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Organization and Nature of Business
 6 Months Ended
Jun. 30, 2011
Notes to Financial Statements  
Note B - Organization and Nature of Business

Organization and Nature of Business

 

As of June 30, 2011 our only significant capital asset is the Gold Bar Mill.  During 2010, we disposed of our previous Bolivian activity and we settled litigation with Yukon-Nevada Gold and its subsidiary Queenstake Resources (collectively referred to as “YNG”) following YNG’s termination of the operating agreement for the Jerritt-Canyon Gold Bar Mill.

 

The Gold Bar Mill (“Mill”), our only remaining significant non-current asset, is currently idle and has been since we acquired it in 2004.  We continue to monitor the Mill for impairment on a periodic basis or whenever circumstances arise that indicate the carrying amount of the Mill may not be recoverable.  An impairment loss is recognized when the carrying value of the Mill exceeds the estimated undiscounted future cash flows.  As of and through June 30, 2011 we have not recognized any impairment on the Mill.

 

Reclassifications

 

Due to the disposition of our Bolivian operations as well as the settlement of our contract dispute with Yukon Nevada Gold related to the operation of the Jerritt Canyon Mill we have made significant reclassification adjustments to the comparative 2010 financial information contained in this report.  The significant reclassifications are as follows:

 

    Results of Operations for the six months ended June 30, 2010 (in US $)  
                   
    As Previously Reported     As Reclassified     Change  
OPERATING EXPENSES:                  
Exploration and development     29,807       21,522       (8,285 )
General and administrative     454,081       410,197       (43,631 )
Bad debt     202,688       -       (202,688 )
Loss on sale of asset     (8,261 )     -       (8,261 )
Asset impairment     (54,763 )     -       (54,763 )
Other, net     (1,198 )     -       (1,198 )
Loss on discontinued operations (Bolivia)     -       (107,877 )     107,877  
Loss on discontinued operations (Nevada)     -       (202,688 )     202,688  
Loss on sale of business unit (Bolivia)     -       (8,261 )     8,261  

 

The reclassifications did not impact our previously reported financial position, results of operations, or cash flows for the 2010 periods presented in this Form 10-Q.