13-3180530
|
|
(I.R.S.
Employer
|
|
incorporation
or organization)
|
Identification
No.)
|
Class
|
Outstanding
at June 13, 2007
|
|
Common
Stock, par value $.0001 per share
|
167,942,964
|
April
30,
|
||||
ASSETS
|
2007
|
|||
Current
Assets:
|
||||
Cash
and Cash Equivalents
|
$
|
7,545,184
|
||
Loans
Receivable - Affiliate (Note 12 and 16)
|
46,245
|
|||
Prepaid
Assets
|
328,548
|
|||
Marketable
Securities (Note 3)
|
80,000
|
|||
Stockpiles
and Ore on Leach Pads (Note 5)
|
473,584
|
|||
Inventories
(Note 4)
|
100,941
|
|||
Deposits
(Note 6)
|
860,047
|
|||
Other
Current Assets (Note 7)
|
1,284,117
|
|||
Total
Current Assets
|
10,718,666
|
|||
Mining
Concessions (Note 11)
|
70,104
|
|||
Property
& Equipment - net (Note 8)
|
15,749,270
|
|||
Intangible
Assets - net (Note 9)
|
580,267
|
|||
Other
Assets:
|
||||
Other
Investments (Note 13)
|
28,052
|
|||
Deferred
Financing Costs (Note 18)
|
620,756
|
|||
Mining
Reclamation Bonds (Note 10)
|
35,550
|
|||
Other
|
42,286
|
|||
Security
Deposits
|
9,599
|
|||
Total
Other Assets
|
736,243
|
|||
Total
Assets
|
$
|
27,854,550
|
||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||
Current
Liabilities:
|
||||
Accounts
Payable
|
$
|
239,081
|
||
Accrued
Expenses
|
600,669
|
|||
Derivative
Contracts (Note 21)
|
520,416
|
|||
Total
Current Liabilities
|
1,360,166
|
|||
Reclamation
and Remediation Liabilities (Note 14)
|
1,227,776
|
|||
Note
Payable (Note 18)
|
12,000,000
|
|||
Total
Long-term Liabilities
|
13,227,776
|
|||
Commitments
and Contingencies
|
||||
Stockholders’
Equity:
|
||||
Common
Stock, Par Value $.0001 Per Share;
|
||||
Authorized
250,000,000 shares; Issued and
|
||||
Outstanding
166,308,511 Shares
|
16,631
|
|||
Additional
Paid-In Capital
|
53,522,638
|
|||
Deficit
Accumulated in the Development Stage
|
(36,872,071
|
)
|
||
Deferred
Financing Costs (Note 18)
|
(3,670,710
|
)
|
||
Deferred
Compensation
|
(52,500
|
)
|
||
Accumulated
Other Comprehensive Loss (Note 15)
|
322,620
|
|||
Total
Stockholders’ Equity
|
13,266,608
|
|||
Total
Liabilities and Stockholders’ Equity
|
$
|
27,854,550
|
For
the Period
|
||||||||||
For
The Three Months Ended
|
September
17, 1982
|
|||||||||
April
30,
|
(Inception)
|
|||||||||
To
|
||||||||||
2007
|
2006
|
April
30, 2007
|
||||||||
Revenues
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
Costs
and Expenses:
|
||||||||||
Mine
Expenses
|
229,656
|
487,271
|
10,348,047
|
|||||||
Write-Down
of Mining, Milling and Other Property and Equipment
|
-
|
-
|
1,299,445
|
|||||||
Selling,
General and Administrative Expenses
|
970,200
|
662,803
|
14,149,822
|
|||||||
Stocks
and Warrants issued for Services
|
51,884
|
6,586
|
9,652,331
|
|||||||
Exploration
|
581,395
|
-
|
581,395
|
|||||||
Depreciation
and Amortization
|
285,745
|
7,663
|
1,045,923
|
|||||||
Total
Costs and Expenses
|
2,118,880
|
1,164,322
|
37,076,963
|
|||||||
Loss
from Operations
|
(2,118,880
|
)
|
(1,164,322
|
)
|
(37,076,963
|
)
|
||||
Other
Income (Expense):
|
||||||||||
Interest
Income
|
64,125
|
44,616
|
