| Mineral Industries Disclosures [Text Block] | 5. MINERAL PROPERTIES North Chisna Bullfrog LMS Total (note 5(a)) (note 5(d)) (note 5(c)) Balance, May 31, 2015 $ 631,205 $ 3,861,412 $ 374,017 $ 4,866,634 Acquisition costs - 43,844 - 43,844 Currency translation adjustments 46,490 331,043 27,546 405,079 Reclassified to asset held-for-sale - - (401,563) (401,563) Write-off of capitalized acquisition costs (677,695) - - (677,695) Balance, February 29, 2016 $ - $ 4,236,299 $ - $ 4,236,299 North West Pogo Chisna Bullfrog LMS Total (note 5(b)) (note 5(a)) (note 5(d)) (note 5(c)) Exploration costs: Assay $ - $ - $ 666,700 $ - $ 666,700 Drilling - - 655,117 - 655,117 Equipment rental - - 33,256 - 33,256 Field costs 181 247 86,757 534 87,719 Geological/ Geophysical - 6,210 265,454 2,154 273,818 Land maintenance & tenure - 13,534 306,954 32,900 353,388 Permits - - 632 - 632 Studies - - 310,893 - 310,893 Transportation - - - 2,131 2,131 Travel - 913 51,650 - 52,563 181 20,904 2,377,413 37,719 2,436,217 Cost recovery (23,802) (7,418) - (104,838) (136,058) Total expenditures (recovery) for the period $ (23,621) $ 13,486 $ 2,377,413 $ (67,119) $ 2,300,159 The following table presents costs incurred for exploration and evaluation activities for the nine months ended February 28, 2015: North West Pogo Chisna Bullfrog LMS Total (note 5(b)) (note 5(a)) (note 5(d)) (note 5(c)) Exploration costs: Aircraft services $ - $ 11,202 $ - $ - $ 11,202 Assay - 12,924 826,943 - 839,867 Drilling - - 1,282,967 - 1,282,967 Equipment rental - 1,466 224,400 - 225,866 Field costs 2,027 7,096 256,653 284 266,060 Geological/ Geophysical 4,164 1,811 777,024 29,170 812,169 Land maintenance & tenure 11,023 77,972 227,869 27,331 344,195 Studies - - 487,020 - 487,020 Transportation - - - 878 878 Travel - 5,133 163,492 1,423 170,048 Total expenditures for the period $ 17,214 $ 117,604 $ 4,246,368 $ 59,086 $ 4,440,272 a) Chisna Property, Alaska The Chisna property is located in the eastern Alaska Range, Alaska, and is comprised of unpatented mineral claims owned 100 On November 2, 2009, ITH and Talon Gold Alaska, Inc. (ITH’s wholly-owned Alaskan subsidiary) entered into an agreement (as amended) with Ocean Park Ventures Corp. (“OPV”). Pursuant to the agreement, an Alaskan subsidiary of OPV and Raven Gold formed a joint venture for the purpose of exploring and developing the Chisna property. On November 7, 2012, OPV withdrew from the joint venture and thereby returned 100 On March 24, 2010, Raven Gold entered into a Mineral Exploration Agreement with Option to Lease with Ahtna Incorporated (“Ahtna”), an Alaska Native Regional Corporation, concerning approximately 26,516 During the year ended May 31, 2015, the Company gave notification and terminated the Ahtna lease. During the period ended February 29, 2016, the Company wrote off the Chisna property as the Company had reduced the Chisna property to 36 core claims. On April 5, 2016, Raven Gold completed a transaction with Millrock Resources Inc. (“Millrock”) on the Chisna property. The ownership of the property is being sold for USD 25,000 1 1 b) West Pogo Property, Alaska The West Pogo property is located approximately 50 kilometres north of Delta Junction, Alaska, and consists of unpatented mineral claims owned 100 During the year ended May 31, 2014, the Company wrote off the West Pogo property, as there had been a delay in exploration work on the property for an extended period of time. On July 29, 2015, Raven Gold completed a transaction with Millrock on the West Pogo and Goodpaster database projects in Alaska. The ownership position was sold for $ 25,728 20,000 136,058 100,000 3 1 1 2 1 5 1 1,500 2 c) LMS Property, Alaska The LMS property consists of unpatented mineral claims owned 100 473,585 350,000 3 1 1 4,000,000 d) North Bullfrog Project, Nevada The Company’s North Bullfrog project consists of certain leased patented lode mining claims and federal unpatented mining claims owned 100 (i) Interests acquired from Redstar Gold Corp. On October 9, 2009, a US subsidiary of ITH at the time (Corvus Nevada) completed the acquisition of all of the interests of Redstar Gold Corp. (“Redstar”) and Redstar Gold U.S.A. Inc. (“Redstar US”) in the North Bullfrog project, which consisted of the following leases: (1) Pursuant to a mining lease and option to purchase agreement made effective October 27, 2008 between Redstar and an arm’s length limited liability company, Redstar has leased (and has the option to purchase) 12 patented mining claims referred to as the “Connection” property. The ten-year, renewable mining lease requires advance minimum royalty payments (recoupable from production royalties, but not applicable to the purchase price if the option to purchase is exercised) of USD 10,800 10,800 16,200 1,000,000 4 1,250,000 1 5,000,000 (2) Pursuant to a mining lease made and entered into as of May 8, 2006 between Redstar and two arm’s length individuals, Redstar has leased 3 patented mining claims which form part of the North Bullfrog project holdings. The lease is for an initial term of 10 4,000 3,500 4,500 2 1,000,000 1 2,000,000 (3) Pursuant to a mining lease made and entered into as of May 8, 2006 between Redstar