Texas Mineral Resources (TMRC) 10-K26 Nov 132013 FY Annual reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
Document and Entity Information (USD $)	Aug. 31, 2013	Nov. 22, 2013	Feb. 28, 2013
Document And Entity Information	'	'	'
Entity Registrant Name	'Texas Rare Earth Resources Corp.	'	'
Entity Central Index Key	'0001445942	'	'
Document Type	'10-K	'	'
Document Period End Date	31-Aug-13	'	'
Amendment Flag	'false	'	'
Current Fiscal Year End Date	'--08-31	'	'
Is Entity a Well-known Seasoned Issuer?	'No	'	'
Is Entity a Voluntary Filer?	'No	'	'
Is Entity's Reporting Status Current?	'Yes	'	'
Entity Filer Category	'Smaller Reporting Company	'	'
Entity Public Float	'	'	$5,985,043
Entity Public Float, percentage threshold	'	'	10.00%
Entity Common Stock, Shares Outstanding	'	37,036,916	'
Document Fiscal Period Focus	'FY	'	'
Document Fiscal Year Focus	'2013	'	'

BALANCE_SHEETS

BALANCE SHEETS (USD $)	Aug. 31, 2013	Aug. 31, 2012
CURRENT ASSETS	'	'
Cash & cash equivalents	$2,374,017	$6,517,935
Prepaid expenses and other current assets	61,828	74,149
Total current assets	2,435,845	6,592,084
Property and equipment, net	148,217	250,909
Mineral properties	1,718,286	343,434
Deposits	111,250	102,840
TOTAL ASSETS	4,413,598	7,289,267
CURRENT LIABILITIES	'	'
Accounts payable and accrued liabilities	228,834	478,430
Current portion of note payable	29,007	'
Total current liabilities	257,841	478,430
Note payable - net of current portion and discount	290,845	'
Total liabilities	548,686	478,430
COMMITMENTS AND CONTINGENCIES	'	'
SHAREHOLDERS' EQUITY	'	'
Preferred stock, par value $0.001; 10,000,000 shares authorized, no shares issued and outstanding as of August 31, 2013 and August 31, 2012	'	'
Common stock, par value $0.01; 100,000,000 shares authorized, 37,036,916 and 36,550,009 shares issued and outstanding as of August 31, 2013 and August 31, 2012, respectively	370,370	365,501
Additional paid-in capital	30,001,752	29,262,684
Accumulated deficit	-26,507,210	-22,817,348
Total shareholders' equity	3,864,912	6,810,837
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$4,413,598	$7,289,267

BALANCE_SHEETS_Parenthetical

BALANCE SHEETS (Parenthetical) (USD $)	Aug. 31, 2013	Aug. 31, 2012
Statement of Financial Position [Abstract]	'	'
Preferred stock, par value	$0.00	$0.00
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 value	$0.01	$0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	37,036,916	36,550,009
Common stock, shares outstanding	37,036,916	36,550,009

STATEMENTS_OF_OPERATIONS

STATEMENTS OF OPERATIONS (USD $)	12 Months Ended
STATEMENTS OF OPERATIONS (USD $)	Aug. 31, 2013	Aug. 31, 2012
OPERATING EXPENSES	'	'
Exploration costs	$1,281,998	$7,633,368
General & administrative expenses	2,403,226	6,754,706
Total operating expenses	3,685,224	14,388,074
LOSS FROM OPERATIONS	-3,685,224	-14,388,074
OTHER INCOME (EXPENSE)	'	'
Loss on asset disposal	-12,835	-14,498
Interest and other income	24,388	28,306
Interest expense	-16,191	-334
Total other income (expense)	-4,638	13,474
NET LOSS	($3,689,862)	($14,374,600)
Net loss per share:	'	'
Basic and diluted net loss per share	($0.10)	($0.40)
Weighted average common shares outstanding:	'	'
Basic and diluted	36,670,297	35,964,877

STATEMENTS_OF_SHAREHOLDERS_EQU

STATEMENTS OF SHAREHOLDERS' EQUITY (USD $)	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance beginning at Aug. 31, 2011	'	$345,964	$24,818,022	($8,442,748)	$16,721,238
Balance beginning, shares at Aug. 31, 2011	'	34,596,260	'	'	'
Shares issued for services	'	100	19,100	'	19,200
Shares issued for services, shares	'	10,000	'	'	'
Shares issued for cash	'	19,437	1,083,687	'	1,103,124
Shares issued for cash, shares	'	1,343,749	'	'	'
Options issued to Officers and Directors	'	'	3,341,875	'	3,341,875
Net loss	'	'	'	-14,374,600	-14,374,600
Balance ending at Aug. 31, 2012	'	365,501	29,262,684	-22,817,348	6,810,837
Balance ending, shares at Aug. 31, 2012	'	36,550,009	'	'	'
Options issued to Officers and Directors	'	'	376,629	'	376,629
Repurchase of common stock outstanding	'	-5,769	-126,923	'	-132,692
Repurchase of common stock outstanding, shares	'	-576,923	'	'	'
Common Stock issued for assumption of West Lease	'	10,638	489,362	'	500,000
Common Stock issued for assumption of West Lease, shares	'	1,063,830	'	'	'
Net loss	'	'	'	-3,689,862	-3,689,862
Balance ending at Aug. 31, 2013	'	$370,370	$30,001,752	($26,507,210)	$3,864,912
Balance ending, shares at Aug. 31, 2013	'	37,036,916	'	'	'

STATEMENTS_OF_CASH_FLOWS

STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
STATEMENTS OF CASH FLOWS (USD $)	Aug. 31, 2013	Aug. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES	'	'
Net loss	($3,689,862)	($14,374,600)
Adjustment to reconcile net loss to net cash used in operating activities:	'	'
Depreciation expense	86,272	84,838
Loss on disposition of fixed assets	12,835	14,498
Stock-based compensation	376,629	3,361,075
Changes in operating assets and liabilities:	'	'
Prepaid expenses and other assets	3,912	-122,885
Accounts payable and accrued expenses	-249,596	-101,377
Net cash used in operating activities	-3,459,810	-11,138,451
CASH FLOWS FROM INVESTING ACTIVITIES	'	'
Investment in mineral properties	-510,000	-200,078
Proceeds from sale of property and equipment	-696	-158,226
Proceeds from sale of fixed assets	4,280	25,500
Net cash used in investing activities	-506,416	-332,804
CASH FLOWS FROM FINANCING ACTIVITIES	'	'
Proceeds from exercise of common stock warrants	'	1,103,124
Payment on note payable	-45,000	'
Purchase of treasury stock	-132,692	'
Net cash provided by (used in) financing activities	-177,692	1,103,124
NET CHANGE IN CASH	-4,143,918	-10,368,131
CASH, BEGINNING OF PERIOD	6,517,935	16,886,066
CASH, END OF PERIOD	2,374,017	6,517,935
SUPPLEMENTAL INFORMATION	'	'
Interest paid	191	334
Issuance of common stock for lease assignment	500,000	'
Note payable for lease assignment	$364,852	'

ORGANIZATION_AND_NATURE_OF_BUS

ORGANIZATION AND NATURE OF BUSINESS	12 Months Ended
ORGANIZATION AND NATURE OF BUSINESS	Aug. 31, 2013
Organization And Nature Of Business	'
ORGANIZATION AND NATURE OF BUSINESS	'
	NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS

	Texas Rare Earth Resources Corp (the “Company”) was incorporated in the State of Nevada in 1970. In July 2004, our articles of incorporation were amended and restated to increase the authorized capital to 25,000,000 common shares and, in April 2007, we effected a 1 for 2 reverse stock split. In September 2008, our articles of incorporation were further amended and restated to increase the authorized capital to 100,000,000 common shares with a par value of $0.01 per share and to authorize 10,000,000 preferred shares with a par value of $0.001 per share. Our fiscal year-end is August 31.

