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Equipment and Mining Interest

9 Months Ended

Jan. 31, 2016

NOTE 4 – EQUIPMENT AND MINING INTEREST

The following is a summary of the Company's equipment and mining interest at January 31, 2016 and April 30, 2015, respectively:

	January 31, 2016		April 30, 2015
Equipment	$	27,007	$	28,992
Less accumulated depreciation		(21,606)		(19,540)
Equipment, net of accumulated depreciation		5,401		9,452
Mining interest – Longstreet property		321,999		288,499
TOTAL EQUIPMENT AND MINING INTEREST	$	327,400	$	297,951

The Longstreet Property

On December 10, 2014, the Longstreet Property Option Agreement was amended revising the required expenditures and annual stock option obligation.

Under terms of the agreement, for the year ended April 30, 2015, the Company paid $56,000 and issued options to purchase 25,000 shares of common stock with fair value of $3,000 (Note 6). The Company also purchased $9,000 of additional mining interest related to the Clifford claims on the Longstreet property during the year ended April 30, 2015. The Company is obligated to pay $12,000 annually on owners advance royalty payments related to the Clifford claims. For the nine months ended January 31, 2016, the Company purchased $12,000 of additional mining interest on the Longstreet property related to the Clifford claims.

On January 5, 2016, the Longstreet Property Option Agreement was further amended revising the required expenditures and annual stock option obligation. All allowable expenditures in excess of the required annual expenditures shall be carried-over to the subsequent year. The Company is in compliance with all provisions of the Longstreet Property Option Agreement as amended.

For the three months ended January 31, 2016, the Company made an annual required payment to the optioner of $20,000 which is included in “Equipment and Mining Interest”.

The schedule of annual payments, minimum expenditures and number of stock options to be issued pursuant to the amended Longstreet Property Option Agreement of January 5, 2016, is as follows:

Required annual expenditure between:	Required Expenditure		Payment to optioner⁽¹⁾		Annual stock option obligation
January 17, 2015 through January 16, 2016 ⁽²⁾	$	100,000	$	20,000		25,000
January 17, 2016 through January 16, 2017		150,000		25,000		25,000
January 17, 2017 through January 16, 2018		300,000		35,000		40,000
January 17, 2018 through January 16, 2019		500,000		40,000		45,000
January 17, 2019 through January 16, 2020		700,000		45,000		50,000
Payment due upon transfer but no later than January 16, 2021		-		85,000		-
TOTAL	$	1,750,000	$	250,000		185,000

⁽¹⁾

Does not include $12,000 annual payment related to Clifford claims.

⁽²⁾

$20,000 payment to optioner made in January 2016 and required expenditures all paid through January 16, 2016.

Excalibur and Jet Properties

On June 30, 2015, the Company elected to terminate the Property Option Agreements on the Excalibur and Jet properties. The Company impaired the Excalibur and Jet properties at April 30, 2015 and subsequently gave notice of cancellation on the properties. The Company expects to focus capital resources on advancing the Longstreet property and therefore decided to return the Jet and Excalibur properties to the underlying owner before any further exploration expenditures were due. Under the terms of the original agreements, the Company is responsible for claims payments on the Excalibur and Jet properties one year in advance of which the Company has charged operations $8,945 for the nine months ended January 31, 2016. There are no liabilities or future obligations to the Company on either the Jet or Excalibur properties.