Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 |
Generally accepted accounting principles [Policy Text Block] | | Generally accepted accounting principles | | | | | | | | | | | | |
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| These consolidated financial statements have been prepared in conformity with generally accepted accounting principles of the United States of America (“US GAAP”). | | | | | | | | | | | | |
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Principles of consolidation [Policy Text Block] | | Principles of consolidation | | | | | | | | | | | | |
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| These consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, Xtra Energy (from October 31, 2003), XG Exploration (from February 16, 2004), XOG (from October 20, 2005) and XOGG (from March 2, 2006) and its 90% owned subsidiary, XG Mining (from December 22, 2004). All intercompany accounts and transactions have been eliminated on consolidation. | | | | | | | | | | | | |
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Use of estimates [Policy Text Block] | | Use of estimates | | | | | | | | | | | | |
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| The preparation of consolidated financial statements in conformity with US GAAP 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant areas requiring the use of estimates include the carrying value and recoverability of mineral properties, inputs used in the calculation of stock-based compensation and warrants, inputs used in the calculation of the asset retirement obligation, and the valuation allowance applied to deferred income taxes. Actual results could differ from those estimates, and would impact future results of operations and cash flows. | | | | | | | | | | | | |
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Cash and cash equivalents [Policy Text Block] | | Cash and cash equivalents | | | | | | | | | | | | |
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| The Company considers highly liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2014, December 31, 2013, and December 31, 2012, cash and cash equivalents consisted of cash held at financial institutions. | | | | | | | | | | | | |
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Receivables [Policy Text Block] | | Receivables | | | | | | | | | | | | |
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| No allowance for doubtful accounts has been provided. Management has evaluated all receivables and believes they are all collectible. | | | | | | | | | | | | |
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Recovery of gold [Policy Text Block] | | Recovery of gold | | | | | | | | | | | | |
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| Recovery of gold and other income is recognized when title and the risks and rewards of ownership to delivered bullion and commodities pass to the buyer and collection is reasonably assured. | | | | | | | | | | | | |
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Trading securities [Policy Text Block] | | Trading securities | | | | | | | | | | | | |
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| The Company's trading securities are reported at fair value, with realized and unrealized gains and losses included in earnings. | | | | | | | | | | | | |
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Non-Controlling Interest [Policy Text Block] | | Non-Controlling Interest | | | | | | | | | | | | |
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| The consolidated financial statements include the accounts of XG Mining (from December 22, 2004). All intercompany accounts and transactions have been eliminated upon consolidation. The Company records a non-controlling interest which reflects the 10% portion of the earnings (loss) of XG Mining allocable to the holders of the minority interest. | | | | | | | | | | | | |
Equipment [Policy Text Block] | | Equipment | | | | | | | | | | | | |
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| Equipment is recorded at cost and is being amortized over its estimated useful lives using the declining balance method at the following annual rates: | | | | | | | | | | | | |
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| Furniture and equipment | 20% | | | | | | | | | | | |
| Computer equipment | 30% | | | | | | | | | | | |
| Vehicles | 30% | | | | | | | | | | | |
| Mining equipment | 20% | | | | | | | | | | | |
Mineral properties and exploration and development costs [Policy Text Block] | Mineral properties and exploration and development costs |
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The costs of acquiring mineral rights are capitalized at the date of acquisition. After acquisition, various factors can affect the recoverability of the capitalized costs. If, after review, management concludes that the carrying amount of a mineral property is impaired, it will be written down to estimated fair value. Exploration costs incurred on mineral properties are expensed as incurred. Development costs incurred on proven and probable reserves will be capitalized. Upon commencement of production, capitalized costs will be amortized using the unit-of-production method over the estimated life of the ore body based on proven and probable reserves (which exclude non-recoverable reserves and anticipated processing losses). When the Company receives an option payment related to a property, the proceeds of the payment are applied to reduce the carrying value of the exploration asset. |