	Effective September 1, 2010, we changed our name from “Standard Silver Corporation” to “Texas Rare Earth Resources Corp.” We are now a mining company engaged in the business of the acquisition and development of mineral properties. As of the date of this filing, we hold two nineteen year leases, executed in September and November of 2011, to explore and develop a 950 acre rare earths project located in Hudspeth County, Texas known as the Round Top Project and prospecting permits covering an adjacent 9,345 acres. We also own unpatented mining claims in New Mexico. We are currently not evaluating any additional prospects, and intend to focus primarily on the development of our Round Top rare earth prospect.

	On August 24, 2012, we changed our state of incorporation from the State of Nevada to the State of Delaware (the “Reincorporation”) pursuant to a plan of conversion dated August 24, 2012. The Reincorporation was previously submitted to a vote of, and approved by, our stockholders at a special meeting of the stockholders held on April 25, 2012.

SUMMARY_OF_ACCOUNTING_POLICIES

SUMMARY OF ACCOUNTING POLICIES	12 Months Ended
	Aug. 31, 2013
Summary Of Accounting Policies	'
SUMMARY OF ACCOUNTING POLICIES	'
	NOTE 2 – SUMMARY OF ACCOUNTING POLICIES

	Basis of Presentation

	Our financial records are maintained on the accrual basis of accounting whereby revenues are recognized when earned and expenses are recorded when incurred, in accordance with generally accepted accounting principles (“GAAP”) – United States.

	Cash and Cash Equivalents

	We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents consist of demand deposits at commercial banks. We currently have cash deposits at financial institutions in excess of federally insured limits.

	Property and Equipment

	Our property and equipment consists primarily of vehicles, furniture and equipment, and are recorded at cost. Expenditures related to acquiring or extending the useful life of our property and equipment are capitalized. Expenditures for repair and maintenance are charged to operations as incurred. Depreciation is computed using the straight-line method over an estimated useful life of 3-20 years.

	Lease Deposits

	From time to time, the Company makes deposits in anticipation of executing leases. The deposits are capitalized upon execution of the applicable agreements.

	Long-lived Assets

	The Company reviews the recoverability of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through operations. To determine if these costs are in excess of their recoverable amount, periodic evaluation of carrying value of capitalized costs and any related property and equipment costs are based upon expected future cash flows and/or estimated salvage value in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC 360”), Property, Plant and Equipment. We have not incurred any impairment losses and, therefore, no impairment is reflected in these financial statements.

	Revenue Recognition

	We recognize revenue when persuasive evidence of an arrangement exists, services have been performed, the sales price is fixed or determinable, and collectability is probable. We have yet to generate any revenue.

	Mineral Exploration and Development Costs

	All exploration expenditures are expensed as incurred. Costs of acquisition and option costs of mineral rights are capitalized upon acquisition. Mine development costs incurred to develop new ore deposits, to expand the capacity of mines, or to develop mine areas substantially in advance of current production are also capitalized once proven and probable reserves exist and the property is determined to be a commercially mineable property. Costs incurred to maintain current production or to maintain assets on a standby basis are charged to operations. If the Company does not continue with exploration after the completion of the feasibility study, the mineral rights will be expensed at that time. Costs of abandoned projects are charged to mining costs including related property and equipment costs. To determine if these costs are in excess of their recoverable amount, periodic evaluation of carrying value of capitalized costs and any related property and equipment costs are based upon expected future cash flows and/or estimated salvage value in accordance with ASC 360-10-35-15, Impairment or Disposal of Long-Lived Assets. Exploration costs were approximately $1,282,000 and $7,633,000 for the years ended August 31, 2013 and 2012, respectively.

	Share-based Payments

	The Company estimates the fair value of share-based compensation using the Black-Scholes valuation model, in accordance with the provisions of ASC 718, Stock Compensation and ASC 505, Share-Based Payments . Key inputs and assumptions used to estimate the fair value of stock options include the grant price of the award, the expected option term, volatility of our stock, the risk-free rate, and dividend yield. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by the option holders, and subsequent events are not indicative of the reasonableness of the original estimates of fair value made by the Company.

	Amended 2008 Stock Option Plan

	In September 2008, the Board adopted our 2008 Stock Option Plan (the “2008 Plan”), which was also approved by our shareholders in September 2008. In May 2011, the board of directors adopted an amendment to our 2008 Plan (the “Amended 2008 Plan”), which was also approved by our shareholders in August 2011. The Amended 2008 Plan increased the number of shares available for grant from 2,000,000 to 5,000,000 shares of our common stock for awards to our officers, directors, employees and consultants. On February 15, 2012, our stockholders approved an increase of 2,000,000 of shares of common stock available for issuance under the amended 2008 Stock Option Plan (the “Plan”). As amended, the Plan provides for 7,000,000 shares of common stock for all awards. Other provisions of the Amended 2008 Plan remain the same as under our 2008 Plan. As of August 31, 2013, a total of 3,125,000 shares of our common stock remained available for future grants under the Amended 2008 Plan.

	Income Taxes

	Income taxes are computed using the asset and liability method, in accordance with ASC 740, Income Taxes. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities, and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.

	Basic and Diluted Loss Per Share

	The Company computes loss per share in accordance with ASC 260, Earnings Per Share, which requires presentation of both basic and diluted earnings per share on the face of the Statements of Operations. Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted loss per share gives effect to all dilutive potential common shares outstanding during the period, including stock options and warrants using the treasury method. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive.

	Use of Estimates

	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management believes that these financial statements include all normal and recurring adjustments necessary for a fair presentation under Generally Accepted Accounting Principles.

	Fair Value Measurements

	We account for assets and liabilities measured at fair value in accordance with ASC 820, Fair Value Measurements and Disclosures. ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified with Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).The three levels of inputs used to measure fair value are as follows:

		•	Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets.
		•	Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
		•	Level 3: Inputs that are generally unobservable. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value.


	Our financial instruments consist principally of cash, accounts payable and accrued liabilities and note payable. The carrying amounts of such financial instruments in the accompanying financial statements approximate their fair values due to their relatively short-term nature. It is management’s opinion that the Company is not exposed to any significant currency or credit risks arising from these financial instruments.

	Recent Accounting Pronouncements

Pronouncements between August 31, 2013 and the date of this filing are not expected to have a significant impact on our operations, financial position, or cash flow, nor does the Company expect the adoption of recently issued, but not yet effective, accounting pronouncements to have a significant impact on our results of operations, financial position or cash flows.

PROPERTY_AND_EQUIPMENT_NET

PROPERTY AND EQUIPMENT, NET	12 Months Ended
PROPERTY AND EQUIPMENT, NET	Aug. 31, 2013
Property And Equipment Net	'
PROPERTY AND EQUIPMENT, NET	'
	NOTE 3 – PROPERTY AND EQUIPMENT, NET

	Property and equipment consist of office furniture, equipment and vehicles. The property and equipment are depreciated using the straight-line method over their estimated useful life of 3-20 years. Our fixed assets consist of the following:

		August 31, 2013			August 31, 2012
	Furniture & office equipment	$	85,889		$	111,582
	Vehicles		105,299			105,299
	Computers & software		48,071			56,176
	Field equipment		71,396			73,953
	Total cost basis		310,655			347,010
	Less: Accumulated depreciation		(162,438	)		(96,101	)
	Property & equipment, net	$	148,217		$	250,909

	Depreciation expense for the years ending August 31, 2013 and 2012 was $86,272 and $84,838, respectively.

