NOTE 7: INVESTMENTS

3 Months Ended

Jun. 30, 2012

NOTE 7: INVESTMENTS

The Company has invested in various privately and publicly held companies and silver coins and bars. At this time, the Company holds securities classified as available for sale. Amounts are reported at fair value as determined by quoted market prices, with unrealized gains and losses excluded from earnings and reported separately as a component of stockholders’ equity. The cost of securities sold is based on the specific identification method.

Unrealized gains and losses are recorded on the statements of operations as other comprehensive income (loss) and on the balance sheet as accumulated other comprehensive income.

The following summarizes the investments at June 30, 2012:

Investment	Quantity	Cost		Market Value

Available for Sale Securities:
Gold Crest Mines	550,100	$	713	$	19,253
Lucky Friday Extension	5,000		250		300
New Jersey Mining	52,857		12,686		5,868
Subtotal	607,957		13,649		25,421

Desert Hawk JV			100,000		100,000

Total at June 30, 2012	607,957	$	113,649	$	125,421

During the second quarter of fiscal year 2012, the Company executed a letter of intent with Desert Hawk Gold Corporation (“DHGC”) and based upon this agreement made payment of $100,000 to DHGC. Upon the completion and funding of the agreement, the Company and DHGC will each own a 50% interest in a joint venture operating the numerous mineral claims, leases, permits and other rights currently held by DHGC in the Gold Hill Mining District of Utah.

The Company’s net change in accumulated other comprehensive income was a gain of $9,483 during the first nine months of fiscal year 2012. This change includes both adjustments for previously unrealized gains and losses on investments sold during the year and the unrealized gains and losses on the Company’s available-for-sale investments that are still held by the Company. The $9,483 gain is recorded on the statements of operations as other comprehensive income and the change is reflected in the change in accumulated other comprehensive income on the balance sheet from September 30, 2011 to June 30, 2012.

The Company realized $316 of net gain previously included in accumulated other comprehensive income on the sale of investments during the first quarter of fiscal year 2012, which is reflected in the statements of operations. In the third fiscal quarter, the Company exchanged all of its holdings in Merger Mines (then valued at $1,200) in exchange for rent. Also in the third fiscal quarter was the Company’s sale of all remaining silver coins and bars for a total of $5,600 in cash, and a gross profit of $2,476.

The following summarizes the Company’s investments at September 30, 2011:

Investment	Quantity	Cost		Market Value

Available for Sale Securities:
Gold Crest Mines	550,100	$	713	$	5,501
Lucky Friday Extension	5,000		250		325
Merger Mines	10,000		1,400		1,500
New Jersey Mining	52,857		12,686		9,514
Subtotal	617,957		15,049		16,840

Silver Coins & Bars	61		735		1,829

Total at September 30, 2011	618,018	$	15,784	$	18,669

The Company’s net annual change in accumulated other comprehensive income (loss) was $54,072 during the fiscal year ended September 30, 2011. This change includes both adjustments for previously unrealized gains and losses on investments sold during the year and the unrealized gains and losses on the Company’s available-for-sale investments that are still held by the Company. The $54,072 is recorded in the Company’s September 30, 2011 consolidated statements of operations as other comprehensive income and the change is reflected in the change in accumulated other comprehensive income on the balance sheet from September 30, 2010 to September 30, 2011.

The Company realized $4,551 of net loss previously included in accumulated other comprehensive income on the sale of investments during the fiscal year ended September 30, 2011, which is reflected on the Company’s September 30, 2011 audited consolidated financial statements on the statements of operations.