DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 2011

DISCONTINUED OPERATIONS [Abstract]

DISCONTINUED OPERATIONS

NOTE 4 – DISCONTINUED OPERATIONS

The Company permanently discontinued its contract mining operations.  There are no plans to resume the contract mining business.

The Company has identified assets attributed to the discontinued operation that are being held for sale or have been identified as part of the discontinued operation and have been identified as such.  Assets at June 30, 2010 and December 31, 2010 attributed to the discontinued operation are as follows:

	June 30,		December 31,
	2011		2010
Property and equipment	$	445,180	$	450,042
Total assets from discontinued operations	$	445,180	$	450,042

Liabilities at June 30, 2011 and December 31, 2010 attributed to the discontinued operations are as follows:

	June 30,		December 31,
	2011		2010
Accounts payable and accrued liabilities	$	- 0 -	$	1,152
Total liabilities from discontinued operations	$	- 0 -	$	1,152

Income (loss) after discontinued operations for the three and six months ended June 30, 2011 and 2010 was calculated as follows:

	For the three months ended						For the six months ended
	June 30,						June 30,
	2011			2010			2011			2010
Revenues from discontinued operations	$	- 0 -		$	- 0 -		$	- 0 -		$	- 0 -
Cost of goods sold		- 0 -			- 0 -			- 0 -			- 0 -
General and administrative expenses		(4,862	)		(3,704	)		(5,772	)		(10,829	)
Collection of previously recorded bad debt		- 0 -			- 0 -			- 0 -			245,507
Loss on disposal of assets		- 0 -			- 0 -			- 0 -			- 0 -
Loss on impairment of assets		- 0 -			- 0 -			- 0 -			- 0 -
Income (loss) from discontinued operations		(4,862	)		(3,704	)		(5,772	)		234,678
Income tax liability		- 0 -			- 0 -			- 0 -			- 0 -
Net income (loss) from discontinued operations	$	(4,862	)	$	(3,704	)	$	(5,772	)	$	234,678

The Company does not believe there is an effect of income taxes on discontinued operations.  Due to ongoing operating losses, the uncertainty of future profitability and limitations on the utilization of net operating loss carry-forwards under IRC Section 382, a valuation allowance has been recorded to fully offset the Company's deferred tax asset.