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Gold/Mining/Energy : BRE-X, Indonesia, Ashanti Goldfields, Strong Companies.
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To: alan holman who wrote ()3/22/1997 12:40:00 PM
From: Nugget   of 28369
 
Speculation About Gold Field Knocks Bre-X's Shares Lower
Dow Jones Newswires

TORONTO -- Speculation that a gold field in Indonesia won'tlive
up to expectations -- coupled with the sudden and dramatic death
of a mining company geologist -- hurt the shares of Canadian
gold-mining firm Bre-X Minerals Ltd.

Bre-X became partner with Freeport McMoRan Copper & Gold Inc.,
New Orleans, to develop part of the Busang gold field in the
Kalimantan province of Indonesia.

An Indonesian newspaper recently published a report that
questioned whether the gold deposits at Busang will reach the
70.9 million ounces predicted earlier. The newspaper quoted a
source as saying he got his information from an internal report
prepared by Freeport McMoRan. However, Freeport said Friday it is
still doing due-diligence and drilling at the Busang gold deposit
and has not commented on the project, contrary to the published
report.

Meanwhile, trading in Bre-X shares on the Toronto Stock Exchange
was halted for most of the day. When trading resumed, shares fell
2.25 Canadian dollars to end at C$15.20 on heavy volume of 1.4
million shares. Average daily volume is 229,760 shares.

In addition to questions about the gold field's quality, "There's
a lot of speculation as a result of the helicopter incident,"
said Freeport's chief financial officer Richard Adkerson.

Michael de Guzman, the chief geologist for Bre-X, is presumed to
have died in a fall from a Busang-bound helicopter on Tuesday.
His body has not yet been recovered. Bre-X contended that Mr. de
Guzman, who had battled malaria for years, committed suicide when
he learned he was infected with hepatitis B. Bre-X said it
received a copy of the suicide note Mr. de Guzman left in the
helicopter. The note indicated Mr. de Guzman didn't want to
suffer through another disease, and asked that his wife take care
of their family.

"We have no reason to suspect foul play," a Bre-X official said.
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