Replies to post #65554 on Colorado Goldfields Inc (fka CGFI)

[sanbrunobaby]

Thank you for the excellent summary of issues about the feasibility report issue and SEC Guide 7.

The company persists in portraying itself as a near term producer, yet (a) the financing requirements they have now released seem beyond its ability to meet (b) and the mystery of where ore will come from continues (c) even under the best of circumstances they are years away from a production decision.

I have to assume management is aware of all this - thus they are fully responsible for anyone losing money because of representations the company was a near-term producer, not following SEC Guide 7 disclosure guidelines, and any non-disclosure of related party share transactions.

They have finally released some CAPEX figures, time for the mystery of where the ore may come from in 16 months to be disclosed !It is one thing to make a projection based upon reasonable calculations, another based on improbable scenarios management must be aware of in my opinion.

[ficose]

Thanks anyway - poor summary.

I could almost see the gears turning as I read this post. After a little Googling it was found that there are three stages; Exploratory, Development, and Production. All are different stages. In Guide 7 Exploratory cannot show reserves, while Development must show reserves.

I think you figured this out and tried to make exploratory and Development stage the same thing and back peddled with:

The stage page exploration is development stage.

Is hard for me to tell though. The description of Development stage is spot on.

Hey, I realize you didn't write Guide 7 and I didn't write Guide 7. Realistically, the darn thing is over thirty years old and in need of an overhaul. There are steps being taken to change this.

Like I linked before, the SME is petitioning the SEC to update Guide 7 and catch up with the rest of the world. http://www.sec.gov/rules/petitions/2012/petn4-654.pdf

And they have Congressional support. http://www.sec.gov/comments/4-654/4654-1.pdf

This is from October. The wheels of the Federal Government turn really slowly. This means the time is right - right now - to input public opinion.

Think of it. You could literally influence the way a new Guide 7 is written and not have to again creatively write your way out of a hole on some old form the SEC has just never got around to updating.

With your posting skills the word could get out there and that's a big part of it. I'd help with the organization and know whose ears to tug. Let me know...