Sunergy (SNEYD) Inactive 10-Q/A20 Aug 142014 Q2 Quarterly report (amended)Financial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 30, 2014
Document And Entity Information	'
Entity Registrant Name	'SUNERGY INC
Entity Central Index Key	'0001261487
Document Type	'10-Q
Document Period End Date	30-Jun-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	2,382,248,399
Document Fiscal Period Focus	'Q2
Document Fiscal Year Focus	'2014

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2014	Dec. 31, 2013
Current assets:	'	'
Cash	$734	$2,463
Prepaid expense	1,009	0
Total current assets	1,743	2,463
Long-term assets:	'	'
Exploratory properties	1,753,497	1,753,497
Property and equipment, net	146,686	128,620
Total long-term assets	1,900,183	1,882,117
Total assets	1,901,926	1,884,580
Current liabilities:	'	'
Accounts payable and accrued liabilities	676,810	436,543
Notes payable	147,085	48,085
Convertible debt, net of discount	74,000	128,246
Accrued interest	656,398	537,488
Accounts payable to related parties	26,262	110,944
Derivative liability	0	23,531
Total current liabilities	1,580,555	1,284,837
Total liabilities	1,580,555	1,284,837
Stockholders' equity:	'	'
Common stock, authorized 3,750,000,000 shares, par value $0.001, issued and outstanding on June 30, 2014 and December 31, 2013 is 2,382,249,399 and 2,136,465,762 respectively	2,382,251	2,136,467
Additional paid in capital	4,729,077	4,580,399
Retained earnings	-6,789,957	-6,117,123
Total stockholders' equity	321,371	599,743
Total liabilities and stockholders' equity	$1,901,926	$1,884,580

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Jun. 30, 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	2,382,248,399	2,136,465,762
Common Stock shares outstanding	2,382,248,399	2,136,465,762

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		6 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Statement [Abstract]	'	'	'	'
Revenue	$0	$0	$0	$0
Operating Expenses	'	'	'	'
Depreciation and amortization	13,468	13,467	26,935	25,848
General and administrative	110,048	54,614	158,613	124,873
Management salary	10,500	10,500	21,000	21,000
Exploration and development	72,545	43,649	119,300	63,149
Professional fees	83,356	146,277	90,667	164,424
Total expenses	289,917	268,507	416,515	399,294
Loss from operations	-289,917	-268,507	-416,515	-399,294
Other income (expenses)	'	'	'	'
Interest expense	-150,933	-59,600	-238,520	-119,017
Financing costs	0	0	0	-4,000
Derivative expense	-32,846	0	-32,846	0
Gain on change in fair value of derivatives	14,582	0	15,047	0
(Loss) before income taxes	-459,114	-328,107	-672,834	-522,311
Provision for income taxes	0	0	0	0
Net (loss)	($459,114)	($328,107)	($672,834)	($522,311)
Loss per common share: Basic & Diluted	$0	$0	$0	$0
Weighted average shares outstanding: Basic & Diluted	2,313,692,903	1,896,856,989	2,243,464,700	1,878,464,058

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Jun. 30, 2014	Jun. 30, 2013
Operating activities	'	'
Net loss	($672,834)	($522,311)
Adjustments to reconcile net loss	'	'
Depreciation and amortization	26,935	25,848
Stock-based compensation	0	73,750
Non-cash interest expense	65,687	14,416
Change in fair value of derivative liability	-15,047	0
Derivative expense	32,846	0
Changes in assets and liabilities	'	'
(Increase)/decrease in prepaid expenses	-1,009	1,000
Increase in accrued interest payable	118,910	108,600
Increase in accounts payable and accrued liabilities	240,267	182,507
Increase/(decrease) in accrued-related party	-84,684	-5,414
Net cash used by operating activities	-288,929	-121,604
Investment activities	'	'
Acquisition of property and equipment	-45,000	-6,500
Net cash used by investment activities	-45,000	-6,500
Financing activities	'	'
Repayments of convertible debt	-106,000	0
Repayments of debt	-16,000	0
Proceeds from issuance of debt	115,000	100,000
Proceeds from issuance of convertible debt	74,000	0
Proceeds from the sale of stock	265,200	28,500
Net cash provided by financing activities	332,200	128,500
Net increase / (decrease) in cash	-1,729	396
Cash, beginning of period	2,463	451
Cash, end of period	734	847
Interest paid	53,924	0
Income taxes paid	0	0
Non-cash activities:	'	'
Stock issued to settle debt	$48,000	$0

1_GENERAL_ORGANIZATION_AND_BUS

1. GENERAL ORGANIZATION AND BUSINESS	6 Months Ended
1. GENERAL ORGANIZATION AND BUSINESS	Jun. 30, 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.

