Hidden Secrets of Mining

Economics, Premium POM5 Comments

Fraud and Falsification of Resources and Deposits

The movie Gold starring Matthew McConaughey is based upon the real-life tale of Bre-X, the gold mining company based in Calgary, Alberta, who fooled banks, investors, and other miners into believing that they had found the largest gold deposit in the world. One of the geologists of the company, along with others presumably, worked together to “salt” core samples with actual gold with the intent to create the impression that the Indonesian gold deposit was the prospecting find of the century.

Some of you would have heard of Bre-X and the subsequent fallout which took place. Though the movie doesn’t follow the real world events, it does give the basic outline and premise of the fraud which was committed.

After watching the movie I sat and pondered on how easy it was to fool so many presumably intelligent people. It took me back through my own memories to a time in Alberta when a company called Uranium Power Corporation was aggressively campaigning for investors to jump in early on what they were packaging as a fail proof investment in the oil sands.

A close friend of mine, who has since passed, was interested and brought the investment package for me to review. It presented a different science from that which the energy companies working in the region were basing their business models on.

Where Suncor, Syncrude, and startups by Shell and CNRL, were mining raw oil sands deposits with large mining equipment, Uranium Power Corporation was proposing that they could drill deeper into the Earth and reach crude deposits which had originally created the oil sands deposit in the first place.

The traditional and accepted version of the oil sands creation is based on the decomposition of marine life and vegetation from a large inland sea which existed over 300 million years ago. The theory put forth by Uranium Power Corporation was that large pools of oil lay just out of reach underneath the limestone basin which is now underneath the oil sands deposit.

As children we would hunt around in the low wooded areas that ran alongside the Athabasca and Clearwater rivers. There we would dig around and pull out large slabs of limestone which contained fossils of sea shells and plant stems. There is still one such rock sitting on my bookshelf behind me as I write these words.

As such it was easy for us to believe the official version of oil sands creation. But what if Uranium Power Corporation was right? What if the weight of the glaciers which sat across the width of the continent for thousands of years forced the lower deposits of oil to slowly seep up through the porous limestone and into the old leftover sand from the Albian Sea? There are areas in the region today where sand dunes are slowly taking over rivers and forest.

After doing some research and having a discussion with the Professor of Earth Sciences at the University of Alberta, I decided it was best to suggest that my late friend not invest in Uranium Power Corporation.

One of the deciding factors was that the former owner of the Calgary Stampeders football team was connected to Uranium Power Corporation. Larry Ryckman had made a run at a similar deep oil sands drilling project years before. The company then was called Aabbax International Financial Inc, and was shutdown after Ryckman was charged with committing securities fraud regarding option purchases.

Based on the fresh memories of Bre-X, another Calgary based firm, it was hard slogging for both Aabbax and later Uranium Power Corporation, to try and get investors interested in the high risk gamble of deep drilling beneath the limestone.

Uranium Power had multiple drills setup in the area and were in fact drilling, but it all came to an end before they reached any meaningful depth. I remember driving down a dirt road through a heavy forested area to the place where one of the drills was operating. The whole concept fascinated me.

The theory put forth by Ryckman and Uranium Power Corporation was based on the Abiotic Oil and Gas concept which has been developed by Russian geologists. Western investors and mining companies have disregarded the Abiotic theory, but that doesn’t make it wrong. It just means there is more interest in maintaining the accepted theory and extraction processes which billion dollar industries have been built around.

One of the Suncor mine sites which I frequent (Suncor was called Sun Company of Canada when it was formed in 1917) still has what is called a Devonian underwater salt lake which is located within the oil sands deposit on the lease. This 300+ million year relic is a testament to the age of the region, but doesn’t provide any proof one way or the other on the opposing theories.

The Gold movie got me rethinking all of this. What if my original assumptions were wrong? It isn’t hard to discredit and frame those who are threatening the accepted norms and practices which function at the core of our socioeconomic framework. What if Aabbax International Financial and Uranium Power Corporation were hammered into non-existence?

The idea that oil could be drilled straight up from beneath the oil sands deposit in much the same way it is pumped out of the ground in Saudi Arabia is a breathtaking threat to the existing corporations and power structure which operate the international energy markets. It also draws into question other resource deposit information and accepted facts from around the world. The control and distribution of energy is one of the fundamental methods in which mass populations and regions are controlled.

But at the end of the day, it is human greed, like that presented in Gold and the Bre-X scam, which make up our reality. Unfortunately human greed is at play in both of the scenarios presented above. The motivation for profit is a strong driving force which underlays a lot of human behaviour. Falsifying deposits and resource data is likely more rampant than we would like to believe. Yet, the change in cultural thought-forms and energy markets if the Abiotic theory was accurate would be profound. Maybe there is a deeper and more subconscious reason why I always drove down that dirt road to stare at the large drill digging deep into the Earth. – JC

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JC Collins can be contacted at jcollins@philosophyofmetrics.com

5 Comments on “Hidden Secrets of Mining”

  1. Had a similar thought when reading Saudi reserves had been estimated to maintain steady production until around 2070 during the years when the kingdom was a lynchpin of the US dollar reserve status, but apparently some estimates have been revised down to around 2035 more recently which would appear to coincide with the changing global economic system and decline of the kingdom’s importance.

    Would it be right to be suspicious of US reserves being kept secret? Its vast open landscapes and seaboards, not to mention Alaska, could hide huge untapped reserves and a strategy of exhausting foreign reserves before their own would make a lot of sense. With the Arctic also expected to yield an abundance of resources as the ice sheet continues to retreat, based on my limited knowledge of the subject, no doubt certain interests will be motivated to play down such potential to support profit margins and maintain a certain leverage over humanities potential.

