Star Gold (SRGZ) 10-Q 17 Mar 17 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jan. 31, 2017	Mar. 16, 2017
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	Jan. 31, 2017
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		54,836,736
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,016

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($)	Jan. 31, 2017	Apr. 30, 2016
CURRENT ASSETS:
Cash	$ 225,686	$ 1,785
Other current assets	12,706	8,767
TOTAL CURRENT ASSETS	238,392	10,552
EQUIPMENT AND MINING INTEREST, net	360,874	326,050
OTHER ASSETS – NON-CURRENT	13,229	0
RESTRICTED CASH	21,600	21,600
TOTAL ASSETS	634,095	358,202
CURRENT LIABILITIES:
Accounts payable	71,087	53,742
Other accrued liabilities	9,000	12,381
Notes payable, related party	0	15,000
TOTAL CURRENT LIABILITIES	$ 80,087	$ 81,123
LONG TERM LIABILITIES:
Deposits on stock subscriptions	0	18,000
TOTAL LONG TERM LIABILITIES	$ 0	$ 18,000
TOTAL LIABILITIES	80,087	99,123
COMMITMENTS AND CONTINGENCIES	$ 0	$ 0
STOCKHOLDERS' EQUITY
Preferred Stock, $.001 par value; 10,000,000 shares authorized, none issued and outstanding	$ 0	$ 0
Common Stock, $.001 par value; 300,000,000 shares authorized; 54,836,726 and 40,836,726 shares issued and outstanding, respectively	$ 54,837	$ 40,837
Additional paid-in capital	10,350,403	9,535,751
Accumulated deficit	(9,851,232)	(9,317,509)
TOTAL STOCKHOLDERS' EQUITY	554,008	259,079
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 634,095	$ 358,202

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - shares	Jan. 31, 2017	Apr. 30, 2016
Statement of Financial Position [Abstract]
Preferred Stock, $.001 par value, authorized	10,000,000	10,000,000
Preferred Stock, $.001 par value, issued and outstanding	0	0
Common Stock, $.001 par value, authorized	300,000,000	300,000,000
Common Stock, $.001 par value, issued and outstanding	54,836,726	40,836,726

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jan. 31, 2017	Jan. 31, 2016	Jan. 31, 2017	Jan. 31, 2016
OPERATING EXPENSE
Mineral exploration expense	$ 52,294	$ 35,716	$ 196,760	$ 235,402
Legal and professional fees	17,566	7,021	67,077	40,235
Management and administrative	27,301	35,923	263,380	83,352
Depreciation	1,350	1,351	4,051	4,051
TOTAL OPERATING EXPENSE	98,511	80,011	531,268	363,040
LOSS FROM OPERATIONS	(98,511)	(80,011)	(531,268)	(363,040)
OTHER INCOME (EXPENSE)
Interest income (expense)	(80)	(172)	(2,455)	(2,852)
TOTAL OTHER INCOME (EXPENSE)	(80)	(172)	(2,455)	(2,852)
NET LOSS BEFORE INCOME TAXES	(98,591)	(80,183)	(533,723)	(365,892)
Provision for income tax	0	0	0	0
NET INCOME (LOSS)	$ (98,591)	$ (80,183)	$ (533,723)	$ (365,892)
Basic and diluted loss per share	$ 0	$ 0	$ (0.01)	$ (0.01)
Basic and diluted weighted average number shares outstanding	54,836,726	40,836,726	46,467,161	38,255,248