2_CONDENSED_CONSOLIDATED_FINAN

2. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	6 Months Ended
2. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	Jun. 30, 2014
Accounting Policies [Abstract]	'
Note 2. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	'
	The accompanying unaudited 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 June 30, 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 June 30, 2014 are not necessarily indicative of the operating results for the full year.

	The unaudited 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 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. Significant estimates and assumptions included in our condensed consolidated financial statements relate to the valuation of long-lived assets, estimates of sales returns, inventory reserves and accruals for potential liabilities, and valuation assumptions related to derivative liability, equity instruments and share based compensation.

	Cash

	Cash 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 June 30, 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.

	Derivative Financial Instruments

	The Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. For stock-based derivative financial instruments, the Company uses a weighted average Black-Scholes option pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date.

	Recently Issued Accounting Pronouncements

	As of the date of this filing, the Company has implemented accounting standards updated 2014-10, Development Stage Entities as codified in Topic 915 which eliminates the inception-to-date reporting for development state entities and identification of the financial statements of a exploration stage company. Adoption of this new guidance was permitted early for any financial statements not yet issued as of the date of the guidance. Adoption of this new guidance resulted in only changes removal of the inception-to-date reporting in the financial statements and certain related disclosures.

	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	6 Months Ended
3. GOING CONCERN	Jun. 30, 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 June 30, 2014, the Company had an accumulated deficit of $6,789,957. 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 our exploration and general and administrative fees, 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	6 Months Ended
4. PROPERTY AND EQUIPMENT	Jun. 30, 2014
Property, Plant and Equipment [Abstract]	'
Note 4. PROPERTY AND EQUIPMENT	'
	Property and Equipment consisted of the following at June 30, 2014 and December 31, 2013:

		June 30,			December 31,
		2014			2013
		(Unaudited)			(Audited)
	Exploration equipment	$	298,759		$	253,759
	Rolling stock		13,500			13,500
	Office furniture and equipment		4,753			4,753
	Subtotal	$	317,012		$	272,012
	Less accumulated depreciation		(170,326	)		(143,392	)
	Property and equipment – net	$	146,686		$	128,620

5_NOTES_PAYABLE

5. NOTES PAYABLE	6 Months Ended
5. NOTES PAYABLE	Jun. 30, 2014
Debt Disclosure [Abstract]	'
Note 5. NOTES PAYABLE	'
	During the period ended June 30, 2014 we accrued $108,600 of penalty expense, and $25,000 of financing costs related to shares issuance as an inducement to enter into a short-term commercial financing agreement. As of June 30, 2014, our outstanding notes payable balance was $147,085 and $74,000 in convertible note agreements net of debt discount, of which $48,085 are in default as of June 30, 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. The Company issued 5,000,000 common shares $0.0015 as incentive to the lien holder to enter into the financing arrangement.

	On June 6, 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 full in one year per month. The Company issued 5,000,000 common shares $0.0025 as incentive to the lien holder to enter into the financing arrangement.

	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.

	In April 2014, the unpaid and unconverted principal balance due under the October 2013 convertible note of $32,500 was converted by the note holder into 12,004,808 common shares of the company. In conjunction with conversion of the note, the Company recognized $1,972 of interest expense related to the amortization of the debt discount, $12,961 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 $14,582.

	In May 2014, the Company repaid the amounts due under convertible note agreement #4 of $53,000. The Company repaid $78,894 that included a 45% prepayment penalty on the principal and interest due under the note and recognized $25,894 as interest expense during the period.

	In June 2014, the Company repaid the amounts due under convertible note agreement #5 of $53,000. The Company repaid $78,929 that included a 45% prepayment penalty on the principal and interest due under the note and recognized $25,929 as interest expense during the period.

