Replies to post #21616 on Solidus Communications Inc (SLDC)

[rbtree]

Dead wrong, tattoo1. They did a report, and tried to call it a 43-101, which it wasn't, by the geologist's admission, throughout the report.

However, you are forgetting that the report you mention is meant only for companies that report to SEDAR. TWDL must adhere to US Industry Grade 7 standards, which do NOT allow any valuation or claims of proven reserves until a full feasibility study is done. SUGO is years and many millions of $ away from that. They have done no exploring or drilling of their own, and can't rely on old data. Further, to prove up an ore body, much more drilling, on tighter centers, has to be done than was done in the past.

Face it, SUGO has no chance of success.

[lmcat]

First, a NI 43-101 is useless unless the company is Canadian or trades on a Canadian exchange. An NI 43-101 CANNOT be used by a US company!

The United States Securities and Exchange Commission's Industry Guide 7 must be followed. In the United States, a mineral reserve is defined as a part of a mineral deposit, which could be economically and legally extracted or produced at the time the reserve determination is made.
Accordingly, information contained in a presentation containing descriptions of mineral deposits in accordance with NI 43-101 may not be comparable to similar information made public by other U.S. companies under the United States federal securities laws and the rules and regulations thereunder.

In addition, the terms "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" are defined in and required to be disclosed by NI 43-101; however, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC.

Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category.

http://www.cim.org/standards/MenuPage.cfm?sections=177,183&menu=226

http://www.cim.org/standards/documents/Block474_Doc32.pdf

[lmcat]

All the company would need is a 43-101. Thats not costly.

An NI 43-101 averages around $200,000 and it's relative to what you consider "costly". It must be prepared by a registered geologist after test drilling samples have been completed. It is then listed on Sedar.

For a company with millions in cash, it probably is not costly but for a company like SUGO who would need to borrow the money, it can become very costly.