<SEC-DOCUMENT>0001072613-12-000699.txt : 20130930
<SEC-HEADER>0001072613-12-000699.hdr.sgml : 20130930
<ACCEPTANCE-DATETIME>20121210113033
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001072613-12-000699
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20121210

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			UNITED STATES ANTIMONY CORP
		CENTRAL INDEX KEY:			0000101538
		STANDARD INDUSTRIAL CLASSIFICATION:	PRIMARY SMELTING & REFINING OF NONFERROUS METALS [3330]
		IRS NUMBER:				810305822
		STATE OF INCORPORATION:			MT
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		P O BOX 643
		CITY:			THOMPSON FALLS
		STATE:			MT
		ZIP:			59873
		BUSINESS PHONE:		4068273523

	MAIL ADDRESS:	
		STREET 1:		PO BOX 643
		CITY:			THOMPSON FALLS
		STATE:			MT
		ZIP:			59873-0643

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AGAU MINES INC
		DATE OF NAME CHANGE:	19740728
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Securities and Exchange Commission</font></div>

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<div align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Form 10-K for Fiscal Year Ended</font></div>
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<div align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">December 31, 2011</font></div>
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<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">File No. 001-08675</font></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Dear Sirs:</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Set forth below is our response to your comment letter of November 26, 2012, requesting that we amend our 2011 10K filing, or, if appropriate, provide additional information per our 2011 10K filing.&#160;&#160;We do not disagree with your requests for increased and expanded disclosure, and it is our intent to comply.&#160;&#160;We do not think that filing an amended 10K for the year ended December 31, 2011, is appropriate.&#160;&#160;Considering that we will be filing our 2012 Form 10K in less than 90 days, we believe that the best option for our investors and the readers of our financial statements is to incorporate your comments into our 10K filing for the year ended December 31, 2012.</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">We have, hopefully, provided enough information in our attached responses to your comments to permit us to comply as above.&#160;&#160;We will refer to regulation S-K and Interpretation 33-8350 when preparing future 10K and 10Q filings.&#160;&#160;We are always ready to provide better information for readers of our financial statements.</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">We acknowledge that we are responsible for the adequacy and accuracy of the disclosure in our filings of forms 10K and 10Q.&#160;&#160;We acknowledge that staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with the filing of our forms 10K and 10Q.&#160;&#160;We acknowledge that we may not assert staff comments as a defense in any proceedings initiated by the Commission or any person under the federal securities laws of the United States.</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Sincerely,</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Daniel L. Parks</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Form</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">10-K for</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Fisc</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">l
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<div style="TEXT-INDENT: 0pt; DISPLAY: block"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">I</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">em</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">1. Description of </font><font style="DISPLAY: inline; TEXT-DECORATION: underline">B</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">usin</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">e</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ss</font></font></div>

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4</font></font></div>

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<div style="TEXT-ALIGN: left; TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1.&#160;&#160;&#160; We note that your share of the domestic antimony market is currently 4% and that Chinese producers supply 92% of the world&#8217;s antimony demand.&#160;&#160;Given this, please provide the information required by Item 101(h) (4) (iv) of Regulation S-K. Alternatively, please tell us why such information would not be material to investors.</font></div>
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<div style="TEXT-ALIGN: left; TEXT-INDENT: 18pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">a) We are less than 1% of the world&#8217;s supply of antimony.</font></div>

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<div style="TEXT-ALIGN: left; TEXT-INDENT: 18pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 18pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">b) Our method of competition for global and domestic business is that we have established a reputation for quality products delivered on a timely basis, and we are a non-Chinese supplier of antimony products.&#160;&#160;Being a domestic producer gives us the advantage of avoiding long shipping times, delays at ports, etc.&#160;&#160;We are an alternative to Chinese antimony government controlled mining and production. It should be noted that we are the sole domestic producer of antimony products and have 2 of the 3 operating smelters in North and South America.</font></div>
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<div style="TEXT-ALIGN: left; TEXT-INDENT: 18pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>

