Yuka Group Inc. (YUKA)

[1manband]

The SEC does not recognize or allow US companies to use NI 43-101, as that is a Canadian regulation. It has no standing with US companies. Instead, US companies are required to follow SEC Industry Guide 7.

http://www.sec.gov/about/forms/industryguides.pdf

The major differences between NI 43-101 and Industry Guide 7 is in the various reserve categories and the detail and work required in order to report "Proven" reserves. US Companies can only report "Proven" reserves after they have completed a Bankable Feasibility Study. The Canadian regulations allow a slightly lower standard, but in both cases, a huge amount of exploration and test work is required. That work not only takes time, but is also quite expensive.

Modern mining is neither cheap nor easy. It is much more expensive, time-consuming and difficult than certain companies would lead you to believe.