Sunergy (SNEYD) 10-Q 20 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014
Document And Entity Information	'
Entity Registrant Name	'SUNERGY INC
Entity Central Index Key	'0001261487
Document Type	'10-Q
Document Period End Date	31-Mar-14
Amendment Flag	'false
Current Fiscal Year End Date	'--12-31
Is Entity a Well-known Seasoned Issuer?	'No
Is Entity a Voluntary Filer?	'No
Is Entity's Reporting Status Current?	'Yes
Entity Filer Category	'Smaller Reporting Company
Entity Common Stock, Shares Outstanding	2,210,086,450
Document Fiscal Period Focus	'Q1
Document Fiscal Year Focus	'2014

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2014	Dec. 31, 2013
Current assets:	'	'
Cash	$8,551	$2,463
Prepaid expense	21,911	0
Total current assets	30,462	2,463
Long-term assets:	'	'
Exploratory properties	1,753,497	1,753,497
Property and equipment, net	131,029	128,620
Total long-term assets	1,884,526	1,882,117
Total assets	1,914,988	1,884,580
Current liabilities:	'	'
Accounts payable and accrued liabilities	578,432	436,543
Notes payable, current portion	121,918	48,085
Convertible debt, net of discount	138,500	128,246
Accrued interest	591,488	537,488
Accounts payable to related parties	10,062	110,944
Derivative liability	0	23,531
Total current liabilities	1,440,400	1,284,837
Total liabilities	1,440,400	1,284,837
Stockholders' equity:	'	'
Common stock, authorized 3,750,000,000 shares, par value $0.001, issued and outstanding on March 31, 2014 and December 31, 2013 is 2,210,086,450 and 2,136,465,762 respectively	2,210,089	2,136,467
Additional paid in capital	4,595,342	4,580,399
Accumulated deficit during exploration stage	-6,330,843	-6,117,123
Total stockholders' equity	474,588	599,743
Total liabilities and stockholders' equity	$1,914,988	$1,884,580

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Stockholders' equity:	'	'
Common Stock par value (in Dollars per share)	$0.00	$0.00
Common Stock shares authorized	3,750,000,000	3,750,000,000
Common Stock shares issued	2,210,086,450	2,136,465,762
Common Stock shares outstanding	2,210,086,450	2,136,465,762

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		134 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014
Income Statement [Abstract]	'	'	'
Revenue	$0	$0	$0
Operating Expenses	'	'	'
Depreciation and amortization	13,467	12,381	156,860
General and administrative	48,565	70,259	991,532
Management salary	10,500	10,500	804,196
Exploration and development	46,755	19,500	1,021,174
Professional fees	7,311	18,147	1,239,211
Total expenses	126,598	130,787	4,212,973
Loss from operations	-126,598	-130,787	-4,212,973
Other income (expenses)	'	'	'
Interest expense	-87,587	-59,417	-1,954,224
Financing costs	0	-4,000	-167,481
Derivative expense	0	0	-12,079
Gain on change in fair value of derivatives	465	0	6,017
Gain on extinguishment of debt	0	0	8,755
Gain on sale of fixed assets	0	0	1,142
Loss before income taxes	-213,720	-194,204	-6,330,843
Provision for income taxes	0	0	0
Net loss	($213,720)	($194,204)	($6,330,843)
Loss per common share: Basic & Diluted	$0	$0	'
Weighted average shares outstanding: Basic & Diluted	2,172,456,184	1,859,866,761	'

