NOTE 6 - NOTES PAYABLE

On July 7, 2011 the Company purchased a piece of mining equipment for $198,838 with an implicit interest rate of 9.34%. The long-term debt is collateralized by the piece of mining equipment with payments of $5,556 for 36 months, which started on August 15, 2011.

Note payable to an insurance company due in monthly installments, including interest at 3%. Note matures in July 2012.

Note payable at March 31, 2012, payable $5,556 monthly, including interest	$	139,288
Note payable to an insurance company due in monthly installments, including 3% interest		63,464
Less: current portion		(119,479	)
Note payable, long-term portion	$	83,273

The following is a schedule of the future minimum note payments as of March 31, 2012:

2012	$	119,479
2013		61,477
2014		21,796
Total notes payable	$	202,752

During the three months ending March 31, 2012, the Company's interest expense totaled $4,312.