Long-lived assets [Policy Text Block] | Long-lived assets |
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Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of evaluating the recoverability of long-lived assets, the recoverability test is performed using undiscounted net cash flows related to the long-lived assets. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of their carrying amount or fair value less costs to sell. |
Asset retirement obligations [Policy Text Block] | Asset retirement obligations |
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The Company records the fair value of an asset retirement obligation as a liability in the period in which it incurs a legal obligation associated with the retirement of tangible long-lived assets that result from the acquisition, construction, development, and/or normal use of the long-lived assets. The Company also records a corresponding asset which is amortized over the life of the asset. Subsequent to the initial measurement of the asset retirement obligation, the obligation is adjusted at the end of each period to reflect the passage of time (accretion expense) and changes in the estimated future cash flows underlying the obligation (asset retirement cost). |
Stock-based compensation [Policy Text Block] | Stock-based compensation |
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The Company accounts for stock-based compensation under the provisions of ASC 718, “Compensation-Stock Compensation”. Under the fair value recognition provisions, stock-based compensation expense is measured at the grant date for all stock-based awards to employees and directors and is recognized as an expense over the requisite service period, which is generally the vesting period. The Black-Scholes option valuation model is used to calculate fair value. |
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The Company accounts for stock compensation arrangements with non-employees in accordance with ASC 718 which requires that such equity instruments are recorded at their fair value on the measurement date. The measurement of stock- based compensation is subject to periodic adjustment as the underlying equity instruments vest. Non-employee stock-based compensation charges are amortized over the vesting period on a straight-line basis. For stock options granted to non- employees, the fair value of the stock options is estimated using a Black-Scholes valuation model. |
Warrants [Policy Text Block] | | | | | | | | | | | | | | |
| Warrants | | | | | | | | | | | | |
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| 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 using the appropriate valuation methodology and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. The warrants are presented as a liability because they do not meet the criteria of Accounting Standard Codification (“ASC”) topic 480 for equity classification. Subsequent changes in the fair value of the warrants are recorded in the consolidated statement of operations. | | | | | | | | | | | | |
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Income taxes [Policy Text Block] | | Income taxes | | | | | | | | | | | | |
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| The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under the asset and liability method the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion or all of the deferred tax asset will not be recognized. | | | | | | | | | | | | |
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Loss per share [Policy Text Block] | | Loss per share | | | | | | | | | | | | |
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| Basic loss per common share is computed using the weighted average number of common shares outstanding during the year. To calculate diluted loss per share, the Company uses the treasury stock method and the if converted method. As of December 31, 2014, there were nil warrants (December 31, 2013 – 964,500, December 31, 2012 – 964,500) and 2,426,000 stock options (December 31, 2013 – 2,489,000, December 31, 2012 – 2,639,000) outstanding which have not been included in the weighted average number of common shares outstanding as these were anti-dilutive. | | | | | | | | | | | | |
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Foreign exchange [Policy Text Block] | | Foreign exchange | | | | | | | | | | | | |
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| The Company's functional currency is the U.S. dollar. Any monetary assets and liabilities that are in a currency other than the U.S. dollar are translated at the rate prevailing at year end. Revenue and expenses in a foreign currency are translated at rates that approximate those in effect at the time of translation. Gains and losses from translation of foreign currency transactions into U.S. dollars are included in current results of operations. | | | | | | | | | | | | |
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Financial instruments [Policy Text Block] | | Financial instruments | | | | | | | | | | | | |
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| The Company's financial instruments consist of cash and cash equivalents, trading securities, receivables, accounts payable and accrued liabilities. It is management's opinion that the Company is not exposed to significant interest, currency or credit risks arising from its financial instruments. The fair values of these financial instruments approximate their carrying values unless otherwise noted. The Company has its cash primarily in commercial banks in Toronto, Ontario, Canada. | | | | | | | | | | | | |
