Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

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Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
 3 Months Ended 23 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
Cash flows from operating activities:      
Net loss $ (183,980) $ (3,829,450) $ (7,829,872)
Adjustments to reconcile net loss to net cash used in operating activities:      
Amortization of prepaid expenses       95,034
Amortization of debt issuance costs    517 5,206
Amortization of debt discount 27,019 17,865 480,983
Impaiment of mineral rights       500,000
Derivative liability expense       174,128
Change in fair value of derivative liabilities (15,147)    505,053
Stock based consulting       130,000
Stock based compensation expense    41,516 373,648
Common stock issued for services    3,500,000 3,500,000
Decrease in:      
Prepaid expense 5,500 18,598 9,141
Accounts payable and accrued expenses 166,607 156,576 1,272,867
Net cash used in operating activities    (94,378) (783,811)
Cash flows from financing activities:      
Proceeds from issuance of preferred stock       50,000
Proceeds from issuance of common stock       550,000
Net proceeds from debentures    90,000 127,500
Net cash provided by financing activities    90,000 727,500
Net decrease in cash    (4,378) (56,311)
Cash, beginning of period 20 15,047 56,331
Cash, end of period 20 10,669 20
Cash paid during the period for:      
Interest         
Income Taxes         
Supplemental disclosure of non-cash investing and financing activities:      
Contributed capital in connection with an extinguishment of a convertible debenture    47,500 31,666
Issuance of common stock for convertible debentures    250,000 505,000
Issuance of common stock for accrued director's fees    10,000   
Reclassification of derivative liability to equity    3,195,270 9,662,196
Issuance of common stock in connection with the transfer and conveyance of certain silver mining claim       $ 500,000