5. MINING PROPERTY/LAND AND DEPOSITS ON MINING OPTIONS

3 Months Ended

Mar. 31, 2013

Mining Propertyland And Deposits On Mining Options

Mining Property/Land and Deposits on Mining Options

The following table sets forth our mining property/land and deposits on mining options at the date indicated. The Company follows the successful efforts method of accounting. All developmental costs have been capitalized. As of the stated dates no impairment on these properties was deemed necessary.

	March 31, 2013		December 31, 2012

Mining Property/Land	$	5,018,526	$	4,941,573
Deposit on mining property options	$	67,875	$	–

On January 25, 2013, Santa Teresa Minerals, S.A., acquired the option to purchase 80% of the Las Palmas gold mine in Chile. Santa Teresa has the right to mine the property during a one-year option period. The Company may continue to make purchase payments totaling $2 million (USD) over a period of 30 months to acquire Las Palmas or decline to purchase the property. An initial payment of $67,875 was made on the acquisition date and a subsequent payment of $50,000 was made on May 15, 2013

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 each of the six month, 12 month and 18 month anniversaries of the purchase agreement. The 12 month anniversary payment of $100,000 was made on July 3, 2012 and the 18 month anniversary payment of $100,000 was made on December 30, 2012. We are obligated to pay $200,000 on each of the 24 and 30 month anniversaries of the purchase agreement, and $300,000 on the 36 month anniversary of the purchase agreement.

Casablanca Mining Ltd. 10-Q