Calgary SUN April 30/97:Bre-X key unlocked Sunday?
By JOE WARMINGTON
Calgary Sun
By Sunday, we'll have a better picture of how much gold is at Busang.
But as the world anxiously awaits Strathcona Minerals' report on the Bre-X mine site, an industry
source tells the Sun it should be known that even if they have found gold, it won't be the last of due
diligence testing at the controversial Indonesian site.
"No matter what happens, a bulk testing operation would seem mandatory considering the
circumstances," said the source, who's a mining engineer.
What that means is rather than having small amounts of core tested, a virtual mining operation would
be undertaken to take large amounts of ore out of the ground and have it crushed down in a mill to
see exactly what is there.
The mining engineer said he feels bulk testing of 40,000 to 50,000 tonnes would be in order.
"That could result in confirming Bre-X's numbers."
If Strathcona's drilling of six holes show levels of gold comparable with what Bre-X has said all
along, you would essentially have conflicting reports with Freeport's "insig-nificant" amounts of gold
conclusion.
If a bulk testing operation is undertaken, he said, it should satisfy everybody -- and allow for
Busang to be mined.
In his office yesterday, Bre-X chairman David Walsh wouldn't comment on this scenario or on very
much else. With everybody watching him so closely lately, it's clear it's difficult for him to talk.
However, considering the circumstances, he was in a pretty good mood yesterday. "Yeah, but my
heart goes out to those people who lost money," he said.
Sometime Sunday, it will be determined if some of them will have a chance to get a portion of it
back.
"I think the results coming out on the weekend, based on the data from three labs, will begin to
explain the discrepancies and the controversy over the deposit," he said.
Walsh, who all along has said he'll be vindicated, reiterated yesterday he's confident Bre-X will be
able to obtain a Contract of Work approval from the Indonesian government, like they did with two
other properties earlier this week.
"We don't have a problem with the government," said Walsh. "It's the media that thinks we have a
problem ... "
Since the beginning, there's been a lot of conjecture about what will happen if the gold at Busang is
as plentiful as once thought. Walsh said he believes no matter what's happened in the past, eventually
the gold will be mined.
"In my estimation, we have a good relationship with Freeport and with our Indonesian partners,"
said Walsh.
"We all want this to move forward as expeditiously as possible."
After Sunday it will finally be known if that's what's going to happen. |
