COPPER PRICE PROTECTION PROGRAM	12 Months Ended
Dec. 31, 2012
COPPER PRICE PROTECTION PROGRAM [Text Block]	11. COPPER PRICE PROTECTION PROGRAM In connection with the Credit Agreement dated June 28, 2007 with Nedbank, the Company agreed to implement a price protection program with respect to a specified percentage of copper output from the Johnson Camp Mine. The price protection program consisted of financial derivatives whereby the Company entered into a combination of forward sale and call option contracts for copper quantities based on a portion of the estimated production from the Johnson Camp Mine during the term of the loan. These financial derivatives did not require the physical delivery of copper cathode and are expected to be net cash settled upon maturity and/or settlement of the contracts. The Company implemented the price protection program by entering into forward sales contracts for 4,560 (10,053,081), 3,600 (7,936,643), and 2,400 (5,291,095) metric tons (pounds) of London Metal Exchange (LME) cash settlement copper for 2009, 2010, and 2011, respectively, at a net forward price of $5,538 ($2.51), $4,841 ($2.20) and $4,413 ($2.00) per metric ton (pound) for the same respective periods. The Company simultaneously entered into long call options for the same quantities of copper at an average exercise price of $8,803 ($3.99), $8,523 ($3.87) and $8,723 ($3.96) for 2009, 2010 and 2011, respectively. The program required no cash margins, collateral or other security from the Company. Prior to April 1, 2010, these derivative contracts were classified as cash flow hedges of the price volatility inherent in the Company’s projected sales of copper. As of December 31, 2012 and 2011, all of the copper derivative contracts had matured and the outstanding amount due to the settlement of the contracts was record in copper derivatives settlement payable on the consolidated balance sheets. Under ASC guidance for derivative instruments and hedging activities, prior to maturity, these contracts are carried on the consolidated balance sheets at their estimated fair value. As of December 31, 2011 all of the copper forward and call option contracts have matured. During the year ended December 31, 2011, the Company recognized realized losses of $9,661,133 from the settlement of copper derivative contracts. However, the estimated fair value of these contracts was $(8,455,156) as of December 31, 2010; and, as such, the net effect on the Company’s consolidated statement of operations for the year ended December 31, 2011 was a loss on derivatives classified as trading securities of $1,205,977. As of December 31, 2012 and 2011, the Company is in default of the related Copper Hedge Agreement as it failed to make the requisite monthly payments (March 31, 2010 through December 31, 2011 settlements) related to the settlement of the derivative contracts. As of December 31 2012 and 2011, the total amounts owed to Nedbank as a result of these missed payments is $16,106,691, plus accrued interest thereon.

COPPER PRICE PROTECTION PROGRAM

12 Months Ended

Dec. 31, 2012

COPPER PRICE PROTECTION PROGRAM [Text Block]

11. COPPER PRICE PROTECTION PROGRAM

In connection with the Credit Agreement dated June 28, 2007 with Nedbank, the Company agreed to implement a price protection program with respect to a specified percentage of copper output from the Johnson Camp Mine. The price protection program consisted of financial derivatives whereby the Company entered into a combination of forward sale and call option contracts for copper quantities based on a portion of the estimated production from the Johnson Camp Mine during the term of the loan. These financial derivatives did not require the physical delivery of copper cathode and are expected to be net cash settled upon maturity and/or settlement of the contracts. The Company implemented the price protection program by entering into forward sales contracts for 4,560 (10,053,081), 3,600 (7,936,643), and 2,400 (5,291,095) metric tons (pounds) of London Metal Exchange (LME) cash settlement copper for 2009, 2010, and 2011, respectively, at a net forward price of $5,538 ($2.51), $4,841 ($2.20) and $4,413 ($2.00) per metric ton (pound) for the same respective periods. The Company simultaneously entered into long call options for the same quantities of copper at an average exercise price of $8,803 ($3.99), $8,523 ($3.87) and $8,723 ($3.96) for 2009, 2010 and 2011, respectively. The program required no cash margins, collateral or other security from the Company. Prior to April 1, 2010, these derivative contracts were classified as cash flow hedges of the price volatility inherent in the Company’s projected sales of copper. As of December 31, 2012 and 2011, all of the copper derivative contracts had matured and the outstanding amount due to the settlement of the contracts was record in copper derivatives settlement payable on the consolidated balance sheets.

Under ASC guidance for derivative instruments and hedging activities, prior to maturity, these contracts are carried on the consolidated balance sheets at their estimated fair value. As of December 31, 2011 all of the copper forward and call option contracts have matured. During the year ended December 31, 2011, the Company recognized realized losses of $9,661,133 from the settlement of copper derivative contracts. However, the estimated fair value of these contracts was $(8,455,156) as of December 31, 2010; and, as such, the net effect on the Company’s consolidated statement of operations for the year ended December 31, 2011 was a loss on derivatives classified as trading securities of $1,205,977.

As of December 31, 2012 and 2011, the Company is in default of the related Copper Hedge Agreement as it failed to make the requisite monthly payments (March 31, 2010 through December 31, 2011 settlements) related to the settlement of the derivative contracts. As of December 31 2012 and 2011, the total amounts owed to Nedbank as a result of these missed payments is $16,106,691, plus accrued interest thereon.