Document and Entity Information
Document and Entity Information - $ / shares | Feb. 16, 2018 | Jul. 31, 2018 |
Details | ||
Registrant Name | STAR GOLD CORP. | |
Registrant CIK | 1,401,835 | |
SEC Form | 10-Q | |
Period End date | Jul. 31, 2018 | |
Fiscal Year End | --04-30 | |
Trading Symbol | SRGZ | |
Tax Identification Number (TIN) | 270,348,508 | |
Number of common stock shares outstanding | 76,434,424 | |
Filer Category | Smaller Reporting Company | |
Current with reporting | Yes | |
Voluntary filer | No | |
Well-known Seasoned Issuer | No | |
Emerging Growth Company | false | |
Ex Transition Period | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Entity Incorporation, State Country Name | NEVADA | |
Entity Address, Address Line One | 611 E. Sherman Avenue | |
Entity Address, City or Town | Coeur d'Alene | |
Entity Address, State or Province | Idaho | |
Entity Address, Postal Zip Code | 83,814 | |
Entity Listing, Par Value Per Share | $ 0.001 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Jul. 31, 2018 | Apr. 30, 2018 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 756,126 | $ 832,426 |
Other current assets (NOTE 5) | 22,629 | 22,636 |
TOTAL CURRENT ASSETS | 778,755 | 855,062 |
EQUIPMENT AND MINING INTEREST, net (NOTE 4) | 426,106 | 414,522 |
OTHER ASSETS - NON-CURRENT (NOTE 5) | 11,954 | 15,735 |
RECLAMATION BOND | 21,600 | 21,600 |
TOTAL ASSETS | 1,238,415 | 1,306,919 |
CURRENT LIABILITIES | ||
Accounts payable | 158,486 | 95,911 |
TOTAL CURRENT LIABILITIES | 158,486 | 95,911 |
TOTAL LIABILITIES | 158,486 | 95,911 |
STOCKHOLDERS' EQUITY | ||
Additional paid-in capital | 11,501,613 | 11,501,613 |
Accumulated deficit | (10,498,118) | (10,367,039) |
TOTAL STOCKHOLDERS' EQUITY | 1,079,929 | 1,211,008 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,238,415 | $ 1,306,919 |
BALANCE SHEETS - Parenthetical
BALANCE SHEETS - Parenthetical - $ / shares | Jul. 31, 2018 | Apr. 30, 2018 |
Details | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 300,000,000 | 300,000,000 |
Common Stock, Shares, Outstanding | 76,434,424 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | Jul. 31, 2018 | Apr. 30, 2018 |
OPERATING EXPENSE | ||
Mineral exploration expense | $ 24,628 | $ 23,718 |
Pre-development expense | 45,046 | 43,258 |
Legal and professional fees | 29,895 | 38,232 |
Management and administrative | 31,452 | 40,071 |
Depreciation | 416 | 0 |
TOTAL OPERATING EXPENSES | 131,437 | 145,279 |
LOSS FROM OPERATIONS | (131,437) | (145,279) |
Interest expense | (200) | (187) |
Interest income | 558 | 18 |
NET LOSS | $ (131,079) | $ (145,448) |
Basic and diluted loss per share | $ 0 | $ 0 |
Basic and diluted weighted average number shares outstanding | 76,434,424 | 54,836,726 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | Jul. 31, 2018 | Apr. 30, 2018 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Depreciation | $ 416 | $ 0 |
NOTE 1 - NATURE OF OPERATIONS
NOTE 1 - NATURE OF OPERATIONS | 3 Months Ended |
Jul. 31, 2018 | |
Notes | |
NOTE 1 - 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 focused on gold, silver and other base metal-bearing properties in Nevada. The Companys core 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 to move such claims towards development and production. The business is a high-risk business as there is no guarantee that the Companys exploration work will ultimately discover or produce any economically viable minerals. |
NOTE 2 - SIGNIFICANT ACCOUNTING
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jul. 31, 2018 | |
Notes | |
NOTE 2 - 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 Companys 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. I 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 long-lived asset impairments and stock-based compensation valuation. Actual results could differ from these estimates and assumptions and could have a material effect on the Companys reported financial position and results of operations. Risks and uncertainties The Companys operations are subject to significant risks and uncertainties, including financial, operational, technological and other risks associated with operating an emerging exploration mining business, including the potential risk of business failure. 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. [ Financial Instruments The Companys financial instruments include cash and cash equivalents and reclamation bonds. All instruments are accounted for on a cost basis, which, due to the short maturity of these financial instruments, approximates fair value at July 31, 2018. Fair Value Measures When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period are included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date. At July 31, 2018 and April 30, 2018, the Company had no assets or liabilities accounted for at fair value on a recurring or nonrecurring 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. Pre-development Expenditures Pre-development activities involve costs incurred in the exploration stage that may ultimately benefit production, such as underground ramp development, which are expensed due to the lack of evidence of economic development, which is necessary to demonstrate future recoverability of these expenses. 