It is only fifteen years since the Bre-x fiasco where an inventive geologist conjured up something like 200mil ounces of gold in Indonesia. I am sure there are a few people in Australia that lost (or made) some money with this story. The company went from a few cents to $286 at its peak and a number of reputable companies made takeover offers, etc before the scam was discovered and bankruptcy was the end.
Nothing like this could happen today with our JORC code system which requires a "competent person" to sign off on the reserves. Or could it? Australia currently recognizes around 25 organisations around the world of which being a member gives you entry to be included on the list as a competent person.
This table shows to me the complications involved in deciding whether a particular discovery is any good or not. Lots of grey areas possible.
Anyway, I am more interested in hearing about other stories which highlight mistakes(rose-coloured) or cons which involved a geologist. There must be many such stories.
