Applied Minerals (AMNL) 10-Q 12 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	6-May-14
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'Applied Minerals, Inc.	'
Entity Central Index Key	'0000008328	'
Current Fiscal Year End Date	'--12-31	'
Entity Well-known Seasoned Issuer	'No	'
Entity Voluntary Filers	'No	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	94,843,693
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	31-Mar-14	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Current Assets	'	'
Cash and cash equivalents	$5,871,096	$8,685,552
Accounts receivable, net of $0 allowance	10,944	5,756
Deposits and prepaid expenses	338,276	423,472
Total Current Assets	6,220,316	9,114,780
Property and Equipment	'	'
Land and mining property	1,109,938	1,109,938
Property and equipment, net	6,100,055	4,921,611
Total Property and Equipment, Net	7,209,993	6,031,549
Other Assets	'	'
Deposit	68,958	68,958
Total Other Assets	68,958	68,958
TOTAL ASSETS	13,499,267	15,215,287
Current Liabilities	'	'
Accounts payable and accrued liabilities	2,022,654	1,580,146
Stock awards payable	72,000	110,000
Current portion of notes payable	198,663	311,165
Total Current Liabilities	2,293,317	2,001,311
Long-Term Liabilities	'	'
Long-term portion of notes payable	30,430	40,826
Warrant derivative	225,000	950,000
PIK notes payable, net of $2,009,961 and $2,020,750 debt discount, respectively	9,015,039	8,486,583
PIK Note derivative	480,375	2,250,000
Total Long-Term Liabilities	9,750,844	11,727,409
Total Liabilities	12,044,161	13,728,720
Commitments and Contingencies	'	'
Stockholders' Equity (Deficit)	'	'
Preferred stock, $0.001 par value, 10,000,000 shares authorized, none issued or outstanding	0	0
Common stock, $0.001 par value, 200,000,000 shares authorized, 94,767,105 and 94,646,013 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively	94,767	94,646
Additional paid-in capital	63,539,536	63,213,893
Accumulated deficit prior to the exploration stage	-20,009,496	-20,009,496
Accumulated deficit during the exploration stage	-42,169,701	-41,812,476
Total Stockholders' Equity (Deficit)	1,455,106	1,486,567
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$13,499,267	$15,215,287

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Current Assets	'	'
Accounts receivable, allowance	$0	$0
Current Liabilities	'	'
Debt discount	$2,009,961	$2,020,750
Stockholders' Equity (Deficit)	'	'
Preferred stock, par value (in dollars per share)	$0.00	$0.00
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	94,767,105	94,646,013
Common stock, shares outstanding (in shares)	94,767,105	94,646,013

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) (USD $)	3 Months Ended		63 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited) [Abstract]	'	'	'
REVENUES	$11,014	$25,086	$324,533
OPERATING EXPENSES:	'	'	'
Production costs	3,749	15,767	204,809
Exploration costs	1,197,156	1,367,612	15,299,545
General and administrative	1,254,016	2,145,423	27,783,226
Depreciation expense	108,386	78,798	1,242,144
Loss on impairment and disposition of land and equipment	0	0	62,994
Total Operating Expenses	2,563,307	3,607,600	44,592,718
Operating Loss	-2,552,293	-3,582,514	-44,268,185
OTHER INCOME (EXPENSE):	'	'	'
Interest expense, net, including amortization of deferred financing cost and debt discount	-300,167	-4,933	-2,269,392
Gain on revaluation of warrants	725,000	495,000	2,575,000
Gain (loss) on revaluation of stock award	38,000	14,000	-164,500
Gain on revaluation of PIK derivative	1,792,500	0	1,597,500
Other income (expense)	-60,265	-444	358,814
Total Other Income	2,195,068	503,623	2,097,422
Loss from continuing operations	-357,225	-3,078,891	-42,170,763
Income from discontinued operations	0	0	53,382
Net loss	-357,225	-3,078,891	-42,117,381
Net income attributable to the non-controlling interest	0	0	-52,320
Net Loss Attributable to Applied Minerals	-357,225	-3,078,891	-42,169,701
Change in Market Value of Investments	0	0	1,327
Net Comprehensive Loss	($357,225)	($3,078,891)	($42,168,374)
Net Loss Per Share (Basic and Diluted)	'	'	'
Net Loss Per Share (Basic and Diluted) (in dollars per share)	$0	$0.03	'
Weighted Average Shares Outstanding (Basic and Diluted) (in shares)	94,692,696	93,681,139	'

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) (USD $)	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit Prior to Exploration Stage [Member]	Accumulated Deficit During Exploration Stage [Member]	Total
Balance at Dec. 31, 2013	$94,646	$63,213,893	($20,009,496)	($41,812,476)	$1,486,567
Balance (in shares) at Dec. 31, 2013	94,646,013	'	'	'	94,646,013
Increase (Decrease) in Stockholders' Equity	'	'	'	'	'
Shares issued for directors fees and other services	121	110,793	0	0	110,914
Shares issued for directors fees and other services (in shares)	121,092	'	'	'	'
Stock-based compensation expense for consultants and directors	0	214,850	0	0	214,850
Net loss	0	0	0	-357,225	-357,225
Balance at Mar. 31, 2014	$94,767	$63,539,536	($20,009,496)	($42,169,701)	$1,455,106
Balance (in shares) at Mar. 31, 2014	94,767,105	'	'	'	94,767,105

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	3 Months Ended		63 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014
Cash Flows From Operating Activities:	'	'	'
Net loss	($357,225)	($3,078,891)	($42,169,701)
Adjustments to reconcile net loss to net cash used in operations:	'	'	'
Depreciation	108,386	78,798	1,242,144
Amortization of deferred financing costs	0	0	150,000
Amortization of discount - PIK Notes	26,331	0	435,448
Issuance of PIK Notes in payment of interest	525,000	0	1,388,870
Stock issued for director and consulting services	110,914	38,375	779,213
Stock-based compensation expense	214,850	1,284,842	10,153,682
Gain on revaluation of warrant derivative	-725,000	-495,000	-2,575,000
Gain on revaluation of PIK Notes	-1,792,500	0	-1,597,500
(Gain) loss on revaluation of stock awards for non-employees	-38,000	-14,000	164,500
Gain on stock award forfeiture	0	0	-145,000
Loss on disposition of assets	0	0	74,753
Gain on settlement of debts	0	0	-101,380
Other non-cash income	0	0	-28,587
Provision for doubtful accounts	0	0	25,106
Change in operating assets and liabilities:	'	'	'
Accounts receivable	-5,188	-16,456	-36,006
Deposits and prepaids	85,196	45,299	420,767
Accounts payable and accrued expenses	-528,614	-489,697	545,394
Net cash (used in) provided by discontinued operations	0	0	603,585
Net cash used in operating activities	-2,375,850	-2,646,730	-30,669,712
Cash Flows From Investing Activities:	'	'	'
Purchases of land and mining property	0	0	-72,923
Purchases of property and equipment	-18,539	-402,986	-858,395
Construction in progress	-297,169	0	-3,330,719
Proceeds from sale of assets	0	0	151,000
Net cash provided by discontinued operations	0	0	434,670
Net cash used in investing activities	-315,708	-402,986	-3,676,367
Cash Flows From Financing Activities:	'	'	'
Payments on notes payable	-122,898	-136,885	-1,737,436
Payments on leases payable	0	0	-431,088
Proceeds from insurance settlement	0	0	115,000
Proceeds from notes payable	0	0	124,129
Proceeds from PIK notes payable	0	0	20,100,000
Proceeds from sale of common stock	0	5,560,000	21,370,000
Payments for legal settlement	0	0	-170,000
Net cash used by discontinued operations	0	0	-56,431
Net cash (used in) provided by financing activities	-122,898	5,423,115	39,314,174
Net (decrease) increase in cash and cash equivalents	-2,814,456	2,373,399	4,968,095
Cash and cash equivalents at beginning of period	8,685,552	3,356,103	903,001
Cash and cash equivalents at end of period	5,871,096	5,729,502	5,871,096
Cash Paid For:	'	'	'
Interest	3,745	6,487	131,667
Income Taxes	1,403	2,834	7,259
Supplemental Disclosure of Non-Cash Investing and Financing Activities:	'	'	'
Conversion of debt and accrued interest to common stock	0	0	11,459,738
Property and equipment financed on lease	0	0	197,000
Property and equipment financed with notes payable	0	0	642,088
Construction-in-progress in accounts payable	120,000	0	524,563
Prepaid insurance financed with note payable	0	25,005	545,695
Land reclassified from assets held for sale to land and mining property	0	0	445,180
Reclassification of construction-in-progress to buildings	2,405,648	0	2,405,648
Reclassification of construction-in-progress to milling equipment	1,857,727	0	1,857,727
Reclassification of construction-in-progress to lab equipment	$96,077	$0	$96,077

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2014
BASIS OF PRESENTATION [Abstract]	'
BASIS OF PRESENTATION	'
	NOTE 1 - BASIS OF PRESENTATION
	In the opinion of management, the accompanying unaudited, condensed, consolidated financial statements contain all adjustments necessary to present fairly the financial position of Applied Minerals, Inc. ("Applied Minerals" or "the Company" or "we") and its results of operations and cash flows for the interim periods presented.  Such financial statements have been condensed in accordance with the applicable regulations of the Securities and Exchange Commission and, therefore, do not include all disclosures required by accounting principles generally accepted in the United States of America.  These financial statements should be read in conjunction with the Company's audited financial statements for the year ended December 31, 2013, included in the Company's Annual Report filed on Form 10-K for such year.  The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results to be expected for the entire year.

ORGANIZATION_AND_DESCRIPTION_O

ORGANIZATION AND DESCRIPTION OF BUSINESS	3 Months Ended
	Mar. 31, 2014
ORGANIZATION AND DESCRIPTION OF BUSINESS [Abstract]	'
ORGANIZATION AND DESCRIPTION OF BUSINESS	'
	NOTE 2 - ORGANIZATION AND DESCRIPTION OF BUSINESS
	Applied Minerals, Inc. (the “Company”) is the owner of the Dragon Mine located in the Tintic Mining District of the State of Utah from where it produces halloysite clay and iron oxide.  The Company is currently in various phases of commercial scale trials with several organizations in various markets with respect to uses of its products.
	Applied Minerals is a publicly traded company incorporated in the state of Delaware. The common stock trades on the OTC Bulletin Board under the symbol AMNL.

