Star Gold (SRGZ) 10-Q 14 Sep 15 2015 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jul. 31, 2015	Sep. 11, 2015
Document And Entity Information
Entity Registrant Name	Star Gold Corp.
Entity Central Index Key	1,401,835
Document Type	10-Q
Document Period End Date	Jul. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--04-30
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		36,595,726
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,015

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($)	Jul. 31, 2015	Apr. 30, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 118,036	$ 5,358
Prepaid expenses	24,760	70,837
TOTAL CURRENT ASSETS	142,796	76,195
EQUIPMENT AND MINING INTERESTS, net	308,601	297,951
RESTRICTED CASH	21,600	21,600
TOTAL ASSETS	472,997	395,746
CURRENT LIABILITIES:
Accounts payable	83,008	24,839
Other accrued liabilities	6,634	16,571
Short term notes payable, related party	27,663	101,916
TOTAL CURRENT LIABILITIES	117,305	$ 143,326
LONG-TERM LIABILITIES:
Deposits on stock subscription	268,000
TOTAL LIABILITIES	$ 385,305	$ 143,326
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred Stock, $.001 par value; 10,000,000 shares authorized, none issued and outstanding
Common Stock, $.001 par value; 300,000,000 shares authorized; 36,595,726 shares issued and outstanding, respectively	$ 36,596	$ 36,596
Additional paid-in capital	$ 9,113,180	$ 9,112,889
Accumulated deficit	(9,062,084)	(8,897,065)
TOTAL STOCKHOLDERS' EQUITY	87,692	252,420
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 472,997	$ 395,746

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - shares	Jul. 31, 2015	Apr. 30, 2015
Statement of Financial Position [Abstract]
Preferred Stock, $.001 par value, shares authorized	10,000,000	10,000,000
Preferred Stock, $.001 par value, shares issued and outstanding
Common Stock, $.001 par value, shares authorized	300,000,000	300,000,000
Common Stock, $.001 par value, shares issued and outstanding	36,595,726	36,595,726

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
OPERATING EXPENSE
Mineral exploration expense	$ 113,455	$ 89,093
Legal and professional fees	21,734	24,597
Management and administrative	26,159	156,409
Depreciation	1,350	1,480
TOTAL OPERATING EXPENSES	(162,698)	271,579
LOSS FROM OPERATIONS	(162,698)	(271,579)
OTHER INCOME (EXPENSE)
Interest expense	(2,321)	(7)
TOTAL OTHER INCOME (EXPENSE)	(2,321)	(7)
NET LOSS BEFORE INCOME TAXES	$ (165,019)	$ (271,586)
Provision for income tax
NET LOSS	$ (165,019)	$ (271,586)
Basic and diluted loss per share		$ (0.01)
Basic and diluted weighted average number shares outstanding	36,595,726	35,016,422

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Statement of Cash Flows [Abstract]
CASH FLOWS FROM OPERATING ACTIVITIES:	$ (81,406)	$ (253,810)
Net loss	(165,019)	(271,586)
Adjustments to reconcile net loss to cash used by operating activities
Stock based compensation	291	25,017
Depreciation	1,350	1,480
Changes in operating assets and liabilities:
Prepaid expenses	33,740	(40,980)
Accounts payable	58,169	33,026
Other accrued liabilities	(9,937)	(767)
Net cash used by operating activities	(81,406)	(253,810)
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for mining interest	(12,000)	(9,000)
Net cash used by investing activities	(12,000)	$ (9,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from short-term promissory note, related party	40,000
Repayment of short-term promissory note, related party	(101,916)
Proceeds from stock subscriptions	$ 268,000
Net proceeds from issuance of stock and warrants		$ 336,412
Net cash provided by financing activities	$ 206,084	336,412
Net increase in cash and cash equivalents	112,678	73,602
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	5,358	542,757
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 118,036	$ 616,359

Nature of Operations

Nature of Operations	3 Months Ended
	Jul. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations	NOTE 1 - NATURE OF OPERATIONS Star Gold Corp. (the "Company") was initially incorporated as Elan Development, Inc., in the State of Nevada on December 8, 2006. The Company was originally organized to explore mineral properties in British Columbia, Canada but the Company is currently focusing on gold, silver and other base metal-bearing properties in Nevada. The Company's main business consists of assembling and/or acquiring land packages and mining claims the Company believes have potential mining reserves, and expending capital to explore these claims by drilling, geophysical work or other exploration work deemed necessary. The business is a high risk business as there is no guarantee that the Company's exploration work will ultimately discover or produce any economically viable minerals.

