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   Gold/Mining/EnergyBre-X, What happens after Strathcona results?


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To: Peter T. who wrote (16)5/4/1997 6:41:00 PM
From: opalapril
   of 31
 
Something else will happen. It always does in the wake of such scams. Some hypsters will stick around, under new pseudonyms, preying on the already victimized. After oh-so-sincere-sounding expressions of sympathy, they will start steering them to a new and "better" stock -- one, so they will assure everyone, that can help make up for the recent losses they suffered. Incredibly, there will be more than a few pigeons who will be plucked again. And so it goes.

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To: Robert Dirks who wrote (10)5/4/1997 6:56:00 PM
From: Richnorth
   of 31
 
Please note:

That Kaiser guy has been given a number of uncomplimentary names, e.g., Mr. PUMP-and-DUMP and Mr. BOTTOM-FEEDER. So do your own due diligence despite his BOTTOM FISHING report.

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To: opalapril who wrote (17)5/4/1997 6:58:00 PM
From: Robert Dirks
   of 31
 
Bre-X to seek more Busang tests - paper

Reuters Story - May 04, 1997 15:02

FINANCIAL GDM CA MET EMRG US GOL ID AU HOT MRG GB BMX FCX V%REUTER P%RTR
TORONTO, May 4 (Reuter) - Canadian gold prospector Bre-X
Minerals Ltd will argue on Monday that more tests are needed to
determine just how much gold is in the controversial Busang
find in Indonesia, a Canadian newspaper reported on Sunday.

The Calgary-based company is expected to release an
independent report by consultant Strathcona Mineral Services
Ltd on the Busang project on Monday.

Bre-X hired Strathcona in March to review the project after
doubts emerged at that time over what has been called the gold
find of the century.

"Bre-X will argue that what's now needed is a large bulk
sample from the Busang site for further testing," the Toronto
Star newspaper said in a report on Sunday which quoted an
unnamed source at Bre-X.

"Any mining company in our position would want further
testing," the source said.

A bulk sample would involve more extensive drilling,
sampling and assaying of the site. Strathcona's report is based
on samples from six holes drilled at Busang.

"Don't forget Bre-X drilled more than 300 holes for
testing. There should be another large bulk sample tested
before it's concluded we made a mistake," the source told the
newspaper.

The newspaper report also quoted mining analysts who said
the company's desire for further tests suggested the Strathcona
report is negative for Bre-X.

"Talk of a bulk sample suggests the independent test
results are going to show there's far less gold at the Busang
site than Bre-X had led investors to believe," Calgary-based
analyst Ted Carter said in the Star report.

A Bre-X spokesman said on Sunday the company had no comment
on the Star report.

Bre-X has estimated the Busang site contains about 71
million ounces of gold, potentially the world's richest gold
discovery.

But those claims were cast in doubt on March 26 when Busang
partner Freeport-McMoRan Copper and Gold Inc said its
preliminary due diligence tests found "insignificant" amounts
of gold.

After Freeport's announcement, panic selling of Bre-X
shares lopped almost C$3 billion from the company's stock
market value.

Bre-X's stock closed up C$0.19 at C$3.23 on the Toronto
Stock Exchange on Friday as investors placed their final bets
on whether the gold discovery is a bonanza or a bust.

Bre-X has said it will issue a press release on the
Strathcona report before North American financial markets open
on Monday.

Copyright 1997 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without
the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance
thereon.

>>> MY COMMENTS

So here we go again, they (B-X) are already starting to backtrack.
Walsh has stated very clearly all along that he is sure they have the 71M ounces. They have always reported consistent grades in the B-X drilling so it should be very easy to show the 71M ounces with the
Strathconna audit --- that is if it's really there.
Looks to me like they are starting to dance sideways already.
Just what the junior markets need now, more uncertainty !!!!!

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To: Robert Dirks who wrote (19)5/4/1997 9:44:00 PM
From: Robert Dirks
   of 31
 
IT'S ALL OVER, KAISER WAS RIGHT !!!! RELEASE ATTACHED

Strathcona Minerals Services Limited
12th Floor, 20 Toronto Street, Toronto, Ontario, Canada M5C 2B8

ÿ

Summary

The Busang property in the Province of Kalimantan in Indonesia has been under exploration by Bre-X Minerals Ltd. (Bre-X) with core drilling results since mid-1995 on the Southeast Zone of the property giving rise to expectations that the Busang property could host one of the largest single gold deposits ever discovered. In February 1997, Freeport McMoRan Copper & Gold Inc. (Freeport) commenced a due diligence program prior to becoming a participant in the further development of the Busang property. The Freeport program included core drilling and in mid March, Freeport advised Bre-X that gold values comparable to those from the Bre-X drilling were not being realized.

As a consequence, Strathcona Mineral Services Limited (Strathcona) was engaged by Bre-X to carry out a technical audit of the work done by both Bre-X and Freeport. As part of that technical audit, we have completed a closely supervised six-hole core drilling program with 1470 metres drilled. Because of the intense interest in the Busang property and the consequences for many parties arising from any conclusions reached in our audit, we have made the decision to select an initial 350 metres of core for assaying that would allow us to issue an interim report on our findings, rather than wait for several more weeks before all core has been assayed and all investigations completed.