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 Companys 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. Impairment of Long-lived Assets 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. 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 Companys 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 Companys stock on the date of the award. Income Taxes The Company accounts for income taxes using the liability method. The liability method requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of (i) temporary differences between financial statement carrying amounts of assets and liabilities and their basis for tax purposes and (ii) operating loss and tax credit carry-forwards for tax purposes. Deferred tax assets are reduced by a valuation allowance when management concludes that it is more likely than not that a portion of the deferred tax assets will not be realized in a future period. Reclassifications Certain reclassifications have been made to the 2017 financial statements in order to conform to the 2018 presentation. These reclassifications have no effect on net loss, total assets or accumulated deficit as previously reported. New Accounting Pronouncements In August 2016, the FASB issued ASU No. 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The update provides guidance on classification for cash receipts and payments related to eight specific issues. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. There was no impact to the financial statements upon adoption of this update effective May 1, 2018. In November 2016, the FASB issued ASU No. 2016-18 Statement of Cash Flows (Topic 230): Restricted Cash. The update requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. There was no impact to the financial statements upon adoption of this update effective May 1, 2018. In January 2017, the FASB issued ASU No. 2017-01 Business Combinations (Topic 805): Clarifying the Definition of a Business. The update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company will apply the provisions of the update to potential future acquisitions. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures. |
NOTE 3- EARNINGS PER SHARE
NOTE 3- EARNINGS PER SHARE | 3 Months Ended |
Jul. 31, 2018 | |
Notes | |
NOTE 3- EARNINGS PER SHARE | NOTE 3 EARNINGS 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 July 31, 2018 and 2017 that could have a dilutive effect are as follows: July 31, 2018 July 31, 2017 Stock options 6,650,000 5,210,000 Warrants 30,654,249 19,855,400 TOTAL POSSIBLE DILUTIVE SHARES 37,304,249 25,065,400 For the three months ended July 31, 2018 and 2017, respectively, the effect of the Companys outstanding stock options and warrants would have been anti-dilutive and so are excluded in the diluted EPS. |
NOTE 4- EQUIPMENT AND MINING IN
NOTE 4- EQUIPMENT AND MINING INTEREST | 3 Months Ended |
Jul. 31, 2018 | |
Notes | |
NOTE 4- EQUIPMENT AND MINING INTEREST | NOTE 4 EQUIPMENT AND MINING INTEREST The following is a summary of the Companys equipment and mining interest at July 31, 2018 and April 30, 2018. July 31, 2018 April 30, 2018 Equipment $ 32,002 $ 32,002 Less accumulated depreciation (27,770) (27,354) Equipment, net of accumulated depreciation 4,232 4,648 Mining interest - Longstreet 421,874 409,874 TOTAL EQUIPMENT AND MINING INTEREST $ 426,106 $ 414,522 Pursuant to the Longstreet Property Option Agreement, as amended, (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. Under the agreement, the Company is required to make minimal lease payments in the form of cash and options to purchase shares of the Companys common stock. In addition, the Company is obligated, pursuant to the Longstreet Agreement, to pay an annual advance royalty payment of $12,000 related to the Clifford claims. The Longstreet Agreement obligates the Company to minimal expenditures to be spent on the property. All allowable expenditures in excess of the required annual expenditures are carried-over to the subsequent year. For the year ended April 30, 2018, the Company made the annual required payment to the optioner of $35,000 which is included in Equipment and Mining Interest. The Company also issued options to purchase 40,000 shares of common stock with fair value of $2,000 during the year ended April 30, 2018. For