  2. What a fascinating post JC. Coincidentally, I read (via Zerohedge) this morning, this article about gold mining companies. The author says that the one thing the senior mining companies don’t do is market their product. The claim is that this has allowed vested interests to depress the true value of gold. Otherwise, demand for physical gold would be a lot higher in the West. Also by labelling it a commodity and the MSM constantly talking it down the ‘war’ has been a long and dirty one.

    I do appreciate that this is a site that promotes the purchase of gold and silver. I haven’t yet checked to see if his claims are factual. Certainly, he seems to believe that it is a ‘war’ that will soon go against the Deep State as they are having to throw a lot more at the market to control it and that the law of diminishing returns is slowly having an effect.


  3. This is an excellent piece JC, thank you!

    The continual cries of “Oil is going run out by 20XX…” by world leaders is a method of price control from the ancient school of the “politics of scarcity”. In the old world, every shopkeeper, farmer, livestock holder, and for that matter anyone who produced goods knew very well, that to keep the price of one’s product, one must constantly spread rumors of catastrophe which will definitely affect the availability of his products.

    This practice has been for ever known and played out in the middle-eastern markets, where a producer would say “buy these apples and that’s the lot until next year”! You can change the apple to any product you like, the game and the routines were the same.

    Fast forward to the development of corporations from 18 centuries with the establishment of trade by corporations and later the creation of cartels in commodities such as oil, this same method of scarcity tactics were used. The Soviet scientists established that oil is not a biological byproduct which means the production of oil is a constant action in the lower layers of the earth. The same material that a volcano produces from very deep of the earth is also the same material that produces oil and gas. I believe, it was the Standard oil in the 1950’s who created the myth of scarcity of oil and having vast sums of money and the best marketing and advertising as well as doing well at the art of coercing the oil producing leaders, their method became “common knowledge”. We must consider how many other myths, we may have been forced fed by so many other similar powerful corporations!

    The truth is that oil and gas will never run out on us, but the undermining reason for its potential shortage will be the cost of exploration. In Iran, where William Knox Darcy discovered oil in southern Iran, (Masjid-Soleiman), the earth crust is very thin, in such a way that oil literally seeps in people’s floors and they must clean up the residue every few years to prevent damage to their furniture. As such the cost of extracting the oil, beneath is very cheap in contrast to the oil platforms in the North Sea operated mainly by Norway and UK. The oil that is extracted from Iran as well as Saudi region has several thousand by products which makes them a rich commodity with many derivatives.

    There are vast regions in the world that oil is known but still remains untapped possibly so that the price is controlled and checked by the producers cartel, but to a major part by the request western oil cartels (seven sisters!) which was the common term for western oil companies companies of the “Consortium for Iran” cartel, which dominated the global petroleum industry from the mid-1940s to the mid-1970s. Aramco (Arabian-American oil) that operates in Saudi Arabia since WWII produces their own propaganda regarding the end of oil doom news. However, in the case of Saudi Arabia, their problems relate to the actual cost of refining or producing from start to finish cycle for a minimum price based on the break even cost of $50 a barrel. For Saudi’s, the danger is if the price of oil goes below this figure, it means they will make zero profit i.e. they operate at expense. The constant price rigging by OPEC and their bosses in the US and Europe (World elite) is all due to obtaining price stability by changing the supply/demand system. Yet, overall, the politics of scarcity is alive and well by ALL oil producers.

    It seems, that the Russian government isn’t concerned about the scarcity of oil nor playing along with the narrative. Russia is the king of all oil producers and given its military might, it can rule the waves in the next century regarding oil and gas. The influence of Russia on Iran is partly geostrategic of Eurasia which Iran is part of but mainly to subdue Iran’s role as a primary source of gas producer which is the most attractive fuel of choice in the next 100 years or more. This is because Iran holds the largest deposits of gas in the world. Therefore Iran is undermined by Qataris who comprise the Western banking cartel and Arab minions in the south and the Russians in the north, both working hard to be the supplier of gas to Europe. In this scheme the Ukraine regime change was to prevent Russia’s pipelines to EU as a means of controlling the Russian energy supply to EU. The Syrian war is the actual theatre of bloody operation of the two contending entities and the winner will be the number supplier of EU, who will in turn dictate the rate of progress of EU, its ethnic makeup, its rate of industrialization so on and so forth.

    Our JCm wrote a while ago that Iran is the lynchpin in the world conflict in the old world and he is so absolutely right. And, If you hear very very little about Iran, it’s resources, history, linguistics, ethnicity etc. etc. it is NOT by accident…

  4. JC,

    So glad to hear you addressing the abiotic oil theory (considering you are an oil man). Both F. William Engdahl and L. Fletcher Prouty have written and spoken extensively on the origins of the traditional theory, and why the West decided Russian petroleum geologists were wrong. For POMskies, I recommend “Myths, Lies and Oil Wars” by F. William Engdahl, and “The Deep Hot Biosphere: The Myth of Fossil Fuels” by Richard Gold. Of course, Daniel Yergin’s work is critical to an understanding of the big picture and historical context.

    Another closely related element to the “fossil fuel” question, which to my mind has suffered from an intentional ig-norance campaign, is GEET technology, created by Paul Pantone in the 1980s (as well as Stanley Meyer), which allows the burning of the kinds of fuels you have spent a good part of your lifetime involved in manufacturing, with effectively zero pollution.

    For those not acquainted with these and other technologies that are extant, they represent one of the clearest and most catastrophic (in terms of war-making) examples of the manufacture of scarcity in recorded history.

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