Lode-Star Mining (LSMG) 10-K 27 Mar 19 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2018	Mar. 26, 2019	Jun. 30, 2018
Document And Entity Information
Entity Registrant Name	Lode-Star Mining Inc.
Entity Central Index Key	0001319643
Document Type	10-K
Document Period End Date	Dec. 31, 2018
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	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Public Float			$ 282,287
Entity Common Stock, Shares Outstanding		50,605,965
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2018

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Current
Cash	$ 6,508	$ 818
Prepaid fees	1,979	3,725
Total current assets	8,487	4,543
Mineral Property Interest, unproved	230,180	230,180
Total assets	238,667	234,723
Current liabilities:
Accounts payable and accrued liabilities	5,254	8,048
Due to related parties and accrued interest	1,286,011	1,036,569
Loans payable and accrued interest	30,267	47,055
Total current liabilities	1,321,532	1,091,672
STOCKHOLDERS' DEFICIENCY
Capital Stock Authorized: 480,000,000 voting common shares with a par value of $0.001 per share 20,000,0000 preferred shares with a par value of $0.001 per share Issued: 50,605,965 common shares and no preferred shares at December 31, 2018 49,127,285 common shares and no preferred shares at December 31, 2017	3,425	1,947
Additional Paid-In Capital	1,618,084	1,512,872
Accumulated Deficit	(2,704,374)	(2,371,768)
Total stockholders' deficiency	(1,082,865)	(856,949)
Total liabilities and stockholders' deficiency	$ 238,667	$ 234,723

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2018	Dec. 31, 2017
STOCKHOLDERS' DEFICIENCY
Common stock, par value	$ 0.001	$ 0.001
Common stock, Authorized	480,000,000	480,000,000
Common stock, Issued	50,605,965	49,127,825

STATEMENTS OF OPERATIONS

STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
Revenue	$ 0	$ 0
Operating Expenses
Consulting services	82,375	466,715
Corporate support services	1,904	1,913
Exploration and evaluation	0	3,190
Mineral option fees	100,000	100,000
Office, foreign exchange and sundry	16,947	7,593
Professional fees	49,348	44,876
Transfer and filing fees	22,857	21,721
Total operating expenses	273,431	646,008
Operating Loss	(273,431)	(646,008)
Other Expense
Interest, bank and finance charges	(59,175)	(45,620)
Total other expense	(59,175)	(45,620)
Net Loss For The Year	$ (332,606)	$ (691,628)
Basic And Diluted Net Loss Per Common Share	$ (0.01)	$ (0.01)
Weighted Average Number Of Common Shares Outstanding - basic and diluted	49,241,217	49,127,825

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Operating Activities
Net loss for year	$ (332,606)	$ (691,628)
Adjustments to reconcile net loss to net cash used in operating activities:
Foreign exchange loss	362	7
Stock options issued for services	57,912	442,808
Changes in operating assets and liabilities:
Prepaid fees	1,746	(3,725)
Accounts payable and accrued liabilities	34,679	48,274
Due to related parties	100,000	100,000
Accrued interest payable	58,597	44,948
Net cash used in operating activities	(79,310)	(59,316)
Financing Activities
Repayment of loans payable	(20,000)	(20,000)
Proceeds from loans payable - related party	105,000	75,000
Net cash provided by financing activities	85,000	55,000
Net Decrease In Cash	5,690	(4,316)
Cash, Beginning Of Year	818	5,134
Cash, End Of Year	6,508	818
Supplemental Disclosure Of Cash Flow Information
Cash paid during the period for Interest	0	0
Cash paid during the period for Income taxes	0	0
Non-cash Financing Activity
Expenses paid by related party on behalf of the Company	$ 37,473	$ 59,242

STATEMENTS OF STOCKHOLDERS' EQU

STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning Balance, Shares at Dec. 31, 2016	49,127,825
Beginning Balance, Amount at Dec. 31, 2016	$ 1,947	$ 1,070,064	$ (1,680,140)	$ (608,129)
Stock options issued for services		442,808		442,808
Net loss for the year			(691,628)	(691,628)
Ending Balance, Shares at Dec. 31, 2017	49,127,825
Ending Balance, Amount at Dec. 31, 2017	$ 1,947	1,512,872	(2,371,768)	(856,949)
Stock options issued for services		57,912		57,912
Shares issued in exchange for debt, Shares	1,478,140
Shares issued in exchange for debt, Amount	$ 1,478	47,300		48,778
Net loss for the year			(332,606)	(332,606)
Ending Balance, Shares at Dec. 31, 2018	50,605,965
Ending Balance, Amount at Dec. 31, 2018	$ 3,425	$ 1,618,084	$ (2,704,374)	$ (1,082,865)