	During the six months ended June 30, 2014, the Company recognized $10,310 of interest expense related to the 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 June 3, 2014, these notes had been converted or repaid in cash. In April 2014 and May 2014, the Company entered into convertible note agreement #2014-1 and #2014-2 for $41,500 and $32,500 respectively these amounts remain outstanding as of June 30, 2014. 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. In April 2014, the holder of the note #3 converted the outstanding principal balance of $32,500 plus accrued interest into 12,004,808 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. Interest is recognized over the life of the note which is 9 months from the date of issuance. 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.

	As of June 30, 2014, Convertible Note #2014-1 may be converted into approximately 26,791,478 common shares of the Company beginning at day 181 since date of issuance and up until the date maturity of the note. As of June 30, 2014, Convertible Note #2014-2 may be converted into approximately 20,981,278 common shares per note, for a total of 47,772,756, 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	6 Months Ended
6. STOCKHOLDERS' EQUITY	Jun. 30, 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 three months 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.

		·	During the three months ended June 30, 2014, the Company issued 12,004,808 shares upon the conversion of the note payable #3 dated October 2013 for outstanding principal balance of $32,500; 60,000,000 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 $60,000; 52,099,999 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 $78,200; 32,000,000 equity units at $0.002 with each unit consisting of one common share of stock and one 12 month share purchase warrant exercisable at $0.004 per share for total cash of $64,000; 3,200,000 equity units at $0.0025 with each unit consisting of one common share of stock and one 12 month share purchase warrant exercisable at $0.005 per share for total cash of $8,000; 2,857,142 equity units at $0.0035 with each unit consisting of one common share of stock and one 12 month share purchase warrant exercisable at $0.007 per share for total cash of $10,000; 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 $0.0015 per share or $7,500; 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 $0.0025 per share or $12,500.

	Outstanding Warrants

	On June 30, 2014, the Company had warrants outstanding summarized in the table below:

					Warrants			Exercise			Expiration
					Outstanding			Price			Date
					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
					3,333,333			0.003			1-Apr-15
					1,200,000			0.005			2-Apr-15
					13,300,000			0.003			2-Apr-15
					2,000,000			0.005			4-Apr-15
					3,333,333			0.003			7-Apr-15
					3,333,333			0.003			8-Apr-15
					6,666,667			0.003			17-Apr-15
					1,428,571			0.007			23-Apr-15
					1,428,571			0.007			29-Apr-15
					5,000,000			0.004			6-May-15
					10,000,000			0.004			6-May-15
					2,000,000			0.004			9-May-15
					30,000,000			0.002			9-May-15
					9,900,000			0.002			9-May-15
					19,000,000			0.002			12-May-15
					2,500,000			0.004			12-May-15
					1,100,000			0.002			12-May-15
					3,400,000			0.003			21-May-15
					17,333,333			0.003			6-Jun-15
					12,500,000			0.004			6-Jun-15
					1,400,000			0.003			16-Jun-15
		Total			377,057,138

	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			190,157,139			–			0.0028
Less: Warrants Exercised			–			–			–
Less: Warrants Expired			(69,366,332	)		–			0.0033
Total Warrants outstanding at June 30, 2014			377,057,138						0.0026

7_RELATED_PARTY_TRANSACTIONS

7. RELATED PARTY TRANSACTIONS	6 Months Ended
7. RELATED PARTY TRANSACTIONS	Jun. 30, 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 $26,262, and $110,944 as of June 30, 2014 and December 31, 2013, respectively.

	As of June 30, 2014, Garrett Hale, our CEO, is due $59,500 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 June 30, 2014, Mr. Hale is owed $75,019 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 as of June 30, 2014 and December 31, 2013, Mr. Hale provided short-term funding in the amount of $16,200 and $22,915 respectively that was included in accounts payable to related party payables.

	As of June 30, 2014, Mr. Robert Levich, a member of our Board of Directors and former Africa Country manager, is owed $89,967 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 period ended June 30, 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.

	As of June 30, 2014, Mr. Larry Bigler, a member of our Board of Directors and former CEO, is owed $29,500 for wages due to his time as our CEO 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. Bigler was owed $17,500 which was included in accounts payable to related parties. No repayments were made to Mr. Bigler during the period ended June 30, 2014.

