Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2013

The following table presents our liabilities at December 31, 2013, which are measured at fair value on a recurring basis:



			Fair Value Measurements at December 31, 2013
	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Liabilities:
Contingent debt obligation payment	$	250,000	$	—	$	250,000	$	—
Total Liabilities	$	250,000	$	—	$	250,000	$	—

The following table presents our liabilities at December 31, 2012, which are measured at fair value on a recurring basis:



			Fair Value Measurements at December 31, 2012
	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Liabilities:
Gold call option derivative	$	16,330	$	—	$	16,330	$	—
Gold forward derivative	297,451		$	—	297,451		$	—
Contingent dividend payment	230,900		—		—		230,900
Total Liabilities	$	544,681	$	—	$	313,781	$	230,900

Schedule of Changes in Level 3 Financial Instruments

The following table indicates the changes in the Level 3 financial instruments for the years ended December 31, 2013 and 2012.



	Contingent Dividend Payment Derivative Liability

Balance at January 1, 2011	$	1,025,000
Issuance of convertible preferred stock	6,009
Change in fair value	(800,109		)
Balance at December 31, 2012	230,900
Change in fair value	(230,900		)
Balance at December 31, 2013	$	—

Schedule of Fair value of Assets, Valuation Techniques and Related Unobservable Inputs

The following table sets forth a summary of the quantitative and qualitative information related to the unobservable inputs used in the valuation of the Company’s Level 3 financial instruments during the year December 31, 2013.



Description	Value at December 31, 2013		Valuation Techniques	Unobservable Input	Quantitave Inputs Used
Contingent dividend payment derivative liability	$	—	Monte-Carlo Simulation	Discount Rate	12	%

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

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