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jan. 31, 2017	Jan. 31, 2016
Statement of Cash Flows [Abstract]
CASH FLOWS FROM OPERATING ACTIVITIES:	$ (406,099)	$ (300,733)
Net loss	(533,723)	(365,892)
Adjustments to reconcile net loss to cash used by operating activities
Stock based compensation	126,777	785
Depreciation	4,051	4,051
Changes in operating assets and liabilities:
Prepaid expenses and other assets	(17,168)	65,179
Accounts payable	17,345	2,715
Other accrued liabilities	(3,381)	(7,571)
Net cash used by operating activities	(406,099)	(300,733)
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for mining interest	(37,000)	(32,000)
Net cash used by investing activities	(37,000)	(32,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable, related party	70,000	40,000
Repayment of notes payable, related party	85,000	129,579
Proceeds from sale of common stock and warrants	682,000	424,100
Net cash provided by financing activities	667,000	334,521
Net increase in cash and cash equivalents	223,901	1,788
CASH AT BEGINNING OF PERIOD	1,785	5,358
CASH AT END OF PERIOD	225,686	7,146
NON-CASH FINANCING AND INVESTING ACTIVITYACACTIVITIES:
Reduction of note payable, related party by vendor refund	0	12,337
Options issued for mining interests	1,875	1,500
Stock issued on subscriptions	$ 18,000	$ 0

Nature of Operations

Nature of Operations	9 Months Ended
	Jan. 31, 2017
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, and performing 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	9 Months Ended
	Jan. 31, 2017
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 nine-month period ended January 31, 2017 are not necessarily indicative of the results that may be expected for the full year ending April 30, 2017. 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, 2016. Going Concern As shown in the accompanying financial statements, the Company has incurred operating losses since inception. As of January 31, 2017, 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 $9,851,232 and at January 31, 2017, the Company's working capital was $158,305. Achievement of the Company's objectives will be dependent upon the ability to obtain additional financing, to locate profitable mining 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 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 specified in the Property Option Agreement (Note 3), 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. 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 constitutes cash held as collateral for the faithful performance of bonds securing exploration permits. Financial Instruments The Company's financial instruments include cash and cash equivalents and reclamation bonds. All instruments are accounted for on a historical cost basis, which, due to the short maturity of these financial instruments, approximates fair value at January 31, 2017. Fair Value Measures The Financial Accounting Standards Board Accounting Standards Codification Topic 820 "Fair Value Measurements" ("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. At January 31, 2017 and April 30, 2016, the Company had no assets or liabilities accounted for at fair value on a recurring basis. 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 of Directors. The value of shares 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 outstanding securities at January 31, 2017 and 2016, that could have a dilutive effect are as follows: January 31, 2017 January 31, 2016 Stock options 5,210,000 3,083,667 Warrants 19,855,400 5,855,400 TOTAL POSSIBLE DILUTION 25,065,400 8,939,067 For the three and nine month periods ended January 31, 2017 and 2016, 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 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. 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 has concluded that adoption of the standard would have minimal impact on the Company’s financial statements as such disclosure is already included the financial statements.