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended		134 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014
Operating activities	'	'	'
Net loss	($213,720)	($194,204)	($6,330,843)
Adjustments to reconcile net loss	'	'	'
Depreciation and amortization	13,467	12,381	156,860
Stock based compensation	0	0	652,140
Gain on sale of fixed asset	0	0	-1,142
Non cash interest expense	33,587	11,875	1,200,749
Incentive shares	0	9,416	165,281
Gain on extinguishment of debt	0	0	-8,755
Change in fair value of derivative liability	-465	0	-6,017
Derivative expense	0	0	12,079
Changes in assets and liabilities	'	'	'
(Increase)/decrease in prepaid expenses	-21,911	1,000	178,089
Increase in accrued interest payable	54,000	54,000	711,988
Increase in accounts payable and accrued liabilities	141,889	46,266	919,302
Increase/(decrease) in accrued-related party	-100,884	36,906	419,673
Net cash used by operating activities	-94,037	-22,359	-1,930,596
Investment activities	'	'	'
Acquisition of property and equipment	-15,875	0	-300,388
Proceeds from sale of fixed assets	0	0	1,142
Cash acquired through acquisition of subsidiary	0	0	39
Net cash used by investment activities	-15,875	0	-299,207
Financing activities	'	'	'
Repayments of loans from related parties	0	0	-98,915
Repayments of convertible debit	0	0	-66,970
Repayments of debt	-4,000	0	-4,000
Proceeds from issuance of debt	75,000	25,000	442,000
Proceeds from issuance of convertible debt	0	0	213,500
Proceeds from the sale of stock	45,000	5,000	1,739,471
Contributed capital	0	0	13,268
Net cash provided by financing activities	116,000	30,000	2,238,354
Net increase / (decrease) in cash	6,088	7,641	8,551
Cash, beginning of period	2,463	451	0
Cash, end of period	8,551	8,092	8,551
Interest paid	0	0	0
Income taxes paid	0	0	0
Non-cash activities:	'	'	'
Debt issued to acquire assets	0	0	487,500
Stock issued to acquire assets	0	0	500,000
Stock issued to settle related party payables	0	0	20,000
Assets acquired through acquisition of subsidiary	0	0	753,497
Liabilities assumed through acquisition of subsidiary	0	0	42,725
Shares issued to acquire subsidiary	0	0	290,000
Stock issued to settle accounts payable	0	0	101,669
Stock issued to settle debt	15,500	0	987,124
Warrants issued to acquire subsidiary	$0	$0	$420,811

1_GENERAL_ORGANIZATION_AND_BUS

1. GENERAL ORGANIZATION AND BUSINESS	3 Months Ended
	Mar. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Note 1. GENERAL ORGANIZATION AND BUSINESS	'
	SUNERGY, Inc. (the “Company”) was organized in the state of Nevada on January 28, 2003 and is an exploration phase mineral and mining company.
	The Company has precious and rare earth element (“REE”) mineral properties located in the Republic of Ghana and Sierra Leone, Africa and has not yet determined whether these properties contain reserves that are economically recoverable. The recoverability, if any, of amounts from these properties will be dependent upon the discovery of economically recoverable reserves located within the property interests held by the Company, the ability of the Company to obtain necessary financing to satisfy the expenditure requirements under the property agreements to complete the development of the properties and upon future profitable production or proceeds for the sale thereof.
	Since inception, through the date of this report, the Company has not generated any revenue and is considered an exploration stage entity as defined by accounting principles generally accepted in the United States (“US GAAP”).