<div style="TEXT-ALIGN: left; TEXT-INDENT: 18pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 18pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">c) Our competitive strengths are our product quality and consistency, our ability to ship on short notice to U.S. domestic customers, and that we are a domestic supplier of antimony products.</font></div>
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<div style="TEXT-ALIGN: left; TEXT-INDENT: 18pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 18pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">d) We are have now and will have even greater control of our raw material in the future, and therefore, be able to be more responsive to our customers&#8217; needs.</font></div>
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<div style="TEXT-ALIGN: left; TEXT-INDENT: 18pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 18pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">e) We are a vertically integrated company with our own mine, mill, and smelter, and exclusive suppliers, which gives us independence and certainty of supply for our U.S. customers.</font></div>
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<div style="TEXT-ALIGN: left; TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.&#160;&#160;&#160;&#160;We note your disclosure on page 4 and in Note 2- Concentration of Credit Risk on page F-6 that during 2011, 72% of sales were made to three customers.&#160;&#160;Please revise to provide disclosures required by Item 101(h) (iv) of Regulation S-K related to this concentration.</font></div>
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<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">RESPONSE</font>: We have included expanded disclosure in our 10Q filing for the nine months ending September 30, 2012, disclosing our three largest customers identified as customers A, B, and C, and their individual sales, total sales for all three, and the percent of total revenue&#160;&#160;that they comprise, in a comparative format with the prior year.&#160;&#160;This disclosure will be part of our 10K filing for the year ending December 31, 2012, and all future filings with the SEC.</font></div>
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<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">We would note that our Chinese competitors, who are government controlled, do not disclose their customers.&#160;&#160;If we disclose our customers by name, it will put us at a competitive disadvantage, and potentially subject us to predatory actions by such competitors. If necessary, we seek a waiver of any requirement to disclose customers by name. This regulation does not adequately consider the reality of a small company competing against government controlled entities in a global market.</font></div>

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<div style="TEXT-ALIGN: left; TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.&#160;&#160;&#160; We note you disclose a reserve estimate prepared for your property by the Mexican Government, this disclosure is not recognized by the SEC, and your company does not claim any reserves.&#160;&#160;The provisions in Industry Guide 7 preclude the use of any terms other than proven or probable reserves for disclosure within SEC documents.&#160;&#160;Please modify your disclosure by reclassifying this estimate to mineralized material or another description as is appropriate.&#160;&#160;In this instance, you also need to disclose that such a deposit would not qualify as a reserve, until a comprehensive evaluation, such as a final or bankable feasibility study concludes
legal and technical viability, and economic feasibility.</font></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">RESPONSE</font>: We will delete the word reserve, and replace it with the phrase &#8220;a deposit of mineralized material&#8221;, and we will add the sentence &#8220;Such a deposit does not qualify as a reserve until a comprehensive evaluation, such as a final or bankable feasibility study concludes legal and technical viability, and economic feasibility&#8221;, for the 10K filing for December 31, 2012, and all future filings with the SEC.</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Zeol</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">te Div</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">sion, page </font><font style="DISPLAY: inline; TEXT-DECORATION: underline">1</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">5</font></font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Mine Safety</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Disc</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">l</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">osure</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">, page 21</font></font></div>

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<div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.&#160; &#160;&#160;Please provide the disclosure required by Item 104 of Regulation C.&#160;&#160;See also the </font><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Instruction to Item 104 of Regulation C.</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">RESPONSE</font>: We have included disclosure for item 104 of regulation C and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 in our 10Q filing for the nine months ending September 30, 2012, as Item 4 on page 14. We believe that this information complies with the required disclosure of Item 104 and the Dodd-Frank requirements, but will review our columnar headings to ensure that they are correct and complete.&#160;&#160;We will include this disclosure with the 10K filing for the year ending December 31, 2012, and all future filings with the SEC.</font></div>

