BRE-X, Indonesia, Ashanti Goldfields, Strong Companies. Message Board

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Gold/Mining/Energy : BRE-X, Indonesia, Ashanti Goldfields, Strong Companies.

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To: MisterG who wrote (25388)	6/8/1997 10:18:00 PM
From: Aurum	of 28369

I agree with your observations. But this is cold comfort for Bre-X shareholders - I would expect that they have breached too many Indonesian laws and regulations. Also, I would expect that the Indonesian companies who were Bre-X's partners will legally (and legitimately) win back the Busang leases. Bre-X is in no condition to say Boo to anybody - in any case the Bre-X management seems to have folded - IMHO the games over for Bre-X. IMHO it is quite possible that there are gold orebodies at Busang but there are still problems. The following is reconstructed from memory only so some of the details may not be quite correct. Perhaps someone could go back and check and correct any mistakes? - the Australian company (name?) drilled under a very strong (up to 1 ppm gold in the soil?) surface gold anomaly at Busang 1 but found only narrow, low grade quartz reefs (sub-economic). - the Australian company knew about Busang 2 and 3 but concentrated on Busang 1 because this is where the strongest soil anomalies were. - the same company was happy to sell out. I can find no evidence that this company was incompetent, whereas Felderhof and all the rest had credibility problems even years ago: So, on the balance of probabilities I am forced to conclude that the Australian company were right - Busang was too small to be worth fooling around with. - the Australian company had done soil sampling over a lot (?) of the Busang area and thought that only Busang 1 warranted any attention. They drilled it and then sold out. - we must not consider any data generated by Bre-X and not independantly checked. PS I vaguely remember someone (an stock analyst who had gone to see Busang?) mentioned seeing a largish open pit in the Busang area. I seem to remeber that they made a (possibly cryptic) remark that they could not tell how old the workings were. Maybe Guzman and his mates were doing a bit of small scale mining (using Bre-X equipment) to mine some high grade mineralisation?? (just a wild guess - but De Guzman does appear to have been trading in gold). Perhaps it was gold recovered from this open pit that was used to spike the Bre-X samples?? (wild guess) It could have been alluvial or elluvial gold - this would explain the rounded nature of the gold in Bre-X samples. Or the recovery process (grinding etc for hard rock ore) could have rounded the gold particles (it always does round much of the larger pieces of gold). Regards, Aurum

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