| 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 six-month period
ended October 31, 2017 are not necessarily indicative of the results that may be expected for the full year ending April 30, 2018.
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, 2017. Going Concern As shown in the accompanying financial
statements, the Company has incurred operating losses since inception. As of October 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 $10,149,808 and, at October 31, 2017, the
Company's working capital was $917,668. 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. With the recent capital raise (Note 8), management believes
the Company has adequate funds to operate over the next twelve months. 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 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 October 31, 2017. 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 October 31, 2017 and April 30, 2017, 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. 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. 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 October
31, 2017 and 2016, that could have a dilutive effect are as follows:
October 31, 2017 October 31, 2016
Stock options 5,210,000 5,185,000
Warrants 30,654,249 19,855,400
TOTAL POSSIBLE DILUTION 35,864,249 25,040,400 At October 31, 2017 and 2016, the
effect of the Company's outstanding stock options and warrants would have been anti-dilutive. Income Taxes The Company recognizes a 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. Reclassifications Certain reclassifications have been
made to the 2016 financial statements in order to conform to the 2017 presentation. These reclassifications have no effect
on net loss, total assets or accumulated deficit as previously reported. New Accounting Pronouncements In November 2015, the Financial Accounting
Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-17 Income Taxes - Balance Sheet Classification
of Deferred Taxes (Topic 740). The update is designed to reduce complexity of reporting deferred income tax liabilities and assets
into current and non-current amounts in a statement of financial position. ASU No. 2015-17 requires the presentation of deferred
income taxes, changes to deferred tax liabilities and assets be classified as non-current in the statement of financial position.
The update is effective for fiscal years beginning after December 15, 2016. The Company adopted this ASU on May 1, 2017.
It had no impact on the financial statements. In March 2016, the FASB issued ASU
No. 2016-09 Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The update
simplifies the accounting for stock-based compensation, including income tax consequences and balance sheet and cash flow statement
classification of awards. The update is effective for fiscal years beginning after December 15, 2016, with early adoption permitted.
The Company adopted this ASU on May 1, 2017. It had no impact on the financial statements. 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. The Company
is currently evaluating the impact of implementing this update on the financial statements. 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
occurring after the effective date. 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 financial statements upon adoption. |