1,077,532
|
|||||||
Interest
Expense
|
(275,499
|
)
|
-
|
(473,334
|
)
|
|||||
Miscellaneous
|
-
|
-
|
36,199
|
|||||||
Loss
on Sale of Property and Equipment
|
-
|
-
|
(155,713
|
)
|
||||||
Gain
on Sale of Subsidiary
|
-
|
-
|
1,907,903
|
|||||||
Option
Payment
|
-
|
-
|
70,688
|
|||||||
Loss
on change in fair value of derivative
|
(319,061
|
)
|
(362,210
|
)
|
(1,428,992
|
)
|
||||
Loss
on Write-Off of Investment
|
-
|
-
|
(10,000
|
)
|
||||||
Loss
on Joint Venture
|
-
|
-
|
(901,700
|
)
|
||||||
Loss
on Option
|
-
|
-
|
(50,000
|
)
|
||||||
Gain
(Loss) on Other Investments
|
-
|
-
|
(3,697
|
)
|
||||||
Loss
on Write -Off of Minority Interest
|
-
|
-
|
(150,382
|
)
|
||||||
Total
Other Income (Expense)
|
(530,434
|
)
|
(317,594
|
)
|
(81,495
|
)
|
||||
Loss
Before Minority Interest
|
(2,649,315
|
)
|
(1,481,916
|
)
|
(37,158,459
|
)
|
||||
Minority
Interest
|
-
|
286,388
|
||||||||
Net
Loss
|
$
|
(2,649,315
|
)
|
$
|
(1,481,916
|
)
|
$
|
(36,872,071
|
)
|
|
Net
Loss Per Common Share - Basic and Diluted
|
$
|
(0.02
|
)
|
$
|
(0.01
|
)
|
||||
Weighted
Average Common Shares Outstanding
|
164,581,950
|
124,884,443
|
For
the Period
|
||||||||||
For
The Nine Months Ended
|
September
17, 1982
|
|||||||||
April
30,
|
(Inception)
|
|||||||||
To
|
||||||||||
2007
|
2006
|
April
30, 2007
|
||||||||
Revenues
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
Costs
and Expenses:
|
||||||||||
Mine
Expenses
|
743,334
|
1,528,653
|
10,348,047
|
|||||||
Write-Down
of Mining, Milling and Other Property and Equipment
|
-
|
-
|
1,299,445
|
|||||||
Selling,
General and Administrative Expenses
|
2,151,362
|
1,377,104
|
14,149,822
|
|||||||
Stocks
and Warrants issued for
Services
|
153,093
|
6,585
|
9,652,331
|
|||||||
Exploration
|
581,395
|
-
|
581,395
|
|||||||
Depreciation
and Amortization
|
631,797
|
27,000
|
1,045,923
|
|||||||
Total
Costs and Expenses
|
4,260,981
|
2,939,342
|
37,076,963
|
|||||||
Loss
from Operations
|
(4,260,981
|
)
|
(2,939,342
|
)
|
(37,076,963
|
)
|
||||
Other
Income (Expense):
|
||||||||||
Interest
Income
|
97,815
|
85,396
|
1,077,532
|
|||||||
Interest
Expense
|
(473,334
|
)
|
-
|
(473,334
|
)
|
|||||
Miscellaneous
|
-
|
-
|
36,199
|
|||||||
Loss
on Sale of Property and Equipment
|
-
|
-
|
(155,713
|
)
|
||||||
Gain
on Sale of Subsidiary
|
-
|
-
|
1,907,903
|
|||||||
Option
Payment
|
-
|
-
|
70,688
|
|||||||
Loss
on change in fair value of derivative
|
(847,068
|
)
|
(362,210
|
)
|
(1,428,992
|
)
|
||||
Loss
on Write-Off of Investment
|
-
|
-
|
(10,000
|
)
|
||||||
Loss
on Joint Venture
|
-
|
-
|
(901,700
|
)
|
||||||
Loss
on Option
|
-
|
-
|
(50,000
|
)
|
||||||
Gain
(Loss) on Other Investments
|
-
|
-
|
(3,697
|
)
|
||||||
Loss
on Write -Off of Minority Interest
|
-
|
-
|
(150,382
|
)
|
||||||
Total
Other Income (Expense)
|
(1,222,586
|
)
|
(276,814
|
)
|
(81,495
|
)
|
||||
Loss
Before Minority Interest
|
(5,483,568
|
)
|
(3,216,156
|
)
|
(37,158,459
|
)
|
||||
Minority
Interest
|
-
|
-
|
286,388
|
|||||||
Net
Loss
|
$
|
(5,483,568
|
)
|
$
|
(3,216,156