Equipment and Mining Interest

Equipment and Mining Interest	9 Months Ended
	Jan. 31, 2017
Property, Plant and Equipment [Abstract]
Equipment and Mining Interest	NOTE 3 – EQUIPMENT AND MINING INTEREST The following is a summary of the Company's equipment and mining interest at January 31, 2017 and April 30, 2016. January 31, 2017 April 30, 2016 Equipment $ 27,007 $ 27,007 Less accumulated depreciation (27,007) (22,956) Equipment, net of accumulated depreciation - 4,051 Mining interest - Longstreet 360,874 321,999 TOTAL EQUIPMENT AND MINING INTEREST $ 360,874 $ 326,050 The Longstreet Property Pursuant to the Longstreet Property Option Agreement (the “Longstreet Agreement”) entered into by the Company on or about January 15, 2010, the Company leases, with an option to acquire, unpatented mining claims located in the State of Nevada known as the Longstreet Property. On December 10, 2014, the Longstreet Agreement was amended revising the required expenditures and annual stock option obligation. On January 5, 2016, the Longstreet Property Option Agreement was further amended revising the required expenditures and annual stock option obligation. All allowable expenditures in excess of the required annual expenditures shall be carried-over to the subsequent year. The Company is also obligated, pursuant to the Longstreet Agreement, as amended, to pay an annual owners advance royalty payment of $12,000 related to the Clifford claims. For the year ended April 30, 2016, the Company made an annual required payment to the optioner of $20,000 which is included in “Equipment and Mining Interest”. The Company issued options to purchase 25,000 shares of common stock with fair value of $1,500 (Note 6). For the nine months ended January 31, 2017, the Company paid the annual $12,000 advance royalty for additional mining interest on the Longstreet property related to the Clifford claims. The Company also made an annual required payment to the optioner of $25,000 which is included in “Equipment and Mining Interest”. The Company issued options to purchase 25,000 shares of common stock with fair value of $1,875. The schedule of annual payments, minimum expenditures and number of stock options to be issued pursuant to the amended Longstreet Agreement of January 5, 2016, is as follows: Required annual expenditure between: Required Expenditure Cash payment (1) Stock options January 17, 2016 through January 16, 2017 $ 150,000 $ 25,000 25,000 January 17, 2017 through January 16, 2018 300,000 35,000 40,000 January 17, 2018 through January 16, 2019 500,000 40,000 45,000 January 17, 2019 through January 16, 2020 700,000 45,000 50,000 Payment due upon transfer but no later than January 16, 2021 - 85,000 - TOTAL $ 1,650,000 $ 230,000 160,000 (1) Does not include $12,000 annual advance royalty payment related to Clifford claims. As of the measurement date of January 31, 2017, the Company has made cumulative allowable expenditures of $2,319,581, a surplus of $269,581 over the required cumulative expenditures of $2,050,000. As of January 31, 2017, the Company was in compliance with all provisions of the Longstreet Property Option Agreement.

Other Assets

Other Assets	9 Months Ended
	Jan. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets	NOTE 4 –OTHER ASSETS On January 19, 2017, the Company entered into an Option and Lease of Water Rights with Stone Cabin Company, LLC (the “Water Rights Agreement”). In exchange for a one-time payment of $20,000, the Water Rights Agreement granted Star Gold a three year option to commence a ten year lease of certain water rights in Nevada. The water rights are for use in conjunction with the Company’s Longstreet Project. Lease payments for the water rights do not commence unless Star Gold exercises the option to lease. The Water Rights Agreement also granted Star Gold the ability to extend, upon additional option payments, the option to lease for up to an additional three years and the ability to extend the water rights lease (if exercised) for an additional ten year period. The following is a summary of the Company's other assets at January 31, 2017 and April 30, 2016. January 31, 2017 April 30, 2016 Option on water rights lease $ 20,000 $ - Prepaid insurance 5,935 8,767 25,935 8,767 Less Other Assets - Current (12,706) (8,767) Total Other Assets – Non-current $ 13,229 $ -

Related Party Transactions

Related Party Transactions	9 Months Ended
	Jan. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 5 – RELATED PARTY TRANSACTIONS On March 16, April 10 and April 14, 2015, the Company entered into short term promissory notes with the Company’s Chairman of the Board of Directors in the aggregate amount of $101,916. The notes matured on December 31, 2015 and bore interest at 8% per annum with bi-monthly payments of $450 commencing on August 1, 2015. The notes and accrued interest were paid in full during the year ended April 30, 2016. On March 20, 2016, the Company entered into short term promissory note with the Company’s Chairman of the Board of Directors in the amount of $15,000. The Note originally had a maturity date of December 31, 2016. The full amount of principal and all accrued interest was paid on August 23, 2016. On May 4, 2016, the Company entered into short term promissory note with the Company’s Chairman of the Board of Directors in the amount of $70,000. The Note originally had a maturity date of December 31, 2016. The full amount of principal and all accrued interest were paid in full on August 23, 2016. For the three months ended January 31, 2017 and 2016, interest expense on the short term promissory notes in aggregate was $Nil and $2,113 respectively. For the nine months ended January 31, 2017 and 2016, interest expense on the short term promissory notes in aggregate was $2,093 and $2,320 respectively.