1. BASIS OF PRESENTATION AND NA

1. BASIS OF PRESENTATION AND NATURE OF OPERATIONS	12 Months Ended
	Dec. 31, 2018
Notes to Financial Statements
NOTE 1 - BASIS OF PRESENTATION AND NATURE OF OPERATIONS	Organization Lode-Star Mining Inc. (“the Company”) was incorporated in the State of Nevada, U.S.A., on December 9, 2004. The Company’s principal executive offices are located in Reno, Nevada. The Company was originally formed for the purpose of acquiring exploration stage natural resource properties. The Company acquired a mineral property interest from Lode-Star Gold INC., a private Nevada corporation (“LSG”) on December 11, 2014 in consideration for the issuance of 35,000,000 common shares of the Company. As a result of this transaction, control of the Company was acquired by LSG. Going Concern The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The future of the Company is dependent upon its ability to establish a business and to obtain new financing to execute its business plan. As shown in the accompanying financial statements, the Company has had no revenue and has incurred accumulated losses of $2,704,374 as of December 31, 2018. These factors raise substantial doubt about the Company’s ability to continue as a going concern. In order to continue as a going concern, the Company will need, among other things, additional capital resources. The Company is significantly dependent upon its ability, and will continue to attempt, to secure additional equity and/or debt financing. There are no assurances that the Company will be successful and without sufficient financing it would be unlikely for the Company to continue as a going concern. These financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence.

2. SUMMARY OF SIGNIFICANT ACCOU

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates which have been made using careful judgment. All dollar amounts are in U.S. dollars unless otherwise noted. The financial statements have, in management’s opinion, been properly prepared within reasonable limits of materiality and within the framework of the significant accounting policies summarized below: a) Basis of Accounting The Company’s financial statements have been prepared using the accrual method of accounting. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the periods presented have been reflected herein. b) Cash and Cash Equivalents Cash consists of cash on deposit with high quality, major financial institutions. For purposes of the balance sheets and statements of cash flows, the Company considers all highly liquid debt instruments purchased with maturity of 90 days or less to be cash equivalents. At December 31, 2018 and 2017, the Company had no cash equivalents. c) Foreign Currency Accounting The Company’s functional currency is the U.S. dollar. Branch office activities are generally in Canadian dollars. Transactions in Canadian currency are translated into U.S. dollars as follows: i) monetary items at the exchange rate prevailing at the balance sheet date; ii) non-monetary items at the historical exchange rate; and iii) revenue and expense items at the rate in effect of the date of transactions. Gains and losses arising on the settlement of foreign currency denominated transactions or balances are recorded in the statements of operations. d) Fair Value of Financial Instruments ASC Topic 820-10 establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. These tiers include: ■ Level 1 – defined as observable inputs such as quoted prices in active markets; ■ Level 2 – defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and ■ Level 3 – defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company’s financial instruments consist of cash, accounts payable and accrued liabilities, due to related parties, and loans payable. The Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. Pursuant to ASC 820 and 825, the fair value of cash is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. Accounts payable and accrued liabilities and loans payable are measured using “Level 2” inputs as there are no quoted prices in active markets for identical instruments. The carrying values of cash, accounts payable and accrued liabilities, and loans payable approximate their fair values due to the immediate or short term maturity of these financial instruments. e) Asset Retirement Obligations The Company has no asset retirement obligations, including environmental rehabilitation expenditures, which relate to an existing condition caused by past operations. f) Use of Estimates and Assumptions The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying disclosures. By their nature, these estimates are subject to measurement uncertainty and the effect on the financial statements of changes in such estimates in future periods could be significant. Significant areas requiring management’s estimates and assumptions are determining the fair value of transactions involving related parties and common stock. Actual results may differ from the estimates. g) Basic and Diluted Earnings Per Share The Company reports basic earnings or loss per share in accordance with ASC Topic 260, “Earnings Per Share”. Basic earnings per share is computed by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed similarly, using the treasury stock method, whereby the common stock number is increased to include potential additional common shares from the exercise of in-the-money options and warrants. As the Company generated net losses in the periods presented, the impact of including potential shares from outstanding warrants would be anti-dilutive and is therefore not part of the net loss per share calculation. The actual impact, if included, was not significant enough in any case to change the basic net loss per share amount shown. h) Income Taxes The Company uses the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, Income Taxes. This standard requires the use of an asset and liability approach for financial accounting and reporting on income taxes. If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized. i) Stock-Based Compensation Stock-based compensation of employees is accounted for in accordance with ASC 718 whereby a compensation charge based on the fair value of the equity instruments issued, measured at the grant date, is recorded against earnings over the period during which the employee is required to perform the services in exchange for the award (generally the vesting period). For transactions with non-employees in which services are performed in exchange for the Company’s common stock or other equity instruments, the transactions are accounted for in accordance with ASC 505-50, whereby the compensation charge is recorded on the basis of the fair value of the goods or services received or the fair value of the equity instruments granted, whichever is more reliably measurable at the earlier of the date at which a commitment for performance is reached or the date at which the performance is complete. The expense is recognized in the same manner as if the Company had paid cash for the goods or services. j) Mineral Property Interest and Impairment Mineral property interests are capitalized and recorded at fair value. The property interests are periodically assessed for impairment of value when facts and circumstances suggest that the carrying amount of the property interest may exceed its recoverable amount. Costs of exploration, evaluation and retaining mineral property interests are expensed as incurred. Once the Company has identified proven and probable reserves in its investigation of its property interests and upon development of a plan for operating a mine, it would enter the development stage and capitalize future costs until production is established. When a property reaches the production stage, the related capital costs will be amortized, using the units-of-production method over proven and probable reserves. k) Related Party Transactions In accordance with ASC 850, the Company discloses: the nature of the related party relationship(s) involved; a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. l) Recent Accounting Pronouncements The Company has implemented all applicable new accounting pronouncements that are in effect. Those pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