Fair value of financial assets and liabilities [Policy Text Block] | | | | | | | | | | | | | | |
| Fair value of financial assets and liabilities | | | | | | | | | | | | |
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| The Company measures the fair value of financial assets and liabilities based on US GAAP guidance which defines fair value, establishes a framework for measuring fair value, and expands disclosure about fair value measurements. | | | | | | | | | | | | |
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| The Company classifies financial assets and liabilities as held-for-trading, available-for-sale, held-to-maturity, loans and receivables or other financial liabilities depending on their nature. Financial assets and financial liabilities are recognized at fair value on their initial recognition, except for those arising from certain related party transactions which are accounted for at the transferor's carrying amount or exchange amount. | | | | | | | | | | | | |
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| Financial assets and liabilities classified as held-for-trading are measured at fair value, with gains and losses recognized in net income. Financial assets classified as held-to-maturity, loans and receivables, and financial liabilities other than those classified as held-for-trading are measured at amortized cost, using the effective interest method of amortization. Financial assets classified as available-for-sale are measured at fair value, with unrealized gains and losses being recognized as other comprehensive income until realized, or if an unrealized loss is considered other than temporary, the unrealized loss is recorded in income. | | | | | | | | | | | | |
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| Financial instruments, including cash and cash equivalents, accounts payable and accrued liabilities are carried at cost, which management believes approximates fair value due to the short term nature of these instruments. Investments in trading securities are classified as held for trading, with unrealized gains and losses being recognized in income. | | | | | | | | | | | | |
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| The following table presents information about the assets that are measured at fair value on a recurring basis as of December 31, 2014, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset. | | | | | | | | | | | | |
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| | | | | | | | | Significant | | | | |
| | | | | | Quoted Prices | | | Other | | | Significant | |
| | | | | | in Active | | | Observable | | | Unobservable | |
| | | December 31, | | | Markets | | | Inputs | | | Inputs | |
| | | 2014 | | | (Level 1) | | | (Level 2) | | | (Level 3) | |
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| Assets: | | | | | | | | | | | | |
| Cash and cash equivalents | $ | 850,736 | | $ | 850,736 | | $ | — | | $ | — | |
| Restricted cash | | 221,322 | | | 221,322 | | | — | | | — | |
| Marketable securities | | 81,012 | | | 81,012 | | | — | | | — | |
| Total | $ | 1,153,070 | | $ | 1,153,070 | | $ | — | | $ | — | |
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The fair values of cash and cash equivalents and marketable securities are determined through market, observable and corroborated sources. |
Concentration of credit risk [Policy Text Block] | Concentration of credit risk |
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The financial instrument which potentially subjects the Company to concentration of credit risk is cash. The Company maintains cash in bank accounts that, at times, may exceed federally insured limits. As of December 31, 2014 and December 31, 2013 and December 31, 2012, the Company has exceeded the federally insured limit. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. The Company sells all gold recovered to one licensed export agent in Ghana. There is no contract in place and the Company is able to switch suppliers at its discretion. |
Recent accounting pronouncements [Policy Text Block] | | | | | | | | | | | | | | |
| Recent accounting pronouncements | | | | | | | | | | | |
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| In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update(ASU) No. 2014-10, “Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810,Consolidation”. This ASU does the following, among other things: a) eliminates the requirement to present inception-to-date information on the statements of income, cash flows, and shareholders' equity, b) eliminates the need to label the financial statements as those of a development stage entity, c) eliminates the need to disclose a description of the development stage activities in which the entity is engaged, and d) amends FASB ASC 275, “Risks and Uncertainties”, to clarify that information on risks and uncertainties for entities that have not commenced planned principal operations is required. The amendments in ASU No. 2014-10 related to the elimination of Topic 915 disclosures and the additional disclosure for Topic 275 are effective for public companies for annual and interim reporting periods beginning after December 15, 2014. Early adoption is permitted. The Company has evaluated this ASU and adopted beginning with the period ended December 31, 2014. | | | | | | | | | | | |
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