The following is a summary of property, mineral rights, and equipment and accumulated depreciation at September 30, 2018 and 2017:

	Expected Useful Lives (years)		2018		2017

Mineral rights – Talapoosa	-	$	-	$	3,214,200
Mineral rights – Eureka	-		13,678,940		13,809,842
Mineral rights – Elder Creek	-		1,146,000		-
Mineral rights – Other	-		50,000		50,000
Total mineral rights			14,874,940		17,074,042

Equipment and vehicles	2-5		53,678		63,591
Office equipment and furniture	3-7		70,150		70,150
Land	-		51,477		51,477
Total property and equipment			175,305		185,218
Less accumulated depreciation			(123,828)		(133,741)
Property, mineral rights, and equipment, net		$	14,926,417	$	17,125,519

Depreciation expense for the years ended September 30, 2018 and 2017, was nil and nil, respectively.

During the year ended September 30, 2018, the Company’s management and Board of Directors determined that certain payments received by the Company from a party of interest in two of the Company’s leases beginning in August 2017, which had been held and not recorded or deposited pending an expected resolution of circumstances relating to two historic leases at the Company’s Eureka property, should be deposited. The payments had been received from a third party with whom the Company is in discussions to resolve matters that had been under negotiation since the Company acquired the Eureka property in 2010. The total amount of these payments received for the year ended September 30, 2018 was $112,902. Monthly payments in the amount of $8,326 are expected to continue to be received, recorded and deposited until the situation concerning the leases is resolved. These receipts are recorded as a reduction to property, mineral rights, and equipment.

During the year ended September 30, 2017, the Company received a $10,000 lease payment from a property leased to a third party and the Company sold a package of royalties on certain early stage properties for $40,000. Given that the total carrying value of the leased property was nil, the lease income was recorded on the consolidated statements of operations and comprehensive income (loss) as a gain on lease of mineral rights. The total carrying value of the package of royalties was nil, and the income from the sale of the package of royalties was recorded on the consolidated statements of operations and comprehensive income (loss) in other income (expense).

On May 23, 2018, the Company sold a participating interest in the ICBM Project (“ICBM”), a mineral interest located in Humboldt and Lander counties, Nevada. The Company had acquired this property in 2010. The purchaser was Americas Gold Exploration, Inc. (“AGEI”) and the consideration the Company received for the sale was $100,000 cash, which was recorded as a decrease to mineral interests. The total consideration also included a 0.5% net smelter return royalty on the gross production of all minerals extracted from the ICBM Project properties. In connection with a concurrent definitive agreement with AGEI to acquire an additional property interests, the Company decided to re-acquire the ICBM Project interest, now renamed as the Paiute property joint venture, as a component of the AGEI transaction.

On May 23, 2018, the Company executed a definitive agreement with AGEI (the “Definitive Agreement”) for the purchase of interests in two mineral properties in Nevada (the “Transaction”). The mineral properties include the Elder Creek project, currently owned by McEwen Mining Inc., which includes an option to acquire up to 65% of the project interest, and an approximate 73.7% interest in the Paiute property (formerly ICBM), with LAC Minerals (USA) LLC, a wholly owned subsidiary of Barrick Gold Corporation. The Company is the operator at both of these projects.

The consideration for the Transaction consisted of ten million shares of the Company’s common stock, valued at $0.0806 per share, or $806,000, and five million non-transferrable Class D-2 share purchase warrants (the “Consideration Warrants”), with each warrant exercisable to acquire one share of the Company’s common stock for $0.24 for a period of three years. The warrants were valued at $240,000. (See Note 10 for valuation assumptions). In addition, the Company will deliver to AGEI, subject to any required regulatory approval, an additional 5,000,000 common stock purchase warrants with the same terms and in the same form as the Consideration Warrants if and when the earlier of the following occurs: (i) the Company enters into an arrangement with a funding partner for the advancement of the Elder Creek Joint Venture, or (ii) the Company has met the 2018 work commitment of $500,000. (See Note 12 – Commitments & Contingencies)

On June 18, 2018, the Company entered into an amendment to the Definitive Agreement wherein the Company agreed, upon closing of the Transaction, to reimburse AGEI for the initial payment of $100,000 due under the Elder Creek agreement with McEwen Mining. During the fourth quarter of the 2018 fiscal year, the Company paid the $100,000. Total consideration given for the Transaction was $1,146,000 in the form of cash, common stock and warrants.

On June 29, 2018, the Company paid the property holding costs for the Elder Creek property of $95,759, which was expensed to Mineral exploration during the year ended September 30, 2018.