|
)
|
$
|
(36,872,071
|
)
|
|
Net
Loss Per Common Share - Basic and Diluted
|
$
|
(0.04
|
)
|
$
|
(0.03
|
)
|
||||
Weighted
Average Common Shares Outstanding
|
143,842,574
|
105,698,556
|
Deficit
|
|
|
|
|
|
||||||||||||||||||||
|
|
Common
Stock
|
|
|
|
Accumulated
|
|
Accumulated
|
|
|
|
|
|||||||||||||
|
|
Shares
|
|
Amount
|
|
Additional paid-in- |
|
in
the DevelopmentStage
|
|
Other Comprehensive |
|
Deferred
Financing Costs |
|
Deferred Compensation |
|
Total Stockholder |
|||||||||
Balance
at July 31, 2006
|
131,635,129
|
13,163
|
40,733,825
|
(31,388,503
|
)
|
146,493
|
(522,541
|
)
|
(52,500
|
)
|
8,929,937
|
||||||||||||||
Deferred
Financing Costs
|
1,150,000
|
115
|
350,635
|
-
|
-
|
(350,750
|
)
|
-
|
-
|
||||||||||||||||
Deferred
Financing Costs
|
-
|
-
|
3,314,449
|
-
|
-
|
(3,314,449
|
)
|
-
|
-
|
||||||||||||||||
Amortization
of Deferred Finance Costs
|
-
|
-
|
-
|
-
|
-
|
517,030
|
-
|
517,030
|
|||||||||||||||||
Options
and warrants issued for services
|
-
|
-
|
170,447
|
-
|
-
|
-
|
-
|
170,447
|
|||||||||||||||||
Private
Placement, Net
|
12,561,667
|
1,256
|
3,484,606
|
3,485,862
|
|||||||||||||||||||||
Common
Stock issued for services provided
|
679,261
|
68
|
301,182
|
-
|
-
|
-
|
-
|
301,250
|
|||||||||||||||||
Common
Stock issued upon the exercising of options and warrants
|
20,282,454
|
2,029
|
5,167,494
|
5,169,523
|
|||||||||||||||||||||
Unrealized
loss on marketable securities
|
-
|
-
|
-
|
-
|
(10,000
|
)
|
-
|
-
|
(10,000
|
)
|
|||||||||||||||
Change
in fair value on interest rate swaps
|
-
|
-
|
-
|
-
|
(76,138
|
)
|
-
|
-
|
(76,138
|
)
|
|||||||||||||||
Equity
adjustment from foreign currency translation
|
-
|
-
|
-
|
-
|
262,265
|
-
|
-
|
262,265
|
|||||||||||||||||
Net
loss for the nine months ended
April
30, 2007
|
-
|
-
|
-
|
(5,483,568
|
)
|
-
|
-
|
(5,483,568
|
)
|
||||||||||||||||
Balance
- April 30, 2007
|
166,308,511
|
$
|
16,631
|
$
|
53,522,638
|
$
|
(36,872,071
|
)
|
$
|
322,620
|
$
|
(3,670,710
|
)
|
$
|
(52,500
|
)
|
$
|
13,266,608
|
For
The Nine Months Ended
|
For
The Period
September 17, 1982 |
|||||||||
April
30,
|
(Inception)
To
|
|||||||||
2007
|
2006
|
April
30, 2007
|
||||||||
Cash
Flow From Operating Activities:
|
||||||||||
Net
Loss
|
$
|
(5,483,568
|
)
|
$
|
(3,216,156
|
)
|
$
|
(36,872,071
|
)
|
|
Adjustments
to Reconcile Net Loss to
|
||||||||||
Net
Cash Provided by (Used in) Operating Activities:
|
||||||||||
Depreciation
and Amortization
|
631,797
|
27,000
|
1,054,493
|
|||||||
Gain
on Sale of Subsidiary
|
-
|
-
|
(1,907,903
|
)
|
||||||
Minority
Interest in Net Loss of Subsidiary
|
-
|
-
|
(286,388
|
)
|
||||||
Write-Down
of Impaired Mining, Milling and Other
|
-
|
|||||||||
Property
and Equipment
|
-
|
-
|
1,299,445
|
|||||||
Loss
on Sale of Property and Equipment
|
-
|
-
|
155,713
|
|||||||
Loss
on change in fair value of derivative
|
662,354
|
362,210
|
1,244,278
|
|||||||
Loss
on Write-Off of Investment
|
-
|
-
|
10,000
|
|||||||
Loss
on Joint Venture
|
-
|
-
|
901,700
|
|||||||
Loss
