9. Commitments and Contingencies

6 Months Ended

Jun. 30, 2014

Notes

9. Commitments and Contingencies

9.   COMMITMENTS AND CONTINGENCIES

The Company has 426.5 acres of patented claims and 22,432 acres of non-patented claims. We are subject to annual claims rental fees in order to maintain our non-patented claims. In addition to the annual claims rental fees due November 30 of each year, we are also required to meet annual labor requirements due November 30 of each year. The Company is able to carry forward costs for annual labor that exceed the required yearly totals for four years.

Following are the annual claims and labor requirements for 2014 and 2015.

	November 30, 2014	November 30, 2015
Claims Rental	$                   69,350	$                    83,570
Annual Labor	61,100	61,100
Yearly Totals	$                 130,450	$                  144,670

The Company has a carryover to 2014 of approximately $14.3 million to satisfy its annual labor requirements. This carryover expires in the years 2014 through 2019 if unneeded to satisfy requirements in those years.