the three months ended July 31, 2018, the Company paid the annual $12,000 advance royalty for additional mining interest on the Longstreet Property related to the Clifford claims. The schedule of future annual payments, minimum expenditures and number of stock options to be issued pursuant to the Longstreet Agreement is as follows: Required expenditure Cash payment (1) Stock options 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 $1,200,000 $ 170,000 95,000 (1) As of the measurement date of January 16, 2018, the Company had made cumulative allowable expenditures of $2,433,991, a surplus of $83,991 over the required cumulative expenditures of $2,350,000. As of July 31, 2018, the Company was in compliance with all provisions of the Longstreet Agreement. |
NOTE 5 -OTHER ASSETS
NOTE 5 -OTHER ASSETS | 3 Months Ended |
Jul. 31, 2018 | |
Notes | |
NOTE 5 -OTHER ASSETS | NOTE 5 OTHER ASSETS On January 19, 2017, the Company entered into an Option and Lease of Water Rights with Stone Cabin Company, LLC (the Stone Cabin Water Rights Agreement). In exchange for a one-time payment of $20,000, the Stone Cabin Water Rights Agreement granted the Company 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 Companys Longstreet Project. Lease payments for the water rights do not commence unless the Company exercises the option to lease. The Stone Cabin Water Rights Agreement also granted the Company 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 $20,000 payment was deferred as Other Assets and is being amortized on a straight-line basis over the three-year option period. On August 21, 2017, the Company entered into an Option and Lease of Water Rights, with High Test Hay, LLC (the High Test Water Rights Agreement). In exchange for a one-time payment of $25,000, the High Test Water Rights Agreement grants the Company a three-year option to commence a ten-year lease on certain water rights in Nevada. The water rights are for use in conjunction with the Companys Longstreet Project. Lease payments for the water rights do not commence unless and until the Company exercises the option to lease. The High Test Water Rights Agreement also grants the Company 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 up to an additional twenty years. The following is a summary of the Companys Other Assets at July 31, 2018 and April 30, 2018. July 31, 2018 April 30, 2018 Option on water rights lease agreements, net $ 26,954 $ 30,735 Prepaid insurance 7,629 7,636 Total 34,583 38,371 Less Other Assets - Current (22,629) (22,636) TOTAL OTHER ASSETS - NON-CURRENT $ 11,954 $ 15,735 |
NOTE 7- RELATED PARTY TRANSACTI
NOTE 7- RELATED PARTY TRANSACTIONS | 3 Months Ended |
Jul. 31, 2018 | |
Notes | |
NOTE 7- RELATED PARTY TRANSACTIONS | NOTE 6 RELATED PARTY TRANSACTIONS The Company rents its office space from Marlin Property Management, LLC (Marlin) an entity owned by the spouse of the Companys former President and current Chairman of the Board of Directors. The lease is on a month-to-month basis as financial resources are available. The Company currently pays $250 per month plus a proportionate share of utilities and insurance. For the three months ended July 31, 2018 and 2017, office rent was $750 and $750, respectively. |
NOTE 8 - STOCKHOLDERS' EQUITY
NOTE 8 - STOCKHOLDERS' EQUITY | 3 Months Ended |
Jul. 31, 2018 | |
Notes | |
NOTE 8 - STOCKHOLDERS' EQUITY | NOTE 7 STOCKHOLDERS EQUITY On October 17, 2017, the Company issued 21,597,698 shares of its common stock and 10,798,849 warrants to purchase common stock to 34 investors pursuant to a private placement of its securities (the 2017 Offering). The 2017 Offering consisted of the sale of units of the Companys securities at the per unit price of $0.10. Each unit consisted of two shares of common stock and one warrant to purchase an additional share of common stock at an exercise price of $0.15. The warrants expiration date is October 31, 2020. The Company raised a total of $1,079,884. |
NOTE 8 - WARRANTS
NOTE 8 - WARRANTS | 3 Months Ended |
Jul. 31, 2018 | |
Notes | |
NOTE 8 - WARRANTS | NOTE 8 WARRANTS The following is a summary of the Companys warrants to purchase shares of common stock activity: Warrants Weighted Average Exercise Price Balance outstanding at April 30, 2017 19,855,400 $ 0.17 Issued October 31, 2017 (Note 7) 10,798,849 0.15 Balance outstanding at July 31, 2018 and April 30, 2018 30,654,249 $ 0.16 The composition of the Companys warrants outstanding at July 31, 2018 is as follows: Issue Date Expiration Date Warrants Exercise Price Remaining life (years) July 29, 2014 July 29, 2019 1,614,400 $ 0.23 0.99 October 12, 2015 October 12, 2020 4,241,000 0.20 2.20 October 12, 2016 October 12, 2021 14,000,000 0.15 3.20 October 31, 2017 October 31, 2020 10,798,849 0.15 2.25 30,654,249 $ 0.16 2.61 |