3. MINERAL PROPERTY INTEREST

3. MINERAL PROPERTY INTEREST	12 Months Ended
	Dec. 31, 2018
Mineral Property Interest
NOTE 3 - MINERAL PROPERTY INTEREST	The Company’s mineral property interest is a group of thirty-one claims known as the “Goldfield Bonanza Project” (the “Property”), in the State of Nevada. Pursuant to an option agreement dated October 14, 2014 with Lode-Star Gold INC. (“LSG”), a private Nevada corporation, the Company acquired an initial 20% undivided interest in and to the mineral claims owned by LSG and an option to earn a further 60% interest in the claims. LSG received 35,000,000 shares of the Company’s common stock and is its controlling shareholder. Until the Company has earned the additional 60% interest, the net smelter royalty will be split 79.2% to LSG, 19.8% to the Company and 1% to the former Property owner. To earn the additional 60% interest, the Company is required to fund all expenditures on the Property and pay LSG an aggregate of $5 million in cash in the form of a net smelter royalty, commencing after December 11, 2014. If the Company fails to make any cash payments to LSG within one year of the date of the option agreement, it is required to pay LSG an additional $100,000, and in any subsequent years in which the Company fails to complete the payment of the entire $5 million, it must make quarterly cash payments to LSG of $25,000. On January 11, 2017, LSG agreed to defer payment of all amounts due in accordance with the mineral option agreement until further notice. On January 17, 2017, the Company and LSG agreed that as of January 1, 2017, all outstanding balances shall carry a compound interest rate of 5% per annum. It was further agreed that the ongoing payment deferral shall apply to both interest and principal. The total amount of such fees due at December 31, 2018 was $423,913 (2017: $323,913), with total interest due in the amount of $32,220 (2017: $11,196). The Company has agreed with LSG that upon the successful completion of a toll milling agreement after permitting is achieved, it will have the basis to form a joint management committee to outline work programs and budgets, as contemplated in the option agreement, and for the Company to act as the operator of the property. The Company assessed its mineral property interest to the date of issue of these financial statements and concluded that facts and circumstances do not suggest that the mineral property interest’s carrying value exceeds its recoverable amount and therefore no impairment is required.

