14. Forward Gold Contracts	9 Months Ended
Sep. 30, 2016
Notes
14. Forward Gold Contracts	14. Forward Gold Contracts On July 13, 2016, the Company entered into a forward gold contract Ophir Holdings LLC, a company owned by three of the Company’s officers, for net proceeds of $467,500 to fund startup costs at the Golden Chest. The agreement calls for the Company to deliver a total of 500 ounces of gold to the purchasers in quarterly payments starting December 1, 2016 for a period of two years as gold is produced from the Golden Chest Mine and New Jersey Mill. On July 29, 2016, the Company entered into a forward gold contract through GVC Capital LLC for net proceeds of $772,806 to fund startup costs at the Golden Chest. The agreement calls for the Company to deliver a total of 904 ounces of gold to the purchasers in quarterly payments starting December 1, 2016 for a period of two years as gold is produced from the Golden Chest Mine and New Jersey Mill. The gold to be delivered does not need to be produced from the Golden Chest property. In addition, the counterparties can request cash payment instead of gold ounces each quarter. The cash payments will be based on current gold prices for the applicable quarter. Due to these provisions, the contracts are accounted for as derivatives requiring their value to be adjusted to fair value each period end. For the quarter ended September 30, 2016, the Company recognized a change in fair value of $466,783. The fair value was calculated using the market approach with Level 2 inputs for forward gold contract rates and a discount rate of 10%.

14. Forward Gold Contracts

9 Months Ended

Sep. 30, 2016

14. Forward Gold Contracts

On July 13, 2016, the Company entered into a forward gold contract Ophir Holdings LLC, a company owned by three of the Company’s officers, for net proceeds of $467,500 to fund startup costs at the Golden Chest. The agreement calls for the Company to deliver a total of 500 ounces of gold to the purchasers in quarterly payments starting December 1, 2016 for a period of two years as gold is produced from the Golden Chest Mine and New Jersey Mill.

On July 29, 2016, the Company entered into a forward gold contract through GVC Capital LLC for net proceeds of $772,806 to fund startup costs at the Golden Chest. The agreement calls for the Company to deliver a total of 904 ounces of gold to the purchasers in quarterly payments starting December 1, 2016 for a period of two years as gold is produced from the Golden Chest Mine and New Jersey Mill.

The gold to be delivered does not need to be produced from the Golden Chest property. In addition, the counterparties can request cash payment instead of gold ounces each quarter. The cash payments will be based on current gold prices for the applicable quarter. Due to these provisions, the contracts are accounted for as derivatives requiring their value to be adjusted to fair value each period end. For the quarter ended September 30, 2016, the Company recognized a change in fair value of $466,783. The fair value was calculated using the market approach with Level 2 inputs for forward gold contract rates and a discount rate of 10%.