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Jul. 31, 2015
Accounting Policies [Abstract]
Significant Accounting Policies	NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation This summary of significant accounting policies is presented to assist in understanding the financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. The accompanying unaudited financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information, as well as the instructions to Form 10-Q. Accordingly, the financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of our management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the interim financial statements have been included. Operating results for the three month period ended July 31, 2015 are not necessarily indicative of the results that may be expected for the full year ending April 30, 2016. All amounts presented are in U.S. dollars. For further information refer to the financial statements and footnotes thereto in the Company’s Annual Report on Form 10-K for the year ended April 30, 2015. Going Concern As shown in the accompanying consolidated financial statements, the Company has incurred operating losses since inception. As of July 31, 2015, the Company has limited financial resources with which to achieve the objectives and obtain profitability and positive cash flows. As shown in the accompanying balance sheets and statements of operations, the Company has an accumulated deficit of $9,062,084 and as of that date the Company's working capital was $25,491. Achievement of the Company's objectives will be dependent upon the ability to obtain additional financing, to locate profitable energy properties and generate revenue from current and planned business operations, and control costs. The Company plans to fund its future operations by joint venturing, obtaining additional financing from investors, and/or lenders, and attaining additional commercial production. However, there is no assurance that the Company will be able to achieve these objectives, therefore substantial doubt about its ability to continue as a going concern exists. The financial statements do not include adjustments relating to the recoverability of recorded assets nor the implications of associated bankruptcy costs should the Company be unable to continue as a going concern. In the event the Company is unable to fulfill the annual exploration expenditures as provided for in each respective Property Option Agreement (Note 4), the Company will default on the agreement(s) and surrender its right to future claims on the respective property. Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant areas requiring the use of management assumptions and estimates relate to asset impairments and stock option valuation. Actual results could differ from these estimates and assumptions and could have a material effect on the Company’s reported financial position and results of operations. New Accounting Pronouncement In August 2014, the FASB issued ASU No. 2014-15—Presentation of Financial Statements—Going Concern. The guidance requires an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). If conditions or events exist that raise substantial doubt about an entity’s ability to continue as a going concern, the guidance requires disclosure in the financial statements. The guidance will be effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is currently evaluating the new standard and its impact on the Company’s consolidated financial statements. Cash and Cash Equivalents For the purposes of the statement of cash flows, the Company considers all highly liquid investments with original maturities of three months or less when acquired to be cash equivalents. Restricted Cash Restricted cash represents collateral for bonds held for exploration permits. Fair Value Measures ASC Topic 820 "Fair Value Measurements and Disclosures" ("ASC 820") requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: Level 1: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2: Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quote prices for similar assets or liabilities in active markets; quoted prices for identical assets in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3: Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Mining Interests and Mineral