Accounting Changes and Error Corrections

3 Months Ended

Oct. 31, 2011

Accounting Changes and Error Corrections [Abstract]

Accounting Changes and Error Corrections [Text Block]

NOTE 9 - CORRECTION OF ERROR IN PREVIOUSLY ISSUED FINANCIAL STATEMENTS

As disclosed in the financial statements as of and for the year ended April 30, 2011, management has determined that certain errors were contained in the Company s financial statements for quarter ended October 31, 2010.

Since acquiring the first development property in Nevada, the Company had not been capitalizing the appropriate costs as mineral interest.  The Excalibur, Longstreet, and Jet properties call for annual lease payments, the issuance of common stock, and common stock purchase options, for the right to acquire the undivided right, title and interest in and to the properties.  In accordance with guidance contained in ASC 805 mineral rights to explore, extract and retain at least a portion of the benefits from mineral deposits are to be considered tangible assets.  The adjustments required to appropriately record these adjustments are material to the filed financial statements, thus management is restating the October 31, 2010 amounts.

The effect of the Company's previously issued October 31, 2010 financial statement is summarized as follows:

Statements of Operations

		Three months ended October 31, 2010			Six months ended October 31, 2010
		Previously	Increase		Previously	Increase
		Reported	(Decrease)	Restated	Reported	(Decrease)		Restated
EXPENSES
	Mineral exploration and consultants	-	90,880	90,880	-	132,331		132,331
	Management and administrative	309,785	(289,689)	20,096	404,733	(356,979)	1	47,754
	Legal and professional	-	25,338	25,338	-	29,026		29,026
	Other expense (income)		1,750	1,750		(21)		(21)
NET LOSS		309,785	(171,721)	138,064	404,733	(195,643)		209,090
1	Stock options granted in the period ended October 31, 2010 totalling were subsequently rescinded in their entirety.  For the quarters ended January 31, 2011 and October 31, 2010 stock option expense of 170,645 and 85,322 respectively was rescinded.