Bre-X Responds: Latest news release:
Don't want to turn this into a Bre-X forum, but I am sure you will all agree that they will be affecting OUR share prices for a while. Thought Bre-X's latest release might be of interest to members of this thread. Trading resumes tomorrow BTW, regardless of what you read in the release.
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Bre-X Minerals Ltd BXM
Monday Mar 31 1997News Release
Mr. David Walsh reports
Bre-X Minerals wishes to advise that the accompanying letter addressed to Mr Rowland Fleming, president and CEO of the TSE has been faxed March 31. Bre-X management thought it appropriate to share the contents with its shareholders. In addition John Felderhof and the entire technical team at Busang as well as the Canadian management of Bre-X, has initiated a thorough review of all recent statements and actions by persons, parties and publications responsible for the proliferation of misinformation that has served to tarnish personal reputations and the integrity of the Busang project, with the intent to take legal action where warranted.
Dear Mr Fleming,
During our conversation of March 27, I implored you not to open Bre-X for trading, my reason being that there was only an hour of trading remaining in the day on your exchange and that, given the dynamics and fluidity of recent events, we could likely have additional pertinent information to provide shareholders by Monday. I found your response to my request "that the subject was not open to debate," shocking. I pleaded with you that the shareholders, in my opinion, would suffer enormously and unnecessarily due to incomplete data available to them at the time. I also re-iterated that we stood by our reserve estimates for the deposit and that time was needed for our independent consultant to complete a drill and sampling audit. I further explained that this was a complex orebody with an equally complicated assay process, all to no avail.
In order to illustrate the definitive process by which core at the Busang deposit must be assayed the following detailed historical background was provided to me, over the weekend, by our chief metallurgicalist under the direction of John Felderhof both of whom are currently at the Busang site. "At the early exploration stage, prior to the acquisition by Bre-X Minerals Ltd of the Busang property, the problem of sampling and assaying of the Busang ore had already been identified. Reproducibility in fire assaying had been a major constraint. Gold assay results could fluctuate +/- 100% or in short, ore could be waste and waste could be ore. With this problem, the Bre-X technical team decided to use a two-metre full-core sample instead of split core for better assay accuracy. Initially, the fire assay technique was used with the statistical average of the repeat assays as the final figure. Intensive and extensive studies were conducted to determine the most effective and efficient laboratory process.
Results of the study were as follows:
1.In a screen-fire test, 80% of the gold was found to be in the +150 mesh (106 micron), and the size fraction was 5% of the original sample volume.
2.Metallurgical tests showed that most of the gold is in the +106 micron to -400 micron-size range.
3.Panning tests from the diamond saw core cuttings showed visible gold.
4.Test samples sent to various laboratories showed wide variances. The Kelian mine, which has similar geology to Busang, had the same assaying problem. Ultimately, Kelian adopted the cyanide leach technique. After a thorough review, the Bre-X of the Busang team also adopted the cyanide leach technique. In evaluating the Busang deposit proper orientation and full understanding of the Busang geology is a must." Bre-X director Dr Paul Kavanagh recently commented that "After observing the uniform appearance of long intervals of the mineralized core in SE zone holes during a visit to the Busang property in the fall of 1995, and after being told of a considerable backlog of the 2-metre samples waiting to be essayed at the Indo Assay laboratory in Balikpapan, he suggested to John Felderhof that the individual sample length be extended to 3 metres from 2 metres, thereby reducing the number of samples by 1/3. John Felderhof would not accept that suggestion, arguing that it would reduce the accuracy of the assay results of the gold grade of the mineralization. When queried by Kavanagh at the time, a highly-experienced Canadian gold exploration geologist supported Felderhof's opinion." In light of the above and
1.A statement by Freeport McMoRan Copper and Gold Inc (FCX) in a letter dated March 26 to Bre-X that states "our findings are preliminary and incomplete";
2.A detailed report on an assay procedure check program by PT Kilborn Pakar Rekayasa is expected by mid day March 31 and to which we will release its findings in a further release. I strongly suggest that the stock remain halted until FCX has had the opportunity to complete its due diligence and that Strathcona complete their audit. |
