INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities

	2012			2011
	(in thousands)
Deferred tax assets:
Alternative minimum tax (AMT) credit carryforward	$	41		$	41
Net operating loss carryforward		80,975			46,211
Mineral Property		297			2,528
Other temporary differences		9,521			5,330
Capital loss carryforward		241			241

Total gross deferred tax assets		91,075			54,351
Less: valuation allowance		(90,477	)		(53,578	)

Net deferred tax assets	$	598		$	773

Deferred tax liabilities:
Reclamation obligation		416			282
Mineral Property		—			(41	)
Basis in Tonkin Springs Venture LP		(1,014	)		(1,014	)
Acquisition related deferred tax liability		(229,522	)		(78,786	)

Total deferred tax liabilities	$	(230,120	)	$	(79,559	)

Total net deferred tax liability	$	(229,522	)	$	(78,786	)

Schedule of reconciliation of the tax provision at statutory US Federal and State income tax rates to the actual tax provision recorded in the financial statement

			2011			2010
	(in thousands)
US Federal and State tax recovery at statutory rate	$	(31,925	)	$	(21,098	)	$	(11,895	)
Reconciling items:
Equity pickup in MSC		(7,292	)		—			—
FIN 48 adjustment due to tax years becoming statute barred		—			(180	)		—
Prior year true ups/acquisitions		781			(8,074	)		56
Adjustment for foreign tax rates		3,245			1,342			853
Tax rate changes		(1,869	)		(24	)		2
Imputed interest		135			119			104
Other permanent differences		(3,259	)		8,869			1,621
Unrealized foreign exchange rate (loss)/gain		(21,263	)		(31	)		139
NOL expired		(2,696	)		2,862			746
Valuation allowance		36,899			16,035			6,376

Tax Recovery	$	(27,244	)	$	(180	)	$	(1,998	)

Tax years subject to examination in major tax jurisdictions

United States: 2009 to 2012
Canada: 2005 to 2012
Mexico: 2008 to 2012
Argentina: 2008 to 2012

- Definition

Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded.

+ References+ Details