13. Fair Value Accounting

The following table sets forth the Company’s assets measured at fair value by level within the fair value hierarchy. As required by accounting guidance, assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.


			Fair value at December 31, 2012
			Total		Level 1		Level 3

Assets:
	Cash equivalents	$	15,834	$	15,834	$	-
	Marketable securities		626		626		-
	Other Investments (Midas Gold shares)		69,489		69,489		-
	Amayapampa interest		4,813		-		4,813
	Mill Equipment		10,000		-		10,000

			Fair value at December 31, 2011
			Total		Level 1		Level 3

Assets:
	Cash equivalents	$	14,802	$	14,802	$	-
	Marketable securities		986		986		-
	Long Term Investments (Midas Gold shares)		119,851		119,851		-
	Amayapampa interest		4,813		-		4,813

Our cash equivalent instruments, marketable securities and investment in Midas Gold are classified as Level 1 of the fair value hierarchy as they are valued at quoted market prices in an active market.

The estimated fair value of the Amayapampa interest is based on probability-weighted cash flow scenarios discounted using a risk-adjusted discount rate (15%) and assumptions including future gold prices (average gold prices realized range from $1,038 to $1,247, depending on timing of assumed start-up), estimated life-of-mine gold production (ranging from 350,000 to 650,000 ounces) and the expected timing of the start of commercial production (periods ranging from 3 to 6 years, or never), which are management’s best estimates based on currently available information. Significant changes in any of the unobservable inputs in isolation would result in a significant change in fair value estimate.

The Company incurred an impairment loss on certain mill equipment (Note 6). This equipment was valued at $10,000 based on a third party assessment of the projected sale value. This valuation was used to determine the impairment charge taken in 2012. The mill equipment is categorized as assets held for sale on the Consolidated Balance Sheets.

At December 31, 2012, the assets classified within Level 3 of the fair value hierarchy represent 15% of the total assets measured at fair value. There were no transfers between levels in 2012.