on Write-Off of Minority Interest
|
-
|
-
|
150,382
|
|||||||
Value
of Common Stock and Warrants Issued for Services
|
471,697
|
6,585
|
13,057,312
|
|||||||
Changes
in Operating Assets and Liabilities:
|
||||||||||
(Increase)
Decrease in Prepaid Expenses
|
(288,474
|
)
|
(12,734
|
)
|
(309,556
|
)
|
||||
(Increase)
Decrease in Inventory
|
(446,184
|
)
|
-
|
(446,184
|
)
|
|||||
(Increase)
Decrease in Other Current Assets
|
3,365,966
|
(5,104,501
|
)
|
(1,899,873
|
)
|
|||||
(Increase)
in Other Deposits
|
(610,047
|
)
|
(286,000
|
)
|
(878,047
|
)
|
||||
Increase
(Decrease) in Other Assets
|
768
|
755
|
(41,900
|
)
|
||||||
(Increase)
in Security Deposits
|
-
|
-
|
(9,605
|
)
|
||||||
Increase
(Decrease) in Accounts Payable
|
(19,891
|
)
|
133,859
|
322,293
|
||||||
Increase
in Redemption Obligation
|
1,227,776
|
-
|
1,227,776
|
|||||||
Increase
(Decrease) in Accrued Expenses
|
243,998
|
(46,317
|
)
|
380,927
|
||||||
Net
Cash Provided by (Used in) Operating Activities
|
(243,808
|
)
|
(8,042,665
|
)
|
(22,847,208
|
)
|
||||
Cash
Flow From Investing Activities:
|
||||||||||
(Increase)
in Other Investments
|
(6,572
|
)
|
(260
|
)
|
(28,312
|
)
|
||||
Purchase
of Mining, Milling and Other Property and Equipment
|
(15,031,813
|
) |
(238,541
|
)
|
(18,223,095
|
)
|
||||
Purchase
of Concessions
|
-
|
-
|
(25,324
|
)
|
||||||
Investment
in Intangibles
|
(570,000
|
)
|
-
|
(588,620
|
)
|
|||||
Proceeds
on Sale of Mining, Milling and Other Property and
Equipment
|
-
|
-
|
275,638
|
|||||||
Proceeds
From Sale of Subsidiary
|
-
|
-
|
2,131,616
|
|||||||
Expenses
of Sale of Subsidiary
|
-
|
-
|
(101,159
|
)
|
||||||
Advance
Payments - Joint Venture
|
-
|
-
|
98,922
|
|||||||
Investment
in Joint Venture
|
-
|
-
|
(101,700
|
) | ||||||
Investment
in Privately Held Company
|
-
|
-
|
(10,000
|
)
|
||||||
Net
Assets of Business Acquired (Net of Cash)
|
||||||||||
Investment
in Marketable Securities
|
-
|
-
|
(50,000
|
)
|
For
The Period
|
||||||||||
For
The Nine Months Ended
|
September
17, 1982
|
|||||||||
April
30,
|
(Inception)
|
|||||||||
To
|
||||||||||
2007
|
2006
|
April
30, 2007
|
||||||||
Net
Cash Used in Investing Activities
|
(15,608,385
|
)
|
(238,801
|
)
|
(16,664,164
|
)
|
||||
Cash
Flow From Financing Activities:
|
||||||||||
Advances
to Affiliate
|
(4,500
|
)
|
(8,076
|
)
|
(49,822
|
)
|
||||
Proceeds
from Borrowing on Credit Facility
|
12,000,000
|
12,000,000
|
||||||||
Proceeds
of Borrowings - Officers
|
-
|
-
|
18,673
|
|||||||
Repayment
of Loans Payable - Officers
|
-
|
-
|
(18,673
|
)
|
||||||
Proceeds
of Note Payable
|
-
|
-
|
11,218
|
|||||||
Payments
of Note Payable
|
-
|
-
|
(11,218
|
)
|
||||||
Proceeds
From Issuance of Common Stock, net
|
8,655,385
|
8,088,920
|
35,506,229
|
|||||||
Commissions
on Sale of Common Stock
|
-
|
-
|
(5,250
|
)
|
||||||
Deferred
Finance Costs
|
(257,271
|
)
|
(140,000
|
)
|
(708,048
|
)
|
||||
Expenses
of Initial Public Offering
|
-
|
-
|
(408,763
|
)
|
||||||
Capital
Contributions - Joint Venture Subsidiary
|
-
|
-
|
304,564
|
|||||||
Purchase