2_CONDENSED_CONSOLIDATED_FINAN

2. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	3 Months Ended
	Mar. 31, 2014
Accounting Policies [Abstract]	'
Note 2. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	'
	The accompanying condensed consolidated financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at March 31, 2014, and for all periods presented herein, have been made.
	In accordance with Article 8-03 of Regulation S-X certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 2013 audited financial statements. The results of operations for the period ended March 31, 2014 are not necessarily indicative of the operating results for the full year.
	The condensed consolidated financial statements include the accounts of Sunergy, Inc. and its subsidiaries, Mikite Gold Resources Limited, a Ghanaian company, Sunergy Liberia Ltd., a Liberia corporation, and Allied Mining and Supply LLC, a Nevada limited liability company (100%). Allied Mining and Supply LLC also has one 100% owned subsidiary, a Sierra Leone company, Allied Mining and Supply Ltd. which are 100% consolidated in the condensed consolidated financial statements. All material inter-company accounts and transactions have been eliminated.
	Use of Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
	Cash and Cash Equivalents
	Cash and cash equivalents include cash in banks and financial instruments which mature within three months of the date of purchase. The Company had no cash equivalents as of March 31, 2014 and December 31, 2013.
	Earnings per Share
	Basic earnings per share excludes dilution and is computed by dividing net income (loss) by the weighted-average common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. The Company has potentially dilutive common shares consisting of warrants, which are excluded from the diluted earnings per share computation in periods where the Company has incurred net loss.
	Stock Based Compensation
	The Company has on occasion issued equity and equity linked instruments to non-employees in lieu of cash to various vendors for the receipt of goods and services and, in certain circumstances the settlement of short-term loan arrangements. The applicable GAAP establishes that share-based payment transactions with nonemployees shall be measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable.
	In these transactions, we issue unregistered and restricted equity instruments along with equity-linked instruments that are convertible into unregistered and restricted shares of our common stock.
	While we have an active market of freely-traded stock with a quoted market price (a Level 1 input within the GAAP hierarchy), the fair value of the unregistered and restricted shares issued as valued by the quoted market price does not reflect the economic substance of the transactions; correspondingly, the quoted market price is not the most reliably measurable fair value.
	When unregistered common shares and equity-linked instruments convertible into unregistered common shares are issued for the settlement of short-term financing arrangements (that are not initially convertible), the reacquisition price of the extinguished financing arrangement is determined by the value of the debt which is more clearly evident, and no additional inducement expense is recognized.
	In situations in which we issue unregistered restricted common shares and equity-linked instruments in exchange for goods and services, and the value of the goods and services are not the most reliably measurable, we recognize the fair value of the unregistered restricted equity instruments based on the value of similar instruments issued in private placements in exchange for cash in the most recent transactions (a Level 2 input within the GAAP hierarchy). We have determined this methodology reflects the risk adjusted fair value of our unregistered restricted equity instruments using a commercially reasonable valuation technique.
	Recent Accounting Guidance Not Yet Adopted
	The Company has reviewed recently issued accounting pronouncements and does not expect any to have a material impact on our financial position, results of operations, or cash flows.
	Income Taxes
	The Company accounts for income taxes in accordance with ASC Topic 740, “Income Taxes.” ASC 740 requires a company to use the asset and liability method of accounting for income taxes, whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all of, the deferred tax assets will not be realized.  Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.
	Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The adoption had no effect on the Company’s condensed consolidated financial statements.

3_GOING_CONCERN

3. GOING CONCERN	3 Months Ended
	Mar. 31, 2014
Going Concern	'
Note 3. GOING CONCERN	'
	The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. As of March 31, 2014, the Company had an accumulated deficit of $6,330,843. The Company has not generated any revenue and continues to incur operating losses and negative cash flows. This raises substantial doubt about the Company’s ability to continue as a going concern. These condensed consolidated financials do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might result from this uncertainty.
	While we have been successful in raising enough capital to pay for professional and administrative fees to file our delinquent financial statements, we have not had the ability to raise any significant additional capital to materially advance our exploration and mining operations. We continue to actively pursue additional sources of capital, however, there is no guarantee these efforts will be successful.

4_PROPERTY_AND_EQUIPMENT

4. PROPERTY AND EQUIPMENT	3 Months Ended
	Mar. 31, 2014
Property, Plant and Equipment [Abstract]	'
Note 4. PROPERTY AND EQUIPMENT	'
	Property and Equipment consisted of the following at March 31, 2014 and December 31, 2013:
		March 31,			December 31,
		2014			2013
	Exploration equipment	$	269,634		$	253,759
	Rolling stock		13,500			13,500
	Office furniture and equipment		4,753			4,753
	Subtotal	$	287,887		$	272,012
	Less accumulated depreciation		(156,858	)		(143,392	)
	Property and equipment – net	$	131,029		$	128,620

