Hi Gold Tutor, There may be GOLD in those Busang Hills !!
Bre-X hoax sophisticated, court told
Defence launches its case at trial
Expert believes tampering `precise'
MADHAVI ACHARYA-TOM YEW
BUSINESS REPORTER
The defence in the long-running Bre-X Minerals Ltd. trial kicked off its case yesterday with expert testimony that the hoax in Indonesia was sophisticated, precise and would have been very difficult to detect.
Phillip Hellman, a former exploration geologist and expert in geochemistry, also suggested that there may still be gold there.
In 1996, Bre-X's Busang site was thought to be one of the largest gold deposits in the world. But in late March, 1997, Bre-X's joint venture partner, Freeport-McMoRan Gold and Copper Inc., reported blank results from work at the site.
In early April, John Felderhof, Bre-X's former chief geologist, assembled a so-called "think-tank" to try to get to the bottom of the conflicting assay results.
Hellman yesterday recalled his initial conversation with geologist Greg Corbett, who was part of the team.
"The words of Dr. Corbett are quite clear in my mind. He said, `The (gold) mineralization is real,' " Hellman told the court.
"He could not understand why Freeport's results were negative."
Hellman then talked with Felderhof, who was "completely bewildered" over the situation.
"He told me he thought some monkey business was going on at the lab," Hellman recalled. "He came across to me as a true believer and his faith in the deposit was evident."
The group of experts met at the Sheraton Hotel in Perth, Australia.
"The meeting was in an atmosphere of complete bewilderment. It was obvious to me people were looking for guidance. They were completely at a loss to explain the Freeport results," Hellman testified. "I felt the most logical explanation was the samples had been tampered with and the sooner they came to grips with it the better for all concerned."
Felderhof has pleaded not guilty to eight criminal charges of insider trading and misleading investors.
The Ontario Securities Commission alleges that Felderhof sold $84 million worth of Bre-X shares between April and October 1996 while having information that had not been disclosed to investors.
Later testing by Strathcona Mineral Services Inc. suggested that samples from Busang had been salted, or spiked with gold. The company's stock price collapsed in the spring of 1997 and investors lost millions after the ruse was uncovered.
"What completely astounded me when I was doing my work ... I realized how precise the tampering had been," Hellman said. "The person responsible must have had geological knowledge."
Taken from the TORONTO STAR, November 3, 2005
Take care, Lalit |