of Certificate of Deposit - Restricted
|
-
|
-
|
(5,000
|
)
|
||||||
Purchase
of Mining Reclamation Bonds
|
-
|
-
|
(30,550
|
)
|
||||||
Net
Cash Provided By (Used In) Financing Activities
|
20,393,614
|
(7,940,844
|
)
|
46,603,360
|
||||||
Effect
of Exchange Rate Changes
|
262,265
|
(40,776
|
)
|
453,196
|
||||||
Increase
(Decrease) In Cash and Cash Equivalents
|
4,803,686
|
(381,398
|
)
|
7,545,184
|
||||||
Cash
and Cash Equivalents - Beginning
|
2,741,498
|
4,281,548
|
-
|
|||||||
Cash
and Cash Equivalents - Ending
|
$
|
7,545,184
|
$
|
3,900,150
|
$
|
7,545,184
|
||||
Supplemental
Cash Flow Information:
|
||||||||||
Cash
Paid For Interest
|
$
|
685,735
|
$
|
-
|
$
|
685,735
|
||||
Cash
Paid For Income Taxes
|
$
|
20,575
|
$
|
7,731
|
$
|
66,549
|
||||
Non-Cash
Financing Activities:
|
||||||||||
Issuances
of Common Stock as Commissions on Sales
of Common Stock
|
$
|
-
|
$
|
-
|
$
|
440,495
|
||||
Issuance
of common stock and warrants as payment of financing costs
|
$
|
3,665,199
|
$
|
270,000
|
$
|
4,187,740
|
||||
Change
in Fair Value of Derivative Instrument
|
$
|
76,138
|
$
|
-
|
$
|
76,138
|
||||
Issuance
of Common Stock and Options/warrants as Payment for
Expenses
|
$
|
-
|
$
|
-
|
$
|
192,647
|
||||
Issuance
of Common Stock as Payment for Mining, Milling
and Other Property and Equipment
|
$
|
-
|
$
|
-
|
$
|
4,500
|
||||
Exercise
of Options as Payment of Accounts Payable
|
$
|
-
|
$
|
-
|
$
|
36,000
|
Nine
Months ended April 30,
|
|||||||
2007
|
2006
|
||||||
Expected
volatility
|
82
|
%
|
121
|
%
|
|||
Risk-free
interest rate
|
6.24
|
%
|
5.75
|
%
|
|||
-
|
-
|
||||||
Expected
life
|
4.2
years
|
1.05
years
|
|
Number
of
Options
|
Weighted
Average
exercise
price
|
Weighted
average
remaining
contracted
term
(years)
|
Aggregate
intrinsic
value
|
|||||||||
|
|||||||||||||
|
|||||||||||||
|
|||||||||||||
Outstanding
at July 31, 2005
|
4,711,363
|
$
|
.30
|
0.30
|
$
|
1,277,977
|
|||||||
Options
granted
|
4,611,363
|
.13
|
-
|
-
|
|||||||||
Options
exercised
|
(590,909
|
)
|
.05
|
-
|
-
|
||||||||
Options
expired
|
(3,161,363
|
)
|
.05
|
-
|
-
|
||||||||
Warrants
and options outstanding at July 31, 2006
|
5,570,454
|
$
|
.16
|
1.17
|
$
|
702,250
|
|||||||
Options
granted
|
550,000
|
$
|
.34
|
-
|
-
|
||||||||
Options
exercised
|
(3,570,909
|
)
|
$
|
.08
|
-
|
-
|
|||||||
Options
expired
|
(549,545
|
)
|
$
|
.22
|
-
|
-
|
|||||||
Warrants
and options outstanding at April 30, 2007
|
2,000,000
|
$
|
.33
|
1.39
|
$
|
167,000
|
|||||||
Warrants
and options exercisable at April 30, 2007
|
2,000,000
|
$
|
.33
|
1.39
|
$
|
167,000
|
|
Unvested
stock option and warrant balances for employees at April 30, 2007
are as
follows:
|
|
Weighted
|
||||||||||||
|
Weighted
|
average
|
|||||||||||
|
Average
|
remaining
|
|||||||||||
|
Number
of Options
|
Exercise
price
|
contracted
term
(years)
|
Aggregate Intrinsic
value |
|||||||||
Outstanding
at August 1, 2006
|
-
|
-
|
-
|
$
|
-
|
||||||||
Options
granted
|
150,000
|
$
|
.32
|
1.83
|
16,500
|
||||||||
Unvested
