Note 7 - Notes Payable

9 Months Ended

Sep. 30, 2015

NOTE 7 - NOTES PAYABLE

Notes payable at September 30, 2015 and December 31, 2014 consist of the following:

	September 30,			December 31,
	2015			2014
	(unaudited)

Note payable for mining equipment, payable $1,339 monthly, including interest (a)	$	45,672		$	55,720
Note payable for mining equipment, payable $950 monthly, including interest (b)		6,410			14,057
Note payable for mining equipment, payable $6,060 monthly, including interest (c)		- 0 -			6,033
Note payable for lab equipment, payable $9,122 monthly, including interest (d)		- 0 -			18,246
Note payable for mine site vehicle, payable $628 monthly, including interest (e)		15,709			20,736
Note payable to an insurance company, payable $21,531 monthly, including interest (f)		-0-			149,036
Note payable to an insurance company, payable $6,094 monthly, including interest (g)		-0-			42,211
		67,791			306,039
Less: Current Portion		(28,598	)		(246,894	)
Notes Payable, Long-Term Portion	$	39,193		$	59,145

(a)

On October 31, 2014, the Company purchased mining equipment for $57,900 by issuing a note with an interest rate of 5.2%. The note is collateralized by the mining equipment with payments of $1,339 for 48 months, which started on November 30, 2014.

(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 April 16, 2014, the Company purchased laboratory equipment for $109,493 by depositing and issuing a non-interest bearing note in the amount of $91,229. The note is collateralized by the lab equipment with payments of $9,122 for ten months, which started in May 2014.
	(e)	On September 20, 2012, the Company purchased a vehicle for the mine site for $37,701 by issuing a non-interest bearing note. The note is collateralized by the vehicle with payments of $628 for 60 months, which started on October 20, 2012.
	(f)	The Company signed a note payable with an insurance company dated October 31, 2014 for directors' and officers' insurance, due in monthly installments, including interest at 3.15%. The notes matured in July 2015.
	(g)	The Company signed a note payable with an insurance company dated October 31, 2014 for liability insurance, due in monthly installments, including interest at 3.15%. The note matured in July 2015.

The following is a schedule of the principal maturities for the next four years:

October 2015 – September 2016	$	28,598
October 2016 – September 2017		22,307
October 2017 – September 2018		15,553
October 2018 – September 2019		1,333
Total Notes Payable	$	67,791

During the three and nine months ending September 30, 2015, the Company's interest payments totaled $940 and $6,894, respectively.