NOTE 10 - STOCK OPTIONS
NOTE 10 - STOCK OPTIONS | 3 Months Ended |
Jul. 31, 2018 | |
Notes | |
NOTE 10 - STOCK OPTIONS | NOTE 9 - STOCK OPTIONS Options issued for mining interest In consideration for its mining interest (see Note 4), the Company is obligated to issue stock options to purchase shares of the Companys 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. Those costs are capitalized as Mining Interest (Note 4). No options were issued for mineral interests during the three months ended July 31, 2018 and 2017. As of July 31, 2018, the remaining weighted average term of the option grants for mining interest was 4.11 years. As of July 31, 2018, the weighted average exercise price of the option grants for mining interest was $0.28 per share. Options issued under the 2011 Stock Option/Restricted Stock 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 Companys 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 Companys 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 Companys 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 stocks fair 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. The total value of stock option awards is expensed ratably over the vesting period of the employees receiving the awards. As of July 31, 2018, there was no unrecognized compensation cost related to stock-based options and awards. No options were issued under the 2011 Plan during the three months ended July 31, 2018 and 2017. The following table summarizes additional information about the options under the Companys Stock Option Plan as of July 31, 2018: Options outstanding and exercisable Date of Grant Shares Exercise Price Remaining Term October 18, 2016 4,810,000 $ 0.06 3.22 April 30, 2018 1,400,000 0.065 4.75 Total options 6,210,000 $ 0.06 3.60 Summary: The following is a summary of the Companys stock options outstanding and exercisable: Options issued for: Expiration Date Options Weighted Average Exercise Price Mining interests April 22, 2019 to January 15, 2025 440,000 $ 0.28 Stock option plan October 18, 2021 to April 30, 2023 6,210,000 0.06 Outstanding and exercisable at July 31, 2018 6,650,000 $ 0.08 The aggregate intrinsic value of all options vested and exercisable at July 31, 2018, was $Nil based on the Companys closing price of $0.05 per common share at July 31, 2018. The Companys current policy is to issue new shares to satisfy option exercises. |
NOTE 2 - SIGNIFICANT ACCOUNTI15
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Basis of Presentation (Policies) | 3 Months Ended |
Jul. 31, 2018 | |
Policies | |
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 Companys 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. I |
NOTE 2 - SIGNIFICANT ACCOUNTI16
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Use of Estimates (Policies) | 3 Months Ended |
Jul. 31, 2018 | |
Policies | |
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 long-lived asset impairments and stock-based compensation valuation. Actual results could differ from these estimates and assumptions and could have a material effect on the Companys reported financial position and results of operations. |
NOTE 2 - SIGNIFICANT ACCOUNTI17
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Cash and cash equivalents (Policies) | 3 Months Ended |
Jul. 31, 2018 | |
Policies | |
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. |
NOTE 2 - SIGNIFICANT ACCOUNTI18
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Financial Instruments (Policies) | 3 Months Ended |
Jul. 31, 2018 | |
Policies | |
Financial Instruments | Financial Instruments The Companys financial instruments include cash and cash equivalents and reclamation bonds. All instruments are accounted for on a cost basis, which, due to the short maturity of these financial instruments, approximates fair value at July 31, 2018. |
NOTE 2 - SIGNIFICANT ACCOUNTI19
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Fair Value Measures (Policies) | 3 Months Ended |
Jul. 31, 2018 | |
Policies | |
Fair Value Measures | Fair Value Measures When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period are included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date. At July 31, 2018 and April 30, 2018, the Company had no assets or liabilities accounted for at fair value on a recurring or nonrecurring basis. |
NOTE 2 - SIGNIFICANT ACCOUNTI20
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Mining Interests and Mineral Exploration Expenditures (Policies) | 3 Months Ended |
Jul. 31, 2018 | |
Policies | |
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. Pre-development Expenditures Pre-development activities involve costs incurred in the exploration stage that may ultimately benefit production, such as underground ramp development, which are expensed due to the lack of evidence of economic development, which is necessary to demonstrate future recoverability of these expenses. |