5_NOTES_PAYABLE

5. NOTES PAYABLE	3 Months Ended
	Mar. 31, 2014
Debt Disclosure [Abstract]	'
Note 5. NOTES PAYABLE	'
	During the period ended March 31, 2014 we accrued $54,000 of penalty expense, and $5,000 of financing costs related to shares issuance as an inducement to enter into a short-term commercial financing agreement. As of March 31, 2014, our outstanding notes payable balance was $121,918 and $138,500 in convertible note agreements net of debt discount, of which $48,085 are in default as of March 31, 2014. The individual notes in default carry daily interest penalties between $100 and $500. Balance of notes payable at December 31, 2013 totaled $48,085 and $128,246 of convertible debt, net of discount.
	On February 20, 2014, the Company entered into a short-term commercial financing agreement for the placement of dredging machinery in country in the amount of $20,000 due and payable in monthly installments of $4,000 per month or 15% of net profit from operations, whichever is greater over the next six months until $24,000 is repaid.
	On March 7, 2014, the Company entered into a short-term commercial financing agreement for the placement of dredging machinery in country in the amount of $25,000 due and payable in monthly installments of $5,000 per month or 15% of net profit from operations, whichever is greater over the next six months until $30,000 is repaid. The Company issued 5,000,000 common shares $0.001 as incentive to the lien holder to enter into the financing arrangement.
	On March 11, 2014, the Company entered into a short-term commercial financing agreement for the placement of dredging machinery in country in the amount of $20,000 due and payable in monthly installments of $4,000 per month or 15% of net profit from operations, whichever is greater over the next six months until $24,000 is repaid.
	On March 17, 2014, the Company entered into a short-term commercial financing agreement for the placement of dredging machinery in country in the amount of $25,000 due and payable in monthly installments of $5,000 per month or 15% of net profit from operations, whichever is greater over the next six months until $30,000 is repaid. The lender has 30 days from the date of the agreement to provide the full $25,000. As of March 31, 2013, the lender has provided $10,000 of the $25,000 financing agreement to the Company.
	On January 6, 2014, the remaining unpaid and unconverted principal balance due under the June 2013 convertible note of $15,500 was converted by the note holder into 28,620,690 common shares of the company.  In conjunction with conversion of the note, the Company recognized $846 of interest expense related to the amortization of the debt discount, $24,907 of interest expense on the related conversion of the note from fair value of common shares issued to the principal amount of debt relieved. The Company recognized a gain on the change in the value of the derivative related to the convertible note from December 31, 2013 to the date of conversion of $465.
	During the three months ended March 31, 2014, the Company recognized $2,833 of interest expense related to the February and March short-term commercial financing agreements noted above.
	The Company entered in convertible note agreement #3, #4 and #5 in the amounts of $32,500, $53,000, and $53,000 respectively, on October 13, 2013, November 14, 2013, and December 10, 2013 respectively.  As of March 31, 2014, $138,500 principal amounts under convertible note agreements #3, #4, and #5 were outstanding. As of December 31, 2013, total convertible notes outstanding was $128,246 including $25,754 of debt discount related to the remaining principal amount outstanding convertible portion of note #2 of $15,500 that was converted on January 6, 2014.  As of December 31, 2013, the Company carries  a derivative liability related to the potential conversion of the outstanding principal amount remaining unpaid of Note #2 in the amount of $23,531. On January 6, 2014, the holder of the note converted the remaining outstanding principal balance of $15,500 plus accrued interest into 28,620,690 common shares of the Company. The notes are nine month convertible promissory notes from the date of funding and carry an 8% annual interest rate.  The notes may be repaid anytime from the date of funding until 180 days post-funding.  The repayment starts at 120% of the outstanding principal and accrued interest in the first 30 days after funding.  and may be prepaid by the Company for the first six months with an increasing repayment amount that increased by 5% for each 30 day period after funding until repaid or 181 days, whichever comes first. From day 181 till maturity, the note may be converted by the note holder at a 44% discount to the average of the three lowest trading days in the ten days prior to notice of conversion.
	On Convertible Notes #3 through #5, the Company has recognized accrued interest of $788 through March 31, 2014. Interest is recognized over the life of the note which is 9 months from the date of issuance. As of March 31, 2014, Convertible Note #3 may be converted into approximately 12,000,000 common shares of the Company beginning at day 181 since date of issuance and up until the date maturity of the note. As of March 31, 2014, Convertible Note #4 and Convertible Note #5 may be converted into approximately 19,630,630 common shares per note, for a total of 39,260,260, of the Company beginning at day 181 since date of issuance and up until the date maturity of the note.

