5. MINERAL PROPERTY COMMITMENTS - RELATED PARTY

12 Months Ended

Jun. 30, 2013

Mineral Industries Disclosures Related Pary [Abstract]

Mineral Industries Disclosures Related Pary

5.           MINERAL PROPERTY COMMITMENTS - RELATED PARTY

Klondike North Property.  On October 24, 2011, the Company entered into an Exploration and Mining Lease and Option to Purchase Agreement for the Klondike North Property, which consists of 12 unpatented lode-mining claims located on Bureau of Land Management lands in the Klondike Mining District, Esmerelda County, Nevada.  The Company has the right to conduct all customary mineral exploration activities in return for the following commitments:

Advanced Royalty Payments

Date		Payment Amount	Common Shares
Upon execution of Agreement	$	-	500,000
First Anniversary of the Agreement		10,000	-
Second Anniversary of the Agreement		20,000	-
Third Anniversary of the Agreement		30,000	-
Fourth Anniversary of the Agreement		40,000	-
Fifth through the tenth Anniversary		50,000	-
Eleventh Anniversary and thereafter		100,000	-

The Company fair valued the 500,000 shares issued for the above acquisition of mineral rights at $0.02 and accounted for $10,000 as unproved property as of June 30, 2012.

Work Commitment

Lease Year		Amount
First Lease Year	$	5,000
Second Lease Year		25,000
Third Lease Year		50,000
Fourth Lease Year		75,000
Fifth Lease Year and thereafter		100,000

Divide Property.  On February 21, 2012, the Company entered into an Exploration and Mining Lease and Option to Purchase Agreement for the Divide Property, which consists of 10 unpatented lode-mining claims located on Bureau of Land Management lands in the Divide Mining District, Esmerelda County, Nevada.  The Company has the right to conduct all customary mineral exploration activities in return for the following commitments:

Advanced Royalty Payments

Date		Payment Amount	Common Shares
Upon execution of Agreement	$	-	100,000
First Anniversary of the Agreement		10,000*	-
Second Anniversary of the Agreement		20,000	-
Third Anniversary of the Agreement		30,000	-
Fourth Anniversary of the Agreement		40,000	-
Fifth Anniversary and thereafter		50,000	-

The Company fair valued the 100,000 shares issued for the above acquisition of mineral rights at $0.02 and accounted for $2,000 as unproved property as of June 30, 2012.

*The Company, with agreement from the sellers, satisfied its First Anniversary obligation with a $5,000 payment in cash and 50,000 shares of common stock issued at a value of $0.10 per share during the year ended June 30, 2013.

Work Commitment

Lease Year		Amount
First Lease Year	$	5,000
Second Lease Year		25,000
Third Lease Year		50,000
Fourth Lease Year		75,000
Fifth Lease Year and thereafter		100,000

Eagleville Property.  On July 27, 2012, the Company entered into an Exploration and Mining Lease and Option to Purchase Agreement for the Eagleville Property, which consists of 58 unpatented lode-mining claims located on Bureau of Land Management lands in the Eagleville Mining District, Mineral County, Nevada.  The Company has the right to conduct all customary mineral exploration activities in return for the following commitments:

Advanced Royalty Payments

Date		Payment Amount	Common Shares
Upon execution of Agreement	$	6,000	300,000
On or prior to the 1st Anniversary of the Agreement		15,000	150,000
On or prior to the 2nd Anniversary of the Agreement		20,000	150,000
On or prior to the 3rd Anniversary of the Agreement		30,000	-
On or prior to the 4th Anniversary of the Agreement		40,000	-
On or prior to the 5th through the 10th Anniversary		50,000	-
On or prior to the 11th Anniversary and thereafter		100,000	-

The Company fair valued the 300,000 shares issued for the above acquisition of mineral rights at $0.10 and accounted for $30,000 as unproved property as of June 30, 2013.

Work Commitment

Lease Year		Amount
First Lease Year	$	5,000
Second Lease Year		10,000
Third Lease Year		25,000
Fourth Lease Year		50,000
Fifth Lease Year and thereafter		100,000

For all three properties, the related party is an owner or co-owner which exercises voting rights over more than 10 percent of the Company’s common stock.  The Company has satisfied its work commitments for the first and second lease years on all three properties.