DISCONTINUED OPERATIONS

3 Months Ended

Mar. 31, 2012

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 March 31, 2012 and December 31, 2011 attributed to the discontinued operation are as follows:

	March 31,		December 31,
	2012		2011
Property and equipment	$	445,180	$	445,180
Total Assets From Discontinued Operations	$	445,180	$	445,180

At March 31, 2012 property taxes of $1,835 were accrued related to discontinued operations. At December 31, 2011, there were no liabilities attributed to discontinued operations.

Income (loss) after discontinued operations for the three months ended March 31, 2012 and 2011 was calculated as follows:

	For the three months ended
	March 31,
	2012			2011
Revenues from discontinued operations	$	-0-		$	- 0 -
Cost of goods sold		-0-			- 0 -
General and administrative expenses		(1,835	)		(910	)
Collection of previously recorded bad debt		-0-			- 0 -
Loss on disposal of assets		-0-			- 0 -
Loss on impairment of assets		-0-			- 0 -
Income (Loss) from discontinued operations		(1,835	)		(910	)
Income tax liability		- 0 -			- 0 -
Net income (loss) from discontinued operations	$	(1,835	)	$	(910	)

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.