Note 6 - Notes Payable

9 Months Ended

Sep. 30, 2016

NOTE 6 - NOTES PAYABLE

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

	September 30,			December 31,
	2016			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)		31,652			42,235
Note payable for mine site vehicle, payable $628 monthly (c)		7,541			13,196
Note payable to an insurance company, payable $9,055 monthly, including interest (d)		- 0 -			60,953
Note payable to an insurance company, payable $18,609 monthly, including interest (e)		- 0 -			124,019
		39,193			244,117
Less: Current Portion		(22,307	)		(210,429	)
Notes Payable, Long-Term Portion	$	16,886		$	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 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 3.0%.

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

October 2016 - September 2017	$	22,307
October 2017 - September 2018		15,533
October 2018 - September 2019		1,333
Total Notes Payable	$	39,193

During the three and nine months ended September 30, 2016, the Company's interest payments related to these notes totaled $443 and $4,647, respectively. During the three and nine months ended September 30, 2015, the Company's interest payments related to these notes totaled $940 and $6,894, respectively.