Fact Southwestern Fiasco was not a result of lax C 2guys, you continue to post misinformation regarding Southwestern, implying that because the mine was in China, the problem could be explained as one of lax Chinese standards. My reading that press release is that the quality of the Chinese assay results is what explosed the Southwestern fraud. Problem came from Vancouver and not China!!!!! IMO, one only needs to look to a down town Vancouver office (701 West Georgia Street at that time) to find the source of the trouble... China was innocent in this case IMO....
August 27, 2007 (highlighting added)
Vancouver, British Columbia - Southwestern Resources Corp. (SWG-TSX) ("Southwestern" or the "Company") provides the following updates on its properties:
Boka Project, China
On July 19, 2007, the Company announced that it had determined that there were errors in previously reported assay results for its Boka Project and as a result, it withdrew all of its previously announced results for the Project.
The Company and an independent mining consultant have been conducting a comprehensive review of the Boka Project and now have largely completed a validation of the drilling database in respect of the gold assay data for the exploration work to date. This validation included the Company and the independent mining consultant checking and confirming the drilling database for the Boka Project against the underlying official assay certificates and involved, among other things, checking tens of thousands of data entries. Based on this work and its preliminary analysis of the now largely validated database to date, Southwestern believes that the Mineral Resource at its Boka Project is significantly less than previously reported, but there are still indications of gold mineralization in drillholes and historical mine workings. As a result, the Company has commissioned an independent mining consulting company to prepare a new Mineral Resource estimate and accompanying NI 43-101 Technical Report for the Boka Project, which is expected to be completed in approximately eight weeks. Until such Technical Report is completed, the Company can provide no assurances as to the Mineral Resource at the Boka Project and its economic viability as currently explored.
Based upon its and the independent consultant's review and analysis to date, including the collection of independent check samples from drillhole core, the Company is unaware of any evidence of tampering with actual samples sent for assay. Additionally, based on such work, the Company believes that manual and deliberate changes were made to its prior database to increase the grade of samples within mineralized sections.
Further, based upon the recommendations of its professional geologists, the Company intends to continue exploration and other work on the Boka property which covers approximately 160 square kilometres, including, among others, at Boka 1 North and South, Boka 8 and Boka 11. The Company expects to supplement and revise such work program based upon recommendations in the new Technical Report. The Company and the independent mining consultant are continuing their review and analysis of the Boka Project and the Company will provide updates as they are available.
The Company also announces that it has commenced legal action in the Supreme Court of British Columbia against John Paterson, the former Chief Executive Officer of the Company, and certain affiliated companies, for, among other things, fraud, breach of fiduciary, statutory and contractual duties and insider trading. The Company is seeking to recover all damages and losses caused to the Company.
The Company is also working with its legal counsel in China to pursue all remedies against its former general manager for the Boka Project, John Zhang, relating to similar claims.