6. PROPERTY AND EQUIPMENT

9 Months Ended

Sep. 30, 2012

Property, Plant and Equipment [Abstract]

The following table sets forth our property and equipment at the date indicated. These assets, with the exception of land which is not depreciable, are being depreciated over their remaining useful lives.

	September 30, 2012		December 31, 2011

Mining Property/Land	$	4,861,436	$	4,393,985
Office Equipment		115,364		104,086
Furniture and Fixtures		110,002		100,404
Computer Equipment		59,375		54,195
Transportation/Heavy Equipment		443,727		236,090
Office Improvements		79,095		72,195
Total Property and Equipment	$	5,669,000	$	4,960,955

Less Accumulated Depreciation		309,814		184,178

Net Property and Equipment	$	5,359,186	$	4,776,777

For the nine months ended September 30, 2012, depreciation expense was $103,812 compared to $64,623 for the nine months eneded September 30, 2011.

In June, 2011, Santa Teresa Minerals, acquired a 70% ownership interest in each of the mining properties currently known as “Teresita uno de veinte” and “Los Pinos uno de treinta” (or the “Los Pinos Project”). The interests were transferred to Santa Teresa Minerals on June 29, 2011. We paid $200,000 at the closing of the purchase and $100,000 on the six month anniversary of the purchase. We are obligated to pay $100,000 on each of the twelve month and eighteen month anniversaries of the purchase agreement, $200,000 on each of the twenty four and thirty month anniversaries of the purchase agreement, and $300,000 on the 36 month anniversary of the purchase agreement. The twelve-month anniversary payment was made on July 3, 2012. The next payment of $100,000 is due at the end of December 2012.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References+ Details

Casablanca Mining Ltd. 10-Q