HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"
NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)
Message: Intersting rainy S
Fraud and financial markets: the 1997 collapse of the junior mining stocks
Available online 20 April 2000.
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Abstract
The Vancouver Composite Index fell by over 25 percent in less than 6 weeks during spring 1997 as the junior mining sector collapsed. We argue that this market collapse was triggered by the failure of Bre-X Minerals when that company’s Indonesian claims, previously believed to contain the world’s largest gold deposit, were shown to be pure fraud. Our event study, based on market returns for the Vancouver Composite Index and for a portfolio of 59 gold stocks, shows the effects of the Bre-X scandal to be both sizeable and significant. There is also some evidence that smaller exploration companies were hardest hit.
Author Keywords: Bre-X; Fraud; Gold
JEL classification codes: G14
Article Outline
I. Introduction II. The Bre-X fraud, the gold price, and mining stock prices III. Testing the importance of the Bre-X effect The sample Methodology and the choice of event dates Empirical findingsIV. Conclusion Acknowledgements References
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