For joint ventures where the Company holds more than 50% of the voting interest and has significant influence, the joint venture is consolidated with the presentation of noncontrolling interest. In determining whether significant influence exists, the Company considers its participation in policy-making decisions and its representation on the venture’s management committee.

For joint ventures in which the Company does not have joint control or significant influence, the cost method is used. Under the cost method, these investments are carried at the lower of cost or fair value. For those joint ventures in which there is joint control between the parties, the equity method is utilized whereby the Company’s share of the ventures’ earnings and losses is included in the statement of operations as earnings in joint ventures and its investments therein are adjusted by a similar amount.

At March 31, 2012 and December 31, 2011, the Company’s percentage ownership and method of accounting for each joint venture is as follows:

	March 31, 2012			December 31, 2011
Joint Venture	% Ownership	Significant Influence?	Accounting Method	% Ownership	Significant Influence?	Accounting Method
New Jersey Mill Joint Venture	67%	Yes	Consolidated	71%	Yes	Consolidated
Golden Chest LLC	50%	No	Equity	50%	No	Cost

In January 2011, the New Jersey Mill Joint 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 will provide 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 $2,536,435 for a vested, noncontrolling interest of 33% as of March 31, 2012. The Company holds the remaining interest. Losses attributed to the Mill JV are the result of equipment depreciation expenses charged to the Joint Venture. For the three month period ending March 31, 2011 they are $2,128.

The Company has a joint venture with Marathon Gold USA (MUSA). Upon MUSA's completion of their initial contribution in November 2011 the company and MUSA each have 50% ownership and an equal amount of control over the joint venture. Funding for the Golden Chest Joint Venture in 2011 was paid by MUSA's initial $4,000,000 contribution. Funding in 2012 is being provided based upon ownership at 50% per partner. The Company provided $450,000 of funding in the first quarter of 2012 of which $46,060 was capitalized and the remaining amount was recognized as a Equity loss in the joint venture. These cash call commitments may continue throughout 2012. Because both partners have now completed their initial contribution and the Company is now contributing additional funding, the cost method has been replaced by the equity method of accounting for this joint venture as of January 1, 2012, and accordingly, the Company is now recognizing its proportional share of the LLC's losses.