4. CAPITAL STOCK

4. CAPITAL STOCK	12 Months Ended
	Dec. 31, 2018
Notes to Financial Statements
NOTE 4 - CAPITAL STOCK	Capitalization The authorized capital of the Company is 500,000,000 shares of capital stock, divided into 480,000,000 shares of common stock with a par value of $0.001 per share, and 20,000,000 shares of preferred stock with a par value of $0.001 per share. Prior to an amendment on November 24, 2014, capitalization was 100,000,000 shares of common stock with a par value of $0.00001 The Company reserved 10,000,000 shares of common stock for issuance under its 2016 Omnibus Equity Incentive Plan. No preferred shares have been issued to December 31, 2018 or to the date of issue of these financial statements. Shares On December 3, 2018, the Company issued 1,478,140 common shares in exchange for debt totaling $48,778 owed to a related party, comprised of $40,205 in loans and $8,573 in accrued interest. During the year ended December 31, 2017, the Company did not issue any shares of its common stock. Options On November 20, 2018, the Company granted 500,000 non-qualified stock options pursuant to the Equity Incentive Plan, to key outside consultants, with 50% vesting after one year and 50% vesting after two years. Each option is exercisable into one share of the Company’s common stock at a price of $0.06 per share, for a term of five years. The options had an estimated grant date fair value of $10,408. For the year ended December 31, 2018, $1,340 (2017 - $Nil) was included in consulting services expense, based on fair value estimates determined using the Black-Scholes option pricing model with an average risk-free rate of 2.51%, a weighted average life of 4.89 years, volatility of 190.47%, and dividend yield of 0%. The valuation used average weekly pricing. At December 31, 2018, the options had an intrinsic value of $0 ($2017 - $0) based on the exercise price of $0.06 per option and a market price of $0.022 per share. On February 14, 2017, the Company granted 9,500,000 non-qualified stock options pursuant to the Equity Incentive Plan, to key corporate officers and outside consultants, with 25% vesting immediately and a further 25% vesting every six months thereafter for eighteen months. Each option is exercisable into one share of the Company’s common stock at a price of $0.06 per share, equal to the closing price of the common stock on the grant date, for a term of five years. The options had an estimated grant date fair value of $536,750. For the year ended December 31, 2018, $56,572 (2017 - $442,808) was included in consulting services expense, based on fair value estimates determined using the Black-Scholes option pricing model with an average risk-free rate of 1.98%, a weighted average life of 4.837 years, volatility of 189.07%, and dividend yield of 0%. The valuation used average weekly pricing. At December 31, 2018, the options had an intrinsic value of $0 ($2017 - $0) based on the exercise price of $0.06 per option and a market price of $0.022 per share. A summary of option activity in the current year and options outstanding at December 31, 2018 is as follows: Options Exercise Price Weighted Average Exercise Price Weighted Average Life Remaining (Years) Expiry Date Intrinsic Value Issued Vested Balance December 31, 2017 9,500,000 4,750,000 $0.06 $0.06 4.12 February 14, 2022 - Issued 500,000 - $0.06 $0.06 4.89 November 20, 2023 - Expired - - - - - - - Exercised - - - - - - - Balance December 31, 2018 10,000,000 9,500,000 $0.06 $0.06 3.21 - Warrants During the years ended December 31, 2018 and 2017, no warrants to purchase shares of common stock were issued and no warrants were exercised. At December 31, 2018, warrants issued in 2015 had an intrinsic value of $6,672 (2017 - $40,033) based on the exercise price of $0.02 per warrant and a market price of $0.022 per share. A summary of warrant activity in the current year and warrants outstanding at December 31, 2018 is as follows: Number of Warrants Exercise Price Weighted Average Exercise Price Weighted Average Life Remaining (Years) Expiry Date Intrinsic Value Balance December 31, 2017 3,336,060 $ 0.02 $ 0.02 2.88 November 19, 2020 $ 40,033 Issued - - - - - - Expired - - - - - - Exercised - - - - - - Balance outstanding and exercisable at December 31, 2018 3,336,060 $ 0.02 $ 0.02 1.88 November 19, 2020 $ 6,672

