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The directors of a gold mining company are considering making a major investment of the company's funds to develop a new gold mine.

They delegate to a geologist the task of obtaining the technical information about the amount of gold that might be mined. The report prepared for the directors indicates that the proposed investment in the mine should be very successful. But some of the information has been negligently prepared. The directors have relied on the report and invested the company's funds in the mine, but the venture is not as successful as the report indicates it should be. Advise whether the directors have breached their duty.

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