Exploration Expenditures Exploration costs are expensed in the period in which they occur. The Company capitalizes costs for acquiring and leasing mining properties and expenses costs to maintain mineral rights as incurred. Should a property reach the production stage, these capitalized costs would be amortized using the units-of-production method on the basis of periodic estimates of ore reserves. Mining interests are periodically assessed for impairment of value, and any subsequent losses are charged to operations at the time of impairment. If a property is abandoned or sold, its capitalized costs are charged to operations. Equipment Equipment is stated at cost. Depreciation of equipment is calculated using the straight-line method over the estimated useful lives of the assets, which ranges from three to seven years. Maintenance and repairs are charged to operations as incurred. Significant improvements are capitalized and depreciated over the useful life of the assets. Gains or losses on disposition or retirement of property and equipment are recognized in operating expenses. Reclamation and Remediation The Company's operations are subject to standards for mine reclamation that have been established by various governmental agencies. In the period in which the Company incurs a contractual obligation for the retirement of tangible long-lived assets, the Company will record the fair value of an asset retirement obligation as a liability. A corresponding asset will also be recorded and depreciated over the life of the asset. After the initial measurement of an asset retirement obligation, the liability will be adjusted at the end of each reporting period to reflect changes in the estimated future cash flows underlying the obligation. To date, the Company has not incurred any contractual obligation requiring recording either a liability or associated asset. Impaired Asset Policy The Company periodically reviews its long-lived assets to determine if any events or changes in circumstances have transpired which indicate that the carrying value of its assets may not be recoverable, pursuant to guidance established in ASC Topic 360, "Accounting for the Impairment or Disposal of Long-lived Assets". The Company determines impairment by comparing the undiscounted net future cash flows estimated to be generated by its assets to their respective carrying amounts. If impairment is deemed to exist, the assets will be written down to fair value. Stock-based Compensation The Company estimates the fair value of options to purchase common stock using the Black-Scholes model, which requires the input of some subjective assumptions. These assumptions include estimating the length of time employees will retain their vested stock options before exercising them (“expected life”), the estimated volatility of the Company’s common stock price over the expected term (“volatility”), employee forfeiture rate, the risk-free interest rate and the dividend yield. Changes in the subjective assumptions can materially affect the estimate of fair value of stock-based compensation. Options granted have a ten year maximum term and varying vesting periods as determined by the Board. The value of common stock awards is determined based on the closing price of the Company’s stock on the date of the award. Loss Per Share Basic Earnings Per Share ("EPS") is computed as net income (loss) available to common stockholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock options and warrants. The dilutive effect of convertible and outstanding securities as of July 31, 2015 and 2014, would be as follows: July 31, 2015 July 31, 2014 Stock options 3,058,667 3,572,000 Warrants 1,614,400 4,670,214 TOTAL POSSIBLE DILUTION 4,673,067 8,242,214 At July 31, 2015 and July 31, 2014, respectively, the effect of the Company's outstanding options and common stock equivalents would have been anti-dilutive. Income Taxes The Company recognizes provision for income tax using the liability method. Deferred income tax liabilities or assets at the end of each period are determined using the tax rates expected to be in effect when the taxes are actually paid or recovered. A valuation allowance is recognized on deferred tax assets when it is more likely than not that some or all of these deferred tax assets will not be realized.

