PROPERTY AND EQUIPMENT

6 Months Ended

Jun. 30, 2012

Property, Plant and Equipment [Abstract]

Note 6. PROPERTY AND EQUIPMENT

The following table sets forth our fixed assets at the date indicated. These assets, with the exception of land which is not depreciable, are being depreciated over their remaining useful lives.

	June 30, 2012		December 31, 2011
Mining Property/Land	$	4,550,596	$	4,393,985
Office Equipment		107,941		104,086
Furniture and Fixtures		104,123		100,404
Computer Equipment		56,201		54,195
Transportation/Heavy Equipment		420,012		236,090
Office Improvements		76,126		72,195
Total Property and Equipment	$	5,314,999	$	4,960,955
Less Accumulated Depreciation		255,542		184,178
Net Property and Equipment	$	5,059,457	$	4,776,777

As of June 30, 2012, depreciation expense was $64,392 compared to $57,886 at June 30, 2011.

In June, 2011, Santa Teresa Minerals, acquired a 70% ownership interest in each of the mining properties currently known as “Teresita uno de veinte” and “Los Pinos uno de treinta” (or the “Los Pinos Project”). The interests were transferred to Santa Teresa Minerals on June 29, 2011. We paid $200,000 at the closing of the purchase and $100,000 on the six month anniversary of the purchase. We are obligated to pay $100,000 on each of the twelve month and eighteen month anniversaries of the purchase agreement, $200,000 on each of the twenty four and thirty month anniversaries of the purchase agreement, and $300,000 on the 36 month anniversary of the purchase agreement. The twelve month anniversary payment was made on July 3, 2012.