The Bre-X gold scandal that rocked the Toronto Stock Exchange (TSX) during the late 1990s forever changed the Canadian mining sector. When millions in pension dollars were lost due to fraudulent and falsified test data, investors around the world were outraged.

It remains one of the most tumultuous cases of criminal fraud in Canadian history and serves as a cautionary tale for Canada’s investment community. As a result of the Bre-X investigation, the requirements for companies listed on the TSX were revised, making the disclosure obligations for mineral laboratories that test gold and other mineral samples much more stringent. In 2001, the National Instrument 43-101 (NI 43-101), which sets reporting standards for the disclosure of mineral projects, became law across Canada; it specifies that the credentials of laboratories be included as part of analytical results.

In the wake of the scandal, the ability to demonstrate the credibility and accuracy of test results become more than a key benefit for mineral laboratories: Third-party accreditation by the Standards Council of Canada (SCC) is now crucial to doing business.

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