Canadian regulators force data release, says Bre-X<\/p>\n
CALGARY (Reuter): Securities regulators forced the release of
\ndisappointing preliminary results from tests at Bre-X Minerals
\nLtd's deposit in Indonesia, the head of the company said in a
\nnewspaper interview published on Sunday.<\/p>\n
Bre-X Chief Executive David Walsh, interviewed by the Calgary
\nHerald, did not apportion blame to prospective partner Freeport-
\nMcMoRan Copper & Gold Inc.<\/p>\n
Freeport-McMoRan had said initial tests at seven holes showed
\nthere not to be enough gold at the Busang deposit to make a mine
\nworthwhile, causing Bre-X's price to crash after a stellar
\nperformance.<\/p>\n
\"First of all, it wasn't Freeport's fault. It was a regulatory
\nissue,\" Walsh was quoted as saying.<\/p>\n
\"Rumors started that the preliminary results were not
\ncomparable to Bre-X results and it had been their intention to
\ncomplete their due diligence in full without disclosing, because
\nyou could have a (drilling) hole miss, as we've had.<\/p>\n
\"But because of the rumor that started, our shares started to
\ndecline. That prompted a call from the regulatory bodies, which
\nprompted the preliminary release of the assay data that Freeport
\nhad, which as they've said in any correspondence, is preliminary
\nand there's more work to be done.\"<\/p>\n
Asked who pushed for it to be released, he said: \"It was the
\nOntario Securities Commission on the Toronto Stock Exchange. I
\nthink it was an over-reaction...just based on the way we've
\ndrilled for the last three years.<\/p>\n
\"We don't issue hole-by-hole results and have wild gyrations
\nin the market. Freeport completed a seven-hole program. We have
\nno further results from that program than what's been announced
\nfrom them.\"<\/p>\n
Some defenders of Bre-X have speculated that the episode was
\nmanufactured to depress Bre-X's share price so a bigger mining
\ncompany could buy it on the cheap.<\/p>\n
Walsh reiterated his belief that Bre-X's gold numbers would
\nhold up. The company had claimed the Busang deposit contained 71
\nmillion ounces of gold and some officials had said publicly it
\ncould hold up to 200 million ounces.<\/p>\n
He said Freeport-McMoRan Chief Executive Jim Bob Moffett had
\nphoned him with the initial news of the preliminary results.<\/p>\n
Walsh said he thought this was three or four days before
\nMichael de Guzman -- Bre-X's chief geologist at Busang -- plunged
\nto his death from a helicopter in Indonesia. His death was on
\nMarch 18.<\/p>\n
\"He was cordial but said that it was very preliminary, they
\nhadn't completed their seven holes...in very preliminary
\nstages...but stated that we all could have a problem,\" Walsh was
\nquoted as saying.<\/p>\n
\"I wasn't concerned. I phoned John Felderhof (Bre-X head of
\nexploration). John wasn't that concerned because it was too
\npreliminary and neither was Mike de Guzman. It could have been
\nany number of factors, the drilling, the lab...\"<\/p>\n
Since then the preliminary data was released, he has not had
\nan update from Freeport-McMoRan, he said.<\/p>\n
\"I've talked to him (Moffett) off and on. There's not much to
\ntalk about until the final analysis and as I said I haven't
\nreceived an update on their work since what's been announced,\"
\nWalsh said.<\/p>\n
\"And I don't think I want to...because it would end up
\npiecemeal again. I'd have some information that wasn't generally
\nin the public domain. I'm satisfied just to wait until the end of
\nthe month and get the whole picture at once.\"<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/canadian-regulators-force-data-release-says-bre-x-1447893297",
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