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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
9 Months Ended33 Months Ended
Sep. 30, 2011
Sep. 30, 2010
Sep. 30, 2011
Cash flows from operating activities:   
Net loss$ (5,607,778)$ (3,292,977)$ (17,141,647)
Adjustments to reconcile net loss to net cash used in operations:   
Depreciation183,971111,756470,563
Amortization of deferred financing costs003,061
Amortization of discount - PIK Notes13,7752,194381,309
Issuance of PIK Notes in payment of interest221,881119,287742,867
Stock issued for director and consulting services125,09143,080207,420
Fair value of warrants and options issued to consultants and directors1,503,852149,2352,239,755
Loss on revaluation of stock awards50,00022,000222,500
Gain on stock award forfeiture0(145,000)(145,000)
(Gain) Loss on disposition of assets(1,000)0(4,523)
Loss on impairment of assets02,27062,019
(Increase) Decrease in:   
Accounts receivable60,5100(721)
Mining supplies inventory3,503(6,820)0
Deposits and prepaids(71,090)64,06332,478
Increase (Decrease) in:   
Accounts payable and accrued expenses160,859391,120332,039
Net cash used by discontinued operations(1,152)5,175603,539
Net cash used by operating activities(3,357,578)(2,534,617)(11,994,341)
Cash flows from investing activities:   
Purchases of land improvements0(43,108)(72,923)
Purchases of equipment and vehicles(199,266)(59,887)(381,950)
Proceeds from sale of assets1,000100,000151,000
Net cash provided by discontinued operations00434,670
Net cash provided by investing activities(198,266)(2,995)130,797
Cash flows from financing activities:   
Payments on notes payable(179,251)(72,762)(491,872)
Payments on leases payable(134,211)(75,933)(387,249)
Proceeds from insurance settlement00115,000
Proceeds from notes payable00124,129
Proceeds from PIK notes payable01,500,0009,600,000
Proceeds from sale of common stock4,385,00004,385,000
Payments for legal settlement0(170,000)(170,000)
Net cash used by discontinued operations0(26,225)(56,431)
Net cash provided by financing activities4,071,5381,155,08013,118,577
Net increase (decrease) in cash515,694(1,382,532)1,255,033
Cash and cash equivalents at beginning of period1,642,3401,584,866903,001
Cash and cash equivalents at end of period2,158,034202,3342,158,034
Cash Paid For:   
Interest43,16252,13871,642
Income Taxes1,46502,015
Supplemental Disclosure of Non-Cash Investing and Financing Activities:   
Conversion of debt and accrued interest to common stock1,654,7252,343,9228,094,568
Equipment financed on lease0197,000197,000
Equipment financed with note payable$ 200,000$ 0$ 200,000