MINERAL_PROPERTIES

MINERAL PROPERTIES	12 Months Ended
	Aug. 31, 2013
Mineral Properties	'
MINERAL PROPERTIES	'
	NOTE 4 – MINERAL PROPERTIES

	September 2011 Lease

	On September 2, 2011, we entered into a new mining lease with the Texas General Land Office covering Sections 7 and 18 of Township 7, Block 71 and Section 12 of Block 72, covering approximately 860 acres at Round Top Mountain in Hudspeth County, Texas. The mining lease issued by the Texas General Land Office gives us the right to explore, produce, develop, mine, extract, mill, remove, and market beryllium, uranium, rare earth elements, all other base and precious metals, industrial minerals and construction materials and all other minerals excluding oil, gas, coal, lignite, sulfur, salt, and potash. The term of the lease is nineteen years so long as minerals are produced in paying quantities.

	Under the lease, we will pay the State of Texas a lease bonus of $142,518; $44,718 of which was paid upon the execution of the lease, and $97,800 which will be due when we submit a supplemental plan of operations to conduct mining. Upon the sale of minerals removed from Round Top, we will pay the State of Texas a $500,000 minimum advance royalty.

	Thereafter, we will pay the State of Texas a production royalty equal to eight percent (8%) of the market value of uranium and other fissionable materials removed and sold from Round Top and six and one quarter percent (6 ¼%) of the market value of all other minerals removed and sold from Round Top.

	Thereafter, assuming production of paying quantities has not been obtained, we may pay additional delay rental fees to extend the term of the lease for successive one (1) year periods pursuant to the following schedule:

		Per Acre Amount		Total Amount
	September 2, 2013 – 2014	$	50	$	44,718
	September 2, 2015 – 2019	$	75	$	67,077
	September 2, 2020 – 2024	$	150	$	134,155
	September 2, 2025 – 2029	$	200	$	178,873

	In August 2013, we paid a delay rental to the State of Texas upon execution of the lease in the amount of $44,718.

	November 2011 Lease

	On November 1, 2011, we entered into a mining lease with the State of Texas covering 90 acres, more or less, of land that we purchased in September 2011 near our Round Top site. The deed was recorded with Hudspeth County on September 16, 2011. Under the lease, we paid the State of Texas a lease bonus of $20,700 which was paid upon the execution of the lease. Upon the sale of minerals removed from Round Top, we will pay the State of Texas a $50,000 minimum advance royalty. Thereafter, we will pay the State of Texas a production royalty equal to eight percent (8%) of the market value of uranium and other fissionable materials removed and sold from Round Top and six and one quarter percent (6 1/4%) of the market value of all other minerals sold from Round Top.

	If production of paying quantities of minerals has not been obtained on or before November 1, 2012, we may pay the State of Texas a delay rental to extend the term of the lease in an amount equal to $4,500. Thereafter, assuming production of paying quantities has not been obtained, we may pay additional delay rental fees to extend the term of the lease for successive one (1) year periods pursuant to the following schedule:

		Per Acre Amount		Total Amount
	November 1, 2013-2014	$	50	$	4,500
	November 1, 2015 – 2019	$	75	$	6,750
	November 1, 2020 – 2024	$	150	$	13,500
	November 1, 2025 – 2029	$	200	$	18,000

	In August 2013, we paid a delay rental to the State of Texas of $4,500.

	On March 6, 2013, we entered into a lease assignment (the “Lease Assignment Agreement”) with Southwest Range & Wildlife Foundation, Inc., a Texas non-profit corporation (the “Foundation”), pursuant to which the Foundation agreed to assign to us a surface lease identified with the State of Texas as Surface Lease SL20040002 (the “West Lease”), which covers 54,990.11 acres in Hudspeth County, Texas. In exchange for the West Lease, we agreed to: (i) pay the Foundation $500,000 in cash; (ii) issue 1,063,830 of our common shares, par value $0.01 (the “Common Shares”); and (iii) make ten (10) payments to the Foundation of $45,000 each. The first payment was made in June 2013, and the nine (9) subsequent payments due on or before June 1 of each of the following years, such payments to be used by the Foundation to support conservation efforts within the Rio Grande Basin. The Lease Assignment Agreement contains standard representations, warranties and covenants. The closing of the transaction. contemplated by the Lease Assignment Agreement was completed on March 8, 2013.

NOTE_PAYABLE

NOTE PAYABLE	12 Months Ended
NOTE PAYABLE	Aug. 31, 2013
Note Payable	'
NOTE PAYABLE	'
	NOTE 5 – NOTE PAYABLE

	In relation to the Foundation lease discussed in Note 4 the Company recorded a note payable for an amount for the initial $45,000 due upon signing of lease and the nine (9) future payments due of $45,000 which has been recorded at its present value discounted with an imputed interest rate of 5% for a total note payable of $364,852. At August 31, 2013 the current portion due is $29,007 and long-term portion due is $290,845. The total note payable due at August 31, 2013 is $319,852. The Company has also accrued interest expense of $16,000 as of period end which is included in accrued liabilities.

	Future maturities

	Year	Principle amount due

	2014	$29,007
	2015	30,458
	2016	31,981
	2017	33,580
	2018	35,259
	2019 thereafter	159,567
	Total	$319,852

INCOME_TAXES

INCOME TAXES	12 Months Ended
INCOME TAXES	Aug. 31, 2013
Income Taxes	'
INCOME TAXES	'
	NOTE 6 – INCOME TAXES

	The following table sets forth a reconciliation of the federal income tax for the years ended August 31, 2013 and 2012:

		2013			2012

	Loss before income taxes	$	(3,689,862	)	$	(14,374,600	)

	Income tax benefit computed at statutory rates	$	(1,254,553	)	$	(4,887,364	)
	Increase in valuation allowance		1,282,989			3,701,883
	Non-deductible stock compensation		128,054			1,136,237
	Permanent differences, nondeductible expenses		1,379			4,771
	Other		-157,869			44,473
	Tax benefit	$	-		$	-

	The tax effects of the temporary differences between reportable financial statement income and taxable income are recognized as a deferred tax asset and liability. Significant components of the deferred tax assets are set out below along with a valuation allowance to reduce the net deferred tax asset to zero.

	In order to comply with generally accepted accounting principles, management has decided to establish a valuation allowance because of the potential that the tax benefits underlying deferred tax asset may not be realized. Significant components of our deferred tax asset at August 31, 2013 and 2012 are as follows:

	Deferred tax assets (liability)	2013			2012
	Net operating loss carryfowards	$	2,948,178		$	2,248,448
	Stock compensation		1,264,291			1,136,237
	Assets, exploration cost, depreciation and amortization		3,299,156			2,843,950
	Less: valuation allowance		(7,511,624	)		(6,228,635	)

	Net deferred tax assets	$	-		$	-

	As a result of a change in control effective in April 2007, our net operating losses prior to that date may be partially or entirely unavailable, by law, to offset future income and, accordingly, are excluded from the associated deferred tax asset.

	The net operating loss carryforward in the approximate amount of $8,671,000 will begin to expire in 2033. We file income tax returns in the United States and in one state jurisdiction. With few exceptions, we are no longer subject to United States federal income tax examinations for fiscal years ending before 2009, and is no longer subject to state tax examinations for years before 2008.