5. LOANS PAYABLE

5. LOANS PAYABLE	12 Months Ended
	Dec. 31, 2018
Notes to Financial Statements
NOTE 5 - LOANS PAYABLE	At December 31, 2018, the Company had the following loans payable: i. $1,000 (2017: $1,000): unsecured; interest at 15% per annum; originally due on April 20, 2012. Accrued interest payable on the loan at December 31, 2018 was $3,518 (2017: $3,368). During 2018, the Company repaid $0 (2017: $0) of this loan. ii. $5,000 (2017: $25,000): unsecured; interest at 10% per annum from January 10, 2015. ● The outstanding principal, and any accrued interest was due and payable on written demand in full (not received to date) on the earlier of June 9, 2015 or the date on which the Company completes one or more debt or equity financings that generate aggregate gross proceeds of at least $250,000; ● The Company has the right to repay all or any part of the Principal and any accrued interest to the lender at any time and from time to time, without any premium. ● There are no changes to the terms as a result of the loan being in default. ● Accrued interest payable on the loan at December 31, 2018 was $20,749 (2017: $17,687). During 2018, the Company repaid $20,000 (2017: $20,000) of this loan. At December 31, 2018, total interest accrued on the above loans was $24,267 (2017: $21,055).

6. RELATED PARTY TRANSACTIONS A

6. RELATED PARTY TRANSACTIONS AND AMOUNTS DUE	12 Months Ended
	Dec. 31, 2018
Notes to Financial Statements
NOTE 6 - RELATED PARTY TRANSACTIONS AND AMOUNTS DUE	At December 31, 2018, the Company had the following amounts due to related parties: i. $0 (2017: $39,783): unsecured; interest at 5% per annum; with no specific terms of repayment, due to the President of the Company. Accrued interest payable on the loan at December 31, 2018 was $0 (2017: $6,641). On December 3, 2018, the full amount of the loan ($40,205) and accrued interest ($8,573) was exchanged for 1,478,140 shares of the Company’s common stock. During 2017, the Company made no repayments to or borrowed any additional amounts from the President. ii. $525,000 (2017: $420,000): unsecured; interest at 5% per annum from January 1, 2015; with no specific terms of repayment, due to LSG, the Company’s majority shareholder. Accrued interest payable on the loan at December 31, 2018 was $69,034 (2017: $45,047). During 2018, the Company borrowed $105,000 (2017: $75,000) from LSG. iii. $211,403 (2017: $173,930): unsecured; interest at 5% per annum; with no specific terms of repayment, due to LSG, the Company’s majority shareholder. Accrued interest payable on the loan at December 31, 2018 was $20,776 (2017: $12,334). During 2018, LSG paid expenses directly on behalf of the Company totaling $37,473 (2017: $59,242). iv. $3,665 (2017: $3,725): unsecured; non-interest bearing; with no specific terms of repayment, due to the controlling shareholder of LSG. The change in value during the year was due to fluctuation in the US to Canadian dollar exchange rate. At December 31, 2018, total interest accrued on the above related party loans was $89,810 (2017: $64,022). During the year ended December 31, 2018, there was a $362 foreign exchange loss (2017: $7) due to related party loan amounts in non-US currency. Stock-based compensation to related parties of $58,246 (2017: $371,902) was also recognized during the year ended December 31, 2018. During the year ended December 31, 2018, the Company incurred $100,000 (2017: $100,000) in mineral option fees payable to LSG, which have been accrued as of that date. The total amount of such fees due at December 31, 2018 was $423,913 (2017: $323,913), with total interest due in the amount of $32,220 (2017: $11,196). At December 31, 2018, the total due to related parties of $1,286,011 (2017: $1,036,569) is comprised of the following: ■ Loans and accrued interest - $829,878 (2017: $701,460) ■ Mineral option fees payable and accrued interest - $456,133 (2017: $335,109) At December 31, 2018, $966 (2017: $Nil) owing to the Company’s President was outstanding in accounts payable. During the years ended December 31, 2018 and 2017, the President provided a full spectrum of senior management services, functioning also as the Company’s CEO and CFO, without compensation.

7. CONTRACTUAL OBLIGATIONS AND

7. CONTRACTUAL OBLIGATIONS AND COMMITMENTS	12 Months Ended
	Dec. 31, 2018
Notes to Financial Statements
NOTE 7 - CONTRACTUAL OBLIGATIONS AND COMMITMENTS	See Note 3 for details about the Company’s obligations and commitments regarding its Mineral Property Interest.