6_STOCKHOLDERS_EQUITY

6. STOCKHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2014
Equity [Abstract]	'
Note 6. STOCKHOLDERS' EQUITY	'
	Common Stock
	The following provides additional information for certain stock transactions that occurred since January 1, 2014. For additional details for all stock transactions please see the consolidated statement of changes in stockholders’ equity as reported in the Company’s 10-K for the period ended December 31, 2013 and filed with the Securities Exchange Commission on April 15, 2014.
	A summary of shares issued follows:
		·	During the quarter ended March 31, 2014, the Company issued 28,620,690 shares upon the conversion of the note payable #2 dated June 2013 for outstanding principal balance of $15,500; 30,000,000 equity units at $0.001 with each unit consisting of one common share of stock and one 12 month share purchase warrant exercisable at $0.002 per share for total cash of $30,000; 9,999,998 equity units at $0.0015 with each unit consisting of one common share of stock and one 12 month share purchase warrant exercisable at $0.003 per share for total cash of $15,000, the Company issued 5,000,000 common shares as an incentive to provide short-term commercial financing in the amount of $25,000 valued at $0.001 per share or $5,000.
	Outstanding Warrants
	On March 31, 2014, the Company had warrants outstanding summarized in the table below:
						Warrants			Exercise			Expiration
						Outstanding			Price			Date
						1,333,333			0.003			24-Apr-14
						15,000,000			0.004			22-Apr-14
						1,666,666			0.003			30-Apr-14
						30,000,000			0.003			21-May-14
						2,500,000			0.003			19-May-14
						1,333,333			0.003			25-May-14
						1,333,000			0.003			27-May-14
						6,700,000			0.003			23-May-14
						5,000,000			0.003			31-May-14
						10,000,000			0.003			1-Jul-14
						6,400,000			0.003			19-Jul-14
						3,333,333			0.003			24-Jul-14
						40,000,000			0.003			1-Aug-14
						8,000,000			0.003			1-Aug-14
						13,333,333			0.003			1-Aug-14
						13,333,333			0.003			1-Aug-14
						30,000,000			0.002			13-Sep-14
						5,000,000			0.002			18-Sep-14
						25,000,000			0.002			22-Nov-14
						7,500,000			0.002			23-Jul-14
						25,000,000			0.002			26-Nov-14
						20,000,000			0.002			7-Mar-15
						10,000,000			0.002			13-Mar-15
						1,666,666			0.003			17-Mar-15
						1,666,666			0.003			24-Mar-15
						6,666,666			0.003			28-Mar-15
		Total				291,766,329
	Information relating to warrant activity during the reporting period follows:
										Weighted
										Average
			Number of				Contingent			Exercise
			Warrants				Warrants			Price
	Total Warrants outstanding at December 31, 2013			256,266,331				–			0.0023
	Plus: Warrants Issued			39,999,998				–			0.0022
	Less: Warrants Exercised			–				–			–
	Less: Warrants Expired			(4,500,000	)			–			0.0046
	Total Warrants outstanding at March 31, 2014			291,766,329							0.0026

