LETTERS TO THE EDITOR — Indonesian fraud with Philippine trimmings

As a career prospector who has developed projects in Canada over the past 15 years, I have only one thing to say about the Busang “deposit” in Indonesia: Good riddance.

During the past two years, the shadow that the project cast over the future of gold exploration in Canada has given me sleepless nights and a bad tummy.

I live on the Kirkland Lake Break in the heart of Ontario’s Abitibi Greenstone Belt, which hosts some of the most prolific gold camps the world has ever known.

This is the area where Barrick Gold, Dome Mines, Teck, and Noranda were born.

With a historical production of 150 million oz., which are more real than even John Felderhof can imagine, this area of the world has been neglected by newsletter writers and gold analysts caught up in the Bre-X fervor.

Important (real) discoveries, such as the Thorne project of Band-Ore Resources, west of Timmins, Ont., and the Upper Canada-Anoki project of Queenston Mining, near Kirkland Lake, have gone largely unnoticed by people who are supposed to recognize and understand potential. Too many investors and industry advisers expect mine exploration and development to happen overnight.

This is not the case with quality exploration work and comprehensive ore calculations. It can take years to develop a deposit and bring it to a point where mineralized rock can be mined at a profit. And gold mining can be done cheaper in Canada than anywhere else in the world.

The Bre-X fiasco could never have happened in Canada. If Canadian expertise had been used at Busang, it would never have happened, period. How many Canadian geologists were working to develop the Busang deposit? What Canadian assay laboratories and gold specialists were used? If reputable Canadian assayers such as Swastika Laboratories, Accurassay Laboratories or Overburden Drilling Consultants were used two years ago, the world could have been spared much grief.

The Canadian mining industry is taking a lot of heat over the Bre-X situation, especially from the Australians, who would love to have a piece of our venture capital business. When the situation is closely examined, however, one realizes that this is not a Canadian fraud, but an Indonesian one with Philippine trimmings.

When foreign exploration plays receive the most media coverage, how quickly we forget the marvelous discoveries of Kidd Creek, Hemlo, Voisey’s Bay and the NWT Diamond project. Regulators who would tighten up our access to risk capital would do well to recognize the real and potential economic impact of these domestic deposits. When making an investment in junior mining, one might think about looking in one’s own backyard.

Thomas Obradovich, Kirkland Lake, Ont.