Property and Equipment

3 Months Ended

Dec. 31, 2012

Property and Equipment:

On June 15, 2012, the Company acquired property and equipment from 2023682 Ontario Inc., a commonly-controlled related party (see Note 6). The cost of these acquired assets was recorded at the same historical carrying values reflected in the accounts of 2023682 Ontario Inc.

Equipment and buildings consist of the following: as of December 31, 2012 and September 30, 2012:

	December 31, 2012		September 30, 2012

Equipment	$	99,424	$	102,417
Less accumulated depreciation		5,658		3,083
Net equipment		93,766		99,334

Buildings		31,818		16,973
Less accumulated depreciation		1,295		511
Net buildings		30,523		16,462

Net property and equipment	$	124,289	$	115,796

Depreciation expense was $3,336 for the three months ended December 31, 2012. Equipment and buildings are depreciated on a straight line basis over their estimated useful lives: equipment 15 years, and buildings 20 years.

Patented Claims:

At December 31, 2012, the Company also has mining property patent claims of $10,227. These patent claims provide the Company with mining rights to certain land located in Cobalt, Ontario, Canada. No amortization was taken for the three months ended December 31, 2012 as there was no production.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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