Colorado Goldfields Inc. (fka CGFI)

[1manband]

By the way my question was related to what US and not Canadian rules specifically forbid preparing of a nI43-101 report by a USA reporting company.

Again, it is regulation S-K and Industry Guide 7, and is affirmed by numerous court cases and SEC interpretations. It is the law, and a company cannot pick and choose what laws to follow, especially when that choice is of a law of a foreign nation with no legal basis in the United States.

Think of it this way. The legal drinking age in the United States is 21. In Canada it is either 18 or 19 (depending on the Province). A 20-year old in California or Florida can't choose to ignore the US law and decide that he would rather be governed by the more favorable (to him) law applicable in Canada. Good luck explaining that to the cop that busts him for underage drinking in Los Angeles or Tampa that it is OK for him to drink in the US because the drinking age in Ontario is 19. The same is true of US mineral companies. They have no legal basis of choosing to use a Canadian law that they cannot even hope to comply with. They MUST follow Regulation S-K and Industry Guide 7. It is the law. Period. (And as a side note, the law states that is for "issuers". Not "registrants". Therefore, Industry Guide 7 applies to all US companies, no matter if they report to the SEC or not.)

These US companies cannot comply with NI 43-101 even if they wanted to. The first rule of NI 43-101 is that it is filed and reviewed by Canadian securities regulators, which can only be done by actual Canadian issuers. Companies like CGFI cannot comply and therefore they will never have an actual NI 43-101 compliant report.