Starting late in 2007, and going through February 2008, development work at Corner Bay was suspended because of a so called “water problem”.  The first press release on the water problem was around November 2007, but M.Fortier started talking about the water problems in emails to certain shareholders a month earlier.

Then in the December 2007 – February 2008 timeframe, there were many communications from Management that discussed the difficulties they were having stopping the water flow.

Shareholders inquired about the progress, and were toils several times about “Specialized expert consultants being used” and “special fillers with advanced properties”.  Then there was word that the water problem was getting worse, and the Corner Bay mine was slowly filling with water a second time.

Then in February 2008, we got this press release:

2008-02-21
CCH  Campbell Resources Inc
News Release 
Campbell stops the groundwater flow at Corner Bay 

Here’s the problem:   I went back and looked at the 1^st quarter 2008 quarterly report, and I did not see a single mention of any special charges, consulting fees, or any financial record (charges) that the water problem happened as we were told.

You would think that a problem that took at least 3 months to solves involved outside consulting experts, and involved massive amounts of water pumping would have led to some cost accounting disclosures.

The Auditor did not discuss even a single extra charge (as far as I can see).   I think that mining expense even went down in the 1st quarter of 2008.

Can anyone here take a look, and tell me if they see the same thing?

And can someone please contact Management, and ask what happened here (why no evidence of anything from the financial side).

I think what I am getting at here is that maybe [certainly not proven yet], the entire 3 month outage at Corner Bay was all a fabricated event to delay production.  

That’s the real suggestion (sum of my opinion / theory / guess).  If there was no forensic evidence of any real problem (no charges, no invoices), then maybe the whole thing was made up to give them a way to delay production.  

If the company wants to comment on this (maybe using their “Meggymoo” communication vehicle), they better hurry up.  I know where this story belongs (added to this webpage http://www.campbellanalysis.com/files/Samson_Belair_Deloitte_Touche.html ).