and an arm’s length private Nevada corporation, Redstar has leased 2 patented mining claims which form part of the North Bullfrog project holdings. The lease is for an initial term of 10 years, and for so long thereafter as mining activities continue on the claims or contiguous claims held by the lessee. The lessee is required to pay advance minimum royalty payments (recoupable from production royalties) of USD 2,000 2,000 3,000 3 850,000 1 2,550,000 2,400 2,400 3,600 (4) Pursuant to a mining lease made and entered into as of May 16, 2006 between Redstar and an arm’s length individual, Redstar has leased 12 patented mineral claims which form part of the North Bullfrog project holdings. The lease is for an initial term of 10 20,500 20,000 4 1,000,000 1 4,000,000 (5) Pursuant to a mining lease made and entered into as of May 22, 2006 between Redstar and two arm’s length individuals, Redstar has leased 3 patented mineral claims which form part of the North Bullfrog project holdings. The lease is for an initial term of 10 8,000 4,800 7,200 2 1,000,000 1 2,000,000 (6) Pursuant to a mining lease made and entered into as of June 16, 2006 between Redstar and an arm’s length individual, Redstar has leased one patented mineral claims which form part of the North Bullfrog project holdings. The lease is for an initial term of 10 2,000 2,000 3,000 2 1,000,000 1 2,000,000 As a consequence of the acquisition of Redstar and Redstar US’s interest in the foregoing leases, Corvus Nevada is now the lessee under all of such leases. The Company acquired all of the shares of Corvus Nevada on August 26, 2010 upon the completion of the Arrangement. (ii) Interests acquired directly by Corvus Nevada (1) Pursuant to a mining lease and option to purchase agreement made effective December 1, 2007 between Corvus Nevada and a group of arm’s length limited partnerships, Corvus Nevada has leased (and has the option to purchase) patented mining claims referred to as the “Mayflower” claims which form part of the North Bullfrog project. The terms of the lease/option are as follows: ¤ Terms: 100,000 ¤ Lease Payments: 5,000 25,000 5,000 20,000 20,000 108,750 46,250 10,000 50,000 50,000 10,000 50,000 126,924 10,000 50,000 35,871 10,000 50,000 21,200 10,000 50,000 19,237 ¤ Anti-Dilution: 85,000 10,000 25,000 25,000 ¤ Work Commitments: 100,000 200,000 300,000 ¤ Retained Royalty: 2 400 3 401 500 4 500 (2) Pursuant to a mining lease and option to purchase made effective March 1, 2011 between Corvus Nevada and an arm’s length individual, Corvus Nevada has leased, and has the option to purchase, 2 patented mineral claims which form part of the North Bullfrog project holdings. The lease is for an initial term of 10 20,000 25,000 30,000 2 1,000,000 1 2,000,000 (3) Pursuant to a purchase agreement made effective March 28, 2013, Corvus Nevada agreed to purchase the surface rights of five patented mining claims owned by two arm’s length individuals for USD 160,000 0.02 12 240,000 4.77 406,240 400,000 157,408 248,832 240,000 (4) In December 2013, SoN completed the purchase of a parcel of land approximately 30 km north of the North Bullfrog project which carries with it 1,600 1,100,118 1,034,626 (5) On March 30, 2015, Lunar Landing, LLC signed a lease agreement with Corvus Nevada to lease private property containing the three patented Sunflower claims to Corvus Nevada, which are adjacent to the Yellowrose claims leased in 2014. The term of the lease is 3 years with provision to extend the lease for an additional 7 5,000 5,000 4 500,000 1 2,000,000 300,000 Acquisitions The acquisition of title to mineral properties is a detailed and time-consuming process. The Company has taken steps, in accordance with industry norms, to verify title to mineral properties in which it has an interest. Although the Company has taken every reasonable precaution to ensure that legal title to its properties is properly recorded in the name of the Company (or, in the case of an option, in the name of the relevant optionor), there can be no assurance that such title will ultimately be secured. Environmental Expenditures The operations of the Company may in the future be affected from time to time in varying degrees by changes in environmental regulations, including those for future removal and site restoration costs. Both the likelihood of new regulations and their overall effect upon the Company vary greatly and are not predictable. The Company’s policy is to meet or, if possible, surpass standards set by relevant legislation by application of technically proven and economically feasible measures. Environmental expenditures that relate to ongoing environmental and reclamation programs are charged against earnings as incurred or capitalized and amortized depending on their future economic benefits. Estimated future removal and site restoration costs, when the ultimate liability is reasonably determinable, are charged against earnings over the estimated remaining life of the related business operation, net of expected recoveries. The Company has estimated the fair value of the liability for asset retirement that arose as a result of exploration activities to be $ 144,241 107,000 132,579 107,000 |
