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Joint Ventures
 9 Months Ended
Sep. 30, 2012
Joint Ventures [Text Block]

5. Joint Ventures

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. For joint ventures in which the Company does not have joint control or significant influence, the cost method is used. For those joint ventures in which there is joint control between the parties, and the Company has significant influence, the equity method is utilized.

At September 30, 2012 and December 31, 2011, the Company’s percentage ownership and method of accounting for each joint venture is as follows:

  September 30, 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% Yes Equity 50% No Cost

New Jersey Mill Joint Venture Agreement

In June of 2012 USC completed their buy-in for 33% of the Mill JV with a cumulative $3.04 million contribution to bring the capacity of the mill to 15 tonnes/hr. The mineral processing fee income of $21,174 recognized by the company for the nine months ended September 30, 2012 is income for processing USC ore.

Golden Chest LLC Joint Venture

Funding in 2012 is being provided based upon ownership at 50% per partner. The Company provided $730,000 of funding in the nine months ended September 30, 2012. 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now completed their initial contribution and the Company is now contributing additional funding, the cost method has been replaced by the equity method of accounting for this joint venture as of January 1, 2012, and accordingly, the Company is now recognizing its proportional share of the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 as equity in loss of Golden Chest, The equity in loss for the three and nine month periods ending September 30, 2012 was $40,647 and $755,439 respectively.