HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"
NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)
Message: Interesting rainy Saturday reading - Bre-X Fiasco...NOT us...
Firstly sorry about the double blank post. I seem to hit just the right key combination to post the thing before I'm finished. Dang. Sorry.
Here's the real article. Remember this is about the 1997 mining collapse with Bre-x being the main culprite. If you don't know about the biggest fraud in gold mining history you need to read this. Remember we have great management and no worries about honest, forthcoming news. Bre-x was being manipulated from their geologist far away in Indonesia. I remember making a bit of money with Bre-x but then evened out at the end when it tanked...badly....very badly!!!
The next article I want to post relates to a success story that was more like Noront will be. Diamond Fields...man it was an amazing story. Accidental discoveries (ummm.....like us) and a constant flow of good news (ummm...like us). The only difference between DF and us...me thinks we may have more.....a lot more of the goods and better quality stuff (less cost intensive mining). Profits should be fantastic after intial startup costs have been budgeted in.
Anyway..nuf of my gab....here's the Bre-x fiasco history:
Fraud and financial markets: the 1997 collapse of the junior mining stocks
Available online 20 April 2000.
References and further reading may be available for this article. To view references and further reading you must purchase this article.
Abstract
The Vancouver Composite Index fell by over 25 percent in less than 6 weeks during spring 1997 as the junior mining sector collapsed. We argue that this market collapse was triggered by the failure of Bre-X Minerals when that company’s Indonesian claims, previously believed to contain the world’s largest gold deposit, were shown to be pure fraud. Our event study, based on market returns for the Vancouver Composite Index and for a portfolio of 59 gold stocks, shows the effects of the Bre-X scandal to be both sizeable and significant. There is also some evidence that smaller exploration companies were hardest hit.
Author Keywords: Bre-X; Fraud; Gold
JEL classification codes: G14
Article Outline
I. Introduction II. The Bre-X fraud, the gold price, and mining stock prices III. Testing the importance of the Bre-X effect The sample Methodology and the choice of event dates Empirical findingsIV. Conclusion Acknowledgements References
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