Gold Inventory

9 Months Ended

Aug. 31, 2011

Gold Inventory [Text Block]

3.

Gold Inventory

The Company’s test production in past years has yielded gold dust and gold nuggets. Gold dust has yielded sales prices equivalent to the spot gold price. Gold nuggets, however, are considered to be gem or jewelry items, which in the industry sell at a higher price than the spot price. They are valued according to weight, purity, character, and relative flatness (wearing quality). Historically, the Company’s gold nuggets have sold at prices above the spot gold price. The following is a summary of gold inventory changes during the nine months ended August 31, 2011, and during the fiscal year ended November 30, 2010:

				Weighted
	Troy Ounces			Average Price			Value
Balance as of November 30, 2009	10		$	657.50		$	6,316
Cost of gold sold	–			–			–
Balance as of November 30, 2010	10		$	657.50		$	6,316
Cost of gold sold	(10	)		(657.50	)		6,316
Balance as of August 31, 2011	–		$	–		$	–