Options outstanding at April 30, 2007
|
150,000
|
$
|
.32
|
1.17
|
$
|
13,500
|
|
Stock
option and warrant activity for non-employees during the nine months
ended
April 30, 2007 is as follows:
|
|
Weighted
|
||||||||||||
|
Weighted
|
average
|
|||||||||||
|
Average
|
remaining
|
|||||||||||
|
Number
of Options
|
Exercise
price
|
contracted
term
(years)
|
Aggregate Intrinsic
value |
|||||||||
Outstanding
at July 31, 2005
|
31,902,004
|
$
|
.30
|
1.13
|
$
|
3,430,120
|
|||||||
Options
granted
|
6,844,000
|
.28
|
-
|
-
|
|||||||||
Options
exercised
|
(12,835,004
|
)
|
.29
|
-
|
-
|
||||||||
Options
expired
|
(350,000
|
)
|
.10
|
-
|
-
|
||||||||
Warrants
and options outstanding at July 31, 2006
|
25,561,000
|
$
|
.29
|
1.33
|
$
|
1,939,530
|
|||||||
Options
granted
|
16,982,542
|
$
|
.33
|
-
|
-
|
||||||||
Options
exercised
|
(17,846,000
|
)
|
.29
|
-
|
-
|
||||||||
Options
expired
|
_(1,375,000
|
)
|
.31
|
-
|
-
|
||||||||
Warrants
and options outstanding at April 30, 2007
|
23,322,542
|
$
|
.32
|
1.72
|
$
|
1,988,238
|
|||||||
Warrants
and options exercisable at April 30, 2007
|
23,322,542
|
$
|
.32
|
1.72
|
$
|
1,988,238
|
April
30,
2007
|
||||
Marketable
equity securities, at cost
|
$
|
50,000
|
||
$
|
80,000
|
April 30,
2007
|
||||
In-process
|
$
|
-
|
||
Concentrate
|
- | |||
Precious
metals
|
- | |||
Materials,
supplies and other
|
100,941 | |||
$
|
100,941
|
April 30,
2007
|
||||
Current:
|
||||
Stockpiles
& Ore on leach pads
|
$
|
473,584
|
||
$
|
473,584
|
April
30,
2007
|
||||
Advance
payment on Mining Contract to Sinergia (Note 14)
|
$
|
832,595
|
||
Other
|
27,452
|
|||
Total
Deposits
|
$
|
860,047
|
April
30,
2007
|
||||
Value
added tax to be refunded
|
$
|
1,045,102
|
||
Asset
held for resale
|
166,232
|
|||
Other
|
72,784
|
|||
Total
Other Current Assets
|
$
|
1,284,117
|
Process
equipment and facilities
|
$
|
12,593,830
|
||
Construction
in progress
|
1,826,925
|
|||
Asset
retirement obligation
|
1,218,314
|
|||
Mineral properties
|
141,242
|
|||
Computer
and office equipment
|
131,500
|
|||
Improvements
|
15,797
|
|||
Furniture
|
14,162
|
|||
Total
|
15,941,770
|
|||
Less:
accumulated depreciation
|
(192,500
|
)
|
||
Property
and equipment, net
|
$
|
15,749,270
|
Repurchase
of Net Profits Interest from FG
|
$
|
500,000
|
||
Mobilization
Payment to Mineral Contractor
|
70,000
|
|||
Investment
in Right of Way
|
18,000
|
|||
Less:
accumulated amortization of Right of Way and Mobilization
Payments
|
(7,733
|
)
|
||
Intangible
assets, net
|
$
|
580,267
|
El
Charro
|
$
|
25,324
|
||
El
Chanate
|
44,780
|
|||
Total
|
$
|
70,104
|
2007
|
2006
|
||||||
Balance
at beginning of period
|
$
|
-
|
$
|
-
|
|||
Additions,
changes in estimates and other
|
1,218,314
|
-
|
|||||
Liabilities
settled
|
-
|
-
|
|||||
Accretion
expense
|
9,642
|
-
|
|||||
Balance
- April 30, 2007
|
$
|
1,227,777
|
$
|
-
|
Balance
- July 31, 2005
|
$
|
157,714
|
||
Equity
Adjustments from Foreign Currency Translation
|
48,779
|
|||
Unrealized
Gains (loss) on Marketable Securities
|
(60,000
|
)
|
||
