Note 7 - Notes Payable

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

NOTE 7 - NOTES PAYABLE

Notes payable at September 30, 2014 and December 31, 2013 consist of the following:

	September 30,			December 31,
	2014			2013
	(unaudited)
Note payable for mining equipment, payable $5,556 monthly, including interest (a)	$	10,292		$	42,927
Note payable for mining equipment, payable $950 monthly, including interest (b)		16,466			23,302
Note payable for mining equipment, payable $6,060 monthly, including interest (c)		23,966			76,313
Note payable for mine site vehicle, payable $628 monthly, including interest (d)		22,621			28,276
Note payable for mining equipment, payable $5,000 monthly, including interest (e)		--			9,932
Note payable for mining equipment, payable $2,250 monthly, including interest (f)		--			8,898
Note payable to an insurance company, payable $19,139 monthly, including interest (g)		--			132,576
Note payable to an insurance company, payable $4,297monthly, including interest (h)		--			29,767
Note payable for lab equipment, payable $9,123 monthly (i)		45,615			--
		118,960			351,991
Less: Current Portion		(97,470	)		(311,165	)
Notes Payable, Long-Term Portion	$	21,490		$	40,826

(a)	On July 7, 2011, the Company purchased mining equipment for $198,838 by issuing a note with an implicit interest rate of 9.34%. The note is collateralized by the mining equipment with payments of $5,556 for 36 months, which started on August 15, 2011
(b)	On April 17, 2012, the Company purchased mining equipment for $40,565 by issuing a note with an effective interest rate of 11.279%. The note is collateralized by the mining equipment with payments of $950 for 48 months, which started on May 1, 2012
(c)	On July 23, 2012, the Company purchased mining equipment for $169,500 by issuing a note with an interest rate of 5.5%. The note is collateralized by the mining equipment with payments of $6,060 for 30 months, which started on August 25, 2012
(d)	On September 20, 2012, the Company purchased a vehicle for the mine site for $37,701 by issuing a note with an interest rate of 0%. The note is collateralized by the vehicle with payments of $628 for 60 months, which started on October 20, 2012
(e)	On November 16, 2012, the Company purchased a piece of mining equipment that had been leased for $67,960 by issuing a note with an effective interest rate of 5.5%. The note is collateralized by the mining equipment and requires payments of $3,518 for three months and then $5,000 for twelve months
(f)	On November 16, 2012, the Company purchased a piece of mining equipment that had been leased for $33,748 by issuing a note with an effective interest rate of 5.5%. The note is collateralized by the mining equipment and requires payments of $1,632 for five months and then $2,250 for twelve months
(g)	The Company signed a note payable with an insurance company dated October 17, 2012 for directors' and officers' insurance, due in monthly installments, including interest at 3.15%. The note matured in September 2013 and was repaid.
(h)	The Company signed a note payable with an insurance company dated October 17, 2012 for liability insurance, due in monthly installments, including interest at 4.732%. The note matured in July 2013 and was repaid.
(i)	On April 16, 2014, the Company purchased laboratory equipment for $109,493 by depositing $18,424 and issuing a non-interest bearing note. The note is collateralized by the lab equipment with payments of $9,122 for ten months.

The following is a schedule of the principal maturities on these notes as of September 30, 2014:

October 2014 – September 2015	$	97,470
October 2015 – September 2016		13,950
October 2016 – September 2017		7,540
Total Notes Payable	$	118,960

During the three and nine months ending September 30, 2014, the Company's interest payments totaled $1,694 and $7,815, respectively.