SHAREHOLDERS_EQUITY

SHAREHOLDERS' EQUITY	12 Months Ended
SHAREHOLDERS' EQUITY	Aug. 31, 2013
Shareholders Equity	'
SHAREHOLDERS' EQUITY	'
	NOTE 7– SHAREHOLDERS’ EQUITY

	Our authorized capital stock consists of 100,000,000 shares of common stock, with a par value of $0.01 per share, and 10,000,000 preferred shares with a par value of $0.001 per share.

	All shares of common stock have equal voting rights and, when validly issued and outstanding, are entitled to one non-cumulative vote per share in all matters to be voted upon by shareholders. The shares of common stock have no pre-emptive, subscription, conversion or redemption rights and may be issued only as fully paid and non-assessable shares. Holders of the common stock are entitled to equal ratable rights to dividends and distributions with respect to the common stock, as may be declared by our Board of Directors (our “Board”) out of funds legally available. In the event of a liquidation, dissolution or winding up of the affairs of the Corporation, the holders of common stock are entitled to share ratably in all assets remaining available for distribution to them after payment or provision for all liabilities and any preferential liquidation rights of any preferred stock then outstanding.

	During the year ended August 31, 2013, we expensed approximately $354,100 in non-cash stock-based compensation to directors and approximately $22,500 in non-cash compensation to outside consultants.

	On December 12, 2012, our Board authorized, on recommendation of the Compensation Committee, that all of our issued and outstanding stock options issued to our directors be exercisable on a cashless basis by permitting the Corporation to withhold shares of common stock with a fair market value equal to the exercise price as determined on the date of exercise.

	On December 19, 2012, our Board re-priced Mr. Cecil Wall’s five year options to purchase up to 90,000 shares at a price of $4.70 such that all such options are now exercisable at a price of $1.00 per share. The other terms and conditions of these options remain the same. On December 19, 2012, our Board also re-priced Mr. Anthony Marchese’s five year options to purchase up to 45,000 shares of common stock at an exercise price of $2.60, five year option to purchase up to 175,000 shares of common stock at an exercise price of $4.15, five year option to purchase up to 150,000 shares of common stock at an exercise price of $2.50 per share, and ten year option to purchase up to 100,000 shares of common stock at an exercise price of $1.51 per share, such that all such options are now exercisable at a price of $1.00 per share. The other terms and conditions of these options remain the same. With respect to the options held by Mr. Wall and Mr. Marchese, the Black-Scholes pricing model was used to estimate the fair value of the 560,000 options issued during the period to these directors, using the assumptions of a risk free interest rate of 1.1%, dividend yield of 0%, volatility of 324%, and an expected life ranging from 3.5 to 10 years. We have determined that the expense associated with the repricing of these options to be immaterial.

	On June 4, 2013, the Board of Directors approved and granted options to Ms. Lynch for her service to the Board. Ms. Lynch received 100,000 options exercisable at $0.50 per share for a period of ten years, vesting immediately, for service as a director of the corporation. With respect to these options, the Black-Scholes pricing model was used to estimate the fair value of the 100,000 options issued during the period to these directors, using the assumptions of a risk free interest rate of 2.14%, dividend yield of 0%, volatility of 311%, and an expected life of ten years. Total value of options expensed is about $27,000.

	On June 17, 2013, the Board of Directors approved and granted options to Mr. Marchese, Mr. Pingitore and Mr. Wolfe for their service to the Board. Each of these three members received 250,000 options exercisable at $0.50 per share for a period of five years, vesting 1/36 at the end of each month of service as a director of the corporation and 225,000 options exercisable at $1.00 per share for a period of five years, vesting 1/36 at the end of each month of service as a director of the corporation. With respect to these options, the Black-Scholes pricing model was used to estimate the fair value of the 1,425,000 options issued during the period to these directors, using the assumptions of a risk free interest rate of 1.1%, dividend yield of 0%, volatility of 310%, and an expected life of 5 years. These options are being expensed over the vesting period of 36 months. Total value to be expensed is about $427,000

	On June 17, 2013, the Board of Directors approved and granted a total of 300,000 options to consultants. The options are exercisable at $0.40 per share for a period of five years. All options vest 1/12 at the end of each month of consulting services. With respect to these options, the Black-Scholes pricing model was used to estimate the fair value of the 300,000 options issued during the period to these consultants, using the assumptions of a risk free interest rate of 1.1%, dividend yield of 0%, volatility of 310%, and an expected life of 5 years. These options are being expensed over the vesting period of 12 months. Total value to be expensed is about $89,900.

	Other Equity Items

	On December 27, 2012, we repurchased 576,923 shares of our common stock from a private investor, representing approximately 1.58% of our issued and outstanding shares of common stock, at a price of $0.23 per share for an aggregate purchase amount of $132,692. Following the repurchase, we canceled the entire amount of shares from treasury, resulting in the Corporation having 35,973,086 shares of common stock issued and outstanding. The repurchase was made pursuant to a privately negotiated stock repurchase agreement. The per share repurchase price for the shares repurchased was determined through arms-length negotiations with the private investor. The stock repurchase agreement and the related transactions were approved by our Board. The repurchase price was paid through cash on hand from our available surplus. Other than this private transaction as described in this report, our Board has not authorized any stock repurchase program or plan, and we have no current plans to effect any open-market purchases of our common stock or other repurchases of our common stock.

	On March 6, 2013, we entered into a lease assignment (the “Lease Assignment Agreement”) with Southwest Range & Wildlife Foundation, Inc., a Texas non-profit corporation (the “Foundation”), pursuant to which the Foundation agreed to assign to us a surface lease identified with the State of Texas as Surface Lease SL20040002 (the “West Lease”), which covers 54,990.11 acres in Hudspeth County, Texas. In exchange for the West Lease, we agreed to: (i) pay the Foundation $500,000 in cash; (ii) issue 1,063,830 of our common shares, par value $0.01 (the “Common Shares”); and (iii) make ten (10) payments to the Foundation of $45,000 each, with the first such payment due on or before June 1, 2013, and the nine (9) subsequent payments due on or before June 1 of each of the following years, such payments to be used by the Foundation to support conservation efforts within the Rio Grande Basin. The common shares were valued at $500,000 based on the market price on March 6, 2013. The Lease Assignment Agreement contains standard representations, warranties and covenants. The closing of the transaction contemplated by the Lease Assignment Agreement was completed on March 8, 2013. Future payments due on the lease assignment have been recorded as a note payable with an imputed interest rate of 5%.

	Amended 2008 Stock Option Plan Issuances

	In September 2008, the Board adopted our 2008 Stock Option Plan (the “2008 Plan”), which was also approved by our shareholders in September 2008. In May 2011, the board of directors adopted an amendment to our 2008 Plan (the “Amended 2008 Plan”), which was also approved by our shareholders in August 2011. The Amended 2008 Plan increased the number of shares available for grant from 2,000,000 to up to 5,000,000 shares of our common stock for awards to our officers, directors, employees and consultants. On February 15, 2012, our stockholders approved an increase of 2,000,000 of shares of common stock available for issuance under the amended 2008 Stock Option Plan (the “Plan”). As amended, the Plan provides for 7,000,000 shares of common stock for all awards. Other provisions of the Amended 2008 Plan remain the same as under our 2008 Plan. As of August 31, 2013, a total of 3,125,000 shares of our common stock remained available for future grants under the Amended 2008 Plan. The following table sets forth certain information as of August 31, 2013 concerning our common stock that may be issued upon the exercise of options or warrants or pursuant to purchases of stock under the Amended 2008 Plan:

	Plan Category	(a)	(b)	(c)
	Plan Category	Number of Securities to be Issued Upon the Exercise of Outstanding Options and Warrants	Weighted-Average Exercise Price of Outstanding Options and Warrants	Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a))
	Equity compensation plans approved by stockholders	3,875,000	$1.14	3,125,000
	Equity compensation plans not approved by stockholders	--	N/A	--

	Total	3,875,000	$1.14	3,125,000


	As of August 31, 2013, the Company had 3,875,000 common stock options outstanding.