LIQUIDITY

LIQUIDITY	3 Months Ended
	Mar. 31, 2014
LIQUIDITY [Abstract]	'
LIQUIDITY	'
	NOTE 3 – LIQUIDITY
	As the Company continues its commercialization efforts of halloysite clay and iron oxide, it may also require additional financing later in 2014 to fund its current operations as it has done in the past.  The Company has a history of recurring losses from operations and use of cash in operating activities as it is still a development stage company. For the three months ended March 31, 2014, the Company’s net loss was $357,225 and cash used in operating activities was $2,375,850. As of March 31, 2014, the Company had working capital of $3,926,999 which may not be sufficient to support its current operations for the next twelve months based on its business plan without obtaining additional financing. Collectively, these factors raise substantial doubt about the Company’s ability to continue as a going concern.
	Besides continuing its strategic business plan on generating revenue, the Company intends to explore various strategic alternatives, including the sale of equity, debt or the disposal of certain non-core assets to raise additional capital. During 2013, the Company raised gross proceeds of $16,060,000 pursuant to the sale of common stock and issuance of convertible PIK Notes. Management can also take steps to reduce the Company’s future operating expenses as needed.  However, the Company cannot provide any assurance that it will be able to raise additional capital as needed.  The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should the Company be unable to continue as a going concern.

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2014

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

'

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

'

NOTE 4 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Exploration-Stage Company

Effective January 1, 2009, due to the shutdown of our contract mining business, we were, and still are, classified as an exploration company as the existence of proven or probable reserves has not been demonstrated and no significant revenue has been earned from the mine.  Under the SEC’s Industry Guide 7, a mining company is considered an exploration stage company until it has declared mineral reserves determined in accordance with the guide and staff interpretations thereof.  As a result, we are unable to present inventories of mined and processed mineralization and are unable to capitalize any related development costs.

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of Applied Minerals, Inc. and its controlled subsidiary, Park Copper and Gold Mining Company Limited (“Park Copper”). The financial information related to Park Copper was consolidated into the Company’s consolidated financial statements in 2010.  In 1999 we acquired a 53% interest in the Park Copper Mining Company for $72,825, which holds 100 acres of timber and mineral property in northern Idaho.  At December 31, 2011, the investment in Park Copper was fully impaired.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period.  In these condensed consolidated financial statements, the warrant and PIK note derivative liabilities, stock compensation and impairment of long-lived assets involve extensive reliance on management’s estimates.  Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents include all highly-liquid investments with a maturity of three months or less.  The Company minimizes its credit risk by investing its cash and cash equivalents, which sometimes exceeds FDIC limits, with major financial institutions located in the United States with a high credit rating.

Receivables

Trade receivables are reported at outstanding principal amounts, net of an allowance for doubtful accounts.

Management evaluates the collectability of receivable account balances to determine the allowance, if any.  Management considers the other party’s credit risk and financial condition, as well as current and projected economic and market conditions, in determining the amount of the allowance.  Receivable balances are written off when management determines that the balance is uncollectable.

Property and Equipment

Property and equipment are carried at cost less accumulated depreciation.  Depreciation and amortization is computed on the straight-line method over the estimated useful lives of the assets, or the life of the lease, whichever is shorter, as follows:

Estimated Useful Life

Building and Building Improvements

20 – 40 years

Mining equipment

2 – 7 years

Office and shop furniture and equipment

3 – 7 years

Vehicles

5 years

Depreciation expense for the three months ended March 31, 2014 and 2013 totaled $108,386 and $78,798, respectively.  The Company currently does not capitalize any amounts related to proven or probable reserves and therefore does not have any depletion expense.

Fair Value

ASC Topic 820, Fair Value Measurement and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  This topic also establishes a fair value hierarchy, which requires classification based on observable and unobservable inputs when measuring fair value.  The fair value hierarchy distinguishes between assumptions based on market data (observable inputs) and an entity’s own assumptions (unobservable inputs).  The hierarchy consists of three levels:

Level 1 - quoted prices in active markets for identical assets and liabilities

Level 2 - observable inputs other than quoted prices in active markets for identical assets and liabilities

Level 3 - significant unobservable inputs

Liabilities measured at fair value on a recurring basis are summarized as follows:

Fair value measurement using inputs

Carrying amount

Level 1

Level 2

Level 3

31-Mar-14

31-Dec-13

Financial instruments:

Warrant derivative

$

225,000

$

225,000

$

950,000

PIK Note derivative

$

480,375

$

480,375

$

2,250,000

The recorded value of certain financial assets and liabilities, which consist primarily of cash and cash equivalents, receivables, other current assets, and accounts payable and accrued expenses approximate their fair value at March 31, 2014 and December 31, 2013 based upon the short-term nature of the assets and liabilities.  Based on borrowing rates currently available to the Company for loans with similar terms, the carrying value of notes payable approximate fair value. Estimated fair value of the PIK Notes payable approximates $15.2 million at March 31, 2014. For the Company's warrant and PIK note derivative liabilities, fair value was estimated using a Monte Carlo Model using the following assumptions:

Warrant derivative liability

Fair Value Measurements

Using Inputs

31-Mar-14

31-Dec-13

Market price and estimated fair value of stock

$

0.72

$

1.1

Exercise price

$

1.93

$

1.93

Term (years)

2.73

3

Dividend yield

$

--

$

--

Expected volatility *

56

%

76.9

%

Risk-free interest rate

0.5

%

0.78

%

PIK Note derivative liability

Fair Value Measurements

Using Inputs

31-Mar-14

31-Dec-13

Market price and estimated fair value of stock

$

0.72

$

1.1

Exercise price

$

1.4

$

1.4

Term (years)

9.33

9.58

Dividend yield

$

--

--

Expected volatility *

56

%

76.9

%

Risk-free interest rate

2.63

%

2.96

%

* During the first quarter of 2014, the Company revised its assumption for expected volatility by switching from a peer-group average volatility to the Company’s three-year historical volatility in measuring the value of the derivative liabilities mentioned above.  Prior to 2011, the occurrence of certain corporate events would not have made the historical volatility calculations meaningful or accurate if included.  This reduction in volatility led to a reduced valuation for both the Warrant and PIK Note derivative liabilities of approximately $118,500 and $126,000, respectively. The remaining decrease in the valuation is attributable to the decline in the Company’s stock price.

Impairment of Long-lived Assets

The Company periodically reviews the carrying amounts of long-lived assets to determine whether current events or circumstances warrant adjustment to such carrying amounts. Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. When such events occur, the Company compares the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset to its carrying amount.

If this comparison indicates an impairment, the amount of the impairment is typically calculated using discounted expected future cash flows where observable fair values are not readily determinable. Considerable management judgment is necessary to estimate the fair value of assets. Assets to be disposed of are carried at the lower of their financial statement carrying amount or fair value, less cost to sell.

Revenue Recognition

Revenue includes sales of halloysite clay and, commencing in June 2013, iron oxide, and is recognized when title passes to the buyer and when collectability is reasonably assured.  Title passes to the buyer based on terms of the sales contract.  Product pricing is determined based on related contractual arrangements with the Company’s customers.

Mining Exploration and Development Costs

Land and mining property are carried at cost.  The Company expenses prospecting and mining exploration costs.  At the point when a property is determined to have proven and probable reserves, subsequent development costs will be capitalized and will be charged to operations using the units-of-production method over proven and probable reserves.  Upon abandonment or sale of a mineral property, all capitalized costs relating to the specific property are written off in the period abandoned or sold and a gain or loss is recognized.

Income taxes

The Company uses an asset and liability approach which results in the recognition of deferred tax liabilities and assets for the expected future tax consequences or benefits of temporary differences between the financial reporting basis and the tax basis of assets and liabilities, as well as operating loss and tax credit carry forwards, using enacted tax rates in effect in the years in which the differences are expected to reverse.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of its deferred tax assets will not be realized.  Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment.  A valuation allowance has been provided for the portion of the Company’s net deferred tax assets for which it is more likely than not that they will not be realized.

The Company is subject to U.S. federal income tax as well as income tax of certain state jurisdictions.  Federal income tax returns subsequent to 2009 are subject to examination by major tax jurisdictions.  The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense.

The Company follows the provision of ASC Topic 740-10, “Income Taxes”, relating to recognition thresholds and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods and requires increased disclosures.  This guidance provides that the tax effects from an uncertain tax position can be recognized in our financial statements, only if the position is more likely than not of being sustained on audit, based on the technical merits of the position.  As of March 31, 2014, no amounts are included in the financial statements for unrecognized tax benefits.

Stock Options and Warrants

The Company follows ASC 718 (Stock Compensation) and 505-50 (Equity-Based Payments to Non-employees), which provide guidance in accounting for share-based awards exchanged for services rendered and requires companies to expense the estimated fair value of these awards over the requisite service period.  On November 20, 2012, the shareholders of the Company approved the adoption of the Applied Minerals, Inc. 2012 Long-Term Incentive Plan (“LTIP”) and the Short-Term Incentive Plan (“STIP”) and the performance criteria used in setting performance goals for awards intended to be performance-based.  Prior to the adoption of the LTIP and STIP, stock options were granted under individual arrangements between the Company and the grantees, and approved by the Board of Directors.

We determine the fair value of the stock-based compensation awards granted to non-employees as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. If the fair value of the equity instruments issued is used, it is measured using the stock price and other measurement assumptions as of the earlier of either of (1) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date at which the counterparty’s performance is complete.  The Company utilized the contractual term as the expected term.

Per share data

Loss per share for the three months ended March 31, 2014 and 2013, respectively, is calculated based on 94,692,696 and 93,681,139 weighted average outstanding shares of common stock.

At March 31, 2014 and 2013, respectively, the Company has outstanding options and warrants to purchase 22,283,046 and 21,706,267 shares of Company common stock, which were not included in the diluted computation as their effect would be anti-dilutive.

Environmental Matters

Expenditures for ongoing compliance with environmental regulations that relate to current operations are expensed or capitalized as appropriate.  Expenditures resulting from the remediation of existing conditions caused by past operations that do not contribute to future revenue generations are expensed.  Liabilities are recognized when environmental assessments indicate that remediation efforts are probable and the costs can be reasonably estimated.

Estimates of such liabilities are based upon currently available facts, existing technology and presently enacted laws and regulations taking into consideration the likely effects of inflation and other societal and economic factors, and include estimates of associated legal costs.  These amounts also reflect prior experience in remediating contaminated sites, other companies’ clean-up experience and data released by The Environmental Protection Agency or other organizations.  Such estimates are by their nature imprecise and can be expected to be revised over time because of changes in government regulations, operations, technology and inflation.  Recoveries are evaluated separately from the liability and, when recovery is assured, the Company records and reports an asset separately from the associated liability.

Based upon management’s current assessment of its environmental responsibilities, the Company cannot reasonably estimate any reclamation or remediation liability that may occur in the future, if any.