Balance
- July 31, 2006
|
146,493
|
|||
Change
in fair value of derivative instrument
|
(76,138
|
)
|
||
Equity
Adjustments from Foreign Currency Translation
|
262,265
|
|||
Unrealized
Gains (loss) on Marketable Securities
|
(10,000
|
)
|
||
Balance
- April 30, 2007
|
$
|
322,620
|
· |
an
increase in the mine life from five to six
years,
|
· |
an
increase in the base gold price from $325/oz to
$375/oz,
|
· |
use
of a mining contractor,
|
· |
revised
mining, processing and support costs,
|
· |
stockpiling
of low grade material for possible processing in year six, if justified
by
gold prices at that time,
|
· |
a
reduced size for the waste rock dump and revised design of reclamation
waste dump slopes,
|
· |
a
revised process of equipment selection
and
|
· |
evaluation
of the newly acquired water well for processing the
ore.
|
· |
an
18% increase in the proven mineral reserve
tonnage,
|
· |
a
59% increase in the probable mineral reserve
tonnage
|
· |
an
increase in mine life from six to seven
years,
|
· |
an
increase in the base gold price from $375/oz to $450/oz
and
|
· |
Stockpiling
of low grade material for possible processing in year seven, if justified
by gold prices at that time.
|
Metric
|
U.S.
|
|||
Materials
Reserves
Proven
Probable
Total
Reserves
Other
Mineralized Materials
Waste
Total
Contained
Gold
Production
Ore
Crushed
Operating
Days/Year
Gold
Plant Average Recovery
Average
Annual Production
Total
Gold Produced
|
11.7
Million Tonnes @ 0.811 g/t*
8.2 Million Tonnes
@
0.705g/t*
19.9
Million Tonnes @ 0.767 g/t*
0 Million Tonnes
19.9
Million Tonnes
39.7
Million Tonnes
15.24
Million grams
2.6
Million Tonnes /Year
7,500
Mt/d*
365
Days per year
67.7
%
1.35
Million grams
10.31 Million grams
|
12.9
Million Tons @ 0.024 opt*
9.0 Million Tons
@
0.021
opt*
21.9
Million Tons @ 0.022 opt*
0 Million Tons
21.9
Million Tons
43.8
Million tons
489,952
Oz
2.87
Million Tons/Year
8,267
t/d*
365
Days per year
67.7
%
43,414
Oz
331,560
Oz
|
* |
“g/t”
means grams per metric tonne, “opt” means ounces per ton, “Mt/d” means
metric tonnes per day and “t/d” means tons per day
and.
|
· |
Blocks
with 4 or more drill holes within a search radius of 40m x 40m x
25m and
inside suitable geological zones were classified as Measured
(corresponding to Proven);
|
· |
Blocks
with 3 or more holes within a search radius of 75m x 75m x 50m and
inside
suitable geological zones were classified as Indicated (corresponding
to
Probable);
|
· |
Blocks
with 1 or 2 holes within a search radius of 75m x 75m x 50m and inside
suitable geological zones were classified as Inferred (and which
was
classed as waste material in the mining reserves
estimate);
|
· |
Blocks
outside the above search radii or outside suitable geological zones
were
not assigned a classification.
|
Cutoff
Grade Calculation
Basic
Parameters
Gold
Price
Gold
Recovery
Operating
Costs per Tonne of Ore
Royalty
(4%)
Smelting
& Refining
Mining
*
Processing
Heap
Leach Pad Development
G&A
Total
Internal
Cutoff Grade
Head
Grade Cutoff (67.7% recov.)
