This company has no proven reserves or resources. They have not performed a feasibility study to evaluate costs to extract the mineral resource. Therefore, no value to the in-ground ores can be assigned. Any use of estimated values (like this company has issued repeatedly) is fraudulent because the resources are not proven and the costs to extract them are not evaluated.
If it costs a million and a half bucks to extract a million dollars worth of gold, it is not feasible and has negative value. If there are environmental reasons why the deposit cannot be mined, or other reasons (legal, political, etc.), the deposit has zero value. All of these things are handled in a feasibility study, which this company has not done.
Hell, for most of this company's "values", they don't even have a single drill hole into most of their mining claims. They are either extrapolating values from drilling results by other companies on adjoining claims, or they are extrapolating from a surface sample. It is absolutely ludicrous, and designed to do one thing - defraud investors.
The Guide 7 language is very simple, and surprisingly brief. The SEC often issues commentary letters to clarify parts of the guidance - I will see if maybe I can find a commentary letter that addresses the application of in-ground value a little more directly.
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