Common Stock

Common Stock	9 Months Ended
	Jan. 31, 2017
Equity [Abstract]
Common Stock	NOTE 6– COMMON STOCK On October 12, 2015, the Company completed a private placement of its securities wherein it raised a total of $424,100 (the “2015 Offering”). The 2015 Offering consisted of the sale of “units” of the Company’s securities at the per unit price of $0.10. Pursuant to the Offering, the Company issued 4,241,000 shares of its common stock and warrants to purchase an additional 4,241,000 shares of its common stock. Warrants issued pursuant to the Offering entitle the holders thereof to purchase shares of common stock for the price of $0.20 per share. The term of each warrant is for five years commencing with its issuance date. On October 12, 2016, the Company issued 14,000,000 shares of its common stock and warrants to purchase an additional 14,000,000 shares of its common stock to 24 investors pursuant to a private placement of its securities (the “2016 Offering”). The 2016 Offering consisted of the sale of “units” of the Company’s securities at the per unit price of $0.05. Warrants issued pursuant to the 2016 Offering entitled the holders thereof to purchase shares of common stock for the price of $0.15 per share. The term of each warrant is for five years commencing with its issuance date. The Company closed the 2016 Offering and having raised a total of $700,000 ($18,000 in fiscal year ended April 30, 2016 and $682,000 in nine months ended January 31, 2017).