7_RELATED_PARTY_TRANSACTIONS

7. RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2014
Related Party Transactions [Abstract]	'
Note 7. RELATED PARTY TRANSACTIONS	'
	Certain related parties assist in financing operations by personally paying expenses which the Company considers to be in the nature of accounts payable since the obligations are incurred within the normal course of business and classified as related party accounts payable. Certain amounts for unpaid officer and director fees were classified as accounts payable to related parties in prior periods and have been reclassified for the current periods as accounts payable as they relate to normal operating business expenses of the Company. The balance due to related parties was $10,062, and $110,944 as of March 31, 2014 and December 31, 2013, respectively.
	As of March 31, 2014, Garrett Hale, our CEO, is due $49,000 in  wages due from the time he became our CEO in February 2013.  Additionally, Mr. Hale incurs expenses in his role as CEO related to payment of expenses in country and travel.  As of March 31, 2014, Mr. Hale is owed $82,476 for unpaid reimbursement requests.  As these are incurred in the normal course of our business operations, these amounts are included in accounts payable.  As of December 31, 2013, Mr. Hale was owed $89,914 for related wages and expenses which is included as accounts payable.  Additionally at December 31, 2013, Mr. Hale provided short-term funding in the amount of $22,915 that was included in accounts payable to related party payables.
	As of March 31, 2014, Mr. Robert Levich, a member of our Board of Directors and former Africa Country manager, is owed $83,967 for wages due to his time as our country manager or fees earned as a member of the Board of Directors.  As these are incurred in the normal course of our business operations, these amounts are included in accounts payable. As of December 31, 2013, Mr. Levich was owed $77,967 which was included in accounts payable to related parties.  No repayments were made to Mr. Levich during the first quarter of 2014.  The amounts due Mr. Levich were reclassified to accounts payable due to the incurring of the wages and fees as a normal course of our operating business.

8_SUBSEQUENT_EVENTS

8. SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2014
Subsequent Events [Abstract]	'
Note 8. SUBSEQUENT EVENTS	'
	Since March 31, 2014, our Company received the remaining $15,000 due under the short-term commercial financing agreement from March 17, 2014. Additionally, we have raised $179,815 in funding from private placements with investors, with the purpose of funding operations and repaying amounts due under the November 2013 convertible note.
	On April 16, 2014 and April 23, 2104, the holder of the convertible note dated October 12, 2013, converted 7,692,308 and 4,312,500 shares respectively on the full outstanding principal amount of $32,500.
	On May 12, 2014, under terms of the convertible note agreement dated November 2014, we issued payment in full of $78,884 to the holder of the convertible note dated November 14, 2014 with a principal amount of $53,000 plus accrued interest.

2_CONDENSED_FINANCIAL_STATEMEN

2. CONDENSED FINANCIAL STATEMENTS (Policies)	3 Months Ended
	Mar. 31, 2014
Accounting Policies [Abstract]	'
Use of Estimates	'
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents	'
	Cash and cash equivalents include cash in banks and financial instruments which mature within three months of the date of purchase.
Earnings per Share	'
	Basic earnings per share excludes dilution and is computed by dividing net income (loss) by the weighted-average common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. The Company has potentially dilutive common shares consisting of warrants, which are excluded from the diluted earnings per share computation in periods where the Company has incurred net loss.
Stock Based Compensation	'
	The Company has on occasion issued equity and equity linked instruments to non-employees in lieu of cash to various vendors for the receipt of goods and services and, in certain circumstances the settlement of short-term loan arrangements. The applicable GAAP establishes that share-based payment transactions with nonemployees shall be measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable.
	In these transactions, we issue unregistered and restricted equity instruments along with equity-linked instruments that are convertible into unregistered and restricted shares of our common stock.
	While we have an active market of freely-traded stock with a quoted market price (a Level 1 input within the GAAP hierarchy), the fair value of the unregistered and restricted shares issued as valued by the quoted market price does not reflect the economic substance of the transactions; correspondingly, the quoted market price is not the most reliably measurable fair value.
	When unregistered common shares and equity-linked instruments convertible into unregistered common shares are issued for the settlement of short-term financing arrangements (that are not initially convertible), the reacquisition price of the extinguished financing arrangement is determined by the value of the debt which is more clearly evident, and no additional inducement expense is recognized.
	In situations in which we issue unregistered restricted common shares and equity-linked instruments in exchange for goods and services, and the value of the goods and services are not the most reliably measurable, we recognize the fair value of the unregistered restricted equity instruments based on the value of similar instruments issued in private placements in exchange for cash in the most recent transactions (a Level 2 input within the GAAP hierarchy). We have determined this methodology reflects the risk adjusted fair value of our unregistered restricted equity instruments using a commercially reasonable valuation technique.
Recent Accounting Guidance Not Yet Adopted	'
	The Company has reviewed recently issued accounting pronouncements and does not expect any to have a material impact on our financial position, results of operations, or cash flows.
Income Taxes	'
	Income Taxes
	The Company accounts for income taxes in accordance with ASC Topic 740, “Income Taxes.” ASC 740 requires a company to use the asset and liability method of accounting for income taxes, whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all of, the deferred tax assets will not be realized.  Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.
	Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The adoption had no effect on the Company’s condensed consolidated financial statements.

