Note 2 - Fixed Assets

12 Months Ended

Dec. 31, 2015

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

NOTE 2 -     FIXED ASSETS

Property and equipment are carried at cost, less accumulated depreciation and includes expenditures that substantially increase the useful lives of existing assets. Maintenance and repairs are charged to current operations as incurred. Upon sale, retirement, or other disposition of these assets, the costs and related accumulated depreciation are removed from the respective accounts, and any gain or loss on the disposition is included in other income.

Depreciation expense is computed using the straight-line method over the following estimated useful lives:

Description	Useful Life
Land improvements	Estimated life of mine
Building (in years)		15
Mining equipment (in years)	3	–	5
Vehicles (in years)		5

Fixed assets and accumulated depreciation are as follows:

	December 31,
	2015			2014
Fixed assets:
Land	$	376,442		$	376,442
Mining claims		12,137			12,137
Land improvements		128,580			128,580
Automobile		66,923			66,923
Mining equipment		124,976			124,976
Buildings		42,055			-
Unamortized asset retirement obligation (Note 3)		98,027			98,027
Construction in-process		-			4,000
Less: Accumulated depreciation		(359,175	)		(327,705	)
Total fixed assets	$	489,965		$	483,380

Depreciation expense for the years ended December 31, 2015 and 2014 was $31,470 and $34,849, respectively.