Stock Options

Stock Options	9 Months Ended
	Jan. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Options	NOTE 7 - STOCK OPTIONS Options issued for mining interest In consideration for mining interests (see Note 3), the Company is obligated to issue stock options to purchase shares of the Company’s common stock 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 properties for the three and nine months ended January 31, 2017 and January 31, 2016, respectively: For the three and nine months ended January 31, 2017 For the three and nine months ended January 31, 2016 Options Price (a) Options Price (a) Beginning balance 375,000 $ 0.32 350,000 $ 0.34 Issued 25,000 0.08 25,000 0.06 Exercised - - - - Expired - - - - Ending balance 400,000 $ 0.30 375,000 $ 0.32 (a) Fair value of the option grants for mining interests for the three and nine months ended January 31, 2017 and 2016, was $1,875 and $1,500, respectively. Those costs are capitalized as Mining Interests (Note 3). 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 was 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 had a term of 1 year. The consultant options vested on the first day of the following month of service and were exercisable for a period of nine months following the termination of the agreement. The following is a summary of the Company’s options issued and outstanding associated with the consulting agreement: For the three months ended January 31, 2017 2016 Options Price (a) Options Price (a) Beginning balance - $ - 12,000 $ 0.34 Issued - - 3,000 0.10 Exercised - - - - Expired - - (3,000) (0.24) Ending balance - $ - 12,000 $ 0.10 (a) For the nine months ended January 31, 2017 2016 Options Price (a) Options Price (a) Beginning balance 12,000 $ 0.16 12,000 $ 0.34 Issued 3,000 0.06 9,000 0.09 Exercised - - - - Rescinded/expired (15,000) (0.10) (9,000) (0.17) Ending balance - $ - 12,000 $ 0.10 (a) Total charged against operations under the option grants for consulting services was $Nil and $300, for the three months ended January 31, 2017 and 2016, respectively. Total charged against operations under the option grants for consulting services was $Nil and $785 for the nine months ended January 31, 2017 and 2016, respectively. These costs are classified as management and administrative expense. Effective August 1, 2016, the consulting agreement was terminated and all outstanding options issued for consulting services were rescinded by mutual consent of the parties. Options issued under the 2011 Stock Option/Restricted Plan The Company established the 2011 Stock Option/Restricted Stock Plan. The Stock Option Plan is administered by the Board of Directors and provides for the grant of stock options to eligible individual including directors, executive officers and advisors that have furnished bona fide services to the Company not related to the sale of securities in a capital-raising transaction. The Stock Option Plan has a fixed maximum percentage of 10% of the Company's outstanding shares that are eligible for the plan pool, whereby the number of Shares under the plan increases automatically increases as the total number of shares outstanding increase. The number of shares subject to the Stock Option Plan and any outstanding awards will be adjusted appropriately by the Board of Directors if the Company's common stock is affected through a reorganization, merger, consolidation, recapitalization, restructuring, reclassification dividend (other than quarterly cash dividends) or other distribution, stock split, spin-off or sale of substantially all of the Company's assets. The Stock Option plan also has terms and conditions, including without limitations that the exercise price for stock options granted under the Stock Option Plan must equal the stock's fair market value, based on the closing price per share of common stock, at the time the stock option is granted. The fair value of each option award is estimated on the date of grant utilizing the Black-Scholes model and commonly utilized assumptions associated with the Black-Scholes methodology. Options granted under the Plan have a ten-year maximum term and varying vesting periods as determined by the Board. On October 18, 2016, the Company rescinded 2,696,667 fully vested options previously granted under the Stock Option plan with a weighted average exercise price of $0.37. The Company re-issued the options and an additional 2,116,333 options to purchase shares of the Company’s common stock, or a total of 4,810,000 options, with an exercise price of $0.06 per share. The options vested immediately and have a term of 5 years. The difference between the fair value of the options rescinded and the options granted was treated as a re-pricing event and the Company recognized stock-based compensation in the amount of $126,562 for the nine months ended January 31, 2017. The Company estimated the fair value of these option grants using the Black-Scholes model with the following information and range of assumptions: For the nine months ended January 31, 2017 2016 Options re-priced/issued 4,810,000 N/A Expected volatility 329.9% N/A Expected term 5 years N/A Risk free rate 1.24% N/A 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 January 31, 2017 2016 Options Price (a) Options Price (a) Beginning balance 4,810,000 $ 0.06 2,696,667 $ 0.37 Issued - - - - Exercised - - - - Expired/Repriced - - - - Ending balance 4,810,000 $ 0.06 2,696,667 $ 0.37 (a) For the nine months ended January 31, 2017 2016 Options Price (a) Options Price (a) Beginning balance 2,696,667 $ 0.37 2,696,667 $ 0.37 Issued 4,810,000 0.06 - - Exercised - - - - Expired/Repriced (2,696,667) (0.37) - - Ending balance 4,810,000 $ 0.06 2,696,667 $ 0.37 (a) The following table summarizes additional information about the options under the Company’s Stock Option Plan as of January 31, 2017: Options outstanding and exercisable Date of Grant Shares Price Life October 18, 2016 4,810,000 $ 0.06 4.72 Total options 4,810,000 $ 0.06 4.72 The total value of the Plan stock option awards is expensed ratably over the vesting period of the employees receiving the awards. As of January 31, 2017, there was no unrecognized compensation cost related to stock-based options and awards. Summary: The following is a summary of the Company’s stock options outstanding and exercisable: Expiration Date Options Weighted Average Exercise Price Options issued for mining interests April 22, 2019 through January 15, 2025 400,000 $ 0.30 Options issued under Stock Option Plan October 18, 2021 4,810,000 0.06 Outstanding at January 31, 2017 5,210,000 $ 0.08 Total vest options 5,210,000 The aggregate intrinsic value of all options vested and exercisable at January 31, 2017, was $96,200 based on the Company's closing price of $0.08 per common share at January 31, 2017. The Company's current policy is to issue new shares to satisfy option exercises.

