Inventories, Stockpiles and Mineralized Materials on Leach Pads

12 Months Ended

Dec. 31, 2013

Inventories, Stockpiles and Mineralized Materials on Leach Pads

Inventories, stockpiles and mineralized materials on leach pads at December 31, 2013 and 2012 consisted of the following:



	2013		2012
Finished goods	$	—	$	—
In-process	591,961		662,929
Total inventories	$	591,961	$	662,929

Stockpiles	$	45,455	$	361,061
Mineralized material on leach pads	502,025		3,919,603
Total stockpiles and mineralized material on leach pads	$	547,480	$	4,280,664

During the year ended December 31, 2013, the Company wrote down inventories by $362,320 and stockpiles and mineralized materials on leach pads by $1,152,254 to reduce the carrying values to net realizable value. The write downs were included as components of cost applicable to mining revenue in the consolidated statements of operations. The primary factor that influenced the need to record the write downs was recent market declines in gold prices.

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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