STOCK_AWARD_PAYABLE

STOCK AWARD PAYABLE	3 Months Ended
	Mar. 31, 2014
STOCK AWARD PAYABLE [Abstract]	'
STOCK AWARD PAYABLE	'
	NOTE 5 - STOCK AWARD PAYABLE
	The stock award payable amount relates to 100,000 shares issuable, but not issued, under a 2007 employment agreement.  The Company believes that it has good defenses against any demand to issue the shares, including the expiration of the time for instituting suit under the statue of limitations, but the Company is not able to remove the liability until released by the former employee or by judicial decree.  As such, the Company recorded the stock grant as a liability and revalues it based on the quoted price of the Company's stock at the end of each period.  The Company continues to explore its options to resolve this outstanding issue. The value of the outstanding stock awards at March 31, 2014 and December 31, 2013 were $72,000 and $110,000, respectively, thus resulting in a $38,000 gain on the revaluation of the remaining stock award for the three months ended March 31, 2014.  See Note 12 for Subsequent Event in May 2014.

INCOME_TAX

INCOME TAX	3 Months Ended
	Mar. 31, 2014
INCOME TAX [Abstract]	'
INCOME TAX	'
	NOTE 6 - INCOME TAX
	Income tax provisions or benefits for interim periods are computed based on the Company's estimated annual effective tax rate.  Based on the Company's historical losses and its expectation of the continuation of losses for the foreseeable future, the Company has determined that it is more likely than not that deferred tax assets will not be realized and, accordingly, has provided a full valuation allowance as of March 31, 2014 and December 31, 2013.

NOTES_PAYABLE

NOTES PAYABLE	3 Months Ended
	Mar. 31, 2014
NOTES PAYABLE [Abstract]	'
NOTES PAYABLE	'
	NOTE 7 - NOTES PAYABLE
	Notes payable at March 31, 2014 and December 31, 2013 consist of the following:
			March 31,			December 31,
			2014			2013
	Note payable for mining equipment, payable $5,556 monthly, including interest (a)		$	27,141		$	42,927
	Note payable for mining equipment, payable $950 monthly, including interest (b)			21,087			23,302
	Note payable for mining equipment, payable $6,060 monthly, including interest (c)			59,102			76,313
	Note payable for mine site vehicle, payable $628 monthly (d)			26,391			28,276
	Note payable for mining equipment, payable $5,000 monthly, including interest (e)			-0-			9,932
	Note payable for mining equipment, payable $1,632 monthly, including interest (f)			2,240			8,898
	Note payable to an insurance company, payable $19,139 monthly, including interest (g)			76,055			132,576
	Note payable to an insurance company, payable $4,297 monthly, including interest (h)			17,077			29,767
				229,093			351,991
	Less:  Current Portion			(198,663	)		(311,165	)
	Notes Payable, Long-Term Portion		$	30,430		$	40,826
		(a)	On July 7, 2011, the Company purchased mining equipment for $198,838 by issuing a note with an implicit interest rate of 9.34%.  The note is collateralized by the mining equipment with payments of $5,556 for 36 months, which started on August 15, 2011.
		(b)	On April 17, 2012, the Company purchased mining equipment for $40,565 by issuing a note with an effective interest rate of 11.279%.  The note is collateralized by the mining equipment with payments of $950 for 48 months, which started on May 1, 2012.
		(c)	On July 23, 2012, the Company purchased mining equipment for $169,500 by issuing a note with an interest rate of 5.5%.  The note is collateralized by the mining equipment with payments of $6,060 for 30 months, which started on August 25, 2012.
		(d)	On September 20, 2012, the Company purchased a vehicle for the mine site for $37,701 by issuing a non-interest bearing note.  The note is collateralized by the vehicle with payments of $628 for 60 months, which started on October 20, 2012.
		(e)	On November 16, 2012, the Company purchased a piece of mining equipment that had been leased for $67,960 by issuing a note with an effective interest rate of 5.5%.  The note was collateralized by the mining equipment with payments of $3,518 for three months, then $5,000 for twelve months.
		(f)	On November 16, 2012, the Company purchased a piece of mining equipment that had been leased for $33,748 by issuing a note with an effective interest rate of 5.5%.  The note is collateralized by the mining equipment with payments of $1,632 for five months, then $2,250 for twelve months.
		(g)	The Company signed a note payable with an insurance company dated October 17, 2013 for directors’ and officers’ insurance, due in monthly installments, including interest at 3.15%.  The note will mature on July 2014.
		(h)	The Company signed a note payable with an insurance company dated October 21, 2013 for liability insurance, due in monthly installments, including interest at 3.15%.  The note will mature on July 2014.
	The following is a schedule of the principal maturities on these notes as of March 31, 2014:
	April 2014- March 2015		$	198,663
	April 2015- March 2016			18,178
	April 2016- March 2017			8,482
	April 2017- March 2018			3,770
	Total Notes Payable		$	229,093
	During the three months ended March 31, 2014 and 2013, the Company's interest payments related to notes payables totaled $3,745 and $6,487 respectively.

CONVERTIBLE_DEBT_PIK_NOTES

CONVERTIBLE DEBT (PIK NOTES)	3 Months Ended
	Mar. 31, 2014
CONVERTIBLE DEBT (PIK NOTES) [Abstract]	'
CONVERTIBLE DEBT (PIK NOTES)	'
	NOTE 8 – CONVERTIBLE DEBT (PIK NOTES)
	In August 2013, the Company received $10,500,000 of financing through the private placement of 10% mandatory convertible Notes due 2023 ("Notes"). The principal amount of the Notes is due on maturity.  The Company can elect to pay semi-annual interest on the Notes with additional PIK Notes containing the same terms as the Notes, except interest will accrue from issuance of such notes. The Company can also elect to pay interest in cash.  In February 2014, the Company issued $525,000 in additional PIK Notes to the holders to pay the semi-annual interest.
	The Notes convert into the Company’s common stock at a conversion price of $1.40 per share, which is subject to customary antidilution adjustments.   As of issuance, the Notes are convertible into 7,500,000 shares of the common stock.  The holders may convert the Notes at any time.  The Notes are mandatorily convertible after one year when the weighted average trading price of a share of the common stock for the preceding ten trading days is in excess of the conversion price.  The Notes contain customary representations and warranties and several covenants.  The proceeds are being used for general corporate purposes.  No broker was used and no commission was paid in connection with the sale of the Notes.
	These Notes were not issued with the intent of effectively hedging any future cash flow, fair value of any asset, liability or any net investment in a foreign operation.  In addition to the customary antidilution provisions the notes contain a down-round provision whereby the conversion price would be adjusted downward in the event that additional shares of the Company’s common stock or securities exercisable, convertible or exchangeable for the Company’s common stock were issued for cash consideration (e.g. a capital raise) at a price less than the conversion price.  Therefore, the estimated fair value of the conversion feature of $2,055,000 (based on observable inputs) was bifurcated from the Notes and accounted for as a separate derivative liability, which resulted in a corresponding amount of debt discount on the Notes.  The debt discount is being amortized using the effective interest method over the 10-year term of the Notes as Interest Expense, while the PIK Note Derivative is carried at fair value (using a Monte Carlo model) until the Notes are converted or otherwise extinguished. Any changes in fair value are recognized in earnings.
	At March 31, 2014, the fair value of the PIK Note Derivative was estimated to be $480,375, which includes the fair value of the additional PIK Notes derivative issued in February 2014, as mentioned above.  Total gain from the revaluation of the original PIK Notes was $1,792,500 for the first quarter ending March 31, 2014.  In addition, the Company amortized $26,331 of debt discount relating to the PIK Notes Payable, increasing the PIK Notes Payable carrying value to $9,015,039 as of March 31, 2014.

STOCKHOLDERS_EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2014
STOCKHOLDERS' EQUITY [Abstract]	'
STOCKHOLDERS' EQUITY	'
	NOTE 9 - STOCKHOLDERS' EQUITY
	During the three months ended March 31, 2014, the Company issued a total of 121,092 shares of common stock valued at $110,914 to directors and consultants as payments of fees.

