Colorado Goldfields Inc (fka CGFI)

[M_T_Pockets]

At the last estimate, the mill was worth $11 million. That puts the equity at approximately 85%. An asset, even with a mortgage, is still an asset, particularly when it can be sold in parts for 7.25 times its mortgaged amount.
Basic accounting principals will prove your claim wrong.
Perhaps you should do some more DD too.
This can all be found in the CGFIA statements.