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Related Party Transactions
9 Months Ended
Sep. 30, 2011
Related Party Transactions [Text Block]
2.

Related Party Transactions

The Company jointly owns with Marathon Gold USA (MUSA) and acts as the operator of the Golden Chest LLC (GC LLC). Accounts receivable are a part of normal operations which include operating costs, payroll, drilling costs, and drilling income. As of September 30, 2011, a related party account receivable existed with MUSA and GC LLC for $172,268. In addition, income and expense items for the three and nine month periods ending September 30, 2011 related to MUSA and GC LLC were as follows:

    Three Months Nine Months  
• Drilling and exploration contract income 456,409 863,745  
• Joint Venture Management fees income 24,583 56,320  
• Drilling and exploration contract expense 226,987 474,673  

Engineering services income includes engineering services provided to United Mine Services (UMS). UMS holds the noncontrolling interest in the Company's New Jersey Mill Joint Venture. Engineering services to UMS in the three and nine month periods ending September 30, 2011 were $21,150 and $90,700 respectively. As of September 30, 2011, a related party account receivable existed with the Mill Joint Venture and UMS for $18,972. As of September 30, 2011, $75,312 was recorded as an account payable to Mine Fabrication and Machine, a wholly owned subsidiary of UMS, a related party. $1,500 is payable quarterly by the Company to Mine Systems Design, a related party, for office rent. The third quarter's office rent to Mine System Design was recorded as a related party account payable on September 30, 2011