	Warrants

	The fair value of the 1,600,000 warrants issued in January 2011 with our 2011 Private Placement was estimated at the date of issue using the Black-Scholes valuation model. The Company included the relative fair value of the warrants of $944,000 as APIC.

	The assumptions used are as follows:

			31-Aug-13
	Expected dividend yield			0	%
	Risk-free interest rate			1.1	%
	Expected volatility			404	%
	Expected warrant life (in years)			5.00

	The following January 2011 Warrants are outstanding as of August 31, 2013:

	Expiry Date		Exercise Price				31-Aug-13
	31-Jan-16		$	2.5				1,600,000


	The fair value of the 6,240,000 Option Warrants issued in May and June with our 2011 Private Placement was estimated at the date of issue using the Black-Scholes valuation model. The Company recorded the relative fair value of the warrants of $2,236,000 as Additional Paid In Capital.

	The assumptions used are as follows:

			31-Aug-13
	Expected dividend yield			0	%
	Risk-free interest rate			1.1	%
Expected volatility			380	%
Expected warrant life (in years)			5.00

The following January 2011 Option Warrants are outstanding as of August 31, 2013:

Expiry Date		Exercise Price				31-Aug-13
30-Jun-16		$	2.5				6,240,000

As of August 31, 2013, the Company had 7,840,000 common stock warrants outstanding.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Aug. 31, 2013
Subsequent Events [Abstract]	'
SUBSEQUENT EVENTS	'
	NOTE 8 – SUBSEQUENT EVENTS

	On October 1, 2013, we appointed Mr. Jack Lifton to serve as a member of the our Board of Directors (the “Board”). As of the date of the Current Report on Form 8-K, Mr. Lifton has not been appointed to serve on any committees of the Board. In connection with the appointment of Mr. Jack Lifton to our Board of Directors on October 1, 2013, Mr. Lifton was granted 100,000 options to purchase shares of our common stock, vesting immediately with a term of 5 years and at an exercise price of $0.50. The options were issued pursuant to our amended and restated 2008 Stock Option Plan, a general description of which is contained in our definitive proxy statement on Schedule 14A as filed with the SEC on December 28, 2011, which description is incorporated herein by reference. In addition, Mr. Lifton, as a non-executive director, will receive $10,000 annually, $1,000 for in person board meetings, $500 for telephonic board meetings and $500 for committee meetings (both in person and telephonic) pursuant to our director compensation program.

	On August 31, 2013, we entered into a 6 month consulting agreement, effective September 1, 2013 (the “Consulting Agreement”), with Carmot Strategic Group, Inc to provide issue advocacy and industry outreach services. The Consulting Agreement provides for a monthly retainer in the amount of $7,000 (the “Retainer”). In addition to the Retainer, the Board of Directors approved a grant of 10,000 common stock purchase options each month during the term of the agreement at an exercise price of $0.30 per share. One-sixth of the total grant of the common stock purchase options vest at the end of each month. The Black-Scholes pricing model was used to estimate the fair value of the 60,000 options issued, using the assumptions of a risk free interest rate of 1.1%, dividend yield of 0%, volatility of 304%, and an expected life of 5 years. The Company has determined these options to have a total approximate fair value of $16,000. Since the award vests in equal monthly increments over a 6 month period, the Company is expensing approximately $2,700 monthly for this award over the 6 month vesting period in accordance with the Financial Accounting Standards Board (“FASB”) ASC 505.

SUMMARY_OF_ACCOUNTING_POLICIES1

SUMMARY OF ACCOUNTING POLICIES (Policies)	12 Months Ended
	Aug. 31, 2013
Summary Of Accounting Policies Policies	'
Basis of Presentation	'
	Basis of Presentation

	Our financial records are maintained on the accrual basis of accounting whereby revenues are recognized when earned and expenses are recorded when incurred, in accordance with generally accepted accounting principles (“GAAP”) – United States.
Cash and Cash Equivalents	'
	Cash and Cash Equivalents

	We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents consist of demand deposits at commercial banks. We currently have cash deposits at financial institutions in excess of federally insured limits.
Property and Equipment	'
	Property and Equipment

	Our property and equipment consists primarily of vehicles, furniture and equipment, and are recorded at cost. Expenditures related to acquiring or extending the useful life of our property and equipment are capitalized. Expenditures for repair and maintenance are charged to operations as incurred. Depreciation is computed using the straight-line method over an estimated useful life of 3-20 years.
Lease Deposits	'
	Lease Deposits

	From time to time, the Company makes deposits in anticipation of executing leases. The deposits are capitalized upon execution of the applicable agreements.
Long-lived Assets	'
	Long-lived Assets

	The Company reviews the recoverability of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through operations. To determine if these costs are in excess of their recoverable amount, periodic evaluation of carrying value of capitalized costs and any related property and equipment costs are based upon expected future cash flows and/or estimated salvage value in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC 360”), Property, Plant and Equipment. We have not incurred any impairment losses and, therefore, no impairment is reflected in these financial statements.
Revenue Recognition	'
	Revenue Recognition

	We recognize revenue when persuasive evidence of an arrangement exists, services have been performed, the sales price is fixed or determinable, and collectability is probable. We have yet to generate any revenue.
Mineral Exploration and Development Costs	'
	Mineral Exploration and Development Costs

	All exploration expenditures are expensed as incurred. Costs of acquisition and option costs of mineral rights are capitalized upon acquisition. Mine development costs incurred to develop new ore deposits, to expand the capacity of mines, or to develop mine areas substantially in advance of current production are also capitalized once proven and probable reserves exist and the property is determined to be a commercially mineable property. Costs incurred to maintain current production or to maintain assets on a standby basis are charged to operations. If the Company does not continue with exploration after the completion of the feasibility study, the mineral rights will be expensed at that time. Costs of abandoned projects are charged to mining costs including related property and equipment costs. To determine if these costs are in excess of their recoverable amount, periodic evaluation of carrying value of capitalized costs and any related property and equipment costs are based upon expected future cash flows and/or estimated salvage value in accordance with ASC 360-10-35-15, Impairment or Disposal of Long-Lived Assets. Exploration costs were approximately $1,282,000 and $7,633,000 for the years ended August 31, 2013 and 2012, respectively.
Share-based Payments	'
	Share-based Payments

	The Company estimates the fair value of share-based compensation using the Black-Scholes valuation model, in accordance with the provisions of ASC 718, Stock Compensation and ASC 505, Share-Based Payments . Key inputs and assumptions used to estimate the fair value of stock options include the grant price of the award, the expected option term, volatility of our stock, the risk-free rate, and dividend yield. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by the option holders, and subsequent events are not indicative of the reasonableness of the original estimates of fair value made by the Company.

