Hmm, reading some other forums looks like gross...

Hmm, reading some other forums looks like gross incompetence/negligence from previous operator knocking up in house processing solutions rather than buying properly engineered solutions, which resulted in the safety issues.

From the Durango Herald in August:
The mercury-gold mixture was heated to separate the gold and attempt to recycle the mercury through a scrubber. A galvanized steel washtub was flipped upside down and used as a hood to catch mercury near the scrubber.

Durango Herald

It would seem Red Arrow had a $25M loan from Platinum/Maximillian who foreclosed on the first default, which is how they picked up the asset. Here's hoping platinum don't end up with two mines with 'unbelievable potential screwed up by the previous operators' to flog off to the next poor miner that needs a $25M loan.

Liukko also blamed a joint-venture partner for muddling his business.

“(Red Arrow) is at a loss to provide assistance to the board at this time as its assets, including bank accounts, have been seized by the receiver, leaving the company in extreme financial distress,” Liukko wrote in the letter. “Officers and employees of the company have been left financially destitute as a result of the bad faith efforts of the lender, (joint venture) partner and the receiver, who all have limited or no experience with mining activities.”

AYN mgmt - if you're reading this, DO NOT DEFAULT!

americanpatriotgold.com domain has now expired.

Their June 2012 corporate overview forecast around $5M USD worth of gold per quarter at $1625/oz, and EBITDA of $3M+ per quarter.