Inventories, Stockpiles and Mineralized Material on Leach Pad

6 Months Ended

Jun. 30, 2013

Inventories, Stockpiles and Mineralized Material on Leach Pad [Abstract]

Inventories, Stockpiles and Mineralized Material on Leach Pad

2. Inventories, Stockpiles and Mineralized Material on Leach Pad

Inventories, stockpiles and mineralized materials on leach pads consisted of the following:

	June 30,		December 31,
	2013		2012
In-process	$	421,757	$	662,929
Finished goods		208,006		-
Total inventories	$	629,763	$	662,929
Stockpiles	$	322,793	$	361,061
Mineralized material on leach pad		3,394,314		3,919,603
Total stockpiles and mineralized material on leach pad	$	3,717,107	$	4,280,664
Total	$	4,346,870	$	4,943,593

During the three and six months ended June 30, 2013, the Company wrote down inventories by $116,923 and stockpiles and mineralized material on leach pad by $869,677 to record the balances to net realizable value (NRV). The NRV represents the estimated future sales price based on short-term and long-term metals prices, less estimated costs to complete production and bring the product to sale. The primary factor that influenced the need to record the write-downs was recent market declines in gold prices. The write downs of the inventory balances are included in costs applicable to mining revenue in the condensed consolidated statement of operations for the three and six months ended June 30, 2013.