INCOME TAXES

12 Months Ended

Aug. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES [Text Block]

12. INCOME TAXES

The following table reconciles the income tax benefit at the U.S. Federal statutory income tax rates to income tax benefit at the Company's effective tax rates at August 31, 2023 and 2022:

		August 31,			August 31,
		2023			2022
Income (loss) before taxes	$	(1,832,178	)	$	1,974,407
Statutory tax rate		21%			21.00%
Expected income tax expense (recovery)		(384,757	)		414,625
Non-deductible items		1,428			34,257
Change in enacted rates and other		422,502			(26,649	)
Change in valuation allowance		(39,173	)		(422,234	)
Income tax expense (recovery)	$	-		$	-

Deferred taxes reflect the tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes. Deferred tax assets (liabilities) at August 31, 2023 and 2022 are comprised of the following:

		August 31, 2023		August 31, 2022
Net operating loss carry forwards	$	2,734,816	$	2,154,456
Intangible assets		29,590		-
Marketable securities		206,303		207,613
Mineral property		25,465		64,364
Capital loss carry forwards		1,605		4,526
		2,997,779		2,430,960
Valuation allowance		2,977,779		2,430,960
Deferred tax assets (liabilities)	$	-	$	-

The Company has net operating loss carry forwards of approximately $12,651,469 (2022 - $10,259,316) a portion of which may be carried forward up to 20 years to apply against future taxable income for US tax purposes, subject to the final determination by the taxation authority, expiring in the following years. Future tax assets have not been recognized because it is not probable that future taxable profit will be available against which the Company can utilize the benefits therefrom.