OPTIONS_AND_WARRANTS_TO_PURCHA

OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK	3 Months Ended
	Mar. 31, 2014
OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK [Abstract]	'
OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK	'
	NOTE 10 - OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK
	Derivative Instruments - Warrants
	The Company issued 5,000,000 warrants (“Samlyn warrants”) in connection with the December 22, 2011 private placement of 10,000,000 shares of common stock.  The strike price of these warrants was $2.00 per share at the date of grant.  These warrants were not issued with the intent of effectively hedging any future cash flow, fair value of any asset, liability or any net investment in a foreign operation.  In addition to the customary antidilution provisions the notes contain a down-round provision whereby the exercise price would be adjusted downward in the event that additional shares of the Company's common stock or securities exercisable, convertible or exchangeable for the Company's common stock were issued at a price less than the exercise price.  Therefore, the fair value of these warrants (based on observable inputs) was recorded as a liability in the balance sheet until they are exercised or expire or are otherwise extinguished.  During the first quarter of 2013, the Company issued 3,756,757 shares of its common stock for gross proceeds of $5,560,000, which triggered a down-round adjustment of $0.03 from $2.00 to $1.97 in the strike price of the Samlyn warrants at that time.  As discussed in Note 8, during August 2013, the Company issued $10,500,000 of 10% mandatorily convertible PIK Notes due 2023 ("Notes") in a private placement, which triggered a down-round adjustment of $0.04 from $1.97 to $1.93 in the strike price of the Samlyn warrants.
	During the three months ended March 31, 2014 and 2013, the Company recognized $725,000 and $495,000, respectively, of other income resulting from the decrease in the fair value of the warrant liability.  As described in Note 4, this reduction mainly resulted from a lower stock price and a change in the volatility utilized by the Company.
	Outstanding Stock Warrants
	A summary of the status of the warrants outstanding and exercisable at March 31, 2014 is presented below:
					Warrants Outstanding and Exercisable
	Exercise Price				Number			Weighted Average	Weighted
					Outstanding			Remaining	Average
								Contractual Life	Exercise Price
	$	0.75				139,340		1.50 years	$	0.75
	$	0.78				213,402		1.84 years	$	0.78
	$	0.8				124,481		1.75 years	$	0.8
	$	1				212,000		1.41 years	$	1
	$	1.15				461,340		7.08 years	$	1.15
	$	1.93				5,000,000		2.73 years	$	1.93
	$	2				54,367		2.34 years	$	2
						6,204,930		2.93 years	$	1.75
	No warrants have been issued since 2011 and no warrants vested in 2013 or 2014; accordingly, no compensation expense has been recorded during 2013 and 2014.  The intrinsic value of the outstanding warrants at March 31, 2014 was $0.
	Excluding the 5,000,000 warrants with the down round provisions discussed above, the fair value of each of the Company’s stock warrant awards is estimated on the date of grant using a Black-Scholes option-pricing model that uses the assumptions noted in the table below.
	Outstanding Stock Options
	On November 20, 2012, the shareholders of the Company approved the adoption of the Applied Minerals, Inc. 2012 Long-Term Incentive Plan (“LTIP”) and the Short-Term Incentive Plan (“STIP”) and the performance criteria used in setting performance goals for awards intended to be performance-based.  Under the LTIP, 8,900,000 shares are authorized for issuance.  The STIP does not refer to a particular number of shares under the LTIP, but would use the shares authorized in the LTIP for issuance under the STIP.  The CEO, the CFO, and named executive officers, and directors, among others are eligible to participate in the LTIP and STIP. Prior to the adoption of the LTIP and STIP, stock options were granted under individual arrangements between the Company and the grantees, and approved by the Board of Directors.
	The fair value of each of the Company's stock option awards is estimated on the date of grant using the Black-Scholes option-pricing model that uses the assumptions noted in the table below.  Expected volatility is based on an average of historical volatility of the Company's common stock.  The risk-free interest rate for periods within the contractual life of the stock option award is based on the yield curve of a zero-coupon U.S. Treasury Bond on the date the award is granted with a maturity equal to the expected term of the award.
	The significant assumptions relating to the valuation of the Company's options issued for the three months ended March 31, 2014 and 2013 were as follows:
		2014		2013
	Dividend Yield	0%		0%
	Expected Life	5.2 years		5 - 10 years
	Expected Volatility	58%		83%
	Risk Free Interest Rate	1.60%		0.88%-1.66%
	A summary of the status and changes of the options granted under stock option plans and other agreements for the first quarter of 2014 is as follows:
			31-Mar-14
							Weighted
							Average
			Shares				Exercise Price
	Outstanding at beginning of period			15,878,116			$	1.03
	Issued			200,000				0.83
	Exercised			--				--
	Forfeited			--				--
	Outstanding at end of period			16,078,116			$	1.03
	During the three months ended March 31, 2014, the Company granted 200,000 options to purchase the Company’s common stock with a weighted average exercise price of $0.83.   All options granted during the period vest quarterly starting on March 31, 2014 and ending on December 31, 2014.
	A summary of the status of the options outstanding at March 31, 2014 is presented below:
	Options Outstanding								Options Exercisable
				Weighted		Weighted					Weighted
				Average		Average					Average
	Number			Remaining		Exercise			Number		Exercise
	Outstanding			Contractual Life		Price			Exercisable		Price
		7,358,277		4.69 years		$	0.7			7,358,277	$	0.7
		3,405,134		7.44 years		$	0.83			3,255,134	$	0.83
		60,000		2.25 years		$	1			60,000	$	1
		300,000		9.39 years		$	1.1			--		--
		300,000		9.24 years		$	1.15			58,333	$	1.15
		100,000		3.84 years		$	1.24			100,000	$	1.24
		115,000		6.99 years		$	1.35			106,667	$	1.35
		125,000		3.84 years		$	1.45			125,000	$	1.45
		330,000		7.70 years		$	1.55			221,667	$	1.55
		7,645		3.84 years		$	1.58			7,645	$	1.58
		3,077,060		8.65 years		$	1.66			3,077,060	$	1.66
		900,000		7.39 years		$	1.9			775,000	$	1.9
		16,078,116		6.41 years		$	1.03			15,144,783	$	1.01
	At March 31, 2014, the total compensation expense of $699,639 for unvested options is to be recognized over the next 18 months on a weighted average basis.
	Compensation expense of $214,850 has been recognized for vesting of options for the three months ended March 31, 2014.  The aggregate intrinsic value of the outstanding options as March 31, 2014 was $147,166.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2014
COMMITMENTS AND CONTINGENCIES [Abstract]	'
COMMITMENTS AND CONTINGENCIES	'
	NOTE 11 - COMMITMENTS AND CONTINGENCIES
	Commitments
	The following table summarizes our contractual obligations as of March 31, 2014 that require us to make future cash payments:
		Payment due by period
		Total		< 1 year		1 - 3 years		3 - 5 years		> 5 years
	Contractual Obligations:
	Rent obligations	$	103,438	$	103,438		--		--		--
	Capital Purchase Obligations (1)		1,140,968		1,140,968		--		--		--
	Total	$	1,244,406	$	1,244,406		--		--		--
	(1) Capital purchase obligations represent commitments for the construction or purchase of property, plant and equipment. They were not recorded as liabilities on our condensed consolidated balance sheet as of March 31, 2014, as we had not yet received the related goods or taken title to the property.
	Contingencies
	The Company was named as the defendant in a lawsuit filed on April 18, 2014 in state District  court in Salt Lake City, Utah.  The plaintiff is Tekko Enterprises, Inc., which was hired in 2012 as project manager for the construction of a processing plant at the Company’s Dragon Mine property and terminated in 2013 before the completion of the plant.  The complaint seeks damages of $346,000, unpaid amounts that the plaintiff claims it is entitled to under the project management agreement and two purchase orders.  The Company intends to vigorously defend against the claims and to counterclaim. At this stage of the litigation, the possible loss or range of loss or the probability of an adverse conclusion cannot be estimated.
	In accordance with ASC Topic 450, when applicable, we record accruals for contingencies when it is probable that a liability will be incurred and the amount of loss can be reasonably estimated. In addition to the matters described herein, we may become involved in or subject to, routine litigation, claims, disputes, proceedings and investigations in the ordinary course of business, could have a material adverse effect on our financial condition, cash flows or results of operations.

SUBSEQUENT_EVENT

SUBSEQUENT EVENT	3 Months Ended
	Mar. 31, 2014
SUBSEQUENT EVENT [Abstract]	'
SUBSEQUENT EVENT [Text Block]	'
	NOTE 12 – SUBSEQUENT EVENT
	During the second quarter of 2014, the Company received a release in writing from the former employee absolving the Company of the Stock Award Payable discussed in Note 5.

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2014

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

'

Exploration-Stage Company

'

Exploration-Stage Company

Effective January 1, 2009, due to the shutdown of our contract mining business, we were, and still are, classified as an exploration company as the existence of proven or probable reserves has not been demonstrated and no significant revenue has been earned from the mine.  Under the SEC’s Industry Guide 7, a mining company is considered an exploration stage company until it has declared mineral reserves determined in accordance with the guide and staff interpretations thereof.  As a result, we are unable to present inventories of mined and processed mineralization and are unable to capitalize any related development costs.

Principles of Consolidation

'

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of Applied Minerals, Inc. and its controlled subsidiary, Park Copper and Gold Mining Company Limited (“Park Copper”). The financial information related to Park Copper was consolidated into the Company’s consolidated financial statements in 2010.  In 1999 we acquired a 53% interest in the Park Copper Mining Company for $72,825, which holds 100 acres of timber and mineral property in northern Idaho.  At December 31, 2011, the investment in Park Copper was fully impaired.

Use of Estimates

'

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period.  In these condensed consolidated financial statements, the warrant and PIK note derivative liabilities, stock compensation and impairment of long-lived assets involve extensive reliance on management’s estimates.  Actual results could differ from those estimates.

Cash and Cash Equivalents

'

Cash and Cash Equivalents

Cash and cash equivalents include all highly-liquid investments with a maturity of three months or less.  The Company minimizes its credit risk by investing its cash and cash equivalents, which sometimes exceeds FDIC limits, with major financial institutions located in the United States with a high credit rating.

Receivables

'

Receivables

Trade receivables are reported at outstanding principal amounts, net of an allowance for doubtful accounts.

Management evaluates the collectability of receivable account balances to determine the allowance, if any.  Management considers the other party’s credit risk and financial condition, as well as current and projected economic and market conditions, in determining the amount of the allowance.  Receivable balances are written off when management determines that the balance is uncollectable.

Property and Equipment

'

Property and Equipment

Property and equipment are carried at cost less accumulated depreciation.  Depreciation and amortization is computed on the straight-line method over the estimated useful lives of the assets, or the life of the lease, whichever is shorter, as follows:

Estimated Useful Life

Building and Building Improvements

20 – 40 years

Mining equipment

2 – 7 years

Office and shop furniture and equipment

3 – 7 years

Vehicles

5 years

Depreciation expense for the three months ended March 31, 2014 and 2013 totaled $108,386 and $78,798, respectively.  The Company currently does not capitalize any amounts related to proven or probable reserves and therefore does not have any depletion expense.

Fair Value

'

Fair Value

ASC Topic 820, Fair Value Measurement and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  This topic also establishes a fair value hierarchy, which requires classification based on observable and unobservable inputs when measuring fair value.  The fair value hierarchy distinguishes between assumptions based on market data (observable inputs) and an entity’s own assumptions (unobservable inputs).  The hierarchy consists of three levels:

Level 1 - quoted prices in active markets for identical assets and liabilities

Level 2 - observable inputs other than quoted prices in active markets for identical assets and liabilities

Level 3 - significant unobservable inputs

Liabilities measured at fair value on a recurring basis are summarized as follows:

Fair value measurement using inputs

Carrying amount

Level 1

Level 2

Level 3

31-Mar-14

31-Dec-13

Financial instruments:

Warrant derivative

$

225,000

$

225,000

$

950,000

PIK Note derivative

$

480,375

$

480,375

$

2,250,000

The recorded value of certain financial assets and liabilities, which consist primarily of cash and cash equivalents, receivables, other current assets, and accounts payable and accrued expenses approximate their fair value at March 31, 2014 and December 31, 2013 based upon the short-term nature of the assets and liabilities.  Based on borrowing rates currently available to the Company for loans with similar terms, the carrying value of notes payable approximate fair value. Estimated fair value of the PIK Notes payable approximates $15.2 million at March 31, 2014. For the Company's warrant and PIK note derivative liabilities, fair value was estimated using a Monte Carlo Model using the following assumptions:

Warrant derivative liability

Fair Value Measurements

Using Inputs

31-Mar-14

31-Dec-13

Market price and estimated fair value of stock

$

0.72

$

1.1

Exercise price

$

1.93

$

1.93

Term (years)

2.73

3

Dividend yield

$

--

$

--

Expected volatility *

56

%

76.9

%

Risk-free interest rate

0.5

%

0.78

%

PIK Note derivative liability

Fair Value Measurements

Using Inputs

31-Mar-14

31-Dec-13

Market price and estimated fair value of stock

$

0.72

$

1.1

Exercise price

$

1.4

$

1.4

Term (years)

9.33

9.58

Dividend yield

$

--

--

Expected volatility *

56

%

76.9

%

Risk-free interest rate

2.63

%

2.96

%

* During the first quarter of 2014, the Company revised its assumption for expected volatility by switching from a peer-group average volatility to the Company’s three-year historical volatility in measuring the value of the derivative liabilities mentioned above.  Prior to 2011, the occurrence of certain corporate events would not have made the historical volatility calculations meaningful or accurate if included.  This reduction in volatility led to a reduced valuation for both the Warrant and PIK Note derivative liabilities of approximately $118,500 and $126,000, respectively. The remaining decrease in the valuation is attributable to the decline in the Company’s stock price.

