Note 6 - Notes Payable

6 Months Ended

12 Months Ended

Jun. 30, 2016

Dec. 31, 2015

NOTE 6 - NOTES PAYABLE

Notes payable at June 30, 2016 and December 31, 2015 consist of the following:

	June 30, 2016			December 31, 2015

Note payable for mining equipment, payable $950 monthly, including interest (a)	$	- 0 -		$	3,714
Note payable for equipment, payable $1,339 monthly, including interest (b)		35,226			42,235
Note payable for mine site vehicle, payable $628 monthly (c)		9,426			13,196
Note payable to an insurance company, payable $9,055 monthly, including interest (d)		8,804			60,953
Note payable to an insurance company, payable $18,609 monthly, including interest (e)		18,119			124,019
		71,575			244,117
Less: Current Portion		(49,040	)		(210,429	)
Notes Payable, Long-Term Portion	$	22,535		$	33,688

(a)

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.

(b)

On October 31, 2014, the Company purchased mining equipment for $65,120 by paying a deposit and issuing a note in the amount of $57,900 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.

	(c)	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.

(d)

The Company signed a note payable with an insurance company dated October 21, 2015 for liability insurance, due in monthly installments, including interest at 11.845%.

(e)

The Company signed a note payable with an insurance company dated October 17, 2015 for liability insurance, due in monthly installments, including interest at 3.000%.

The following is a schedule of the principal maturities on these notes as of June 30, 2016:

July 2016 - June 2017	$	49,040
July 2017 - June 2018		18,554
July 2018 - June 2019		3,981
Total Notes Payable	$	71,575

During the three and six months ended June 30, 2016, the Company's interest payment related to these notes totaled $2,909 and $4,204, respectively. During the three and six months ended June 30, 2015, the Company's interest payments related to these notes totaled $1,776 and $5,974, respectively.

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

	December 31,
	2015			2014

Note payable for mining equipment, payable $950 monthly, including interest (a)	$	3,714		$	14,057
Note payable for mining equipment, payable $6,060 monthly, including interest (b)		--			6,033
Note payable for equipment, payable $9,122 monthly, including interest (c)		--			18,246
Note payable for equipment, payable $1,339 monthly, including interest (d)		42,235			55,720
Note payable for mine site vehicle, payable $628 monthly (e)		13,196			20,736
Note payable to an insurance company, payable $21,531monthly, including interest (f)		--			149,036
Note payable to an insurance company, payable $6,094 monthly, including interest (g)		--			42,211
Note payable to an insurance company, payable $9,055 monthly, including interest (h)		60,953			--
Note payable to an insurance company, payable $18,609 monthly, including interest (i)		124,019			--
		244,117			306,039
Less: Current Portion		(210,429	)		(246,894	)
Notes Payable, Long-Term Portion	$	33,688		$	59,145

(a)

(b)

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.

(c)

On April 1, 2014, the Company purchased lab equipment for $109,493 by paying deposit 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 November 2014.

(d)

On October 31, 2014, the Company purchased mining equipment for $65,120 by paying deposit and issuing a note in the amount of $57,900 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.

(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 17, 2014 for directors' and officers' insurance, due in monthly installments, including interest at 3.15%. The note matured in June 2015 and was repaid.

(g)

The Company signed a note payable with an insurance company dated October 17, 2014 for liability insurance, due in monthly installments, including interest at 4.732%. The note matured in July 2015 and was repaid.

(h)

The Company signed a note payable with an insurance company dated October 21, 2015 for liability insurance, due in monthly installments, including interest at 11.845%.

(i)

The Company signed a note payable with an insurance company dated October 17, 2015 for liability insurance, due in monthly installments, including interest at 3.000%.

The following is a schedule of the principal maturities on these notes as of December 31, 2015:

2016	$	210,429
2017		20,615
2018		13,073
Total Notes Payable	$	244,117

During the 2015 and 2014, the Company's interest payments totaled $12,839 and $10,460, respectively.