8_SUBSEQUENT_EVENTS

8. SUBSEQUENT EVENTS	6 Months Ended
8. SUBSEQUENT EVENTS	Jun. 30, 2014
Subsequent Events [Abstract]	'
Note 8. SUBSEQUENT EVENTS	'
Note 8. SUBSEQUENT EVENTS	Since June 30, 2014, our Company received the remaining $4,850 in short-term funding from our CEO in demand notes payable. On July 23, 2014, we received $32,500 under convertible debenture #2014-3 with the same terms and conditions as described in Note 5 above. Additionally, the Company has raised $30,000 in funding from private placements with investors, with the purpose of funding operations.

2_CONDENSED_FINANCIAL_STATEMEN

2. CONDENSED FINANCIAL STATEMENTS (Policies)	6 Months Ended
2. CONDENSED FINANCIAL STATEMENTS (Policies)	Jun. 30, 2014
Accounting Policies [Abstract]	'
Use of Estimates	'
	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. Significant estimates and assumptions included in our condensed consolidated financial statements relate to the valuation of long-lived assets, estimates of sales returns, inventory reserves and accruals for potential liabilities, and valuation assumptions related to derivative liability, equity instruments and share based compensation.
Cash	'
	Cash

	Cash 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 June 30, 2014 and December 31, 2013.
Earnings per Share	'
	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	'
	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.
Derivative Financial Instruments	'
	Derivative Financial Instruments

	The Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. For stock-based derivative financial instruments, the Company uses a weighted average Black-Scholes option pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date.

Recent Accounting Guidance Not Yet Adopted	'
	Recently Issued Accounting Pronouncements

	As of the date of this filing, the Company has implemented accounting standards updated 2014-10, Development Stage Entities as codified in Topic 915 which eliminates the inception-to-date reporting for development state entities and identification of the financial statements of a exploration stage company. Adoption of this new guidance was permitted early for any financial statements not yet issued as of the date of the guidance. Adoption of this new guidance resulted in only changes removal of the inception-to-date reporting in the financial statements and certain related disclosures.
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)	6 Months Ended
4. PROPERTY, PLANT AND EQUIPMENT (Tables)	Jun. 30, 2014
Property, Plant and Equipment [Abstract]	'
Property, Plant and Equipment	'
		June 30,			December 31,
		2014			2013
		(Unaudited)			(Audited)
	Exploration equipment	$	298,759		$	253,759
	Rolling stock		13,500			13,500
	Office furniture and equipment		4,753			4,753
	Subtotal	$	317,012		$	272,012
	Less accumulated depreciation		(170,326	)		(143,392	)
	Property and equipment – net	$	146,686		$	128,620

6_STOCKHOLDERS_EQUITY_Tables

6. STOCKHOLDERS EQUITY (Tables)	6 Months Ended
6. STOCKHOLDERS EQUITY (Tables)	Jun. 30, 2014
Equity [Abstract]	'
Warrants Outstanding	'
						Warrants			Exercise			Expiration
						Outstanding			Price			Date
						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
						3,333,333			0.003			1-Apr-15
						1,200,000			0.005			2-Apr-15
						13,300,000			0.003			2-Apr-15
						2,000,000			0.005			4-Apr-15
						3,333,333			0.003			7-Apr-15
						3,333,333			0.003			8-Apr-15
						6,666,667			0.003			17-Apr-15
						1,428,571			0.007			23-Apr-15
						1,428,571			0.007			29-Apr-15
						5,000,000			0.004			6-May-15
						10,000,000			0.004			6-May-15
						2,000,000			0.004			9-May-15
						30,000,000			0.002			9-May-15
						9,900,000			0.002			9-May-15
						19,000,000			0.002			12-May-15
						2,500,000			0.004			12-May-15
						1,100,000			0.002			12-May-15
						3,400,000			0.003			21-May-15
						17,333,333			0.003			6-Jun-15
						12,500,000			0.004			6-Jun-15
						1,400,000			0.003			16-Jun-15
		Total				377,057,138
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			190,157,139				–			0.0028
	Less: Warrants Exercised			–				–			–
	Less: Warrants Expired			(69,366,332	)			–			0.0033
	Total Warrants outstanding at June 30, 2014			377,057,138							0.0026