Impairment of Long-lived Assets

'

Impairment of Long-lived Assets

The Company periodically reviews the carrying amounts of long-lived assets to determine whether current events or circumstances warrant adjustment to such carrying amounts. Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. When such events occur, the Company compares the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset to its carrying amount.

If this comparison indicates an impairment, the amount of the impairment is typically calculated using discounted expected future cash flows where observable fair values are not readily determinable. Considerable management judgment is necessary to estimate the fair value of assets. Assets to be disposed of are carried at the lower of their financial statement carrying amount or fair value, less cost to sell.

Revenue Recognition

'

Revenue Recognition

Revenue includes sales of halloysite clay and, commencing in June 2013, iron oxide, and is recognized when title passes to the buyer and when collectability is reasonably assured.  Title passes to the buyer based on terms of the sales contract.  Product pricing is determined based on related contractual arrangements with the Company’s customers.

Mining Exploration and Development Costs

'

Mining Exploration and Development Costs

Land and mining property are carried at cost.  The Company expenses prospecting and mining exploration costs.  At the point when a property is determined to have proven and probable reserves, subsequent development costs will be capitalized and will be charged to operations using the units-of-production method over proven and probable reserves.  Upon abandonment or sale of a mineral property, all capitalized costs relating to the specific property are written off in the period abandoned or sold and a gain or loss is recognized.

Income taxes

'

Income taxes

The Company uses an asset and liability approach which results in the recognition of deferred tax liabilities and assets for the expected future tax consequences or benefits of temporary differences between the financial reporting basis and the tax basis of assets and liabilities, as well as operating loss and tax credit carry forwards, using enacted tax rates in effect in the years in which the differences are expected to reverse.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of its deferred tax assets will not be realized.  Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment.  A valuation allowance has been provided for the portion of the Company’s net deferred tax assets for which it is more likely than not that they will not be realized.

The Company is subject to U.S. federal income tax as well as income tax of certain state jurisdictions.  Federal income tax returns subsequent to 2009 are subject to examination by major tax jurisdictions.  The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense.

The Company follows the provision of ASC Topic 740-10, “Income Taxes”, relating to recognition thresholds and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods and requires increased disclosures.  This guidance provides that the tax effects from an uncertain tax position can be recognized in our financial statements, only if the position is more likely than not of being sustained on audit, based on the technical merits of the position.  As of March 31, 2014, no amounts are included in the financial statements for unrecognized tax benefits.

Stock Options and Warrants

'

Stock Options and Warrants

The Company follows ASC 718 (Stock Compensation) and 505-50 (Equity-Based Payments to Non-employees), which provide guidance in accounting for share-based awards exchanged for services rendered and requires companies to expense the estimated fair value of these awards over the requisite service period.  On November 20, 2012, the shareholders of the Company approved the adoption of the Applied Minerals, Inc. 2012 Long-Term Incentive Plan (“LTIP”) and the Short-Term Incentive Plan (“STIP”) and the performance criteria used in setting performance goals for awards intended to be performance-based.  Prior to the adoption of the LTIP and STIP, stock options were granted under individual arrangements between the Company and the grantees, and approved by the Board of Directors.

We determine the fair value of the stock-based compensation awards granted to non-employees as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. If the fair value of the equity instruments issued is used, it is measured using the stock price and other measurement assumptions as of the earlier of either of (1) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date at which the counterparty’s performance is complete.  The Company utilized the contractual term as the expected term.

Per share data

'

Per share data

Loss per share for the three months ended March 31, 2014 and 2013, respectively, is calculated based on 94,692,696 and 93,681,139 weighted average outstanding shares of common stock.

At March 31, 2014 and 2013, respectively, the Company has outstanding options and warrants to purchase 22,283,046 and 21,706,267 shares of Company common stock, which were not included in the diluted computation as their effect would be anti-dilutive.

Environmental Matters

'

Environmental Matters

Expenditures for ongoing compliance with environmental regulations that relate to current operations are expensed or capitalized as appropriate.  Expenditures resulting from the remediation of existing conditions caused by past operations that do not contribute to future revenue generations are expensed.  Liabilities are recognized when environmental assessments indicate that remediation efforts are probable and the costs can be reasonably estimated.

Estimates of such liabilities are based upon currently available facts, existing technology and presently enacted laws and regulations taking into consideration the likely effects of inflation and other societal and economic factors, and include estimates of associated legal costs.  These amounts also reflect prior experience in remediating contaminated sites, other companies’ clean-up experience and data released by The Environmental Protection Agency or other organizations.  Such estimates are by their nature imprecise and can be expected to be revised over time because of changes in government regulations, operations, technology and inflation.  Recoveries are evaluated separately from the liability and, when recovery is assured, the Company records and reports an asset separately from the associated liability.

Based upon management’s current assessment of its environmental responsibilities, the Company cannot reasonably estimate any reclamation or remediation liability that may occur in the future, if any.

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2014
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]	'
Property and Equipment, Estimated Useful Life	'
	Depreciation and amortization is computed on the straight-line method over the estimated useful lives of the assets, or the life of the lease, whichever is shorter, as follows:
		Estimated Useful Life
	Building and Building Improvements	20 – 40 years
	Mining equipment	2 – 7 years
	Office and shop furniture and equipment	3 – 7 years
	Vehicles	5 years
Fair value measured on a recurring basis	'
	Liabilities measured at fair value on a recurring basis are summarized as follows:
			Fair value measurement using inputs							Carrying amount
			Level 1			Level 2			Level 3	31-Mar-14		31-Dec-13
	Financial instruments:
	Warrant derivative					$	225,000			$	225,000	$	950,000
	PIK Note derivative					$	480,375			$	480,375	$	2,250,000
Schedule of derivative liability	'
	For the Company's warrant and PIK note derivative liabilities, fair value was estimated using a Monte Carlo Model using the following assumptions:
	Warrant derivative liability		Fair Value Measurements
			Using Inputs
			31-Mar-14			31-Dec-13
	Market price and estimated fair value of stock		$	0.72		$	1.1
	Exercise price		$	1.93		$	1.93
	Term (years)			2.73			3
	Dividend yield		$	--		$	--
	Expected volatility *			56	%		76.9	%
	Risk-free interest rate			0.5	%		0.78	%
	PIK Note derivative liability		Fair Value Measurements
			Using Inputs
			31-Mar-14			31-Dec-13
	Market price and estimated fair value of stock		$	0.72		$	1.1
	Exercise price		$	1.4		$	1.4
	Term (years)			9.33			9.58
	Dividend yield		$	--			--
	Expected volatility *			56	%		76.9	%
	Risk-free interest rate			2.63	%		2.96	%
	* During the first quarter of 2014, the Company revised its assumption for expected volatility by switching from a peer-group average volatility to the Company’s three-year historical volatility in measuring the value of the derivative liabilities mentioned above.  Prior to 2011, the occurrence of certain corporate events would not have made the historical volatility calculations meaningful or accurate if included.  This reduction in volatility led to a reduced valuation for both the Warrant and PIK Note derivative liabilities of approximately $118,500 and $126,000, respectively. The remaining decrease in the valuation is attributable to the decline in the Company’s stock price.

NOTES_PAYABLE_Tables

NOTES PAYABLE (Tables)	3 Months Ended
	Mar. 31, 2014
NOTES PAYABLE [Abstract]	'
Notes Payable	'
	Notes payable at March 31, 2014 and December 31, 2013 consist of the following:
			March 31,			December 31,
			2014			2013
	Note payable for mining equipment, payable $5,556 monthly, including interest (a)		$	27,141		$	42,927
	Note payable for mining equipment, payable $950 monthly, including interest (b)			21,087			23,302
	Note payable for mining equipment, payable $6,060 monthly, including interest (c)			59,102			76,313
	Note payable for mine site vehicle, payable $628 monthly (d)			26,391			28,276
	Note payable for mining equipment, payable $5,000 monthly, including interest (e)			-0-			9,932
	Note payable for mining equipment, payable $1,632 monthly, including interest (f)			2,240			8,898
	Note payable to an insurance company, payable $19,139 monthly, including interest (g)			76,055			132,576
	Note payable to an insurance company, payable $4,297 monthly, including interest (h)			17,077			29,767
				229,093			351,991
	Less:  Current Portion			(198,663	)		(311,165	)
	Notes Payable, Long-Term Portion		$	30,430		$	40,826
		(a)	On July 7, 2011, the Company purchased mining equipment for $198,838 by issuing a note with an implicit interest rate of 9.34%.  The note is collateralized by the mining equipment with payments of $5,556 for 36 months, which started on August 15, 2011.
		(b)	On April 17, 2012, the Company purchased mining equipment for $40,565 by issuing a note with an effective interest rate of 11.279%.  The note is collateralized by the mining equipment with payments of $950 for 48 months, which started on May 1, 2012.
		(c)	On July 23, 2012, the Company purchased mining equipment for $169,500 by issuing a note with an interest rate of 5.5%.  The note is collateralized by the mining equipment with payments of $6,060 for 30 months, which started on August 25, 2012.
		(d)	On September 20, 2012, the Company purchased a vehicle for the mine site for $37,701 by issuing a non-interest bearing note.  The note is collateralized by the vehicle with payments of $628 for 60 months, which started on October 20, 2012.
		(e)	On November 16, 2012, the Company purchased a piece of mining equipment that had been leased for $67,960 by issuing a note with an effective interest rate of 5.5%.  The note was collateralized by the mining equipment with payments of $3,518 for three months, then $5,000 for twelve months.
		(f)	On November 16, 2012, the Company purchased a piece of mining equipment that had been leased for $33,748 by issuing a note with an effective interest rate of 5.5%.  The note is collateralized by the mining equipment with payments of $1,632 for five months, then $2,250 for twelve months.
		(g)	The Company signed a note payable with an insurance company dated October 17, 2013 for directors’ and officers’ insurance, due in monthly installments, including interest at 3.15%.  The note will mature on July 2014.
		(h)	The Company signed a note payable with an insurance company dated October 21, 2013 for liability insurance, due in monthly installments, including interest at 3.15%.  The note will mature on July 2014.
Future Minimum Note Payments	'
	The following is a schedule of the principal maturities on these notes as of March 31, 2014:
	April 2014- March 2015		$	198,663
	April 2015- March 2016			18,178
	April 2016- March 2017			8,482
	April 2017- March 2018			3,770
	Total Notes Payable		$	229,093