Prepaid Expenses

Prepaid Expenses	3 Months Ended
	Jul. 31, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses	NOTE 3– PREPAID EXPENSES The following is a summary of the Company’s prepaid expenses at July 31, 2015 and April 30, 2015: July 31, 2015 April 30, 2015 Exploration expense $ 16,308 $ 62,274 Directors and officers liability insurance 8,452 8,563 TOTAL PREPAID EXPENSES $ 24,760 $ 70,837

Equipment and Mining Interest

Equipment and Mining Interest	3 Months Ended
	Jul. 31, 2015
Extractive Industries [Abstract]
Equipment and Mining Interest	NOTE 4 – EQUIPMENT AND MINING INTEREST The following is a summary of the Company's equipment and mining interests at July 31, 2015 and April 30, 2015, respectively: July 31, 2015 April 30, 2015 Equipment $ 27,007 $ 28,992 Less accumulated depreciation (18,905) (19,540) Equipment, net of accumulated depreciation 8,102 9,452 Mining interest – Longstreet property 300,499 288,499 TOTAL EQUIPMENT AND MINING INTEREST $ 308,601 $ 297,951 The Longstreet Property On December 10, 2014, the Longstreet Property Option Agreement was amended revising the required expenditures and annual stock option obligation. Through January 15, 2015 (the “Measurement Date), the Company incurred eligible exploration expenditures per the terms of the agreement of $1,936,216 compared to a cumulative required exploration expenditure through the same date of $1,800,000, creating a surplus of $136,216 as of the Measurement Date. Under terms of the agreement, for the year ended April 30, 2015, the Company paid $56,000 and issued options to purchase 25,000 shares of common stock with fair value of $3,000 (Note 6). The Company also purchased $9,000 of additional mining interests related to the Clifford claims on the Longstreet property during the year ended April 30, 2015. The Company is obligated to pay $12,000 annually on owners advance royalty payments related to the Clifford claims. For the three months ended July 31, 2015, the Company purchased $12,000 of additional mining interests on the Longstreet property related to the Clifford claims. The schedule of remaining annual payments, minimum expenditures and number of stock options to be issued pursuant to the amended Longstreet Property Option Agreement is as follows: Required Expenditure Payment to optioner (1) Annual stock option obligation January 15, 2016 $ 100,000 $ 56,000 25,000 January 15, 2017 150,000 56,000 25,000 January 15, 2018 300,000 40,000 40,000 January 15, 2019 500,000 45,000 45,000 January 15, 2020 700,000 50,000 50,000 $ 1,750,000 $ 247,000 185,000 (1) Does not include $12,000 annual payment related to Clifford claims. Excalibur and Jet Properties On or about June 30, 2015, the Company elected to terminate the Property Option Agreements on the Excalibur and Jet properties. The Company impaired the Excalibur and Jet properties at April 30, 2015 and subsequently gave notice of cancellation on the properties. The Company expects to focus capital resources on advancing the Longstreet property and therefore decided to return the Jet and Excalibur properties to the underlying owner before any further exploration expenditures were due. Under the terms of the original agreements, the Company is responsible for claims payments on the Excalibur and Jet properties one year in advance of which the Company has charged operations $8,945 for the three months ended July 31, 2015. There are no liabilities or future obligations to the Company on either the Jet or Excalibur properties.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Jul. 31, 2015
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 5 - RELATED PARTY TRANSACTIONS On or about June 30, 2015, the Company entered into a Lease Termination Agreement with Marlin Properties Management, LLC an entity owned by the spouse of the Company’s Chairman of the Board of Directors. The Termination Agreement was effective as of June 1, 2015 and relieves the Company of all obligations under the terms of the lease after that date. For the three months ended July 31, 2015 and 2014, $8,617 and $8,584, respectively, was paid to the related entity inclusive of the Company’s pro-rata share of common area expenses. During the year ended April 30, 2015 and the three months ended July 31, 2015, the Company entered into short term promissory notes with the Company’s Chairman of the Board of Directors in the amounts of $101,916 and $40,000, respectively. The notes mature on December 31, 2015 and bear interest at 8% per annum with bi-monthly payments of $150 commencing on August 1, 2015. The Company satisfied principal payments on the promissory notes totaling $114,253 during the three months ended July 31, 2015. The balance of the notes at July 31, 2015 of $27,663 plus accrued interest of $2,903 was subsequently paid on or about August 31, 2015. Interest expense recognized on the notes was $2,113 and $0 for the three months ended July 31, 2015 and 2014. Included in other accrued liabilities at July 31, 2015 and April 30, 2015, is accrued interest due on the notes of $2,696 and $583, respectively.