Recovered
Gold Grade Cutoff
|
Internal
Cutoff Grade
US$450/oz
67.7%
$
per Tonne of Ore
0.115
0.015
0.070
1.680
0.185
0.810
2.875
Grams
per Tonne
0.29
0.20
|
Break
Even Cutoff Grade
US$450/oz
67.7%
$
per Tonne of Ore
0.164
0.021
1.250
1.680
0.185
0.810
4.110
Grams
per Tonne
0.41
0.28
|
* |
The
calculation of an internal cutoff grade does not include the basic
mining
costs (which are considered to be sunk costs for material within
the
designed pit). The $0.07 per tonne cost included is the incremental
(added) cost of hauling ore over hauling waste, and which is included
in
the calculation.
|
· |
the
level of interest rates,
|
· |
the
rate of inflation,
|
· |
central
bank sales,
|
· |
world
supply of gold and
|
· |
stability
of exchange rates.
|
· |
labor
disputes,
|
· |
invalidity
of governmental orders,
|
· |
uncertain
or unpredictable political, legal and economic
environments,
|
· |
war
and civil disturbances,
|
· |
changes
in laws or policies,
|
· |
taxation,
|
· |
delays
in obtaining or the inability to obtain necessary governmental
permits,
|
· |
governmental
seizure of land or mining claims,
|
· |
limitations
on ownership,
|
· |
limitations
on the repatriation of earnings,
|
· |
increased
financial costs,
|
· |
import
and export regulations, including restrictions on the export of gold,
and
|
· |
foreign
exchange controls.
|
· |
ownership
of assets,
|
· |
land
tenure,
|
· |
mining
policies,
|
· |
monetary
policies,
|
· |
taxation,
|
· |
rates
of exchange,
|
· |
environmental
regulations,
|
· |
labor
relations,
|
· |
repatriation
of income and/or
|
· |
return
of capital.
|
· |
stricter
standards and enforcement,
|
· |
increased
fines and penalties for non-compliance,
|
· |
more
stringent environmental assessments of proposed projects and
|
· |
a
heightened degree of responsibility for companies and their officers,
directors and employees.
|
· |
environmental
hazards,
|
· |
industrial
accidents,
|
· |
metallurgical
and other processing,
|
· |
acts
of God, and/or
|
· |
mechanical
equipment and facility performance problems.
|
· |
damage
to, or destruction of, mineral properties or production
facilities,
|
· |
personal
injury or death,
|
· |
environmental
damage,
|
· |
delays
in mining,
|
· |
monetary
losses and /or
|
· |
possible
legal liability.
|
· |
the
location of economic ore bodies,
|
· |
development
of appropriate metallurgical processes,
|
· |
receipt
of necessary governmental approvals and
|
· |
construction
of mining and processing facilities at any site chosen for mining.
|
· |
the
price of gold,
|
· |
the
particular attributes of the deposit, such as its
|
·
|
size,
|
·
|
grade and
|
·
|
proximity to infrastructure,
|
· |
financing
costs,
|
· |
taxation,
|
· |
royalties,
|
· |
land
tenure,
|
· |
land
use,
|
· |
water
use,
|
· |
power
use,
|
· |
importing
and exporting gold and
|
· |
environmental
protection.
|
i. |
with
a price of less than five dollars per share;
|
· |
that
are not traded on a recognized national exchange;
or
|
ii. |
of
issuers with net tangible assets equal to or less than
|
· |
-$2,000,000
if the issuer has been in continuous operation for at least three
years;
or
|
· |
-$5,000,000
if in continuous operation for less than three years,
or
|
· |
of
issuers with average revenues of less than $6,000,000 for the last
three
years.
|
i. |
to
obtain from the investor information concerning his or her financial
situation, investment experience and investment objectives;
|
ii. |
to
determine reasonably, based on that information, that transactions
in
penny stocks are suitable for the investor and that the investor
has
sufficient knowledge and experience as to be reasonably capable of
evaluating the risks of penny stock transactions;
|
iii. |
to
provide the investor with a written statement setting forth the basis
on
which the broker-dealer made the determination in (ii) above; and
|
iv. |
to
receive a signed and dated copy of such statement from the investor,
confirming that it accurately reflects the investor's financial situation,
investment experience and investment objectives.
|
31.1
|
Certification
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 from the
Company's Chief Executive Officer.
|
31.2
|
Certification
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 from the
Company's Chief Financial Officer.
|
32.1
|
Certification
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 from the
Company's Chief Executive Officer.
|
32.2
|
Certification
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 from the
Company's Chief Financial Officer.
|
CAPITAL
GOLD CORPORATION
Registrant
|
||
|
|
|
By: | /s/ Gifford A. Dieterle | |
Gifford A. Dieterle
President/Treasurer
|