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Mining And Milling Venture Agreements | 12 Months Ended
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Dec. 31, 2011
Mining And Milling Venture Agreements [Text Block] | 7. Mining and Milling Venture Agreements Golden Chest LLC ("GC") In December of 2010, a limited liability company (LLC) was formed between the Company and Marathon Gold USA (MUSA). MUSA's contribution to GC is $4,000,000 paid in installments ending on November 30, 2011. The Company's contribution to GC with a carrying value of $553,205 includes all of the its interests in the Golden Chest mine, including unpatented claims and some mining equipment. In connection with this transaction, the 2005 mining leases with Metaline Contact Mines, J.W. Beasley Interests, LLC, and Prichard Creek Resource Partners, LLC (see Note 5) were cancelled in December 2010. GC purchased the patented mining claims from Metaline Contact Mines, J.W. Beasley Interests, LLC, and Prichard Creek Resource Partners, LLC for $3.75 million with $500,000 paid at closing in December 2010 and the remainder due under a Promissory Note and Mortgage at the rate of $500,000 per year with the $250,000 balance due in the seventh and final year. The sellers have a first mortgage on the mine as security for future payments owing. Marathon may exercise its option to increase ownership to 60% by paying an additional 3.5 million before November 30, 2012. Funding for the exploration and drilling activities in 2011 was paid by Marathon's buy-in funds and future funding for the venture will be paid by each partner at a percentage equal to their ownership. Newmont Venture Agreement In April of 2011 Newmont North American Exploration (Newmont) withdrew from the Toboggan joint venture it held with the Company on claims held in the Murray, Idaho District. Newmont quitclaimed the entire land package and transferred to the Company all exploration data obtained during the three years of work that was conducted on the project. New Jersey Mill Venture Agreement The Company has one subsidiary. In January 2011, the New Jersey Mill Venture agreement was signed by the Company and United Mine Services, Inc. (UMS) relating to the New Jersey mineral processing plant. To earn a one third interest in the venture, UMS provided funding to expand the processing plant to 15 tonnes/hr which is estimated to cost $2.5 million. The proposed expansion budget included purchasing land held by the Company, known as the Zanetti Mining Lease, which was cancelled by the purchase of the land. The Company is the operator of the venture and will charge operating costs to UMS for milling its ore up to 7,000 tonnes/month, retain a milling capacity of 3,000 tonnes/month, and as the operator of the venture receive a fee of $2.50/tonne milled. UMS has contributed $2,214,436 as of December 31, 2011.

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