4_PROPERTY_PLANT_AND_EQUIPMENT

4. PROPERTY, PLANT AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2014
Property, Plant and Equipment [Abstract]	'
Property, Plant and Equipment	'
		March 31,			December 31,
		2014			2013
	Exploration equipment	$	269,634		$	253,759
	Rolling stock		13,500			13,500
	Office furniture and equipment		4,753			4,753
	Subtotal	$	287,887		$	272,012
	Less accumulated depreciation		(156,858	)		(143,392	)
	Property and equipment – net	$	131,029		$	128,620

6_STOCKHOLDERS_EQUITY_Tables

6. STOCKHOLDERS EQUITY (Tables)	3 Months Ended
	Mar. 31, 2014
Equity [Abstract]	'
Warrants Outstanding	'
						Warrants			Exercise			Expiration
						Outstanding			Price			Date
						1,333,333			0.003			24-Apr-14
						15,000,000			0.004			22-Apr-14
						1,666,666			0.003			30-Apr-14
						30,000,000			0.003			21-May-14
						2,500,000			0.003			19-May-14
						1,333,333			0.003			25-May-14
						1,333,000			0.003			27-May-14
						6,700,000			0.003			23-May-14
						5,000,000			0.003			31-May-14
						10,000,000			0.003			1-Jul-14
						6,400,000			0.003			19-Jul-14
						3,333,333			0.003			24-Jul-14
						40,000,000			0.003			1-Aug-14
						8,000,000			0.003			1-Aug-14
						13,333,333			0.003			1-Aug-14
						13,333,333			0.003			1-Aug-14
						30,000,000			0.002			13-Sep-14
						5,000,000			0.002			18-Sep-14
						25,000,000			0.002			22-Nov-14
						7,500,000			0.002			23-Jul-14
						25,000,000			0.002			26-Nov-14
						20,000,000			0.002			7-Mar-15
						10,000,000			0.002			13-Mar-15
						1,666,666			0.003			17-Mar-15
						1,666,666			0.003			24-Mar-15
						6,666,666			0.003			28-Mar-15
		Total				291,766,329
Warrant activity	'
										Weighted
										Average
			Number of				Contingent			Exercise
			Warrants				Warrants			Price
	Total Warrants outstanding at December 31, 2013			256,266,331				–			0.0023
	Plus: Warrants Issued			39,999,998				–			0.0022
	Less: Warrants Exercised			–				–			–
	Less: Warrants Expired			(4,500,000	)			–			0.0046
	Total Warrants outstanding at March 31, 2014			291,766,329							0.0026

4_PROPERTY_PLANT_AND_EQUIPMENT1

4. PROPERTY, PLANT AND EQUIPMENT (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Abstract]	'	'
Exploration equipment	$269,634	$253,759
Rolling stock	13,500	13,500
Office furniture and equipment	4,753	4,753
Subtotal	287,887	272,012
Less accumulated depreciation	-156,858	-143,392
Property, and equipment - net	$131,029	$128,620

5_NOTES_PAYABLE_Details_Narrat

5. NOTES PAYABLE (Details Narrative) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Debt Disclosure [Abstract]	'	'
Accrued penalty expense	$54,000	'
Accrued financing costs related to inducement	5,000	'
Notes payable	121,918	48,085
Convertible note balance	$138,500	$128,246