Warrants

Warrants	9 Months Ended
	Jan. 31, 2017
Other Liabilities Disclosure [Abstract]
Warrants	NOTE 8 - WARRANTS The following is a summary of the Company’s warrants activity (Note 6): Warrants Weighted Average Exercise Price Balance outstanding at April 30, 2015 1,614,400 $ 0.23 Issued – October 12, 2015 (Note 6) 4,241,000 0.20 Balance outstanding at April 30, 2016 5,855,400 $ 0.21 Issued – October 12, 2016 (Note 6) 14,000,000 0.15 Balance outstanding at January 31, 2017 19,855,400 $ 0.17 The composition of the Company’s warrants outstanding at January 31, 2017, is as follows: Issue Date Expiration Date Warrants Exercise Price July 29, 2014 July 29, 2019 1,614,400 $ 0.23 October 12, 2015 October 12, 2020 4,241,000 0.20 October 12, 2016 October 12, 2021 14,000,000 0.15 19,855,400 $ 0.17

Significant Accounting Polici14

Significant Accounting Policies (Policies)	9 Months Ended
	Jan. 31, 2017
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 nine-month period ended January 31, 2017 are not necessarily indicative of the results that may be expected for the full year ending April 30, 2017. 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, 2016.
Going Concern	Going Concern As shown in the accompanying financial statements, the Company has incurred operating losses since inception. As of January 31, 2017, 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 $9,851,232 and at January 31, 2017, the Company's working capital was $158,305. Achievement of the Company's objectives will be dependent upon the ability to obtain additional financing, to locate profitable mining 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 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 specified in the Property Option Agreement (Note 3), 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.
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 constitutes cash held as collateral for the faithful performance of bonds securing exploration permits.
Financial Instruments	Financial Instruments The Company's financial instruments include cash and cash equivalents and reclamation bonds. All instruments are accounted for on a historical cost basis, which, due to the short maturity of these financial instruments, approximates fair value at January 31, 2017.
Fair Value Measures	Fair Value Measures The Financial Accounting Standards Board Accounting Standards Codification Topic 820 "Fair Value Measurements" ("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. At January 31, 2017 and April 30, 2016, the Company had no assets or liabilities accounted for at fair value on a recurring basis.
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 of Directors. The value of shares 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 outstanding securities at January 31, 2017 and 2016, that could have a dilutive effect are as follows: January 31, 2017 January 31, 2016 Stock options 5,210,000 3,083,667 Warrants 19,855,400 5,855,400 TOTAL POSSIBLE DILUTION 25,065,400 8,939,067 For the three and nine month periods ended January 31, 2017 and 2016, 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 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.
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 has concluded that adoption of the standard would have minimal impact on the Company’s financial statements as such disclosure is already included the financial statements.

Significant Accounting Polici15

Significant Accounting Policies (Tables)	9 Months Ended
	Jan. 31, 2017
Accounting Policies [Abstract]
Dilutive Effect	January 31, 2017 January 31, 2016 Stock options 5,210,000 3,083,667 Warrants 19,855,400 5,855,400 TOTAL POSSIBLE DILUTION 25,065,400 8,939,067

Equipment and Mining Interest (

Equipment and Mining Interest (Tables)	9 Months Ended
	Jan. 31, 2017
Property, Plant and Equipment [Abstract]
Schedule of Equipment	January 31, 2017 April 30, 2016 Equipment $ 27,007 $ 27,007 Less accumulated depreciation (27,007) (22,956) Equipment, net of accumulated depreciation - 4,051 Mining interest - Longstreet 360,874 321,999 TOTAL EQUIPMENT AND MINING INTEREST $ 360,874 $ 326,050

Other Assets (Tables)

Other Assets (Tables)	9 Months Ended
	Jan. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets	January 31, 2017 April 30, 2016 Option on water rights lease $ 20,000 $ - Prepaid insurance 5,935 8,767 25,935 8,767 Less Other Assets - Current (12,706) (8,767) Total Other Assets – Non-current $ 13,229 $ -

Equipment and Mining Interest -

Equipment and Mining Interest - Schedule of Equipment (Details) - USD ($)	Jan. 31, 2017	Apr. 30, 2016
Property, Plant and Equipment [Abstract]
Equipment	$ 27,007	$ 27,007
Less accumulated depreciation	27,007	22,956
Equipment, net of accumulated depreciation		4,051
Mining interest - Longstreet	360,874	321,999
TOTAL EQUIPMENT AND MINING INTEREST	$ 360,874	$ 326,050