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Note 3- Mineral Properties

3 Months Ended

Mar. 31, 2013

Note 3- Mineral Properties



		Mineral Properties
Garrett Property acquisition (a)		200,000
Elijah Property acquisition (b)		145,000
Kenty Property acquisition (c)		1,976,000
Balance at December 31, 2012		$ 2,321,000
Mortimer Property acquisition (d)		234,166
Coppell Property acquisition (e)		28,000
Balance at March 31, 2013		$ 2,583,166

(a)

Garrett Property

On June 25, 2011 the Company entered into a mineral property acquisition agreement with Firelake Resources Inc. whereby it acquired certain mineral interests in the Garrett Property. Consideration for the mineral interests is as follows:

Cash consideration of $50,000 to be paid in two equal installments of $25,000 on January 31, 2012 and January 31, 2013.

Equity consideration of 2,000,000 shares of common stock to be issued on or before January 31, 2012

Royalty of 2% of all net smelter returns upon commencement of commercial production at the property.

As of March 31, 2013, the Company paid $6,000 of the balance due on the Garrett Property.

The Garrett Property is 8,900 acres in area and is located north of the City of Sudbury, in Ontario, Canada. The Company’s interest in the property consists of 157 mineral claim units staked by a prospector. Mining cannot take place until the claims are brought to lease. In order to keep the claims in good standing, the Company is required to perform $30,000 of exploration work before October 2013 and $32,800 of exploration work before November 2013.

(b)

Elijah Property

On February 13, 2012, the Company finalized a mineral property acquisition agreement with Shining Tree Resources Corp. (“Shining Tree”), under which the Company would acquire a 50% interest in the Elijah Property in the townships of Churchill and Asquith in the Province of Ontario, Canada. In exchange for the interest in the property, the Company will:

Pay cash consideration of $50,000 according to an installment schedule between February and July 2012;

Issue 333,333 shares of common stock to Shining Tree; and

Complete exploration expenditures having a value of $200,000 on the conveyed property before February 10, 2014. Upon completion of payment for the conveyed property in the aggregate amount of $50,000 and of exploration expenditures on the conveyed property, Shining Tree will issue to the Company 1,000,000 common shares of Shining Tree common stock, on or before July 30, 2012.

As of March 31, 2013, the Company paid $10,000 of the balance due on the Elijah Property and the 333,333 common shares have yet to be issued.

The Elijah Property consists of four unpatented mining claims (38 units - approximately 1,520 acres) in Asquith and Churchill Townships, Larder Lake Mining District, Ontario, Canada. The property lies approximately 3 kilometers northeast of the hamlet of Shining Tree.

(c)

Kenty Property

On October 4, 2012, the Company entered into a mineral property acquisition agreement with Brian McClay, pursuant to which McClay agreed to sell to the Company a 100% interest in certain mineral interests found on the Kenty Property located in the Townships of Swayze and Dore, Ontario, Canada.

As consideration for the sale of the McClay conveyed property, the Company agreed to pay:

Cash consideration of $1,500,000 to be paid according to an installment schedule between October 4, 2012 and April 4, 2015;

Equity consideration of 1,700,000 shares of common stock to be issued according to an installment schedule between October 4, 2012 and April 4, 2015; and

Royalty of 3% of all net smelter returns upon commencement of commercial production of the property.

In addition, the Company has also agreed to the following conditional payments in respect of its purchase of the property:

Upon completion of a NI 43-101 compliant report with indicated reserves of 1,000,000 troy ounces of gold on the property, the Company shall pay $1,000,000 to McClay.

Upon production of 1,000,000 troy ounces of gold property, the Company shall pay $1,000,000 to McClay.

Upon production of 3,000,000 troy ounces of gold property, the Company shall pay $2,000,000 to McClay.

Upon production of 5,000,000 troy ounces of gold property, the Company shall pay $2,000,000 to McClay.

Company shall have the option of early buyout within one year of execution for a cash payment of $750,000 and 750,000 common shares of Company.

The Kenty Property consists of a contiguous block of 16 patented mining claims. The patent mining claims making up the Kenty Gold Property require payment of annual taxes. However, there is no expiration date nor is there a work requirement in order to maintain these claims in good standing.

(d)

Mortimer Property

On February 11, 2013, the Company entered into a mineral property acquisition agreement with Red Pine Exploration Inc., under which the Company acquired a 100% interest in certain mineral interests found contiguous to the Kenty Property (the “Mortimer Claims”). The area of the Kenty Property Mortimer Claims is approximately 35,859 acres or approximately 14,512 hectares and consists of 907 mining claim units. As consideration for the sale of the Mortimer Claims, the Company agreed to:

Payment of $25,000 in cash on the closing date and a further $100,000 on March 15, 2013;

Issuance of 250,000 shares of common stock on March 15, 2013, with an implied value of $100,000, and subject to a top-up provision for issuance of additional shares if the market value is below the implied value on July 15, 2013;

A 3% net smelter returns royalty payable to Red Pine Explorations Inc.; and

A 2% net smelter returns royalty payable to Charlie Mortimer.

As of March 31, 2013 the $100,000 due on March 15, 2013 has not been made.

(e)

Coppell Property

On January 17, 2013, the Company entered into a mineral property acquisition agreement with Shelly Moretti, Jacques Robert and Michael Tremblay, under which the Company acquired a 100% interest in certain mineral interests in Coppell Township. As consideration for the sale of the Claims, the Company agreed to:

Payment of $4,000 in cash on the closing date;

Issuance of 80,000 shares of common stock on or before February 4, 2013, with an implied value of $24,000.