NOTE 2 - SIGNIFICANT ACCOUNTI21
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Equipment (Policies) | 3 Months Ended |
Jul. 31, 2018 | |
Policies | |
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. |
NOTE 2 - SIGNIFICANT ACCOUNTI22
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Reclamation and Remediation (Policies) | 3 Months Ended |
Jul. 31, 2018 | |
Policies | |
Reclamation and Remediation | Reclamation and Remediation The Companys 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. |
NOTE 2 - SIGNIFICANT ACCOUNTI23
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Impaired Asset Policy (Policies) | 3 Months Ended |
Jul. 31, 2018 | |
Policies | |
Impaired Asset Policy | Impairment of Long-lived Assets 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. 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. |
NOTE 2 - SIGNIFICANT ACCOUNTI24
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Stock-based Compensation (Policies) | 3 Months Ended |
Jul. 31, 2018 | |
Policies | |
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 Companys 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 Companys stock on the date of the award. |
NOTE 2 - SIGNIFICANT ACCOUNTI25
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Income Taxes (Policies) | 3 Months Ended |
Jul. 31, 2018 | |
Policies | |
Income Taxes | Income Taxes The Company accounts for income taxes using the liability method. The liability method requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of (i) temporary differences between financial statement carrying amounts of assets and liabilities and their basis for tax purposes and (ii) operating loss and tax credit carry-forwards for tax purposes. Deferred tax assets are reduced by a valuation allowance when management concludes that it is more likely than not that a portion of the deferred tax assets will not be realized in a future period. |
NOTE 2 - SIGNIFICANT ACCOUNTI26
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Reclassifications (Policies) | 3 Months Ended |
Jul. 31, 2018 | |
Policies | |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2017 financial statements in order to conform to the 2018 presentation. These reclassifications have no effect on net loss, total assets or accumulated deficit as previously reported. |
NOTE 2 - SIGNIFICANT ACCOUNTI27
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: New Accounting Pronouncements (Policies) | 3 Months Ended |
Jul. 31, 2018 | |
Policies | |
New Accounting Pronouncements | New Accounting Pronouncements In August 2016, the FASB issued ASU No. 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The update provides guidance on classification for cash receipts and payments related to eight specific issues. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. There was no impact to the financial statements upon adoption of this update effective May 1, 2018. In November 2016, the FASB issued ASU No. 2016-18 Statement of Cash Flows (Topic 230): Restricted Cash. The update requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. There was no impact to the financial statements upon adoption of this update effective May 1, 2018. In January 2017, the FASB issued ASU No. 2017-01 Business Combinations (Topic 805): Clarifying the Definition of a Business. The update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company will apply the provisions of the update to potential future acquisitions. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures. |
NOTE 3- EARNINGS PER SHARE_ Sch
NOTE 3- EARNINGS PER SHARE: Schedule of Earnings Per Share, Basic, by Common Class, Including Two Class Method (Tables) | 3 Months Ended |
Jul. 31, 2018 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic, by Common Class, Including Two Class Method | July 31, 2018 July 31, 2017 Stock options 6,650,000 5,210,000 Warrants 30,654,249 19,855,400 TOTAL POSSIBLE DILUTIVE SHARES 37,304,249 25,065,400 |
NOTE 3- EARNINGS PER SHARE_ S29
NOTE 3- EARNINGS PER SHARE: Schedule of Earnings Per Share, Basic, by Common Class, Including Two Class Method (Details) - shares | Jul. 31, 2018 | Jul. 31, 2017 |
Details | ||
Stock options | 6,650,000 | 5,210,000 |
Warrants | 30,654,249 | 19,855,400 |
TOTAL POSSIBLE DILUTIVE SHARES | 37,304,249 | 25,065,400 |
NOTE 8 - WARRANTS (Details)
NOTE 8 - WARRANTS (Details) | 3 Months Ended |
Jul. 31, 2018shares | |
Details | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | 19,855,400 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 10,798,849 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 30,654,249 |