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<div style="TEXT-ALIGN: left; TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-STYLE: italic; DISPLAY: inline">6. </font><font style="FONT-STYLE: italic; DISPLAY: inline">&#160;&#160; </font><font style="FONT-STYLE: italic; DISPLAY: inline">W</font><font style="FONT-STYLE: italic; DISPLAY: inline">e note your </font><font style="FONT-STYLE: italic; DISPLAY: inline">f</font><font style="FONT-STYLE: italic; DISPLAY: inline">i</font><font style="FONT-STYLE: italic; DISPLAY: inline">l</font><font style="FONT-STYLE: italic; DISPLAY: inline">ing did </font><font style="FONT-STYLE: italic; DISPLAY: inline">n</font><font style="FONT-STYLE: italic; DISPLAY: inline">ot
</font><font style="FONT-STYLE: italic; DISPLAY: inline">i</font><font style="FONT-STYLE: italic; DISPLAY: inline">n</font><font style="FONT-STYLE: italic; DISPLAY: inline">c</font><font style="FONT-STYLE: italic; DISPLAY: inline">lude t</font><font style="FONT-STYLE: italic; DISPLAY: inline">h</font><font style="FONT-STYLE: italic; DISPLAY: inline">e in</font><font style="FONT-STYLE: italic; DISPLAY: inline">f</font><font style="FONT-STYLE: italic; DISPLAY: inline">or</font><font style="FONT-STYLE: italic; DISPLAY: inline">m</font><font style="FONT-STYLE: italic; DISPLAY: inline">ation
</font><font style="FONT-STYLE: italic; DISPLAY: inline">r</font><font style="FONT-STYLE: italic; DISPLAY: inline">ega</font><font style="FONT-STYLE: italic; DISPLAY: inline">r</font><font style="FONT-STYLE: italic; DISPLAY: inline">d</font><font style="FONT-STYLE: italic; DISPLAY: inline">ing</font><font style="FONT-STYLE: italic; DISPLAY: inline">&#160;</font><font style="FONT-STYLE: italic; DISPLAY: inline">your Mine </font><font style="FONT-STYLE: italic; DISPLAY: inline">S</font><font style="FONT-STYLE: italic; DISPLAY: inline">afety </font><font style="FONT-STYLE: italic; DISPLAY: inline">a</font><font style="FONT-STYLE: italic; DISPLAY: inline">nd Heal</font><font style="FONT-STYLE: italic; DISPLAY: inline">t</font><font style="FONT-STYLE: italic; DISPLAY: inline">h
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</font><font style="FONT-STYLE: italic; DISPLAY: inline">C</font><font style="FONT-STYLE: italic; DISPLAY: inline">on</font><font style="FONT-STYLE: italic; DISPLAY: inline">su</font><font style="FONT-STYLE: italic; DISPLAY: inline">m</font><font style="FONT-STYLE: italic; DISPLAY: inline">er Protection Act of </font><font style="FONT-STYLE: italic; DISPLAY: inline">2</font><font style="FONT-STYLE: italic; DISPLAY: inline">010.&#160;&#160;Plea</font><font style="FONT-STYLE: italic; DISPLAY: inline">s</font><font style="FONT-STYLE: italic; DISPLAY: inline">e</font><font style="FONT-STYLE: italic; DISPLAY: inline">&#160;</font><font style="FONT-STYLE: italic; DISPLAY: inline">modi</font><font style="FONT-STYLE: italic; DISPLAY: inline">f</font><font style="FONT-STYLE: italic; DISPLAY: inline">y your filing
</font><font style="FONT-STYLE: italic; DISPLAY: inline">t</font><font style="FONT-STYLE: italic; DISPLAY: inline">o include</font><font style="FONT-STYLE: italic; DISPLAY: inline">&#160;</font><font style="FONT-STYLE: italic; DISPLAY: inline">th</font><font style="FONT-STYLE: italic; DISPLAY: inline">i</font><font style="FONT-STYLE: italic; DISPLAY: inline">s</font><font style="FONT-STYLE: italic; DISPLAY: inline">&#160;</font><font style="FONT-STYLE: italic; DISPLAY: inline">required</font>
<font style="FONT-STYLE: italic; DISPLAY: inline">in</font><font style="FONT-STYLE: italic; DISPLAY: inline">f</font><font style="FONT-STYLE: italic; DISPLAY: inline">or</font><font style="FONT-STYLE: italic; DISPLAY: inline">m</font><font style="FONT-STYLE: italic; DISPLAY: inline">atio</font><font style="FONT-STYLE: italic; DISPLAY: inline">n</font><font style="FONT-STYLE: italic; DISPLAY: inline">.</font></font></div>
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<div align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">RESPONSE</font>:&#160;&#160;See Response, No. 5 above<font style="FONT-STYLE: italic; DISPLAY: inline">.</font></font></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-STYLE: italic; DISPLAY: inline; TEXT-DECORATION: underline">Item 7.&#160;&#160;Manage</font><font style="FONT-STYLE: italic; DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="FONT-STYLE: italic; DISPLAY: inline; TEXT-DECORATION: underline">ent&#8217;s Discus</font><font style="FONT-STYLE: italic; DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="FONT-STYLE: italic; DISPLAY: inline; TEXT-DECORATION: underline">ion a</font><font style="FONT-STYLE: italic; DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="FONT-STYLE: italic; DISPLAY: inline; TEXT-DECORATION: underline">d Analysis
</font><font style="FONT-STYLE: italic; DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="FONT-STYLE: italic; DISPLAY: inline; TEXT-DECORATION: underline">r Plan of </font><font style="FONT-STYLE: italic; DISPLAY: inline; TEXT-DECORATION: underline">O</font><font style="FONT-STYLE: italic; DISPLAY: inline; TEXT-DECORATION: underline">perations</font><font style="FONT-STYLE: italic; DISPLAY: inline; TEXT-DECORATION: underline">,</font><font style="FONT-STYLE: italic; DISPLAY: inline; TEXT-DECORATION: underline"> pa</font><font style="FONT-STYLE: italic; DISPLAY: inline; TEXT-DECORATION: underline">g</font><font style="FONT-STYLE: italic; DISPLAY: inline; TEXT-DECORATION: underline">e 24</font></font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">General</font></font></div>

