NOTE 6 – MINERAL PROPERTIES AND INTERESTS

Mineral properties and interests as of March 31, 2016 and December 31, 2015 are as follows:

	March 31, 2016			December 31, 2015
Initial lease fee
Yellow Hammer Site	$	175,000		$	175,000
Kiewit, Cactus Mill and all other sites		600,000			600,000
Total		775,000			775,000

Asset retirement obligation
Kiewit Site		789,026			789,026
Kiewit Exploration		10,780			10,780
Cactus Mill		16,133			16,133
Total		815,939			815,939
Accumulated amortization		(302,956	)		(276,933	)
Total	$	1,287,983		$	1,314,006

The Company holds operating interests within the Gold Hill Mining District in Tooele County, Utah, consisting of 247 unpatented claims, including the unpatented mill site claim, and two Utah state mineral leases located on state trust lands. Annual claims fees are currently $155 per claim plus administrative fees.

On January 6, 2014, we obtained the final permit necessary to commence construction of the heap leach pad and process facility. On February 20, 2014, the Kiewit reclamation bond in the amount of $1,348,000 was posted with the State of Utah, Division of Oil, Gas and Mining. This newly calculated bond amount includes bonding for the Yellow Hammer Small Mine and the Yellow Hammer Exploration sites along with the Herat Exploration site. As such, the asset retirement obligation for these sites was absorbed by the new bond. Funds of $92,705 were received in April 2014 by the Company for these refunded reclamation bonds. Total reclamation bonds posted at March 31, 2016 and December 31, 2015 are $1,418,547 and $1,418,070, respectively.