	Amended 2008 Stock Option Plan

	In September 2008, the Board adopted our 2008 Stock Option Plan (the “2008 Plan”), which was also approved by our shareholders in September 2008. In May 2011, the board of directors adopted an amendment to our 2008 Plan (the “Amended 2008 Plan”), which was also approved by our shareholders in August 2011. The Amended 2008 Plan increased the number of shares available for grant from 2,000,000 to 5,000,000 shares of our common stock for awards to our officers, directors, employees and consultants. On February 15, 2012, our stockholders approved an increase of 2,000,000 of shares of common stock available for issuance under the amended 2008 Stock Option Plan (the “Plan”). As amended, the Plan provides for 7,000,000 shares of common stock for all awards. Other provisions of the Amended 2008 Plan remain the same as under our 2008 Plan. As of August 31, 2013, a total of 3,125,000 shares of our common stock remained available for future grants under the Amended 2008 Plan.
Income Taxes	'
	Income Taxes

	Income taxes are computed using the asset and liability method, in accordance with ASC 740, Income Taxes. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities, and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.
Basic and Diluted Loss Per Share	'
	Basic and Diluted Loss Per Share

	The Company computes loss per share in accordance with ASC 260, Earnings Per Share, which requires presentation of both basic and diluted earnings per share on the face of the Statements of Operations. Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted loss per share gives effect to all dilutive potential common shares outstanding during the period, including stock options and warrants using the treasury method. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive.
Use of Estimates	'
	Use of Estimates

	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management believes that these financial statements include all normal and recurring adjustments necessary for a fair presentation under Generally Accepted Accounting Principles.
Fair Value Measurements	'
	Fair Value Measurements

	We account for assets and liabilities measured at fair value in accordance with ASC 820, Fair Value Measurements and Disclosures. ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified with Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).The three levels of inputs used to measure fair value are as follows:

		•	Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets.
		•	Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
		•	Level 3: Inputs that are generally unobservable. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value.

	Our financial instruments consist principally of cash, accounts payable and accrued liabilities and note payable. The carrying amounts of such financial instruments in the accompanying financial statements approximate their fair values due to their relatively short-term nature. It is management’s opinion that the Company is not exposed to any significant currency or credit risks arising from these financial instruments.
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements

	Pronouncements between August 31, 2013 and the date of this filing are not expected to have a significant impact on our operations, financial position, or cash flow, nor does the Company expect the adoption of recently issued, but not yet effective, accounting pronouncements to have a significant impact on our results of operations, financial position or cash flows.

PROPERTY_AND_EQUIPMENT_NET_Tab

PROPERTY AND EQUIPMENT, NET (Tables)	12 Months Ended
PROPERTY AND EQUIPMENT, NET (Tables)	Aug. 31, 2013
Property And Equipment Net Tables	'
Schedule of fixed assets	'
	Our fixed assets consist of the following:

		August 31, 2013			August 31, 2012
	Furniture & office equipment	$	85,889		$	111,582
	Vehicles		105,299			105,299
	Computers & software		48,071			56,176
	Field equipment		71,396			73,953
	Total cost basis		310,655			347,010
	Less: Accumulated depreciation		(162,438	)		(96,101	)
	Property & equipment, net	$	148,217		$	250,909

MINERAL_PROPERTIES_Tables

MINERAL PROPERTIES (Tables)	12 Months Ended
MINERAL PROPERTIES (Tables)	Aug. 31, 2013
Mineral Properties Tables	'
Schedule of future minimum lease payments for mineral properties leased	'
	September 2011 Lease

	Thereafter, assuming production of paying quantities has not been obtained, we may pay additional delay rental fees to extend the term of the lease for successive one (1) year periods pursuant to the following schedule:

		Per Acre Amount		Total Amount
	September 2, 2013 – 2014	$	50	$	44,718
	September 2, 2015 – 2019	$	75	$	67,077
	September 2, 2020 – 2024	$	150	$	134,155
	September 2, 2025 – 2029	$	200	$	178,873

	November 2011 Lease

	Thereafter, assuming production of paying quantities has not been obtained, we may pay additional delay rental fees to extend the term of the lease for successive one (1) year periods pursuant to the following schedule:

		Per Acre Amount		Total Amount
	November 1, 2013-2014	$	50	$	4,500
	November 1, 2015 – 2019	$	75	$	6,750
	November 1, 2020 – 2024	$	150	$	13,500
	November 1, 2025 – 2029	$	200	$	18,000

NOTE_PAYABLE_Tables

NOTE PAYABLE (Tables)	12 Months Ended
NOTE PAYABLE (Tables)	Aug. 31, 2013
Note Payable Tables	'
Schedule of future maturities of debt	'

	Future maturities

	Year	Principle amount due

	2014	$29,007
	2015	30,458
	2016	31,981
	2017	33,580
	2018	35,259
	2019 thereafter	159,567
	Total	$319,852

INCOME_TAXES_Tables

INCOME TAXES (Tables)	12 Months Ended
INCOME TAXES (Tables)	Aug. 31, 2013
Income Taxes Tables	'
Schedule of Reconciliation of Federal Income Tax	'
	The following table sets forth a reconciliation of the federal income tax for the years ended August 31, 2013 and 2012:

		2013			2012

	Loss before income taxes	$	(3,689,862	)	$	(14,374,600	)

	Income tax benefit computed at statutory rates	$	(1,254,553	)	$	(4,887,364	)
	Increase in valuation allowance		1,282,989			3,701,883
	Non-deductible stock compensation		128,054			1,136,237
	Permanent differences, nondeductible expenses		1,379			4,771
	Other		-157,869			44,473
	Tax benefit	$	-		$	-

Schedule of Deferred Tax Assets and Liabilities	'
	Significant components of our deferred tax asset at August 31, 2013 and 2012 are as follows:

	Deferred tax assets (liability)	2013			2012
	Net operating loss carryfowards	$	2,948,178		$	2,248,448
	Stock compensation		1,264,291			1,136,237
	Assets, exploration cost, depreciation and amortization		3,299,156			2,843,950
	Less: valuation allowance		(7,511,624	)		(6,228,635	)

	Net deferred tax assets	$	-		$	-

SHAREHOLDERS_EQUITY_Tables

SHAREHOLDERS' EQUITY (Tables)	12 Months Ended
SHAREHOLDERS' EQUITY (Tables)	Aug. 31, 2013
Shareholders Equity Tables	'
Schedule of stock issuable under the Amended 2008 Plan	'
	The following table sets forth certain information as of August 31, 2013 concerning our common stock that may be issued upon the exercise of options or warrants or pursuant to purchases of stock under the Amended 2008 Plan:

	Plan Category	(a)	(b)	(c)
	Plan Category	Number of Securities to be Issued Upon the Exercise of Outstanding Options and Warrants	Weighted-Average Exercise Price of Outstanding Options and Warrants	Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a))
	Equity compensation plans approved by stockholders	3,875,000	$1.14	3,125,000
	Equity compensation plans not approved by stockholders	--	N/A	--

	Total	3,875,000	$1.14	3,125,000
Schedule of assumptions used in warrant valuation	'
	The assumptions used are as follows:

			31-Aug-13
	Expected dividend yield			0	%
	Risk-free interest rate			1.1	%
	Expected volatility			404	%
	Expected warrant life (in years)			5.00

	The assumptions used are as follows:

			31-Aug-13
	Expected dividend yield			0	%
	Risk-free interest rate			1.1	%
	Expected volatility			380	%
	Expected warrant life (in years)			5.00
Schedule of warrants outstanding	'
	The following January 2011 Warrants are outstanding as of August 31, 2013:

