|
The VSE Corporate Finance Services, Policy and Procedures Manual Policy 7.9 addresses Non-Fire Assay Results. Appendix 19E Mining Standards for Junior Mining Companies. It is two pages long but here is an exerpt: "7.9.6. In view of the problems with non-fire assay techniques and non-Canadian laboratories, the Exchange requires that each news release, shareholder report or other public communication which includes precious metal results from an analysis by a non-Canadian laboratory, or from an analysis utilizing any technique other than fire assay, contain the following information: a) the analytical method utilized to obtain the reported results; b)the name of the laboratory at which the analyses were conducts; and c) the results of any fire assay check program or the intention to conduct a fire assay check program at an independent laboratory. All results of a fire assay check program are to be published in a timely manner. 7.9.7 A listed company issuing a news release without the foregoing minimum information may be subject to a halt in trading pending clarification in another news release. 7.9.8 The Exchange may require a listed company to undertake a fire assay check program at a Canadian laboratory if the reported results are, in the Exchange's opnion, inconsistnet with historic results from the property, the geological environment or other pertinent factors." Bre-X would have had difficulty meeting these requirements. If you recall, when the first hiccup happened in November prior to the crash of Bre-X, the David Walsh was on the cover of the Financial Post for several days in a row defending the lack of fire assay results, and that is when I realized that we were invoking Policy 7.9.5. "A few listed companies have utilized certain non-Canadian laboratories and reported significant precious metal values from their exploration programs. In most instances, it has been claimed that the samples are mineralogically complex and not susceptible to fire assay. In each situation of this nature, analysis of the allegedly complex samples at other laboratories utilzing fire assay and other industry accepted analytical techniques have yielded erroneous results because faulty procedures and unqualified analysts." Up to that moment, I only watched BXM go up and then I began to look for a place to short it. It was a mightly fine trade. |
