D. Kolish,


You said, "I called that what they said...60% of the old barren rock samples infact show gold."  Unless you were on a conference call, you didn't speak to a they, you spoke to one person. Who did you speak to? I'm not saying that I believe the information. Just the opposite. How could 60% of barren waste rock suddenly reassay positive for gold, where there was no gold previously? So either you're lying, Kolish, or the company rep is. This is news without any formal written disclosure, or even a name to ascribe as source. We just know "They" are generating rumours.


But that's not the main point. IR shouldn't be disclosing material information to some favored shareholder in the first place. That would be selective disclosure, a serious violation of securities law. This is from the TSX Company Manual, Section 423.3:


Maintaining Confidentiality

Sec. 423.3. If disclosure of material information is delayed, complete confidentiality must be maintained. In the event that such confidential information, or rumours respecting the same, is divulged in any manner (other than in the necessary course of business), the company is required to make an immediate announcement on the matter, Market Surveillance must be notified of the announcement in advance in the usual manner. During the period before material information is disclosed, market activity in the company’s securities should be closely monitored. Any unusual market activity probably means that news of the matter is being disclosed and that certain persons are taking advantage of it. In such case, Market Surveillance should be advised immediately, and a halt in trading will be imposed until the company has made disclosure on the matter.
Furthermore, there is supposed to be a firewall between investor relations and those who require access to confidential information in order to complete the resource estimate. No one in IR should have access to material information. The TSX Manual goes on to say:
At any time when material information is being withheld from the public, the company is under a duty to take precautions to keep such information completely confidential. Such information should not be disclosed to any officers or employees of the company, or to the company’s advisors, except in the necessary course of business. The directors, officers and employees of a listed company should be reminded on a regular basis that confidential information obtained in the course of their duties must not be disclosed. It is contrary to law under the OSA for any person in a “special relationship” with a company to make use of undisclosed material information. This point is discussed in Section 423.4.
Listed companies must comply with the provisions of section 75 of the OSA requiring confidential disclosure to the OSC of any “material change” that is not immediately being disclosed to the public.