DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2011

DISCONTINUED OPERATIONS [Abstract]

DISCONTINUED OPERATIONS

NOTE 3 – 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 December 31, 2011 and 2010 attributed to the discontinued operation are as follows:

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

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

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

Income (loss) after discontinued operations for the years ended December 31, 2011, 2010 2009 was calculated as follows:

	Year ended December 31,
	2011			2010			2009
Revenues from discontinued operations	$	- 0 -		$	- 0 -		$	- 0 -
Cost of goods sold		- 0 -			- 0 -			- 0 -
General and administrative expenses		(910	)		(12,962	)		(36,354	)
Payment of prior year income taxes		-0-			(550	)		- 0 -
Collection of previously recorded bad debt		-0-			234,524			202,365
Gain on settlement of debts		-0-			27,192			- 0 -
Gain (Loss) on disposal of assets		-0-			2,500			(148,138	)
Loss on impairment of assets		(4,862	)		(126,876	)		(82,547	)
Income (loss) from discontinued operations		(5,772	)		123,828			(64,674	)
Income tax liability		- 0 -			- 0 -			- 0 -
Net income (loss) from discontinued operations	$	(5,772	)	$	123,828		$	(64,674	)

During the year ended December 31, 2011 the mining and timber property located in northern Idaho was impaired by $4,862.  During the year ended December 31, 2010, the Company reviewed the assets held for sale and determined that certain items with a net book value of $301,085 would be reinstated to the Dragon Mine and used in exploration activities.  For the year ended December 31, 2010, an impairment of the remainder of equipment held for sale in the amount of $126,876 was recorded.  The book value of assets held for sale at December 31, 2011 and 2010 was $445,180 and $450,042, respectively.

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.