OPTIONS_AND_WARRANTS_TO_PURCHA1

OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK (Tables)	3 Months Ended
	Mar. 31, 2014
OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK [Abstract]	'
Summary of the Status of the Warrants Outstanding	'
	A summary of the status of the warrants outstanding and exercisable at March 31, 2014 is presented below:
					Warrants Outstanding and Exercisable
	Exercise Price				Number			Weighted Average	Weighted
					Outstanding			Remaining	Average
								Contractual Life	Exercise Price
	$	0.75				139,340		1.50 years	$	0.75
	$	0.78				213,402		1.84 years	$	0.78
	$	0.8				124,481		1.75 years	$	0.8
	$	1				212,000		1.41 years	$	1
	$	1.15				461,340		7.08 years	$	1.15
	$	1.93				5,000,000		2.73 years	$	1.93
	$	2				54,367		2.34 years	$	2
						6,204,930		2.93 years	$	1.75
Significant Assumptions Relating to the Valuation of Stock Options	'
	The significant assumptions relating to the valuation of the Company's options issued for the three months ended March 31, 2014 and 2013 were as follows:
		2014		2013
	Dividend Yield	0%		0%
	Expected Life	5.2 years		5 - 10 years
	Expected Volatility	58%		83%
	Risk Free Interest Rate	1.60%		0.88%-1.66%
Summary of the Status and Changes of the Options Granted Under the Stock Option Plans and Other Agreements	'
	A summary of the status and changes of the options granted under stock option plans and other agreements for the first quarter of 2014 is as follows:
			31-Mar-14
							Weighted
							Average
			Shares				Exercise Price
	Outstanding at beginning of period			15,878,116			$	1.03
	Issued			200,000				0.83
	Exercised			--				--
	Forfeited			--				--
	Outstanding at end of period			16,078,116			$	1.03
Summary of the Status of the Options Outstanding	'
	A summary of the status of the options outstanding at March 31, 2014 is presented below:
	Options Outstanding								Options Exercisable
				Weighted		Weighted					Weighted
				Average		Average					Average
	Number			Remaining		Exercise			Number		Exercise
	Outstanding			Contractual Life		Price			Exercisable		Price
		7,358,277		4.69 years		$	0.7			7,358,277	$	0.7
		3,405,134		7.44 years		$	0.83			3,255,134	$	0.83
		60,000		2.25 years		$	1			60,000	$	1
		300,000		9.39 years		$	1.1			--		--
		300,000		9.24 years		$	1.15			58,333	$	1.15
		100,000		3.84 years		$	1.24			100,000	$	1.24
		115,000		6.99 years		$	1.35			106,667	$	1.35
		125,000		3.84 years		$	1.45			125,000	$	1.45
		330,000		7.70 years		$	1.55			221,667	$	1.55
		7,645		3.84 years		$	1.58			7,645	$	1.58
		3,077,060		8.65 years		$	1.66			3,077,060	$	1.66
		900,000		7.39 years		$	1.9			775,000	$	1.9
		16,078,116		6.41 years		$	1.03			15,144,783	$	1.01

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Mar. 31, 2014
COMMITMENTS AND CONTINGENCIES [Abstract]	'
Summary of Contractual Obligations	'
	The following table summarizes our contractual obligations as of March 31, 2014 that require us to make future cash payments:
		Payment due by period
		Total		< 1 year		1 - 3 years		3 - 5 years		> 5 years
	Contractual Obligations:
	Rent obligations	$	103,438	$	103,438		--		--		--
	Capital Purchase Obligations (1)		1,140,968		1,140,968		--		--		--
	Total	$	1,244,406	$	1,244,406		--		--		--
	(1) Capital purchase obligations represent commitments for the construction or purchase of property, plant and equipment. They were not recorded as liabilities on our condensed consolidated balance sheet as of March 31, 2014, as we had not yet received the related goods or taken title to the property.

LIQUIDITY_Details

LIQUIDITY (Details) (USD $)	3 Months Ended		12 Months Ended	63 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013	Mar. 31, 2014
LIQUIDITY [Abstract]	'	'	'	'
Net loss	($357,225)	($3,078,891)	'	($42,117,381)
Cash used in operating activities	-2,375,850	-2,646,730	'	-30,669,712
Working capital	3,926,999	'	'	3,926,999
Proceeds pursuant to sale of common stock and issuance of convertible PIK Notes	'	'	$16,060,000	'

SUMMARY_OF_SIGNIFICANT_ACCOUNT3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)

3 Months Ended

63 Months Ended

3 Months Ended

12 Months Ended

3 Months Ended

12 Months Ended

3 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Dec. 31, 1999

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2014

acre

Warrant Derivative Liability [Member]

Warrant Derivative Liability [Member]

PIK Note Derivative Liability [Member]

PIK Note Derivative Liability [Member]

Fair Value, Inputs, Level 1 [Member]

Fair Value, Inputs, Level 2 [Member]

Fair Value, Inputs, Level 3 [Member]

Building and Building Improvements [Member]

Building and Building Improvements [Member]

Mining Equipment [Member]

Mining Equipment [Member]

Office and Shop Furniture and Equipment [Member]

Office and Shop Furniture and Equipment [Member]

Vehicles [Member]

Minimum [Member]

Maximum [Member]

Minimum [Member]

Maximum [Member]

Minimum [Member]

Maximum [Member]

Principles of Consolidation [Abstract]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Ownership percentage in Park Copper Mining (in hundredths)

'

'

'

'

53.00%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Value of acquired interest in Park Copper Mining

'

'

'

'

$72,825

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Volume of timber and mineral property hold by park copper in northern Idaho (in acres)

'

'

'

'

100

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Property, Plant and Equipment [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Property, plant and equipment, useful life

'

'

'

'

'

'

'

'

'

'

'

'

'20 years

'40 years

'2 years

'7 years

'3 years

'7 years

'5 years

Depreciation expense

108,386

78,798

1,242,144

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Fair Value Inputs, recurring and non-recurring [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Warrant derivative

225,000

'

225,000

950,000

'

'

'

'

'

0

225,000

0

'

'

'

'

'

'

'

PIK Note derivative

480,375

'

480,375

2,250,000

'

'

'

'

'

0

480,375

0

'

'

'

'

'

'

'

Fair Value due to PIK

15,200,000

'

15,200,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Market price and estimated fair value of stock (in dollars per share)

'

'

'

'

'

$0.72

$1.10

$0.72

$1.10

'

'

'

'

'

'

'

'

'

'

Exercise price (in dollars per share)

'

'

'

'

'

$1.93

$1.93

$1.40

$1.40

'

'

'

'

'

'

'

'

'

'

Term

'

'

'

'

'

'2 years 8 months 23 days

'3 years

'9 years 3 months 29 days

'

'

'

'

'

'

'

'

'

'

'

Dividend yield (in hundredths)

'

'

'

'

'

0.00%

0.00%

0.00%

0.00%

'

'

'

'

'

'

'

'

'

'

Expected volatility rate (in hundredths)

'

'

'

'

'

56.00%

[1]

76.90%

[1]

56.00%

[1]

76.90%

[1]

'

'

'

'

'

'

'

'

'

'

Risk-free interest rate (in hundredths)

'

'

'

'

'

0.50%

0.78%

2.63%

2.96%

'

'

'

'

'

'

'

'

'

'

Change in valuation of derivative liabilities

'

'

'

'

'

$118,500

'

$126,000

'

'

'

'

'

'

'

'

'

'

'

Per share data [Abstract]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Weighted average outstanding shares of common stocks used to calculate loss per share (in shares)

94,692,696

93,681,139

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Outstanding options and warrants to purchase common stock not included in diluted computation (in shares)

22,283,046

21,706,267

22,283,046

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Convertible shares (in shares)

7,500,000

'

7,500,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Non-Controlling Interest [Abstract]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Ownership percentage of Park Copper and Gold Mining Co Ltd. (in hundredths)

'

'

'

'

53.00%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

[1]

During the first quarter of 2014, the Company revised its assumption for expected volatility by switching from a peer-group average volatility to the Companybs three-year historical volatility in measuring the value of the derivative liabilities mentioned above. Prior to 2011, the occurrence of certain corporate events would not have made the historical volatility calculations meaningful or accurate if included. This reduction in volatility led to a reduced valuation for both the Warrant and PIK Note derivative liabilities of approximately $118,500 and $126,000, respectively. The remaining decrease in the valuation is attributable to the decline in the Companybs stock price.

STOCK_AWARD_PAYABLE_Details

STOCK AWARD PAYABLE (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
STOCK AWARD PAYABLE [Abstract]	'	'
Number of shares granted and owed to former Executive Vice President (in shares)	100,000	'
Stock awards payable	$72,000	$110,000
Gain on revaluation of remaining stock award	$38,000	'

NOTES_PAYABLE_Details

NOTES PAYABLE (Details) (USD $)

3 Months Ended

0 Months Ended

0 Months Ended

0 Months Ended

0 Months Ended

0 Months Ended

0 Months Ended

0 Months Ended

0 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Dec. 31, 2013

Jul. 07, 2011

Mar. 31, 2014

Dec. 31, 2013

Apr. 17, 2012

Mar. 31, 2014

Dec. 31, 2013

Jul. 23, 2012

Mar. 31, 2014

Dec. 31, 2013

Sep. 20, 2012

Mar. 31, 2014

Dec. 31, 2013

Nov. 16, 2012

Mar. 31, 2014

Dec. 31, 2013

Nov. 16, 2012

Mar. 31, 2014

Dec. 31, 2013

Oct. 17, 2012

Mar. 31, 2014

Dec. 31, 2013

Oct. 17, 2012

Mar. 31, 2014

Dec. 31, 2013

Note Payable Mining Equipment [Member]

Note Payable Mining Equipment [Member]

Note Payable Mining Equipment [Member]

Note Payable Mining Equipment 2 [Member]

Note Payable Mining Equipment 2 [Member]

Note Payable Mining Equipment 2 [Member]

Note Payable Mining Equipment 3 [Member]

Note Payable Mining Equipment 3 [Member]

Note Payable Mining Equipment 3 [Member]

Note Payable Mining Site Vehicle [Member]

Note Payable Mining Site Vehicle [Member]

Note Payable Mining Site Vehicle [Member]

Note Payable Mining Equipment 6 [Member]

Note Payable Mining Equipment 6 [Member]

Note Payable Mining Equipment 6 [Member]

