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Liquidity | 9 Months Ended
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Sep. 30, 2014
Nature Of Operations And Basis Of Presentation [Abstract] |
Liquidity | 2. Liquidity These interim statements have been prepared on a going concern basis under which an entity is considered to be able to realize its assets and satisfy its liabilities in the normal course of business. The continuing viability of the Company is dependent upon our ability to secure sufficient funding and ultimately to generate future profits from operations. The underlying value and recoverability of the amounts shown as mineral properties, plant and equipment, assets held for sale, investments and other property interests in the condensed consolidated balance sheets are also dependent on our ability to continue to fund exploration and development activities that could lead to profitable production or proceeds from the disposition of these assets. There can be no assurance that we will be successful in disposing of these assets, securing additional funding on terms acceptable to us or at all, or developing profitable operations in the future. These interim statements do not include any adjustments relating to the recoverability and classification of recorded assets or liabilities which might be necessary should we not be able to continue as a going concern. The Company’s cash burn rate has been dramatically reduced since 2013 ($5,511 compared to $21,476 for the nine months ended September 30, 2014 and 2013, respectively) as several cash intensive programs at the Mt Todd gold project such as water treatment, preparation and submission of a final environmental impact statement, and preparation of the preliminary feasibility study have been completed. In addition, since 2013 several significant cost cutting measures were introduced, including a reduction of management positions, reductions in cash compensation for executives, senior management and the Company’s Board of Directors, and the delay or elimination of discretionary programs, including exploration activities. The Company remains committed to continued cost reduction efforts where appropriate taking into consideration our safety, regulatory and environmental responsibilities; however, the magnitude of future cost cuts is expected to diminish from 2014 levels. The Government of the Northern Territory of Australia (the “NT Government”) has committed to non-recourse funding for the first year of a proposed multi-year program with the objective of reducing the inventory of acidic metalliferous water at the Mt Todd site by 70%. The Company is currently working with the NT Government on detailed plans and budgets for the execution of this work. The scope of the initial program to be funded by the NT Government between now and approximately the end of July 2015 includes the imminent start of additional water treatment, which is to be followed by the discharge of remediated water in accordance with the applicable permits, subsequent environmental monitoring, analysis and reporting, and evaluations designed to aid in the definition of the scope of work for subsequent years’ programs. The NT Government’s funding mitigates the Company’s risk of incurring material unexpected environmental expenditures through 2015. We expect our Company-wide cash burn rate to average $1,500 to $1,750 per quarter through 2015, assuming a normal 2014-2015 wet season in the NT. We believe our current cash position will be sufficient to fund the Company well into the second quarter of 2015, at which time the Company will need additional funding. Our sources of financing include the $500 option payment which we expect to receive when due, in January pursuant to the Guadalupe de los Reyes gold/silver project option agreement with Cangold Limited (Note 5). In addition, we will continue to seek additional financing with priority given to non-dilutive sources such as the sale of our used mill equipment and other non-core assets. There can be no assurance that we will receive the payments from Cangold Limited or be able to timely monetize our mill equipment or other non-core assets at a value acceptable to us or at all. If sufficient capital is not available from these sources, we believe that the Company’s ‘other investments’ (Note 4) which could be liquidated after February 15, 2015, could provide access to sufficient funding for us to operate well into 2016. A recent announcement, subsequent to period end, by Invecture Group, S.A. de C.V. (“Invecture”) has introduced substantial doubt that we will receive the $6,000 payment in January 2015 related to the 2013 sale of the Los Cardones gold project (Note5). Our financing plans as discussed above do not currently include future proceeds from the sale of the Los Cardones gold project.

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- Definition Disclosure of accounting policy for reporting when there is a substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time (generally a year from the balance sheet date). Disclose: (a) pertinent conditions and events giving rise to the assessment of substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time, (b) the possible effects of such conditions and events, (c) management's evaluation of the significance of those conditions and events and any mitigating factors, (d) possible discontinuance of operations, (e) management's plans (including relevant prospective financial information), and (f) information about the recoverability or classification of recorded asset amounts or the amounts or classification of liabilities. If management's plans alleviate the substantial doubt about the entity's ability to continue as a going concern, disclosure of the principal conditions and events that initially raised the substantial doubt about the entity's ability to continue as a going concern would be expected to be considered. Disclose whether operations for the current or prior years generated sufficient cash to cover current obligations, whether waivers were obtained from creditors relating to the company's default under the provisions of debt agreements and possible effects of such conditions and events, such as: whether there is a possible need to obtain additional financing (debt or equity) or to liquidate certain holdings to offset future cash flow deficiencies. Disclose appropriate parent company information when parent is dependent upon remittances from subsidiaries to satisfy its obligations. + References No definition available. + Details
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