There have been changes in Canadian mining laws since Bre-x but these things can still happen in different ways.   

Southwestern brings back memories of Bre-X, but more regulation not the answer
CP Wire
Thu 30 Aug 2007
Section: Business
Byline: BY CRAIG WONG http://osgoode.yorku.ca/media2.nsf/83303ffe5af03ed585256ae6005379c9/84be63d72f011585852573480051129e!OpenDocument

The infamous collapse of Bre-X amidst a gold-salting fraud tarnishing Canada's reputation while costing investors millions.

Canadian stock markets were considered by some the Wild West of capital markets, but after Bre-X the rules changed much of that.

A task force made 66 recommendations calling for tighter controls and higher scientific standards for exploration development and mining operations.

Among the changes included the creation of a ``qualified person'' concept where an independent, properly trained person keeps close tabs on the scientific and technical matters of mining companies.

But even when the recommendations of the 250-page report were released in 1999, there was little that could be done from preventing completely another scam in the market.

``This will not stop a one-shot scam, but it will stop a prolonged fraud,'' task force member John Drury said at the time of the report's release.

Mary Condon, a law professor at York University's Osgoode Hall and expert in securities law, said most companies abide by the rules.

``But at the end of the day the rules indicate that disclosure is the responsibility of the issuer,'' Condon said.

Condon said a balance must be struck between too little and too much disclosure by companies and what is or is not material to a company.

``But when you get into issues of actually deliberately falsifying