	Expiry Date		Exercise Price			31-Aug-13
	31-Jan-16		$	2.5			1,600,000

	The following January 2011 Option Warrants are outstanding as of August 31, 2013:

	Expiry Date		Exercise Price			31-Aug-13
	30-Jun-16		$	2.5			6,240,000

ORGANIZATION_AND_NATURE_OF_BUS1

ORGANIZATION AND NATURE OF BUSINESS (Details Narrative) (USD $)	1 Months Ended
	Apr. 30, 2007	Aug. 31, 2013	Aug. 31, 2012	Sep. 30, 2008	Aug. 31, 2004
	Apr. 30, 2007	Leases	Aug. 31, 2012	Sep. 30, 2008	Aug. 31, 2004
Common stock, shares authorized	'	100,000,000	100,000,000	100,000,000	25,000,000
Reverse Stock Split, conversion ratio	0.5	'	'	'	'
Common stock, par value	'	$0.01	$0.01	$0.01	'
Preferred stock, shares authorized	'	10,000,000	10,000,000	10,000,000	'
Preferred stock, par value	'	$0.00	$0.00	$0.00	'
Number of leases held	'	2	'	'	'
Lease term	'	'19 years	'	'	'
Round Top Project - Hudspeth County, TX \| Rare Earths Project	'	'	'	'	'
Lease acreage	'	950	'	'	'
Round Top Project - Hudspeth County, TX \| Rare Earths Project	'	'	'	'	'
Lease acreage	'	9,345	'	'	'

SUMMARY_OF_ACCOUNTING_POLICIES2

SUMMARY OF ACCOUNTING POLICIES (Details Narrative) (USD $)	12 Months Ended						12 Months Ended
	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013	Feb. 15, 2012	Aug. 30, 2011	Sep. 30, 2008	Aug. 31, 2013	Aug. 31, 2013
	Aug. 31, 2013	Aug. 31, 2012	2008 Stock Option Plan	2008 Stock Option Plan	2008 Stock Option Plan	2008 Stock Option Plan	Lower Range	Upper Range
Estimated useful life of property and equipment	'	'	'	'	'	'	'3 years	'20 years
Exploration costs	$1,281,998	$7,633,368	'	'	'	'	'	'
Shares authorized to be granted	'	'	'	7,000,000	5,000,000	2,000,000	'	'
Shares available for issuance	3,125,000	'	3,125,000	'	'	'	'	'

PROPERTY_AND_EQUIPMENT_NET_Det

PROPERTY AND EQUIPMENT, NET (Details Narrative) (USD $)	12 Months Ended
PROPERTY AND EQUIPMENT, NET (Details Narrative) (USD $)	Aug. 31, 2013	Aug. 31, 2012
Depreciation expense	$86,272	$84,838
Lower Range	'	'
Estimated useful life of property and equipment	'3 years	'
Upper Range	'	'
Estimated useful life of property and equipment	'20 years	'

PROPERTY_AND_EQUIPMENT_NET_Det1

PROPERTY AND EQUIPMENT, NET (Details) (USD $)	Aug. 31, 2013	Aug. 31, 2012
Property & equipment, gross	$310,655	$347,010
Less: Accumulated depreciation	-162,438	-96,101
Property & equipment, net	148,217	250,909
Furniture and Office Equipment	'	'
Property & equipment, gross	85,889	111,582
Vehicles	'	'
Property & equipment, gross	105,299	105,299
Computers & Software	'	'
Property & equipment, gross	48,071	56,176
Field Equipment	'	'
Property & equipment, gross	$71,396	$73,953

MINERAL_PROPERTIES_Details_Nar

MINERAL PROPERTIES (Details Narrative) (USD $)	12 Months Ended	0 Months Ended	1 Months Ended			0 Months Ended	1 Months Ended	0 Months Ended
	Aug. 31, 2013	Sep. 02, 2011	Aug. 31, 2013	Aug. 31, 2011	Apr. 30, 2011	Nov. 01, 2011	Aug. 31, 2013	Mar. 06, 2013
		Round Top Project - Hudspeth County, TX	Round Top Project - Hudspeth County, TX	Round Top Project - Hudspeth County, TX	Round Top Project - Hudspeth County, TX	Round Top Project - Hudspeth County, TX	Round Top Project - Hudspeth County, TX	Hudspeth County, TX
		September 2011 Mineral Properties Lease	September 2011 Mineral Properties Lease	September 2011 Mineral Properties Lease	September 2011 Mineral Properties Lease	November 2011 Mineral Properties Lease	November 2011 Mineral Properties Lease	Southwest Range & Wildlife Foundation, Inc.
			acre				acre	acre
Lease acreage	'	'	860	'	'	'	90	54,990.11
Lease bonus	'	'	$197,800	'	'	'	'	'
Lease bonus paid	'	35,000	'	'	65,000	20,700	'	'
Lease bonus due upon filing of supplemental plan of operations to conduct mining	'	'	97,800	'	'	'	'	'
Minimum advance royalty due upon sale of minerals	'	'	500,000	'	'	'	50,000	'
Production royalty of market value of uranium and fissionable materials	'	8.00%	'	'	'	8.00%	'	'
Production royalty of market value of other minerals	'	6.25%	'	'	'	6.25%	'	'
Delay rental paid	'	'	44,718	44,718	'	'	4,500	'
Cash paid for lease assignment	'	'	'	'	'	'	'	500,000
Shares issued for lease	'	'	'	'	'	'	'	1,063,830
Periodic payment	$45,000	'	'	'	'	'	'	$45,000
Interest rate (imputed)	5.00%	'	'	'	'	'	'	5.00%

MINERAL_PROPERTIES_Details

MINERAL PROPERTIES (Details) (USD $)	Aug. 31, 2012	Aug. 31, 2012	Aug. 31, 2012	Aug. 31, 2012	Nov. 30, 2012	Nov. 30, 2012	Nov. 30, 2012	Nov. 30, 2012
MINERAL PROPERTIES (Details) (USD $)	September 2, 2013 - 2014	September 2, 2015 - 2019	September 2, 2020 - 2024	September 2, 2025 - 2029	November 1, 2013 - 2014	November 1, 2015 - 2019	November 1, 2020 - 2024	November 1, 2025 - 2029
Per Acre Amount	$50	$75	$150	$200	$50	$75	$150	$200
Total Lease Amount	$44,718	$67,077	$134,155	$178,873	$4,500	$6,750	$13,500	$18,000

NOTE_PAYABLE_Details_Narrative

NOTE PAYABLE (Details Narrative) (USD $)	12 Months Ended
NOTE PAYABLE (Details Narrative) (USD $)	Aug. 31, 2013	Aug. 31, 2012
Note Payable Details Narrative	'	'
Periodic payment	$45,000	'
Interest rate	5.00%	'
Note payable face amount	364,852	'
Current portion of notes payable	29,007	'
Notes payable - net of current portion and discount	290,845	'
Note payable - current and noncurrent	319,852	'
Accrued interest expense	$16,000	'

NOTE_PAYABLE_Details

NOTE PAYABLE (Details) (USD $)	Aug. 31, 2013
Future maturities, fiscal year:	'
2014	$29,007
2015	30,458
2016	31,981
2017	33,580
2018	35,259
2019 thereafter	159,567
Total	$319,852

INCOME_TAXES_Details_Narrative

INCOME TAXES (Details Narrative) (USD $)	Aug. 31, 2013
Income Taxes Details Narrative	'
Net operating loss carryforward	$8,671,000