6_STOCKHOLDERS_EQUITY_Details

6. STOCKHOLDERS EQUITY (Details) (USD $)	3 Months Ended
	Mar. 31, 2014
Warrants outstanding	291,766,329
Exercise price	$0.00
Warrant 1	'
Warrants outstanding	1,333,333
Exercise price	$0.00
Expiration date	24-Apr-14
Warrant 2	'
Warrants outstanding	15,000,000
Exercise price	$0.00
Expiration date	22-Apr-14
Warrant 3	'
Warrants outstanding	1,666,666
Exercise price	$0.00
Expiration date	30-Apr-14
Warrant 4	'
Warrants outstanding	30,000,000
Exercise price	$0.00
Expiration date	21-May-14
Warrant 5	'
Warrants outstanding	2,500,000
Exercise price	$0.00
Expiration date	19-May-14
Warrant 6	'
Warrants outstanding	1,333,333
Exercise price	$0.00
Expiration date	25-May-14
Warrant 7	'
Warrants outstanding	1,333,333
Exercise price	$0.00
Expiration date	27-May-14
Warrant8 [Member]	'
Warrants outstanding	6,700,000
Exercise price	$0.00
Expiration date	23-May-14
Warrant 9	'
Warrants outstanding	5,000,000
Exercise price	$0.00
Expiration date	31-May-14
Warrant 10	'
Warrants outstanding	10,000,000
Exercise price	$0.00
Expiration date	1-Jul-14
Warrant 11	'
Warrants outstanding	6,400,000
Exercise price	$0.00
Expiration date	19-Jul-14
Warrant 12	'
Warrants outstanding	3,333,333
Exercise price	$0.00
Expiration date	24-Jul-14
Warrant 13	'
Warrants outstanding	40,000,000
Exercise price	$0.00
Expiration date	1-Aug-14
Warrant 14	'
Warrants outstanding	8,000,000
Exercise price	$0.00
Expiration date	1-Aug-14
Warrant 15	'
Warrants outstanding	13,333,333
Exercise price	$0.00
Expiration date	1-Aug-14
Warrant 16	'
Warrants outstanding	13,333,333
Exercise price	$0.00
Expiration date	1-Aug-14
Warrant 17	'
Warrants outstanding	30,000,000
Exercise price	$0.00
Expiration date	13-Sep-14
Warrant 18	'
Warrants outstanding	5,000,000
Exercise price	$0.00
Expiration date	18-Sep-14
Warrant 19	'
Warrants outstanding	25,000,000
Exercise price	$0.00
Expiration date	22-Nov-14
Warrant 20	'
Warrants outstanding	7,500,000
Exercise price	$0.00
Expiration date	23-Jul-14
Warrant 21	'
Warrants outstanding	25,000,000
Exercise price	$0.00
Expiration date	26-Nov-14
Warrant 22	'
Warrants outstanding	20,000,000
Exercise price	$0.00
Expiration date	7-Mar-15
Warrant 23	'
Warrants outstanding	10,000,000
Exercise price	$0.00
Expiration date	13-Mar-15
Warrant 24	'
Warrants outstanding	1,666,666
Exercise price	$0.00
Expiration date	17-Mar-15
Warrant 25	'
Warrants outstanding	1,666,666
Exercise price	$0.00
Expiration date	24-Mar-15
Warrant 26	'
Warrants outstanding	6,666,666
Exercise price	$0.00
Expiration date	28-Mar-15

6_STOCKHOLDERS_EQUITY_DetailsW

6. STOCKHOLDERS EQUITY (Details-Warrants outstanding) (USD $)	3 Months Ended
	Mar. 31, 2014
Number of warrants	'
Warrants outstanding balance	256,266,331
Plus: Warrants Issued	39,999,998
Less: Warrants Exercised	'
Less: Warrants Expired	-4,500,000
Warrants outstanding balance	291,766,329
Contingent warrants	'
Warrants outstanding balance	'
Plus: Warrants Issued	'
Less: Warrants Exercised	'
Less: Warrants Expired	'
Warrants outstanding balance	'
Weighted average exercise price	'
Warrants outstanding balance	$0.00
Plus: Warrants Issued	$0.00
Less: Warrants Exercised	'
Less: Warrants Expired	$0.00
Warrants outstanding balance	$0.00

7_RELATED_PARTY_TRANSACTIONS_D

7. RELATED PARTY TRANSACTIONS (Details Narrative) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Related Party Transactions [Abstract]	'	'
Due to related parties	$10,062	$110,944