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<div style="TEXT-ALIGN: left; TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">7.&#160;&#160;&#160; Management&#8217;s Discussion and Analysis is one of the most critical aspects of your disclosure. As such, we ask that you revise this section to provide an enhanced executive overview to discuss the events, trends, and uncertainties that management views as most critical to the company&#8217;s revenues, financial position, liquidity, plan of operations and results of operations. In an effort to assist you in this regard, please refer to the guidance in SEC Release 33-8350, available on the SEC website at www.sec.gov./rules/interp/33-8350.htm.&#160;&#160;This guidance is intended to elicit more meaningful disclosure in MD&amp;A in a number of areas, including the
overall presentation and focus of MD&amp;A, with general emphasis on the discussion and analysis of known trends, demands, commitments, events and uncertainties, and specific guidance on disclosures about liquidity, capital resources and critical accounting.</font></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 3.65pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">RESPONSE</font>: For the 10K to be filed for the year ending December 31, 2012, and for all future filing with the SEC, as appropriate, we will expand our MD&amp;A discussion to include the following:</font></div>

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<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">a)&#160;&#160; </font></div>
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<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Our expectations of increased sales due to availability of more raw material from Mexico;</font></div>
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<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">b)&#160;&#160; </font></div>
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<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The effect of an improving world economy on our product price;</font></div>
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<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">c)&#160;&#160; </font></div>
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<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The effect of an increase in furnace capacity and hours of crusher operation;</font></div>
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<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">d)&#160;&#160; </font></div>
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<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The reduction of our fuel cost for the smelter when our natural gas line is completed;</font></div>
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<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">e)&#160;&#160; </font></div>
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<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The potential decrease in raw material costs due to ore from our Los Juarez mine;</font></div>
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<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">f)&#160;&#160; </font></div>
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<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">A discussion of the installation of a 500 ton per day ball mill and flotation plant by the end of 2013;</font></div>
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<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">g)&#160;&#160; </font></div>
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<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">How much cash we raised through stock sales in 2012, how we used it, and how we propose to utilize any remaining cash in ensuing periods;</font></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Details of future cash requirements not covered by the above discussions</font></div>