INCOME_TAXES_Details

INCOME TAXES (Details) (USD $)	12 Months Ended
INCOME TAXES (Details) (USD $)	Aug. 31, 2013	Aug. 31, 2012
Income Taxes Details	'	'
Loss before income taxes	($3,689,862)	($14,374,600)
Income tax benefit computed at statutory rates	-1,254,553	-4,887,364
Increase in valuation allowance	1,282,989	3,701,883
Non-deductible stock compensation	128,054	1,136,237
Permanent differences, nondeductible expenses	1,379	4,771
Other	-157,869	44,473
Tax benefit	'	'

INCOME_TAXES_Details_1

INCOME TAXES (Details 1) (USD $)	Aug. 31, 2013	Aug. 31, 2012
Deferred tax assets (liability)	'	'
Net operating loss carryfowards	$2,948,178	$2,248,448
Stock compensation	1,264,291	1,136,237
Assets, exploration cost, depreciation and amortization	3,299,156	2,843,950
Less: valuation allowance	-7,511,624	-6,228,635
Net deferred tax assets	'	'

SHAREHOLDERS_EQUITY_Details_Na

SHAREHOLDERS' EQUITY (Details Narrative) (USD $)

0 Months Ended

12 Months Ended

0 Months Ended

12 Months Ended

0 Months Ended

Dec. 27, 2012

Aug. 31, 2013

Aug. 31, 2012

Sep. 30, 2008

Aug. 31, 2004

Aug. 31, 2013

Jan. 31, 2011

Aug. 31, 2013

Jun. 30, 2013

Jun. 17, 2013

Dec. 18, 2012

Dec. 19, 2012

Dec. 18, 2012

Jun. 17, 2013

Aug. 31, 2013

Dec. 18, 2012

Dec. 19, 2012

Jun. 17, 2013

Dec. 18, 2012

Dec. 19, 2012

Jun. 04, 2013

Jun. 17, 2013

Dec. 18, 2012

Dec. 19, 2012

Jun. 17, 2013

Dec. 18, 2012

Dec. 19, 2012

Dec. 18, 2012

Dec. 19, 2012

Private Placement 2011 Warrants

Private Placement 2011 Option Warrants

Stock Options

Stock Options - 2nd Tranche

Stock Options - 3rd Tranche

Stock Options - 4th Tranche

Lower Range

Upper Range

Outside Consultants

Directors

Cecil Wall, Director

Anthony Marchese, Director and Chairman

Ms. Lynch, Director

Mr. Pingitore, Director

Mr. Wolfe, Director

Anthony Marchese, Director and Chairman

Mr. Pingitore, Director

Mr. Wolfe, Director

Anthony Marchese, Director and Chairman

Common stock, shares authorized

100,000,000

25,000,000

Common stock, par value

$0.01

Preferred stock, shares authorized

10,000,000

Preferred stock, par value

$0.00

Stock based compensation

$376,629

$3,361,075

$22,500

$354,100

Stock Options outstanding

3,875,000

560,000

90,000

45,000

175,000

150,000

100,000

Exercise Price

$1.14

$4.70

$2.60

$4.15

$2.50

$1.51

Expected term

'5 years

'3 years 6 months

'10 years

'5 years

'10 years

'5 years

'10 years

Fair Value estimation method

'Black-Scholes

Risk-free interest rate

1.10%

2.14%

Dividend yield

0.00%

Expected volatility

404.00%

380.00%

310.00%

324.00%

310.00%

311.00%

Options granted

1,425,000

300,000

250,000

100,000

250,000

100,000

Exercise price of options granted

$0.40

$0.50

Vesting terms

'Vest 1/12 at the end of each month of consulting services

'Vesting 1/36 at the end of each month of service as a director

'Vest Immediately

'Vesting 1/36 at the end of each month of service as a director

Vesting period

'12 months

'36 months

Total value of options expensed

27,000

Total value of options to be expensed

89,900

427,000

Shares repurchased

576,923

Percentage of outstanding stock repurchased

1.58%

Price per share repurchased

$0.23

Aggregate purchase amount of shares

132,692

-132,692

Common stock, shares outstanding

35,973,086

37,036,916

36,550,009

Warrants outstanding

7,840,000

1,600,000

6,240,000

Fair value of warrants, recorded in APIC

$944,000

$2,236,000

SHAREHOLDERS_EQUITY_Details

SHAREHOLDERS' EQUITY (Details) (USD $)	Aug. 31, 2013
Stock Options outstanding	3,875,000
Weighted Average Exercise Price	$1.14
Stock Options available for issuance	3,125,000
2008 Stock Option Plan	'
Stock Options outstanding	3,875,000
Weighted Average Exercise Price	$1.14
Stock Options available for issuance	3,125,000
Equity Compensation Plans not Approved by Stockholders	'
Stock Options outstanding	0
Stock Options available for issuance	0

SHAREHOLDERS_EQUITY_Details_1

SHAREHOLDERS' EQUITY (Details 1)	12 Months Ended
SHAREHOLDERS' EQUITY (Details 1)	Aug. 31, 2013
Private Placement 2011 Warrants	'
Fair Value estimation method	'Black-Scholes
Expected dividend yield	0.00%
Risk-free interest rate	1.10%
Expected volatility	404.00%
Expected warrant life	'5 years
Private Placement 2011 Option Warrants	'
Fair Value estimation method	'Black-Scholes
Expected dividend yield	0.00%
Risk-free interest rate	1.10%
Expected volatility	380.00%
Expected warrant life	'5 years

SHAREHOLDERS_EQUITY_Details_2

SHAREHOLDERS' EQUITY (Details 2)	Aug. 31, 2013	Aug. 31, 2013	Jan. 31, 2011	Aug. 31, 2013	Jun. 30, 2013
SHAREHOLDERS' EQUITY (Details 2)	Aug. 31, 2013	Private Placement 2011 Warrants	Private Placement 2011 Warrants	Private Placement 2011 Option Warrants	Private Placement 2011 Option Warrants
Warrants outstanding	7,840,000	1,600,000	1,600,000	6,240,000	6,240,000
Warrant exercise price	'	2.5	'	2.5	'
Warrant Expiry Date	'	31-Jan-16	'	30-Jun-16	'

SUBSEQUENT_EVENTS_Details_Narr

SUBSEQUENT EVENTS (Details Narrative) (USD $)	0 Months Ended
	Sep. 01, 2013	Oct. 01, 2013	Jun. 17, 2013	Oct. 01, 2013
	Consulting Agreement	Jack Lifton, Director	Stock Options	Stock Options
				Jack Lifton, Director
Options granted	'	'	1,425,000	100,000
Exercise price of options granted	'	'	'	$0.50
Stock options expected term	'	'	'5 years	'5 years
Annual compensation	'	$10,000	'	'
In-person board meeting compensation	'	1,000	'	'
Telephonic board meeting compensation	'	500	'	'
Committee board meeting compensation	'	500	'	'
Term of consulting agreement	'6 months	'	'	'
Frequency of payment	'monthly	'	'	'
Retainer amount per month	7,000	'	'	'
Stock options granted per month	10,000	'	'	'
Total shares approved for consulting agreement	60,000	'	'	'
Expected dividend yield	0.00%	'	'	'
Risk-free interest rate	1.10%	'	'	'
Expected volatility	304.00%	'	'	'
Expected term	'5 years	'	'	'
Vesting period	'6 months	'	'	'
Fair value of options	$16,000	'	'	'
Monthly expense amount to be recognized	$2,700	'	'	'