Note Payable Mining Equipment 7 [Member]

Note Payable Mining Equipment 7 [Member]

Note Payable Mining Equipment 7 [Member]

Note Payable Insurance Company [Member]

Note Payable Insurance Company [Member]

Note Payable Insurance Company [Member]

Note Payable Insurance Company 2 [Member]

Note Payable Insurance Company 2 [Member]

Note Payable Insurance Company 2 [Member]

NOTES PAYABLE [Abstract]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Total Notes Payable

$229,093

'

$351,991

'

$27,141

[1]

$42,927

[1]

'

$21,087

[2]

$23,302

[2]

'

$59,102

[3]

$76,313

[3]

'

$26,391

[4]

$28,276

[4]

'

$0

[5]

$9,932

[5]

'

$2,240

[6]

$8,898

[6]

'

$76,055

[7]

$132,576

[7]

'

$17,077

[8]

$29,767

[8]

Less: current portion

-198,663

'

-311,165

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Note payable, long-term portion

30,430

'

40,826

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Monthly debt repayment

'

'

'

5,556

'

'

950

'

'

6,060

'

'

628

'

'

5,000

'

'

1,632

'

'

19,139

'

'

4,297

'

'

Face amount

'

'

'

198,838

'

'

40,565

'

'

169,500

'

'

37,701

'

'

67,960

'

'

33,748

'

'

'

'

'

'

'

'

Implicit interest rate (in hundredths)

'

'

'

9.34%

'

'

11.28%

'

'

5.50%

'

'

0.00%

'

'

5.50%

'

'

5.50%

'

'

3.15%

'

'

3.15%

'

'

Debt repayment period (in months)

'

'

'

'36 months

'

'

'48 months

'

'

'30 months

'

'

'60 months

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Monthly debt repayment, first three months

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

3,518

'

'

'

'

'

'

'

'

'

'

'

Monthly debt repayment, next five months

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

1,632

'

'

'

'

'

'

'

'

Monthly debt repayment, next twelve months

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

5,000

'

'

2,250

'

'

'

'

'

'

'

'

Maturity date

'

'

'

15-Aug-11

'

'

1-May-12

'

'

25-Aug-12

'

'

20-Oct-12

'

'

'

'

'

'

'

'

31-Jul-14

'

'

31-Jul-14

'

'

Future minimum note payment [Abstract]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

October 2013 - September 2014

198,663

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

October 2014 - September 2015

18,178

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

October 2015 - September 2016

8,482

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

October 2016 - September 2017

3,770

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Interest payments

$3,745

$6,487

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

[1]

On July 7, 2011, the Company purchased mining equipment for $198,838 by issuing a note with an implicit interest rate of 9.34%. The note is collateralized by the mining equipment with payments of $5,556 for 36 months, which started on August 15, 2011.

[2]

On April 17, 2012, the Company purchased mining equipment for $40,565 by issuing a note with an effective interest rate of 11.279%. The note is collateralized by the mining equipment with payments of $950 for 48 months, which started on May 1, 2012.

[3]

On July 23, 2012, the Company purchased mining equipment for $169,500 by issuing a note with an interest rate of 5.5%. The note is collateralized by the mining equipment with payments of $6,060 for 30 months, which started on August 25, 2012.

[4]

On September 20, 2012, the Company purchased a vehicle for the mine site for $37,701 by issuing a non-interest bearing note. The note is collateralized by the vehicle with payments of $628 for 60 months, which started on October 20, 2012.

[5]

On November 16, 2012, the Company purchased a piece of mining equipment that had been leased for $67,960 by issuing a note with an effective interest rate of 5.5%. The note was collateralized by the mining equipment with payments of $3,518 for three months, then $5,000 for twelve months.

[6]

On November 16, 2012, the Company purchased a piece of mining equipment that had been leased for $33,748 by issuing a note with an effective interest rate of 5.5%. The note is collateralized by the mining equipment with payments of $1,632 for five months, then $2,250 for twelve months.

[7]

The Company signed a note payable with an insurance company dated October 17, 2013 for directorsb and officersb insurance, due in monthly installments, including interest at 3.15%. The note will mature on July 2014.

[8]

The Company signed a note payable with an insurance company dated October 21, 2013 for liability insurance, due in monthly installments, including interest at 3.15%. The note will mature on July 2014.

CONVERTIBLE_DEBT_PIK_NOTES_Det

CONVERTIBLE DEBT (PIK NOTES) (Details) (USD $)	3 Months Ended		12 Months Ended	63 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013	Mar. 31, 2014
CONVERTIBLE DEBT (PIK NOTES) [Abstract]	'	'	'	'
Financing received	$525,000	'	$10,500,000	'
Rate of convertible debt (in hundredths)	10.00%	'	'	10.00%
Common stock conversion price (in dollars per share)	$1.40	'	'	$1.40
Convertible shares (in shares)	7,500,000	'	'	7,500,000
Period before notes are mandatorily convertible	'1 year	'	'	'
Number of trading days after notes are mandatorily convertible	'10 days	'	'	'
Estimated fair value of the conversion feature	2,055,000	'	'	2,055,000
Term of note	'10 years	'	'	'
Fair value of the PIK Note Derivative	480,375	'	2,250,000	480,375
Gain (loss) on the fair value of the PIK Note Derivative	1,792,500	0	'	1,597,500
Amortization of debt discount relating to the PIK Notes Payable	26,331	'	'	'
Payable carrying value	$9,015,039	'	$8,486,583	$9,015,039

STOCKHOLDERS_EQUITY_Details

STOCKHOLDERS' EQUITY (Details) (USD $)	0 Months Ended	3 Months Ended		63 Months Ended
	Dec. 22, 2011	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014
Class of Stock [Line Items]	'	'	'	'
Shares sold (in shares)	10,000,000	'	3,756,757	'
Proceeds from the sale of stock	'	$0	$5,560,000	$21,370,000
Directors and Consultants [Member]	'	'	'	'
Share-based Goods and Nonemployee Services Transaction [Line Items]	'	'	'	'
Shares issued for services (in shares)	'	121,092	'	'
Shares issued for services, Value	'	$110,914	'	'

