Sunday, July 1, 2012

Inside The $6 Billion Gold Fraud That Shocked The Mining Industry



In 1993, a prospector named Michael de Guzman walked out of the jungles of Borneo with extraordinary news: he found gold.

For the next three years, de Guzman produced thousands of core samples riddled with gold.  Canada's CBC News has a detailed timeline of the events.  During that period, the market value of de Guzman's employer, Bre-X Minerals, went from nothing to $6 billion.  BusinessWeek notes that Wall Street's top analysts were extremely bullish on the stock.  Big funds poured money into the stock and the world's major miners wrestled for a piece of the action.
The problem: there was no gold.  As the story unraveled…


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