Strathcona Mineral Services Limited
BUSANG PROJECT - TECHNICAL AUDIT
FOR
BRE-X MINERALS LTD.
INTERIM REPORT
MAY 3, 1997
Graham Farquharson
Henrik Thalenhorst
Reinhard von Guttenberg
Strathcona Mineral Services Limited
Sie
Toronto, Canada‘Bescon Mineral Services Limited
Summary
‘The Busang property in the Province of Kalimantan in Indonesia has been under
exploration by Bre-X Minerals Ltd. (Bre-X} with core drilling results since mid-1995 on
the Southeast Zone of the property giving rise to expectations that the Busang
eroperty could host one of the largest single gold deposits ever discovered. In
February 1997, Freeport McMoRan Copper & Gold Inc. (Freeport) commenced a due
aiigence program prior to becoming a participant in the further development of the
Suseng property. The Freeport program included core drilling and in mid March,
Freeport advised Bre-X that gold values comparable to those from the Bre-X drill
were not being realized.
@ consequence, Strathcona Mineral Services Limited (Strathcona) was engaged by
Sre-X to carry out a technical audit of the work done by both Bre-X and Freeport. As
Pert of that technical audit, we have completed a closely supervised six-hole core