Canadian regulators force data release, says Bre-X

Canadian regulators force data release, says Bre-X

CALGARY (Reuter): Securities regulators forced the release of
disappointing preliminary results from tests at Bre-X Minerals
Ltd's deposit in Indonesia, the head of the company said in a
newspaper interview published on Sunday.

Bre-X Chief Executive David Walsh, interviewed by the Calgary
Herald, did not apportion blame to prospective partner Freeport-
McMoRan Copper & Gold Inc.

Freeport-McMoRan had said initial tests at seven holes showed
there not to be enough gold at the Busang deposit to make a mine
worthwhile, causing Bre-X's price to crash after a stellar
performance.

"First of all, it wasn't Freeport's fault. It was a regulatory
issue," Walsh was quoted as saying.

"Rumors started that the preliminary results were not
comparable to Bre-X results and it had been their intention to
complete their due diligence in full without disclosing, because
you could have a (drilling) hole miss, as we've had.

"But because of the rumor that started, our shares started to
decline. That prompted a call from the regulatory bodies, which
prompted the preliminary release of the assay data that Freeport
had, which as they've said in any correspondence, is preliminary
and there's more work to be done."

Asked who pushed for it to be released, he said: "It was the
Ontario Securities Commission on the Toronto Stock Exchange. I
think it was an over-reaction...just based on the way we've
drilled for the last three years.

"We don't issue hole-by-hole results and have wild gyrations
in the market. Freeport completed a seven-hole program. We have
no further results from that program than what's been announced
from them."

Some defenders of Bre-X have speculated that the episode was
manufactured to depress Bre-X's share price so a bigger mining
company could buy it on the cheap.

Walsh reiterated his belief that Bre-X's gold numbers would
hold up. The company had claimed the Busang deposit contained 71
million ounces of gold and some officials had said publicly it
could hold up to 200 million ounces.

He said Freeport-McMoRan Chief Executive Jim Bob Moffett had
phoned him with the initial news of the preliminary results.

Walsh said he thought this was three or four days before
Michael de Guzman -- Bre-X's chief geologist at Busang -- plunged
to his death from a helicopter in Indonesia. His death was on
March 18.

"He was cordial but said that it was very preliminary, they
hadn't completed their seven holes...in very preliminary
stages...but stated that we all could have a problem," Walsh was
quoted as saying.

"I wasn't concerned. I phoned John Felderhof (Bre-X head of
exploration). John wasn't that concerned because it was too
preliminary and neither was Mike de Guzman. It could have been
any number of factors, the drilling, the lab..."

Since then the preliminary data was released, he has not had
an update from Freeport-McMoRan, he said.

"I've talked to him (Moffett) off and on. There's not much to
talk about until the final analysis and as I said I haven't
received an update on their work since what's been announced,"
Walsh said.

"And I don't think I want to...because it would end up
piecemeal again. I'd have some information that wasn't generally
in the public domain. I'm satisfied just to wait until the end of
the month and get the whole picture at once."