Gold! GOLD! Oh, wait…

From today’s Vancouver Sun: Drill-sample scandal pummels Vancouver gold exploration firm

An assay-reporting scandal has ravaged the share price of Vancouver-based Southwestern Resources Corp.
On Thursday, the company said a review of drill results on its Boka gold project in China “indicates that the integrity of certain drill core samples was compromised.”
As a result, it has fired its project manager, John Zhang, and withdrawn “all its previously announced results for the Boka project.”

Not much to say about this one, except maybe that it might be an interesting illustration of how a company can do wrong — in this case, mislead investors — through the wrongdoing of one or more employees, without it necessarily being “the company’s” fault. (The story also does a good job of laying out the time-line of the story, which begins in 2002. So it would be pretty good for classroom use.)

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