Options to Purchase Common Stoc

Options to Purchase Common Stock	3 Months Ended
	Jul. 31, 2015
Equity [Abstract]
Options to Purchase Common Stock	NOTE 6- OPTIONS TO PURCHASE COMMON STOCK Options issued for mining interests In consideration for mining interests (see Note 4), the Company is obligated to issue stock options based on "fair market price" which for financial statement purposes is considered to be the closing price of the Company's common stock on the issue dates. The following is a summary of the Company’s options issued and outstanding in conjunction with certain mining interest agreements on several properties for the years ended July 31, 2015 and July 31, 2014, respectively: For the three months ended July 31, 2015 For the three months ended July 31, 2014 Options Price (a) Options Price (a) Beginning balance 350,000 $ 0.34 325,000 $ 0.36 Issued - - - - Exercised - - - - Expired - - - - Ending balance 350,000 $ 0.34 325,000 $ 0.36 (a) Options issued for consulting services As per an agreement fully executed on October 3, 2012, in consideration for consulting and advisory services rendered, the Company is obligated to issue a total of 1,000 stock options based on 5 day variable weighted-average price (VWAP) at the end of each month of the associated consulting contract. The stock options have a term of 1 year. The consultant options vest on the first day of the following month of service and are exercisable for a period of six months following the termination of the agreement. The Company has estimated the fair value of these option grants using the Black-Scholes model with the following information and range of assumptions: For the three months ended July 31, 2015 July 31, 2014 Options issued 3,000 3,000 Weighted average exercise price $ 0.10 $ 0.24 Weighted average volatility 244.4% to 307.6% 261.2% to 279.4% Weighted average life remaining 0.46 0.46 Risk free rate 0.25% to 0.28%. 0.10% to 0.11% The following is a summary of the Company’s options issued and outstanding associated with certain consulting agreements: For the three months ended July 31, 2015 For the three months ended July 31, 2015 Options Price (a) Options Price (a) Beginning balance 12,000 $ 0.34 12,000 $ 0.34 Issued 3,000 0.10 3,000 0.24 Exercised - - - Expired (3,000) (0.24) (3,000) (0.45) Ending balance 12,000 $ 0.16 12,000 $ 0.29 (a) Total charged against operations under the option grants for consulting services was $291 and $652, for the three months ended July 31, 2015 and 2014, respectively. These costs are classified as management and administrative expense. Options issued under the 2011 Stock Option/Restricted Plan The following is a summary of the Company’s options issued and outstanding in conjunction with the Company’s Stock Option Plan: For the three months ended July 31, 2015 For the three months ended July 31, 2014 Options Price (a) Options Price (a) Beginning balance 2,696,667 $ 0.37 3,235,000 $ 0.38 Issued - - - - Exercised - - - - Forfeited - - - - Ending balance 2,696,667 $ 0.37 3,235,000 $ 0.38 (a) The following table summarizes additional information about the options under the Company’s Stock Option Plan as of July 31, 2015: Options outstanding Options exercisable Date of Grant Number Price (a) Life Number Price (a) May 27, 2011 200,000 $ 0.90 5.83 200,000 $ 0.90 May 22, 2012 146,667 0.78 6.65 146,667 0.78 June 18, 2012 1,350,000 0.30 6.89 1,350,000 0.30 May 22, 2013 650,000 0.29 7.82 650,000 0.29 February 13, 2014 350,000 0.28 8.55 350,000 0.28 Total options 2,696,667 $ 0.37 7.23 2,696,667 $ 0.37 (a) The total value of the Plan stock option awards is expensed ratably over the vesting period of the employees receiving the awards. As of July 31, 2015, there was no unrecognized compensation cost related to stock-based options and awards. Total compensation charged against operations under the plan for employees and advisors was $Nil and $24,365 for the three months ended July 31, 2015 and 2014, respectively. These costs are classified under management and administrative expense. The following is a summary of the Company’s stock options outstanding and vested: Options Weighted average exercise price Expiration date Options issued for mining interests 350,000 $ 0.34 April 11, 2019 through January 15, 2023 Options issued for consulting services 12,000 0.16 August 1, 20015 through July 1, 2015 Options issued under the 2011 Stock Option/Restricted Plan 2,696,667 0.37 May 27, 2021 through February 13, 2024 Total vested stock options 3,058,667 $ 0.36 The aggregate intrinsic value of all options vested and exercisable at July 31, 2015, was $250 based on the Company's closing price of $0.10 per common share at July 31, 2015. The Company's current policy is to issue new shares to satisfy option exercises.

Warrants

Warrants	3 Months Ended
	Jul. 31, 2015
Notes to Financial Statements
Warrants	NOTE 7 - WARRANTS The following is a summary of the Company’s warrants outstanding: Warrants Weighted Average Exercise Price Outstanding at April 30, 2013 1,727,948 $ 0.67 Issued – October 4, 2013 2,161,600 0.50 Balance outstanding at April 30, 2014 3,889,548 0.62 Expired – June 18, 2014 (833,334) (0.75) Issued – July 29, 2014 1,614,400 0.23 Expired – October 4, 2014 (2,161,600) (0.50) Expired January 18, 2015 (894,614) (0.80) Balance outstanding at April 30, 2015 and July 31, 2015 1,614,400 $ 0.23 The composition of the Company’s warrants outstanding at April 30, 2015, is as follows: Issue Date Warrants Exercise Price Expiration Date July 29, 2014 1,614,400 $ 0.23 July 29, 2019 1,614,400 $ 0.23

