Income Taxes

12 Months Ended

Dec. 31, 2012

Income Taxes [Text Block]

14.	Income Taxes
	The Company has adopted the provisions of ASC 740, Income Taxes. Pursuant to ASC 740 the Company is required to compute tax asset benefits for net operating losses carried forward. The potential benefit of net operating losses have not been recognized in the consolidated financial statements because the Company cannot be assured that it is more likely than not that it will utilize the net operating losses carried forward in future years. The Company has approximately $44,060,405 of net operating losses to carry forward which are available to offset taxable income in future years which expire through fiscal 2032. For the years ended December 31, 2012, 2011 and 2010 the valuation allowance established against the deferred tax assets increased by $3,873,305, $9,079,799, and $4,458,681 respectively.
	The components of the net deferred tax asset at December 31, 2012, 2011, and 2010, the statutory tax rate, the effective tax rate, and the amount of the valuation allowance are indicated below:

		December 31,			December 31,			December 31,
		2012			2011			2010
					(Restated - Note 17)
Net loss before taxes	$	( 14,874,429	)	$	( 18,624,346	)	$	( 15,239,402	)
Statutory rate		35%			35%			35%
Computed expected tax (recovery)	$	( 5,206,050	)	$	( 6,518,521	)	$	( 5,333,791	)
Stock-based compensation		409,686			(192,618	)		1,311,158
Depreciation		38,180			–			–
Joint venture chargeback		106,713			86,917			75,154
Miscellaneous		778,166			(2,455,577	)		(511,202	)
Increase (decrease) in valuation allowance:
Net operating loss		2,173,138			5,472,168			2,127,013
Exploration and mineral property costs		1,746,217			3,607,631			2,331,668
Capital assets		30,440			–			–
Construction in progress		(76,490	)		–			–
Reported income taxes	$			$	–		$	–

	December 31,		December 31,		December 31,
	2012		2011		2010
	$		$		$
Deferred tax assets and liabilities
- Net operating losses	15,421,142		13,248,004		7,775,836
- Mineral property acquisition and exploration	23,032,848		21,286,631		17,679,000
- Capital assets	30,440		–		–
- Construction in progress	(76,490	)	–		–
- Less valuation allowance	(38,407,940	)	(34,534,635	)	(25,454,836	)
Net deferred tax asset	–		–		–

The Company has incurred operating losses of approximately $44,060,405 which, if unutilized, will expire through to 2032. Future tax benefits, which may arise as a result of these losses, have not been recognized in these consolidated financial statements, and have been offset by a valuation allowance. The following table lists the fiscal years in which the loss was incurred and the expiration dates of the losses.

		Net	Expiration
		Loss	Date
1999	$	329	2019
2000		493	2020
2001		18,389	2021
2002		46,564	2022
2003		23,560	2023
2004		18,367	2024
2005		4,420,398	2025
2006		1,438,511	2026
2007		2,828,339	2027
2008		3,870,989	2028
2009		4,934,131	2029
2010		6,765,005	2030
2011		14,489,696	2031
2012		5,205,634	2032
	$	44,060,405