Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

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Consolidated Statements of Cash Flows (Unaudited) (USD $)
 6 Months Ended 15 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Cash flows from operating activities:      
Net loss $ (4,262,018) $ (14,501,285) $ (7,096,838)
Adjustments to reconcile net loss to net cash used in operating activities:      
Amortization of prepaid expenses    96,343 95,034
Amortization of debt issuance costs 517 3,126 5,206
Amortization of debt discount 47,460 438,811 382,273
Impaiment of mineral rights    500,000 500,000
Derivative liability expense (174,129)    (174,129)
Change in fair value of derivative liabilities (44,735) 13,062,181 636,205
Stock based consulting       130,000
Stock based compensation expense 41,516 83,034 373,648
Common stock issued for services 3,500,000    3,500,000
Gain from settlement of debt    (28,244)   
(Increase) Decrease in:      
Prepaid expense 26,473 (87,505) 5,669
Increase (Decrease) in:      
Accounts payable and accrued expenses 374,357 149,926 561,089
Liabilities of discontinued operations    (15,000)   
Net cash used in operating activities (142,301) (298,613) (733,585)
Cash flows from financing activities:      
Proceeds from issuance of common stock    550,000 550,000
Proceeds from exercise of stock warrants    125,000   
Net proceeds from debentures 127,500    127,500
Net cash provided by financing activities 127,500 675,000 677,500
Net increase (decrease) in cash (14,801) 376,387 (56,085)
Cash, beginning of period 15,047 94,053 56,331
Cash, end of period 246 470,440 246
Cash paid during the period for:      
Interest         
Income Taxes         
Supplemental disclosure of non-cash investing and financing activities:      
Issuance of common stock in connection with acquisition of business         
Contributed capital in connection with an extinguishment of a convertible debenture    95,000 31,666
Issuance of common stock for convertible debentures 55,000 375,000 505,000
Issuance of common stock for accrued director's fees    10,000   
Reclassification of derivative liability to equity    4,706,286 9,662,196
Issuance of common stock in connection with the transfer and conveyance of certain silver mining claim       500,000
Issuance of convertible promissory notes $ 105,882    $ 105,882