Deposits on Stock Subscriptions

Deposits on Stock Subscriptions	3 Months Ended
	Jul. 31, 2015
Equity [Abstract]
Deposits on Stock Subscriptions	NOTE 8 – DEPOSITS ON STOCK SUBSCRIPTIONS The Company is engaged in a private placement offering. The private placement consists of the sale of Units (each a “Unit” and together, the “Units”) at $0.10 per Unit. Each Unit will consist of one common share of the Company (each a “Common Share” and together, the “Common Shares”) and one common share purchase warrant (each a “Warrant” and together, the “Warrants”). Each Warrant will be exercisable no later than sixty months from the date of issuance thereof to purchase one Common Share of the Company’s stock at an exercise price of $0.20. Once the Company has obtained a Record of Decision from the federal Bureau of Land Management approving an Environmental Impact Statement for the Longstreet Project, the Company, at its sole discretion may call the Warrants issued hereunder as due and exercisable by providing holders of Warrants with 45 day written notice of same. As of July 31, 2015, the Company raised a total of $268,000 which is equivalent to 2,680,000 units or 2,680,000 common shares and 2,680,000 warrants.. As of July 31, 2015, the units had not been issued.

Significant Accounting Polici14

Significant Accounting Policies (Policies)	3 Months Ended
	Jul. 31, 2015
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation This summary of significant accounting policies is presented to assist in understanding the financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. The accompanying unaudited financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information, as well as the instructions to Form 10-Q. Accordingly, the financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of our management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the interim financial statements have been included. Operating results for the three month period ended July 31, 2015 are not necessarily indicative of the results that may be expected for the full year ending April 30, 2016. All amounts presented are in U.S. dollars. For further information refer to the financial statements and footnotes thereto in the Company’s Annual Report on Form 10-K for the year ended April 30, 2015.
Going Concern	Going Concern As shown in the accompanying consolidated financial statements, the Company has incurred operating losses since inception. As of July 31, 2015, the Company has limited financial resources with which to achieve the objectives and obtain profitability and positive cash flows. As shown in the accompanying balance sheets and statements of operations, the Company has an accumulated deficit of $9,062,084 and as of that date the Company's working capital was $25,491. Achievement of the Company's objectives will be dependent upon the ability to obtain additional financing, to locate profitable energy properties and generate revenue from current and planned business operations, and control costs. The Company plans to fund its future operations by joint venturing, obtaining additional financing from investors, and/or lenders, and attaining additional commercial production. However, there is no assurance that the Company will be able to achieve these objectives, therefore substantial doubt about its ability to continue as a going concern exists. The financial statements do not include adjustments relating to the recoverability of recorded assets nor the implications of associated bankruptcy costs should the Company be unable to continue as a going concern. In the event the Company is unable to fulfill the annual exploration expenditures as provided for in each respective Property Option Agreement (Note 4), the Company will default on the agreement(s) and surrender its right to future claims on the respective property.
Use of Estimates	Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant areas requiring the use of management assumptions and estimates relate to asset impairments and stock option valuation. Actual results could differ from these estimates and assumptions and could have a material effect on the Company’s reported financial position and results of operations.
New Accounting Pronouncement	New Accounting Pronouncement In August 2014, the FASB issued ASU No. 2014-15—Presentation of Financial Statements—Going Concern. The guidance requires an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). If conditions or events exist that raise substantial doubt about an entity’s ability to continue as a going concern, the guidance requires disclosure in the financial statements. The guidance will be effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is currently evaluating the new standard and its impact on the Company’s consolidated financial statements.
Cash and Cash Equivalents	Cash and Cash Equivalents For the purposes of the statement of cash flows, the Company considers all highly liquid investments with original maturities of three months or less when acquired to be cash equivalents.
Restricted Cash	Restricted Cash Restricted cash represents collateral for bonds held for exploration permits.
Fair Value Measures	Fair Value Measures ASC Topic 820 "Fair Value Measurements and Disclosures" ("ASC 820") requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: Level 1: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2: Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quote prices for similar assets or liabilities in active markets; quoted prices for identical assets in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3: Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.