8. INCOME TAXES

8. INCOME TAXES	12 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
NOTE 8 - INCOME TAXES	In December 2014, the Company underwent a change in control which subjected it to limitations under Internal Revenue Code Section 382. That section restricts post-change annual net operating loss utilization, based on applying an IRS- prescribed rate to the purchase price of the stock acquired in the change in control. The Company accordingly revised its estimates of net operating loss carry forwards, resulting in a reduction in the estimate of losses available for utilization in the amount of approximately $872,000. A reconciliation of income tax benefit to the amount computed at the estimated rate of 34% (2017 – 34%) is as follows: 2018 2017 Expected income tax recovery $ 113,100 $ 235,200 Adjustment for non-deductible amounts (22,600 ) (152,200 ) Increase in valuation allowance (90,500 ) (83,000 ) $ - $ - Significant components of deferred income tax assets are as follows: 2018 2017 Deferred income tax assets Net operating losses carried forward $ 413,900 $ 323,400 Valuation allowance (413,900 ) (323,400 ) $ - $ - The Company has approximately $1,217,000 (2017: $951,000) in net operating losses carried forward which will expire by 2038 if not utilized. Future tax benefits, which may arise as a result of these losses, have not been recognized in these financial statements, and have been offset by a valuation allowance. The Company’s net operating losses carried forward for United States income tax purposes will expire if not utilized, as follows: 2032 $ 116,010 2033 6,445 2034 6,445 2035 315,203 2036 263,003 2037 244,111 2038 266,265 $ 1,217,482 Realization of the above losses carried forward is dependent on the Company filing the applicable tax returns with the tax authorities and generating sufficient taxable income prior to expiration of the losses carried forward. Continuing use of the acquired historic business or a significant portion of the acquired assets for two years after a change of control transaction is required, otherwise the annual net operating loss limitation on pre-change losses is zero. The two year continuing use requirement has been met.

2. SUMMARY OF SIGNIFICANT ACC_2

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2018
Notes to Financial Statements
Basis of Accounting	The Company’s financial statements have been prepared using the accrual method of accounting. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the periods presented have been reflected herein.
Cash and Cash Equivalents	Cash consists of cash on deposit with high quality, major financial institutions. For purposes of the balance sheets and statements of cash flows, the Company considers all highly liquid debt instruments purchased with maturity of 90 days or less to be cash equivalents. At December 31, 2018 and 2017, the Company had no cash equivalents.
Foreign Currency Accounting	The Company’s functional currency is the U.S. dollar. Branch office activities are generally in Canadian dollars. Transactions in Canadian currency are translated into U.S. dollars as follows: i) monetary items at the exchange rate prevailing at the balance sheet date; ii) non-monetary items at the historical exchange rate; and iii) revenue and expense items at the rate in effect of the date of transactions. Gains and losses arising on the settlement of foreign currency denominated transactions or balances are recorded in the statements of operations.
Fair Value of Financial Instruments	ASC Topic 820-10 establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. These tiers include: ■ Level 1 – defined as observable inputs such as quoted prices in active markets; ■ Level 2 – defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and ■ Level 3 – defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company’s financial instruments consist of cash, accounts payable and accrued liabilities, due to related parties, and loans payable. The Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. Pursuant to ASC 820 and 825, the fair value of cash is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. Accounts payable and accrued liabilities and loans payable are measured using “Level 2” inputs as there are no quoted prices in active markets for identical instruments. The carrying values of cash, accounts payable and accrued liabilities, and loans payable approximate their fair values due to the immediate or short term maturity of these financial instruments.
Asset Retirement Obligations	The Company has no asset retirement obligations, including environmental rehabilitation expenditures, which relate to an existing condition caused by past operations.
Use of Estimates and Assumptions	The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying disclosures. By their nature, these estimates are subject to measurement uncertainty and the effect on the financial statements of changes in such estimates in future periods could be significant. Significant areas requiring management’s estimates and assumptions are determining the fair value of transactions involving related parties and common stock. Actual results may differ from the estimates.
Basic and Diluted Earnings Per Share	The Company reports basic earnings or loss per share in accordance with ASC Topic 260, “Earnings Per Share”. Basic earnings per share is computed by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed similarly, using the treasury stock method, whereby the common stock number is increased to include potential additional common shares from the exercise of in-the-money options and warrants. As the Company generated net losses in the periods presented, the impact of including potential shares from outstanding warrants would be anti-dilutive and is therefore not part of the net loss per share calculation. The actual impact, if included, was not significant enough in any case to change the basic net loss per share amount shown.
Income Taxes	The Company uses the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, Income Taxes. This standard requires the use of an asset and liability approach for financial accounting and reporting on income taxes. If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized.
Stock-Based Compensation	Stock-based compensation of employees is accounted for in accordance with ASC 718 whereby a compensation charge based on the fair value of the equity instruments issued, measured at the grant date, is recorded against earnings over the period during which the employee is required to perform the services in exchange for the award (generally the vesting period). For transactions with non-employees in which services are performed in exchange for the Company’s common stock or other equity instruments, the transactions are accounted for in accordance with ASC 505-50, whereby the compensation charge is recorded on the basis of the fair value of the goods or services received or the fair value of the equity instruments granted, whichever is more reliably measurable at the earlier of the date at which a commitment for performance is reached or the date at which the performance is complete. The expense is recognized in the same manner as if the Company had paid cash for the goods or services.
Mineral Property Interest and Impairment	Mineral property interests are capitalized and recorded at fair value. The property interests are periodically assessed for impairment of value when facts and circumstances suggest that the carrying amount of the property interest may exceed its recoverable amount. Costs of exploration, evaluation and retaining mineral property interests are expensed as incurred. Once the Company has identified proven and probable reserves in its investigation of its property interests and upon development of a plan for operating a mine, it would enter the development stage and capitalize future costs until production is established. When a property reaches the production stage, the related capital costs will be amortized, using the units-of-production method over proven and probable reserves.
Related Party Transactions	In accordance with ASC 850, the Company discloses: the nature of the related party relationship(s) involved; a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.
Recent Accounting Pronouncements	The Company has implemented all applicable new accounting pronouncements that are in effect. Those pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