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<div style="TEXT-ALIGN: left; TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">8.&#160;&#160;&#160; Please revise to include a critical accounting estimates section to address the existence of highly material estimates or assumptions and how these matters may affect the financial statements.&#160;&#160;Your revised disclosure should supplement, not duplicate, the description of accounting policies that are already disclosed in the notes to the financial statements. Your disclosure should discuss the judgments and uncertainties that affect the application of your critical accounting policies and the likelihood that materially different amounts could be reported under different conditions or using different assumptions.&#160;&#160;Please refer to the Commission&#8217;s
guidance concerning Critical Accounting Estimates and revise Management&#8217;s Discussion and Analysis to comply with the required disclosures as necessary.&#160;&#160;The guidance is available on the SEC website at www.sec.gov./rules/interp/33-8350.htm.&#160;&#160;Please note that your response letter dated October 13, 2010 indicated that you will include such disclosures in future filings.</font></div>
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<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The cost of our unprocessed purchased ore in inventory is based on assays taken at the time the ore is delivered, and may vary when the ore is processed and final settlement is made;</font></div>
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<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The Asset Recovery Obligation on our balance sheet is based on an estimate of the cost to recover and remediate our properties as required by our permits upon cessation of operations in the future.</font></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Resul</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s of </font><font style="DISPLAY: inline; TEXT-DECORATION: underline">O</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">perations, p</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ge 25</font></font></div>

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<div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">9.&#160;&#160;&#160; Please revise to expand your disclosures for each period presented to provide a detailed analysis of the material components of your consolidated statements of operations. The discussions should describe and quantify underlying material activities that generate variances between periods (e.g. provide a narrative discussion of the extent to which increases in net sales or revenues are attributable to increases in prices or to increases in the volume or amount of goods or services being sold).&#160;&#160;Please ensure to quantify the effect of each causal factor that you cite for material changes in your financial statements.&#160;&#160;Your revised variance analysis should fully explain the changes between
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<div style="TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">RESPONSE</font>: For the 10K filing for the year ending December 31, 2012, and for all future filings with the SEC, we will expand our analysis of variances in material components of the statement of operations/results of operations by division to include more detail of whether the variances are due to increases/decreases in price, or if the variances are due to greater volumes of product being sold.&#160;&#160;We will disclose, to the extent possible, variances that may be attributable to a quantifiable event, such as a new additive to one of our products.</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Financial</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Condit</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">and</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Liquid</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font
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<div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.&#160; Please revise your disclosures here to include an analysis of the components of the statements of cash flows (i.e. operating, investing, and financing activities) that explains the significant year-to-year variations in the line items (e.g. explain the significant change in accounts receivable, inventories etc.,).&#160;&#160;Your analysis of cash flows should not merely recite information presented in the consolidated statement of cash flows.&#160;&#160;Please refer to the SEC&#8217;s Interpretation: Commission Guidance Regarding Management's Discussion and Analysis of Financial Condition and Results of Operations [Release No.
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 16.65pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">RESPONSE</font>: In the 10K filing for the year ending December 31, 2012, and for all future filings with the SEC, we will include an analysis of the components of cash flows (i.e., operating, investing, and financing activities) that explains the significant year-to-year variations in the line items.&#160;&#160;We will expand our discussion of to include more detail of the reasons for the variances.&#160;&#160;For example, we will discuss the reasons for an increase in accounts receivable instead of merely noting that there was an increase.</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 3.85pt" align="left"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;</font></div>

<div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 3.85pt" align="left"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">11.&#160; Please revise to include detailed discussions of your liquidity and capital resources to identify the trends, demands, commitments, events and uncertainties as required by Item 303(a) (1) and (2) of Regulation S-K.</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">RESPONSE</font>: In the 10K filing for the year ending December 31, 2012, and all future filings with the SEC, we will disclose future cash requirements for projects underway, such as the installation of the natural gas pipeline, and for projects contemplated for future periods, such as the installation of the 500 ton per day ball mill and flotation plant.</font></div>

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<div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 7.65pt" align="left"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">12.&#160; We note the various financial commitments mentioned in your financial statements including the current portion of various notes payable and the cumulative dividends in arrears on your Series B and Series D preferred stock.&#160;&#160;&#160;Please quantify your various commitments for the upcoming year, and provide a discussion of the sources of capital which will be used to service your financial commitments.&#160;&#160;In particular, please address whether the failure to pay preferred dividends will have any effect on your ability to raise funds in the future.&#160;&#160;See Item 303(a) (2) (i) of Regulation S-K.</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">I</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">em</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">9A. </font><font style="DISPLAY: inline; TEXT-DECORATION: underline">C</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">nt</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ols and
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<div style="TEXT-INDENT: 0pt; DISPLAY: block"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Changes in Internal Con</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">rol</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Over Fi</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">anc</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">l Reporting,
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<div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">13.&#160; Please revise to specifically disclose any change in your internal control over financial reporting that occurred during your last fiscal quarter that has materially affected, or is reasonably likely to materially affect, your internal control over financial reporting. Refer to Item 308(c) of Regulation S-K.&#160;&#160;We also note the lack of similar disclosures in your Forms 10-Q for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012.&#160;&#160;&#160;Please note that these disclosures should also specifically clarify the control changes made to address your material weaknesses.&#160;&#160;Please revise.</font></div>

