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7. Mineral Properties

12 Months Ended

Dec. 31, 2015

Mineral properties and deferred development costs are as follows:

		December 31, 2015		December 31, 2014
New Jersey	$	215,127	$	288,365
McKinley		250,000		250,000
Golden Chest		1,445,229
Silver Button/Roughwater				25,500
Toboggan		5,000		5,000
Less accumulated amortization		(8,267)		(11,407)
Total	$	1,907,089	$	557,458

New Jersey

The Coleman property is located at the New Jersey Mine area of interest and consists of 62 acres of patented mining claims, mineral rights to 108 acres of fee land, 80 acres of land for which the Company owns the surface but not the mineral rights, and approximately 130 acres of unpatented mining claims. The Coleman property was acquired in October 2002. As of December 31, 2015, an impairment analysis determined that the property’s value had been impaired based upon current mineral prices and market conditions and a non receiving impairment loss of $70,098 was recognized. At December 31, 2015 and 2014 the balance includes asset retirement costs of $23,365. Fair value of the property was determined using Level 3 fair value inputs based on recent sales of comparable properties in the immediate area.

McKinley

The McKinley Project is an exclusive exploration and mining lease which covers several historic mines and prospects, including the McKinley Mine, Ibex Mine, and Big Easy Mine, on private land located in central Idaho near the town of Lucile. On December 31, 2013, NJMC received all rights and agreements, intellectual property, historic and recent due diligence, surveys and maps, along with a 12-month option to purchase the historic McKinley Mine, located on 62 acres within the overall land package. The option to purchase the McKinley mine has been extended by an additional 24 months to November 18, 2016.

Golden Chest

The Golden Chest is an exploration and underground mine project located near Murray, Idaho consisting of 25 patented and 70 unpatented mining claims. Previously owned by GCJV the property is now owned by NJMC after the Company acquired the remaining 52.22% interest in the 4^th quarter of 2015 (Note 15).

Silver Button/Roughwater

The Silver Button claim is the remaining property of the ten claims acquired from Roughwater Mining Company. During 2005, the other nine Roughwater unpatented claims were dropped. In 2001, the Company purchased the property through the issuance of 255,000 shares of its common stock to Roughwater Mining Company. The shares were valued at $0.10 per share, for a total acquisition cost of $25,500. As of December 31, 2015 an impairment analysis determined that the property had no value using Level 3 fair value inputs based on current mineral prices and market conditions and an impairment loss for the entire $25,500 carrying value was recognized.

Toboggan

Toboggan is a gold and silver exploration project consisting of 106 claims covering 2,100 acres of federal land administered by the U.S. Forest Service. In 2001, the Company issued 50,000 shares of stock to an individual to acquire the rights. The shares were valued at $0.10 per share for a total acquisition cost of $5,000. This cost was for a portion of the claims in the Toboggan property that were purchased; the remaining claims were staked by the Company.