4. CAPITAL STOCK (Tables)

4. CAPITAL STOCK (Tables)	12 Months Ended
	Dec. 31, 2018
Capital Stock
Summary of option activity	Options Exercise Price Weighted Average Exercise Price Weighted Average Life Remaining (Years) Expiry Date Intrinsic Value Issued Vested Balance December 31, 2017 9,500,000 4,750,000 $0.06 $0.06 4.12 February 14, 2022 - Issued 500,000 - $0.06 $0.06 4.89 November 20, 2023 - Expired - - - - - - - Exercised - - - - - - - Balance December 31, 2018 10,000,000 9,500,000 $0.06 $0.06 3.21 -
Summary of warrant activity	Number of Warrants Exercise Price Weighted Average Exercise Price Weighted Average Life Remaining (Years) Expiry Date Intrinsic Value Balance December 31, 2017 3,336,060 $ 0.02 $ 0.02 2.88 November 19, 2020 $ 40,033 Issued - - - - - - Expired - - - - - - Exercised - - - - - - Balance outstanding and exercisable at December 31, 2018 3,336,060 $ 0.02 $ 0.02 1.88 November 19, 2020 $ 6,672

8. INCOME TAXES (Tables)

8. INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2018
Income Taxes Tables Abstract
Schedule reconciliation of income tax benefit	2018 2017 Expected income tax recovery $ 113,100 $ 235,200 Adjustment for non-deductible amounts (22,600 ) (152,200 ) Increase in valuation allowance (90,500 ) (83,000 ) $ - $ -
Schedule of deferred income tax assets	2018 2017 Deferred income tax assets Net operating losses carried forward $ 413,900 $ 323,400 Valuation allowance (413,900 ) (323,400 ) $ - $ -
Schedule of net operating losses carried forward	2032 $ 116,010 2033 6,445 2034 6,445 2035 315,203 2036 263,003 2037 244,111 2038 266,265 $ 1,217,482

1. BASIS OF PRESENTATION AND _2

1. BASIS OF PRESENTATION AND NATURE OF OPERATIONS (Details Narrative) - USD ($)	133 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Basis Of Presentation And Nature Of Operations
State of incorporation	State of Nevada, U.S.A.
Date of incorporation	Dec. 9, 2004
Accumulated losses	$ (2,704,374)	$ (2,371,768)