OPTIONS_AND_WARRANTS_TO_PURCHA2

OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK (Details) (USD $)	0 Months Ended	3 Months Ended		12 Months Ended	63 Months Ended
	Dec. 22, 2011	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013	Mar. 31, 2014
Derivative Instruments - Warrants [Abstract]	'	'	'	'	'
Warrants issued (in shares)	5,000,000	'	'	'	'
Common shares issued in private placement (in shares)	10,000,000	'	3,756,757	'	'
Strike price of warrants (in dollars per share)	$2	'	$1.97	'	'
Gross proceeds from issuance of common stocks	'	$0	$5,560,000	'	$21,370,000
Mandatory convertible PIK Notes issued	'	525,000	'	10,500,000	'
Percentage of mandatory convertible PIK Notes issued (in hundredths)	'	10.00%	'	'	10.00%
Strike price of Samlyn warrants	'	'	$0.03	'	'
Other income from decrease in warrant derivative liability	'	725,000	495,000	'	'
Warrants, Exercise Price [Line Items]	'	'	'	'	'
Warrants outstanding, Number (in shares)	'	6,204,930	'	'	6,204,930
Warrants outstanding, Weighted average remaining contractual life	'	'2 years 4 months 2 days	'	'	'
Fair Value Assumptions [Abstract]	'	'	'	'	'
Dividend Yield (in hundredths)	'	0.00%	0.00%	'	'
Expected Life	'	'5 years 2 months 12 days	'	'	'
Expected Volatility (in hundredths)	'	58.00%	83.00%	'	'
Risk Free Interest Rate (in hundredths)	'	1.60%	'	'	'
Stock Options, Shares [Roll Forward]	'	'	'	'	'
Outstanding at beginning of period (in shares)	'	15,878,116	'	'	'
Issued (in shares)	'	200,000	'	'	'
Exercised (in shares)	'	0	'	'	'
Forfeited (in shares)	'	0	'	'	'
Outstanding at end of period (in shares)	'	16,078,116	'	15,878,116	16,078,116
Stock Options, Weighted Average Exercise Price [Roll Forward]	'	'	'	'	'
Outstanding at beginning of period (in dollars per share)	'	$1.03	'	'	'
Issued (in dollars per share)	'	$0.83	'	'	'
Exercised (in dollars per share)	'	$0	'	'	'
Forfeited (in dollars per share)	'	$0	'	'	'
Outstanding at end of period (in dollars per share)	'	$1.03	'	$1.03	$1.03
Exercise Price 0.70 [Member]	'	'	'	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'	'	'	'
Options outstanding, Number (in shares)	'	7,358,277	'	'	7,358,277
Options outstanding, Weighted average remaining contractual life	'	'4 years 8 months 8 days	'	'	'
Options outstanding, Weighted average exercise price (in dollars per share)	'	$0.70	'	'	$0.70
Options exercisable, Number (in shares)	'	7,358,277	'	'	7,358,277
Options exercisable, Weighted average exercise price (in dollars per share)	'	$0.70	'	'	$0.70
Exercise Price 0.83 [Member]	'	'	'	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'	'	'	'
Options outstanding, Number (in shares)	'	3,405,134	'	'	3,405,134
Options outstanding, Weighted average remaining contractual life	'	'7 years 5 months 8 days	'	'	'
Options outstanding, Weighted average exercise price (in dollars per share)	'	$0.83	'	'	$0.83
Options exercisable, Number (in shares)	'	3,255,134	'	'	3,255,134
Options exercisable, Weighted average exercise price (in dollars per share)	'	$0.83	'	'	$0.83
Exercise Price 1.00 [Member]	'	'	'	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'	'	'	'
Options outstanding, Number (in shares)	'	60,000	'	'	60,000
Options outstanding, Weighted average remaining contractual life	'	'2 years 3 months	'	'	'
Options outstanding, Weighted average exercise price (in dollars per share)	'	$1	'	'	$1
Options exercisable, Number (in shares)	'	60,000	'	'	60,000
Options exercisable, Weighted average exercise price (in dollars per share)	'	$1	'	'	$1
Exercise Price 1.03 [Member]	'	'	'	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'	'	'	'
Options outstanding, Number (in shares)	'	16,078,116	'	'	16,078,116
Options outstanding, Weighted average remaining contractual life	'	'6 years 4 months 28 days	'	'	'
Options outstanding, Weighted average exercise price (in dollars per share)	'	$1.03	'	'	$1.03
Options exercisable, Number (in shares)	'	15,144,783	'	'	15,144,783
Options exercisable, Weighted average exercise price (in dollars per share)	'	$1.01	'	'	$1.01
Exercise Price 1.10 [Member]	'	'	'	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'	'	'	'
Options outstanding, Number (in shares)	'	300,000	'	'	300,000
Options outstanding, Weighted average remaining contractual life	'	'9 years 4 months 20 days	'	'	'
Options outstanding, Weighted average exercise price (in dollars per share)	'	$1.10	'	'	$1.10
Options exercisable, Number (in shares)	'	0	'	'	0
Options exercisable, Weighted average exercise price (in dollars per share)	'	$0	'	'	$0
Exercise Price 1.15 [Member]	'	'	'	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'	'	'	'
Options outstanding, Number (in shares)	'	300,000	'	'	300,000
Options outstanding, Weighted average remaining contractual life	'	'9 years 2 months 26 days	'	'	'
Options outstanding, Weighted average exercise price (in dollars per share)	'	$1.15	'	'	$1.15
Options exercisable, Number (in shares)	'	58,333	'	'	58,333
Options exercisable, Weighted average exercise price (in dollars per share)	'	$1.15	'	'	$1.15
Exercise Price 1.24 [Member]	'	'	'	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'	'	'	'
Options outstanding, Number (in shares)	'	100,000	'	'	100,000
Options outstanding, Weighted average remaining contractual life	'	'3 years 10 months 2 days	'	'	'
Options outstanding, Weighted average exercise price (in dollars per share)	'	$1.24	'	'	$1.24
Options exercisable, Number (in shares)	'	100,000	'	'	100,000
Options exercisable, Weighted average exercise price (in dollars per share)	'	$1.24	'	'	$1.24
Exercise Price 1.35 [Member]	'	'	'	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'	'	'	'
Options outstanding, Number (in shares)	'	115,000	'	'	115,000
Options outstanding, Weighted average remaining contractual life	'	'6 years 11 months 26 days	'	'	'
Options outstanding, Weighted average exercise price (in dollars per share)	'	$1.35	'	'	$1.35
Options exercisable, Number (in shares)	'	106,667	'	'	106,667
Options exercisable, Weighted average exercise price (in dollars per share)	'	$1.35	'	'	$1.35
Exercise Price 1.45 [Member]	'	'	'	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'	'	'	'
Options outstanding, Number (in shares)	'	125,000	'	'	125,000
Options outstanding, Weighted average remaining contractual life	'	'3 years 10 months 2 days	'	'	'
Options outstanding, Weighted average exercise price (in dollars per share)	'	$1.45	'	'	$1.45
Options exercisable, Number (in shares)	'	125,000	'	'	125,000
Options exercisable, Weighted average exercise price (in dollars per share)	'	$1.45	'	'	$1.45
Exercise Price 1.55 [Member]	'	'	'	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'	'	'	'
Options outstanding, Number (in shares)	'	330,000	'	'	330,000
Options outstanding, Weighted average remaining contractual life	'	'7 years 8 months 12 days	'	'	'
Options outstanding, Weighted average exercise price (in dollars per share)	'	$1.55	'	'	$1.55
Options exercisable, Number (in shares)	'	221,667	'	'	221,667
Options exercisable, Weighted average exercise price (in dollars per share)	'	$1.55	'	'	$1.55
Exercise Price 1.58 [Member]	'	'	'	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'	'	'	'
Options outstanding, Number (in shares)	'	7,645	'	'	7,645
Options outstanding, Weighted average remaining contractual life	'	'3 years 10 months 2 days	'	'	'
Options outstanding, Weighted average exercise price (in dollars per share)	'	$1.58	'	'	$1.58
Options exercisable, Number (in shares)	'	7,645	'	'	7,645
Options exercisable, Weighted average exercise price (in dollars per share)	'	$1.58	'	'	$1.58
Exercise Price 1.66 [Member]	'	'	'	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'	'	'	'
Options outstanding, Number (in shares)	'	3,077,060	'	'	3,077,060
Options outstanding, Weighted average remaining contractual life	'	'8 years 7 months 24 days	'	'	'
Options outstanding, Weighted average exercise price (in dollars per share)	'	$1.66	'	'	$1.66
Options exercisable, Number (in shares)	'	3,077,060	'	'	3,077,060
Options exercisable, Weighted average exercise price (in dollars per share)	'	$1.66	'	'	$1.66
Exercise Price 1.90 [Member]	'	'	'	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'	'	'	'
Options outstanding, Number (in shares)	'	900,000	'	'	900,000
Options outstanding, Weighted average remaining contractual life	'	'7 years 4 months 20 days	'	'	'
Options outstanding, Weighted average exercise price (in dollars per share)	'	$1.90	'	'	$1.90
Options exercisable, Number (in shares)	'	775,000	'	'	775,000
Options exercisable, Weighted average exercise price (in dollars per share)	'	$1.90	'	'	$1.90
Stock Options [Member]	'	'	'	'	'
Compensation Cost Not Yet Recognized [Abstract]	'	'	'	'	'
Compensation cost not yet recognized, Stock options	'	699,639	'	'	699,639
Compensation cost not yet recognized, Period for recognition	'	'18 months	'	'	'
Share-based compensation expense	'	214,850	'	'	'
Intrinsic value of outstanding options	'	$147,166	'	'	$147,166
LTIP [Member]	'	'	'	'	'
Stock Options, Weighted Average Exercise Price [Roll Forward]	'	'	'	'	'
Shares authorized for issuance (in shares)	'	8,900,000	'	'	8,900,000
Minimum [Member]	'	'	'	'	'
Fair Value Assumptions [Abstract]	'	'	'	'	'
Expected Life	'	'	'5 years	'	'
Risk Free Interest Rate (in hundredths)	'	'	0.88%	'	'
Maximum [Member]	'	'	'	'	'
Fair Value Assumptions [Abstract]	'	'	'	'	'
Expected Life	'	'	'10 years	'	'
Risk Free Interest Rate (in hundredths)	'	'	1.66%	'	'
Exercise Price 0.75 [Member]	'	'	'	'	'
Warrants, Exercise Price [Line Items]	'	'	'	'	'
Exercise price (in dollars per share)	'	$0.75	'	'	$0.75
Warrants outstanding, Number (in shares)	'	139,340	'	'	139,340
Warrants outstanding, Weighted average remaining contractual life	'	'1 year 6 months	'	'	'
Warrants outstanding, Weighted average exercise price (in dollars per share)	'	$0.75	'	'	$0.75
Exercise Price 0.78 [Member]	'	'	'	'	'
Warrants, Exercise Price [Line Items]	'	'	'	'	'
Exercise price (in dollars per share)	'	$0.78	'	'	$0.78
Warrants outstanding, Number (in shares)	'	213,402	'	'	213,402
Warrants outstanding, Weighted average remaining contractual life	'	'1 year 10 months 2 days	'	'	'
Warrants outstanding, Weighted average exercise price (in dollars per share)	'	$0.78	'	'	$0.78
Exercise Price 0.80 [Member]	'	'	'	'	'
Warrants, Exercise Price [Line Items]	'	'	'	'	'
Exercise price (in dollars per share)	'	$0.80	'	'	$0.80
Warrants outstanding, Number (in shares)	'	124,481	'	'	124,481
Warrants outstanding, Weighted average remaining contractual life	'	'1 year 9 months	'	'	'
Warrants outstanding, Weighted average exercise price (in dollars per share)	'	$0.80	'	'	$0.80
Exercise Price 1.00 [Member]	'	'	'	'	'
Warrants, Exercise Price [Line Items]	'	'	'	'	'
Exercise price (in dollars per share)	'	$1	'	'	$1
Warrants outstanding, Number (in shares)	'	212,000	'	'	212,000
Warrants outstanding, Weighted average remaining contractual life	'	'1 year 4 months 28 days	'	'	'
Warrants outstanding, Weighted average exercise price (in dollars per share)	'	$1	'	'	$1
Exercise Price 1.15 [Member]	'	'	'	'	'
Warrants, Exercise Price [Line Items]	'	'	'	'	'
Exercise price (in dollars per share)	'	$1.15	'	'	$1.15
Warrants outstanding, Number (in shares)	'	461,340	'	'	461,340
Warrants outstanding, Weighted average remaining contractual life	'	'7 years 0 months 29 days	'	'	'
Warrants outstanding, Weighted average exercise price (in dollars per share)	'	$1.15	'	'	$1.15
Exercise Price 1.93 [Member]	'	'	'	'	'
Warrants, Exercise Price [Line Items]	'	'	'	'	'
Exercise price (in dollars per share)	'	$1.93	'	'	$1.93
Warrants outstanding, Number (in shares)	'	5,000,000	'	'	5,000,000
Warrants outstanding, Weighted average exercise price (in dollars per share)	'	$1.93	'	'	$1.93
Exercise Price 2.00 [Member]	'	'	'	'	'
Warrants, Exercise Price [Line Items]	'	'	'	'	'
Exercise price (in dollars per share)	'	$2	'	'	$2
Warrants outstanding, Number (in shares)	'	54,367	'	'	54,367
Warrants outstanding, Weighted average remaining contractual life	'	'2 years 8 months 23 days	'	'	'
Warrants outstanding, Weighted average exercise price (in dollars per share)	'	$2	'	'	$2
Exercise Price 1.75 [Member]	'	'	'	'	'
Warrants, Exercise Price [Line Items]	'	'	'	'	'
Warrants outstanding, Weighted average remaining contractual life	'	'2 years 11 months 5 days	'	'	'
Warrants outstanding, Weighted average exercise price (in dollars per share)	'	$1.75	'	'	$1.75

COMMITMENTS_AND_CONTINGENCIES_1

COMMITMENTS AND CONTINGENCIES (Details) (USD $)	Mar. 31, 2014		Apr. 18, 2014
			Subsequent Event [Member]
			Order
Rent obligations [Abstract]	'		'
Total	$103,438		'
Less than 1 year	103,438		'
1 - 3 Years	0		'
3 - 5 Years	0		'
More than 5 years	0		'
Capital Purchase Obligations [Abstract]	'		'
Total	1,140,968	[1]	'
Less than 1 Year	1,140,968	[1]	'
1 - 3 years	0	[1]	'
3 - 5 years	0	[1]	'
More than 5 years	0	[1]	'
Contractual Obligations [Abstract]	'		'
Total	1,244,406		'
Less than 1 year	1,244,406		'
1 - 3 years	0		'
3 - 5 Years	0		'
More than 5 Years	0		'
Loss Contingencies [Line Items]	'		'
Damages sought in lawsuit	'		$346,000
Number of purchase orders	'		2
[1]	Capital purchase obligations represent commitments for the construction or purchase of property, plant and equipment. They were not recorded as liabilities on our condensed consolidated balance sheet as of March 31, 2014, as we had not yet received the related goods or taken title to the property.