Bre-X confident on Busang results

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)