4. CAPITAL STOCK (Details)

4. CAPITAL STOCK (Details)	12 Months Ended
	Dec. 31, 2018USD ($)$ / sharesshares
Capital Stock Details Abstract
Number of Options, Outstanding at December 31, 2017	9,500,000
Number of Options, Options issued	500,000
Number of Options, Options expired	0
Number of Options, Options exercised	0
Number of Options, Outstanding at December 31, 2018	10,000,000
Number of option, Vested at December 31, 2017	4,750,000
Number of option, Vested at December 31, 2018	9,500,000
Weighted Average Exercise Price, Outstanding (in dollars per share) at December 31, 2017 | $ / shares	$ 0.06
Weighted Average Exercise Price, Options issued (in dollars per share) | $ / shares	0.06
Weighted Average Exercise Price, Options expired (in dollars per share) | $ / shares	0
Weighted Average Exercise Price, Options exercised (in dollars per share) | $ / shares	0
Weighted Average Exercise Price, Outstanding (in dollars per share) at December 31, 2018 | $ / shares	$ 0.06
Weighted-Average Remaining Contractual Term, Outstanding at December 31, 2017	4 years 1 month 13 days
Weighted-Average Remaining Contractual Term, Options issued	4 years 10 months 20 days
Weighted-Average Remaining Contractual Term, Outstanding at December 31, 2018	3 years 2 months 16 days
Expiry Date, Beginning at December 31, 2017	Feb. 14, 2022
Expiry Date, Options Issued	Nov. 20, 2023
Aggregate Intrinsic Value, Outstanding (in dollars) at December 31, 2017 | $	$ 0
Aggregate Intrinsic Value, Outstanding (in dollars) at December 31, 2018 | $	$ 0

4. CAPITAL STOCK (Details 1)

4. CAPITAL STOCK (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Capital Stock
Number of Warrants, Beginning	3,336,060
Issued	0
Expired	0
Exercised	0
Number of Warrants, Ending	3,336,060
Exercise Price, Beginning	$ 0.02
Exercise Price, Issued	0
Exercise Price, Expired	0
Exercise Price, Exercised	0
Exercise Price, , Ending	$ 0.02
Weighted Average Life Remaining (Years), Beginning	2 years 10 months 19 days
Weighted Average Life Remaining (Years), Ending	1 year 10 months 19 days
Expiry Date at December 31, 2017 and December 31, 2018	Nov. 19, 2020
Intrinsic Value	$ 6,672	$ 40,033

5. LOANS PAYABLE (Details Narra

5. LOANS PAYABLE (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Loans Payable
Accrued interest payable	$ 24,267	$ 21,055

6. RELATED PARTY TRANSACTIONS_2

6. RELATED PARTY TRANSACTIONS AND AMOUNTS DUE (Details Narrative) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Due to related parties	$ 1,286,011	$ 1,036,569
Loans and accrued interest	829,878	701,460
Mineral option fees payable	456,133	335,109
President
Due to related parties	0	39,783
Accrued interest on loan amounts due	0	6,641
Majority shareholder
Due to related parties	525,000	420,000
Accrued interest on loan amounts due	69,034	45,047
Majority shareholder 2
Due to related parties	211,403	173,930
Accrued interest on loan amounts due	20,776	12,334
Controlling shareholder
Due to related parties	$ 3,665	$ 3,725

8. INCOME TAXES (Details)

8. INCOME TAXES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Taxes Details Abstract
Expected income tax recovery	$ 113,100	$ 235,200
Adjustment for non-deductible stock compensation	(22,600)	(150,600)
Increase in valuation allowance	(90,500)	(84,600)
Total	$ 0	$ 0

8. INCOME TAXES (Details 1)

8. INCOME TAXES (Details 1) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Deferred income tax assets
Net operating losses carried forward	$ 413,900	$ 323,400
Valuation allowance	413,900	(323,400)
Deferred income tax assets, net	$ 0	$ 0

8. INCOME TAXES (Details 2)

8. INCOME TAXES (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Operating losses amount	$ 1,217,482	$ 951,217
Expiry Year 1
Operating losses expiration year	2032
Operating losses amount	$ 116,010
Expiry Year 2
Operating losses expiration year	2033
Operating losses amount	$ 6,445
Expiry Year 3
Operating losses expiration year	2034
Operating losses amount	$ 6,445
Expiry Year 4
Operating losses expiration year	2035
Operating losses amount	$ 315,203
Expiry Year 5
Operating losses expiration year	2036
Operating losses amount	$ 263,003
Expiry Year 6
Operating losses expiration year	2037
Operating losses amount	$ 244,111
Expiry Year 7
Operating losses expiration year	2038
Operating losses amount	$ 266,265

8. INCOME TAXES (Details Narrat

8. INCOME TAXES (Details Narrative) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Income Taxes Details Narrative Abstract
Net operating loss carryforward	$ 1,217,482	$ 951,217