The 350 metres of core and the resulting 175 samples were selected so as to provide the best chance of confirming the presence of gold as indicated by the Bre-X core samples. The sample treatment procedures and assaying were carried out at laboratories in Australia, Indonesia and Canada, with all results received just prior to our issuing this interim report. The assay results have been quite conclusive, and along with work done by Freeport, results from recent drill core samples submitted by Bre-X, and other investigations and observations we have made, we are able to express without reservation the following opinions and conclusions concerning the main area of interest on the Busang property, the Southeast Zone I South, and to which we anticipate no changes in our final report when all the drill core from our audit program will have been assayed.

1. Only trace amounts of gold have been found in the samples assayed, and there were no samples that gave gold values of economic interest.

2. As a consequence, we believe there to be virtually no possibility of an economic gold deposit in the Southeast Zone I South of the Busang property.

3. The assaying of the samples from the Busang property submitted by Bre-X to Indo Assay Laboratories in Balikpapan, Indonesia has been of a good standard,
and the gold values reported have reflected the gold in the samples delivered to the laboratory.

4. The due diligence program conducted by Freeport has been very thorough and of a high professional standard in all respects.

5. The gold recovered in samples submitted by Bre-X has originated from a source other than the Southeast Zone of the Busang property and has resulted in falsification and misrepresentation of many thousands of samples with consequent and subsequent erroneous estimates of gold resources.

We therefore make the following recommendations to the Board of Directors and management of Bre-X Minerals:

1. Those authorized and qualified to carry out investigations into the fraudulent activities that we believe to have occurred should be contacted immediately and requested to pursue the matters that we are bringing to the attention of Bre-X and any other parties concerned. We are ready to assist in whatever manner we can in carrying out these investigations.

2. All core and samples that have not yet been assayed and all documentation pertaining to the Busang property should be placed under tight security until the investigations recommended are completed.

3. All exploration work on the Southeast Zone at the Busang property should cease immediately.

Unless we receive further instructions to the contrary, we shall continue with the completion of our audit program although we do not feel it necessary that assaying of the remaining core samples be carried out at all three laboratories.

<Picture>ÿÿ

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To: Robert Dirks who wrote (20)5/5/1997 12:27:00 AM
From: Orwell
   of 31
 
The moving finger writes, and having writ, moves on;
Nor all your piety, nor wit, shall lure it back to cancel half a Line;
Nor all your tears wash out a word of it.

- Omar Khayyam

It's over folks. But please do not sell your other quality juniors, they're all still depressed from the original BXM drop, and had just started to come back last week. After the Freeport shareholder meeting last week where they emphasized that no gold was there, I would've thought there was no room left for doubt with BXM. But there is gold out there in the world elsewhere, and many quality juniors are proving up real reserves--try to stay off the panic button will ya, and don't discount further what was already discounted--my portfolio (and yours) would appreciate it very much. BXM is an elaborate anomoly, but an anomoly nontheless. Big Brother 1 Joe Investor 0. Want to even the score? Just buy the quality juniors during the panic drops.

O.

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To: opalapril who wrote (17)5/5/1997 2:34:00 AM
From: Adrian du Plessis
   of 31
 
Bre-X: no gold at Busang, but maybe a silver lining?

If any good can come of a scandal like Bre-X, it's to be hoped that it may lead to long overdue reform of Canada's junior securities environment. Regrettably, there's been little interest shown by Canadian market organizers in making an effort to deactivate the mine-field that threatens the average investor. It's too profitable for too many insiders. And in this investment age of the mutual fund bubble, the scams may be listed on the Toronto Exchange as well as those more familiar havens for fraud artists -- the ASE and the VSE. Rather than cleanup after outrageous scams, the history of these markets, however, suggests that it's more likely that industry insiders will move quickly to cover their own butts and try and claim the problem was exceptional and due to a small handful of "rogue" players or "bad apples" -- ignoring the actions of a myriad of brokers, analysts, officials etc. who contributed to the terrible disaster. As veteran stock promoter Murray Pezim candidly pointed out some weeks ago, Bre-X represents nothing more than a very old story with a couple of zeros added to it. The perpetrators of past salt jobs and stock scams have been allowed to remain active in Canada's junior markets -- encouraging these schemes to be repeated again and again. Will Bre-X's extra zeroes make any difference when it comes time to deal with the problems plaguing this sector of the financial industry? With the power of the mutual fund industry and an increasingly lame, and complicit, business press acting as dual forces propping up the con-artists and hypesters, one can only hope that the pattern of scams that has remained unchanged for decades may be altered in the wake of the Bre-X swindle.

For more on Bre-X, past Bre-Xs, future Bre-Xs and other market news and culture items visit the howenow website under construction @ imagen.net

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To: Adrian du Plessis who wrote (22)5/5/1997 2:41:00 AM
From: Moez
   of 31
 
What now?

Will trading be halted? What will people see at?

Stock revaluation? Do I sell?

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To: Moez who wrote (23)5/5/1997 5:14:00 PM
From: mike wood
   of 31
 
Halted indefinately!!!!!!

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To: mike wood who wrote (24)5/5/1997 8:54:00 PM
From: Gus Hakim
   of 31
 
Hi Mike,

What happens next, I feel that Nesbitt in Canada is the most
exposed and they are owned by th The Bank of Montreal, notice that
the share price of the t.bmo have fallen more than the other
banks in Canada today ????

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To: Gus Hakim who wrote (25)5/6/1997 12:10:00 PM
From: Jordan Electron
   of 31
 
There could be fraud, deception, and confusion
regarding Tracer Petroleum's (TCXXF) NT Block
in Indonesia. A different group of Dutch geological
opinion and claims, past and present, plus modern
Canadian exploration is involved. Exploration that
has not found significant crude oil deposits, despite
a lot of hype.

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