A Review of Canadian Mining Stock Scandals

This paper is an attempt to provide information to investors, students, brokers, and professional people who

may come into contact with a scam. By controlling one's emotions it is possible to survive such contact and

come away a more knowledgeable person. The elements that make up mining stock scams appear to be

obvious in hind-sight. The scammers who operate in this business are very clever salesmen who know how

to exploit weaknesses in human nature. The paper will describe the elements that generally make up stock scams and how to be wary of these "red flags". A detailed review of the Bre-X scandal of 1996-97 will also be given to record the elements that made up the "Scam of the Century". Mining has a mystique to it that creates curiosity and intrigue. The image of the old-time prospector and his mule crossing the wilderness in search of gold is today replaced by the slick promoter in a three-piece suit running a Boiler Room with Internet connections and immediate access to information and the ability to tap into the emotions of investors and ordinary citizens. The seeking today is often times not for gold but for pigeons to part with their money. Read the entire Paper