Replies to post #65530 on Colorado Goldfields Inc (fka CGFI)

[sanbrunobaby]

The issue is they dont have reserves and are in exploration stage, if they put together a feasibilty study and start on path to development that changes the situation. The pertinent issue in my opinion is what is length of time and costs required for them to get to having afeasibility rpeort

My reading of the techncial report's recommendations pretty simple that they have a long way to go at least on Champion project to get to a feasibility study- they certainly wont be producing from the champion mine in 16 months.(And this doesnt even account for potential permitting delays).

Thus the brochure they had on their site indicating prcoessing material at the mill this year is in my opinion extremely misleading.

[1manband]

Guide 7 restricts a mining company in the exploratory phase from stating reserves at all

That is incorrect. Industry Guide 7 does nothing of the sort.

To claim reserves, a Company must have a full (bankable) feasibility study which not only proves the existence of minable minerals on the property, it must also prove the minerals can be economically and legally extracted. A feasibility study is always prepared and completed at the exploration stage for a company not already in production.

The next stage above exploration stage is development stage. To qualify as development stage, a Company must actually have all required permits in hand and be developing the property (i.e., building a mine). A Company can have a feasibility study and reserves but remain in the exploration stage for years and years. It takes a long time to obtain permits and the financing required to begin development and during that period the Company is still classified as an exploration stage company.