4_PROPERTY_PLANT_AND_EQUIPMENT1

4. PROPERTY, PLANT AND EQUIPMENT (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Property, Plant and Equipment [Abstract]	'	'
Exploration equipment	$298,759	$253,759
Rolling stock	13,500	13,500
Office furniture and equipment	4,753	4,753
Subtotal	317,012	272,012
Less accumulated depreciation	-170,326	-143,392
Property, and equipment - net	$146,686	$128,620

5_NOTES_PAYABLE_Details_Narrat

5. NOTES PAYABLE (Details Narrative) (USD $)	6 Months Ended
5. NOTES PAYABLE (Details Narrative) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Debt Disclosure [Abstract]	'	'
Accrued penalty expense	$108,600	'
Accrued financing costs related to inducement	25,000	'
Notes payable	147,085	48,085
Convertible note balance	74,000	128,246
Convertible notes in default	48,085	'
Interest expense debt	$10,310	'

6_STOCKHOLDERS_EQUITY_Details

6. STOCKHOLDERS EQUITY (Details) (USD $)

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Warrants [Member]

Warrant 1

Warrant 2

Warrant 3

Warrant 4

Warrant 5

Warrant 6

Warrant 7

Warrant 8

Warrant 9

Warrant 10

Warrant 11

Warrant 12

Warrant 13

Warrant 14

Warrant 15

Warrant 16

Warrant 17

Warrant 18

Warrant 19

Warrant 20

Warrant 21

Warrant 22

Warrant 23

Warrant 24

Warrant 25

Warrant 26

Warrant 27

Warrant 28

Warrant 29

Warrant 30

Warrant 31

Warrant 32

Warrant 33

Warrant 34

Warrant 35

Warrant 36

Warrant 37

Warrant 38

Warrants outstanding

377,057,138

256,266,331

10,000,000

6,400,000

3,333,333

40,000,000

8,000,000

13,333,333

30,000,000

5,000,000

25,000,000

7,500,000

25,000,000

20,000,000

10,000,000

1,666,666

6,666,666

3,333,333

1,200,000

13,300,000

2,000,000

3,333,333

6,666,667

1,428,571

5,000,000

10,000,000

2,000,000

30,000,000

9,900,000

19,000,000

2,500,000

1,100,000

3,400,000

17,333,333

12,500,000

1,400,000

Exercise price

$0.00

$0.01

$0.00

$0.01

$0.00

$0.01

$0.00

Expiration date

1-Jul-14

19-Jul-14

24-Jul-14

1-Aug-14

13-Sep-14

18-Sep-14

22-Nov-14

23-Jul-14

26-Nov-14

7-Mar-15

13-Mar-15

17-Mar-15

24-Mar-15

28-Mar-15

1-Apr-15

2-Apr-15

4-Apr-15

7-Apr-15

8-Apr-15

17-Apr-15

23-Apr-15

29-Apr-15

6-May-15

9-May-15

12-May-15

21-May-15

6-Jun-15

16-Jun-15

6_STOCKHOLDERS_EQUITY_DetailsW

6. STOCKHOLDERS EQUITY (Details-Warrants outstanding) (Warrants [Member], USD $)	6 Months Ended
	Jun. 30, 2014
Warrants [Member]	'
Number of warrants	'
Warrants outstanding balance	256,266,331
Plus: Warrants Issued	190,157,139
Less: Warrants Exercised	0
Less: Warrants Expired	-69,366,332
Warrants outstanding balance	377,057,138
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 $)	Jun. 30, 2014	Dec. 31, 2013
Accounts payable, related parties	$26,262	$110,944
Accounts payable	676,810	436,543
Garrett Hale	'	'
Accounts payable, related parties	16,200	22,915
Accounts payable	59,500	89,914
Travel and miscellaneous payable	75,019	'
Robert Levich	'	'
Accounts payable, related parties	0	77,967
Accounts payable	89,967	'
Larry Bigler	'	'
Accounts payable, related parties	0	17,500
Accounts payable	$29,500	'