8. Mineral Rights and Properties, Net

Mineral rights and properties at December 31, 2012 and 2011 consisted of the following:

	2012			2011
Dayton resource area	$	2,932,226		$	100,000
Lucerne resource area		1,998,896			1,998,896
Occidental area		1,002,172			1,002,172
Spring Valley area		810,000			822,129
Oest area		260,707			260,707
Northern extension		157,205			157,205
Northern targets		121,170			121,170
Other mineral properties		317,404			317,404
Water rights		90,000			90,000
Accumulated depletion		(75,000	)		-
	$	7,614,780		$	4,869,683

During the year ended December 31, 2012, the Company acquired significant mineral properties including, the Dayton "Golden Goose" property as part of its strategic plan for further exploration and mining in the Dayton Resource area. The purchase price of this property was $3,000,000 plus a 3% net smelter royalty. The net smelter royalty will be reduced by 75% until the Company receives credit through the reduction of net smelter royalties for the $3,000,000 purchase price. The purchase price consisted of a $500,000 cash payment and the issuance of a $2.5 million 0% interest note payable. The property and the associated note payable have been recorded using a discount rate of 5.0%.

Mineral rights and properties balances as of December 31, 2012 are presented based on the Company's identified mineral resource areas and exploration targets. Mineral rights and properties balances as of December 31, 2011 have been reclassified to conform to the current year presentation, and there was no impact to the total balances.