Canadian scientists say they've found conclusive proof that a tiny, barren Arctic island was the site of Canada's first, and perhaps greatest, mining fraud.

In 1577 and 1578, Kodlunarn Island, in what is now Frobisher Bay, was the site of British mariner Martin Frobisher's infamous Arctic Eldorado turned New World financial nightmare. Now two Laval University scientists say there's solid evidence that Frobisher and his chemists were in on a massive fraud that was an Elizabethan-era "prelude to Bre-X."

Since the scandal broke more than 400 years ago that the tons of black rock Frobisher brought back to London from the Canadian Arctic near present-day Iqaluit were worthless, there's been speculation about what happened. Was this a massive con job on Elizabeth I and her court, or did Frobisher's assayers mistakenly dupe themselves into believing they'd found gold?

Read more at Science Daily: http://www.sciencedaily.com/releases/2004/07/040706080233.htm