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<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The CFO will review all bank reconciliations;</font></div>
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<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The CFO will review all period ending entries for preparation of the financial statements, such as the calculation of inventory, depreciation, and amortization;</font></div>
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<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The CFO will review all material entries for compliance with generally accepted accounting principles prior to the annual audit and 10Q filings.</font></div>
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<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The Company has adopted a formal capitalization policy.</font></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Financial S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ate</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ents</font></font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Notes </font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o Fi</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">n</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">anc</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">l
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<div style="TEXT-INDENT: 0pt; DISPLAY: block"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">2. Concent</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">on of</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Risk,</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">page
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<div>
<div style="TEXT-ALIGN: left; TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">14.&#160; We note your disclosure of concentration of sales. To enhance investor&#8217;s understanding of your business, please revise to disclose the concentration of accounts receivable and provide disclosures required by FASB ASC 275-10-50-16.</font></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">RESPONSE</font>: For the 10k filing for the year ending December 31, 2012, and for all future filings with the SEC, we will include a table that discloses our concentration of accounts receivable for our three largest customers individually and in the aggregate, and as a percent of our total accounts receivable.</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">3. S</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">u</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">ary</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">of significant
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<div style="TEXT-INDENT: 0pt; DISPLAY: block"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Revenue Recognition, </font><font style="DISPLAY: inline; TEXT-DECORATION: underline">p</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">age </font><font style="DISPLAY: inline; TEXT-DECORATION: underline">F</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">-9</font></font></div>

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<div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">15.&#160; We note your disclosure that revenue from exclusive sales agreements with multiple elements is recognized pro-rata over the duration of each element within the contracts. Tell us and revise to disclose how your revenue recognition policy relating to sales agreements with multiple elements complies with FASB ASC 605-25 and provide the disclosures required by FASB ASC 605-25-50-2.</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 4.95pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">RESPONSE</font>: We do not have any multiple element sales agreements, and we will delete the reference to such agreements.</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Exhibits</font></font></div>

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<div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">16. &#160;We note that the certifications filed as Exhibits 31.1, 31.2, 32.1 and 32.2 with your </font><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Form 10-K and Form 10-Q for the fiscal quarters ended June 30, 2012, and September </font><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">30, 2012 have not been signed and/or dated.&#160;&#160;Please refile these certifications as signed by the necessary executive officers.</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 13.25pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">RESPONSE</font>: We will re-file the above certifications signed by the necessary executive officers.</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Signa</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">u</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">r</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">es</font></font></div>

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<div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">17.&#160; Please revise to include the signature of your Principal Accounting Officer or Controller. See General Instruction D (2) of Form 10-K.</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">RESPONSE</font>: We will revise our certifications to include the signature of our Controller.</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">For</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">m</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s 10-Q for the Quarterly Per</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">i</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">o</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">d</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Ended June 30, 2012, and
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<div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">18.&#160; We note that your Forms 10-Q for these periods plus the quarterly period ended March </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-STYLE: italic; DISPLAY: inline">31,</font><font style="FONT-STYLE: italic; DISPLAY: inline">&#160;</font><font style="FONT-STYLE: italic; DISPLAY: inline">2012 are</font><font style="FONT-STYLE: italic; DISPLAY: inline">&#160;</font><font style="FONT-STYLE: italic; DISPLAY: inline">not p</font><font style="FONT-STYLE: italic; DISPLAY: inline">r</font><font style="FONT-STYLE: italic; DISPLAY: inline">oper</font><font style="FONT-STYLE: italic; DISPLAY: inline">l</font><font style="FONT-STYLE: italic; DISPLAY: inline">y signed and
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Other Exch</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">a</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">nge Repor</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">t</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">s</font></font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">RESPONSE: </font>We will change our future Exchange Acts reports to comply with the comments above.</font></div>

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