Mining Interests and Mineral Exploration Expenditures	Mining Interests and Mineral Exploration Expenditures Exploration costs are expensed in the period in which they occur. The Company capitalizes costs for acquiring and leasing mining properties and expenses costs to maintain mineral rights as incurred. Should a property reach the production stage, these capitalized costs would be amortized using the units-of-production method on the basis of periodic estimates of ore reserves. Mining interests are periodically assessed for impairment of value, and any subsequent losses are charged to operations at the time of impairment. If a property is abandoned or sold, its capitalized costs are charged to operations.
Equipment	Equipment Equipment is stated at cost. Depreciation of equipment is calculated using the straight-line method over the estimated useful lives of the assets, which ranges from three to seven years. Maintenance and repairs are charged to operations as incurred. Significant improvements are capitalized and depreciated over the useful life of the assets. Gains or losses on disposition or retirement of property and equipment are recognized in operating expenses.
Reclamation and Remediation	Reclamation and Remediation The Company's operations are subject to standards for mine reclamation that have been established by various governmental agencies. In the period in which the Company incurs a contractual obligation for the retirement of tangible long-lived assets, the Company will record the fair value of an asset retirement obligation as a liability. A corresponding asset will also be recorded and depreciated over the life of the asset. After the initial measurement of an asset retirement obligation, the liability will be adjusted at the end of each reporting period to reflect changes in the estimated future cash flows underlying the obligation. To date, the Company has not incurred any contractual obligation requiring recording either a liability or associated asset.
Impaired Asset Policy	Impaired Asset Policy The Company periodically reviews its long-lived assets to determine if any events or changes in circumstances have transpired which indicate that the carrying value of its assets may not be recoverable, pursuant to guidance established in ASC Topic 360, "Accounting for the Impairment or Disposal of Long-lived Assets". The Company determines impairment by comparing the undiscounted net future cash flows estimated to be generated by its assets to their respective carrying amounts. If impairment is deemed to exist, the assets will be written down to fair value.
Stock-based Compensation	Stock-based Compensation The Company estimates the fair value of options to purchase common stock using the Black-Scholes model, which requires the input of some subjective assumptions. These assumptions include estimating the length of time employees will retain their vested stock options before exercising them (“expected life”), the estimated volatility of the Company’s common stock price over the expected term (“volatility”), employee forfeiture rate, the risk-free interest rate and the dividend yield. Changes in the subjective assumptions can materially affect the estimate of fair value of stock-based compensation. Options granted have a ten year maximum term and varying vesting periods as determined by the Board. The value of common stock awards is determined based on the closing price of the Company’s stock on the date of the award.
Loss Per Share	Loss Per Share Basic Earnings Per Share ("EPS") is computed as net income (loss) available to common stockholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock options and warrants. The dilutive effect of convertible and outstanding securities as of July 31, 2015 and 2014, would be as follows: July 31, 2015 July 31, 2014 Stock options 3,058,667 3,572,000 Warrants 1,614,400 4,670,214 TOTAL POSSIBLE DILUTION 4,673,067 8,242,214 At July 31, 2015 and July 31, 2014, respectively, the effect of the Company's outstanding options and common stock equivalents would have been anti-dilutive.
Income Taxes	Income Taxes The Company recognizes provision for income tax using the liability method. Deferred income tax liabilities or assets at the end of each period are determined using the tax rates expected to be in effect when the taxes are actually paid or recovered. A valuation allowance is recognized on deferred tax assets when it is more likely than not that some or all of these deferred tax assets will not be realized.

Prepaid Expenses (Tables)

Prepaid Expenses (Tables)	3 Months Ended
	Jul. 31, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses	July 31, 2015 April 30, 2015 Exploration expense $ 16,308 $ 62,274 Directors and officers liability insurance 8,452 8,563 TOTAL PREPAID EXPENSES $ 24,760 $ 70,837

Equipment and Mining Interest (

Equipment and Mining Interest (Tables)	3 Months Ended
	Jul. 31, 2015
Extractive Industries [Abstract]
Schedule of Equipment	July 31, 2015 April 30, 2015 Equipment $ 27,007 $ 28,992 Less accumulated depreciation (18,905) (19,540) Equipment, net of accumulated depreciation 8,102 9,452 Mining interest – Longstreet property 300,499 288,499 TOTAL EQUIPMENT AND MINING INTEREST $ 308,601 $ 297,951