Geologist mum on Busang scam

Geologist mum on Busang scam

GEORGETOWN, Cayman Islands (AP): The geologist who oversaw the Busang gold mining project in East Kalimantan later found to be a hoax won't speak publicly any time soon despite his promise to tell his story, his lawyer said.

John Felderhof, former senior vice president for exploration for the Canadian company Bre-X, for two years had promoted the company's supposed discovery of a huge gold deposit in Kalimantan that sent Bre-X stock soaring.

But a consultant's report in May said the find was a hoax, and stock prices tumbled from US$200 a share to pennies a share. Bre- X declared bankruptcy in Canada.

Felderhof was fired and moved his family to these Caribbean islands, where he had purchased US$4.5 million in luxury properties apparently after selling Bre-X stock last year.

He has denied involvement in any fraud and insists there is gold at Busang, East Kalimantan. Canadian and Indonesian officials are investigating the case to determine whether criminal charges are warranted.

In May, Felderhof said he would hold a press conference "within a few weeks" to tell his side of the story.

But his lawyer, Andrius Kontrimas of Houston, said Friday that "we have a lot of work to do for our client" and that there would be no news conference any time soon.

Cayman officials said Felderhof has applied for citizenship for himself, his wife and daughter.