Bre-X confident on Busang results
JAKARTA (JP): The chief executive of Canadian mining firm Bre- X Minerals Ltd said yesterday he was confident the assay results and resource calculations for the Busang gold deposit were accurate.
In a statement from the company's headquarters in Calgary, Alberta, chief executive David Walsh said the company's board of directors had absolute confidence in the accuracy of the report and the integrity of the reserve.
"Unfortunately, when the first ounce of gold is poured at Busang I am sure the naysayers will complain about the color," he said.
The company's technical team, headed by John B. Felderhof, has arrived in Jakarta to ensure the rapid development of the Busang deposit.
"The continuing proliferation for falsehoods and misinformation based on unsubstantiated allegations by unnamed sources as well as recent personal attacks on Bre-X's management, has prompted the management of Bre-X to consider legal action against certain parties and publications due to the erosion of share value which has resulted from these reports," he said.
Bre-X announced on Feb. 17 that the reserve estimate for Busang was 70.95 million ounces of gold -- the biggest find this century.
Freeport-McMoRan Copper and Gold Inc, with a 15 percent stake in Busang, is conducting a due diligence process on the site before developing a mine.
Bre-X has a 45 percent stake in Busang and Indonesian interests 40 percent.
According to AFP, Bre-X shares on the Toronto Stock Exchange fell $C2.80 to a year low of $14.65 on Friday after a report in Indonesian newspaper Harian Ekonomi Neraca cast doubt on the size of the deposit.
The company was also hit by the loss of its chief geologist, Filipino Michael de Guzman, who died after falling from a helicopter last Wednesday.
Search and rescue officials said yesterday his body was found Sunday.
The minister of mines and energy, I.B. Sudjana, said he would investigate rumors that the Busang gold deposit might be significantly less than the 71 million ounces claimed. (hen)