The main gate of the Bre-X Minerals Ltd. complex at its Busang hardrock gold project in East Kalimantan, Borneo, is seen in this March 1997 picture. (Gatra Magazine/Associated Press)
A 1996 photo of David Walsh, president of Bre-X Minerals. He was photographed in his home office with a map of Indonesia in the background.
(Canadian Press/David Lazarowych)
May 1988
Former stockbroker David Walsh incorporates Bre-X Minerals. The following year, shares begin trading on the Alberta Stock Exchange at 30 cents. Its initial focus is exploring in the Northwest Territories.
1992-1993
Bre-X starts gold exploration in Busang, Indonesia, following a recommendation from new Walsh partner, geologist John Felderhof. Geologist Michael de Guzman is hired as the company's exploration manager. Both Felderhof and de Guzman have extensive experience in Indonesia.
October-November 1993
Bre-X says initial test holes encouraging. Shares still below $1 by year's end.
1994-1995
Bre-X ramps up drilling program at Busang; stock trading at $14.87 by the end of July 1995.
October 1995
Bre-X says Busang's pegged reserves are 10 million ounces and could contain 30 million ounces. Analysts raise price targets and issue bullish "buy" reports. Stock soars to more than $50.
April 1996
Bre-X begins trading on the TSX; stock hits $180.
May 10, 1996
Bre-X stock price tops $200 on TSX. Stock splits 10-for-1 and soon reaches high of $28 ($280 pre-split). Company has net market worth of over $6 billion.
June 1996
Bre-X says Busang contains 39 million ounces of gold. One month later, it ups estimate to 47 million ounces.
Feb. 16, 1997
After 10-month dispute with Indonesian government, Bre-X and Freeport McMoRan reach agreement to develop Busang. Bre-X gets 45 per cent; Freeport 15 per cent; the Indonesian government and well-connected private Indonesian interests get the other 40 per cent.
Feb. 17, 1997
Bre-X ups Busang estimate to 71 million ounces.
Feb. 19, 1997
Walsh says Busang deposit may contain as much as 200 million ounces.
"Bre-X Minerals geologist Michael de Guzman, centre, conducts a survey with his colleagues at the Busang-2 field in Indonesia in this March 1997 picture. (Associated Press/Gatra Magazine)
March 12, 1997
Freeport says its own due diligence testing turns up only minor amounts of gold at Busang. Freeport demands meeting with de Guzman later in the month to discuss core sample results.
March 19, 1997
De Guzman falls to his death from a helicopter over the Indonesian jungle. Reports say suicide note is found, but speculation swirls that de Guzman was either murdered or may even have faked his death.
March 21, 1997
Indonesian paper first to report that Busang may not contain much gold; Bre-X shares drop 13 per cent to $15.20 ($152 pre-split).
March 26, 1997
Bre-X trading halted after report issued by Freeport-McMoRan indicates Busang deposit contains "insignificant amount of gold."
March 27, 1997
Bre-X shares plunge to $2.50 when trading resumes; volume crashes TSX computers as panicked investors sell. Walsh tells reporters he's confident independent examination will find gold. "I'm holding onto my shares," he said.
May 5, 1997
Report by independent mining firm confirms there's virtually no gold in Busang, saying samples were tampered with. Report calls the Bre-X debacle as being "without precedent in the history of mining anywhere in the world." The following day, Bre-X shares fall to 80 cents and continue to plunge. The stock is soon delisted. Investors lose everything; some Canadian pension funds are out tens of millions of dollars.
Nov. 5, 1997
Deloitte Touche appointed trustee in bankruptcy for Bre-X. President Walsh and vice- president Stephen McAnulty resign.
June 4, 1998
Walsh dies of a brain aneurysm in a Bahamas hospital at age 52.
Bre-X Minerals vice-chairman John Felderhof (left) poses with geologist Michael de Guzman in Indonesia. (Canadian Press/The Northern Miner - Vivian Danielson)
May 11, 1999
Ontario Securities Commission lays four counts of illegal insider trading and four counts of authorizing false press releases against Felderhof. The next day, the RCMP announces there isn't enough evidence to lay any criminal charges in the Bre-X fraud. But several class-action lawsuits against former Bre-X directors proceed.
October 2000
Felderhof's trial begins, but soon grinds to a halt amid OSC attempts to remove the judge hearing the case, alleging bias. The OSC loses, but its challenge delays the case for more than three years.
July 31, 2007
Felderhof is acquitted of all eight charges of illegal insider trading and approving false press releases.
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