the prefectures of Télemélé and aoual for the exploration of bauxite. Navasota trades on the TSX Venture Exchange under the symbol NAV”.
Capital Resources $321,279
During the quarter ended October 31, 2008 100,000 warrants were exercised to raise $40,000. Navasota has sufficient funds to meet its anticipated general and administrative expenses for the balance of this fiscal year. Navasota may from time to time choose to raise money in the capital markets if favourable onditions are present. It is anticipated that additional financing will be required for further exploration rograms on Navasota’s proerties during the next fiscal year.
Shareholder Rights Plan On August 25, 2008 Navasota’s Board of Directors approved and adopted a Shareholders Rights Plan (the "Plan"). The Plan entitles shareholders to severable rights to purchase additional shares of Navasota upon the occurrence of a take‐over bid (i.e. an offer to purchase 20% or more of the issued shares, when aggregated with the offeror's shareholdings), which fails to meet certain conditions. Bids which meet these conditions ("Permitted Bids") do not trigger the rights to purchase additional shares.
Disclosure of Outstanding Share Data
Shares os: 56,049,287
Options Outstanding: 4,250,000
Warrants Outstanding: 8,633,333
Fully Diluted: 68,932,620
Performance Summary
Koba (“AMIG”) Bauxite Project, Guinea, West Africa On June 10, 2008 Navasota exercised its first option to acquire an initial 45% of the issued share capital of ociété AMIG Mining International S.A.R.L. (“AMIG”). Navasota has a further option to acquire all of the remaining share capital of AMIG. avasota has now completed a total of 36,759 metres in 2,147 drill holes in two phases of aircore drilling n its Koba Bauxite Project. Resource modelling and estimation work have commenced.
Phase 1 Drilling Summary Phase 1 drilling was designed to confirm the presence of bauxite mineralization on 25 target “plateaus” identified through Aster satellite imagery analyses. Program drilling totalled 10,666 metres in 558 drillholes at 300 and 600 metre spacings. Assay results for Phase 1 drilling have been received and results for Madina Diang, Tito, and Ouda plateaus were released on 6‐Nov‐07, Nomo and Farenya on 8Apr08, Kouraidendeli on 22Jul 08, Ore Pousse, Sapi, Foye, and the central plateaus on 21 Aug‐08, and Fakkerefonye, Tougiwel Competa and Killikocco plateaus on 3‐Sep‐08. Those results are summarized in he following table. Results for Kounsidji and Bhoundoutchale plateaus at the north end of the Gaoual ermit are pending.
Phase 2 Drilling Summary Phase 2 drilling reduced the drill spacing to 150‐metres on 11 plateaus previously covered by Phase 1 drilling. Such Phase 2 drilling will allow Navasota to determine bauxite mineralization continuity, grade and thickness variability; all necessary parameters for resource modelling. This in‐fill drill program began in late January and covered the largest and most continuous bauxite plateaus identified during Phase 1 drilling. Plateaus were selected for in‐fill drilling based on Phase 1 results, when available, and observed hicknesses of bauxite noted during logging of drill cuttings by project geologists. A total of 26,093 metres n 1,589 in‐fill holes was completed.
Technical Studies Initiated Navasota has retained Scott Wilson Roscoe Postle Associates Inc., part of the Scott Wilson Mining Group, to complete a National Instrument 43‐101 compliant resource estimate for the Koba Project. A preliminary review of Koba Project methodology and data suggests that Phase 1 results, at 300‐metre drill spacings, are sufficient to achieve an “Inferred” classification of resources.
Phase 2 drilling should enable calculation of a Measured” and/or “Indicated” resource classification. Scott Wilson Roscoe Postle Associates Inc.“
Commenced resource estimating work in June 2008. Coffey Mining managed the drill program on behalf of Navasota and West African Drilling Services provided drill services. All drill samples were submitted to SGS Mineral Services (Guinee) SARL for sample reparation and were subsequently transferred to SGS Canada Inc. for assay analysis.
General Information Navasota has the right to earn a 100% interest in the “AMIG” permits, which cover 1,064 square kilometres in the Télimélé and Gaoual prefectures of Guinea. These permit areas are located in the Boke Bauxite Belt, which hosts the world’s largest and highest‐quality bauxite deposits, and are directly surrounded by everal of the world’s major bauxite miners. Three refineries have been proposed for construction in the Boke region in the next five years, all of which would be within close proximity to the Koba project area.
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