Income Taxes

12 Months Ended

Apr. 30, 2012

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 5 - INCOME TAXES

The components of the Company's deferred tax asset is as follows:

			April 30,
			2012		2011
Deferred tax asset:
	Exploration costs		$	176,299	$	82,425
	Share-based compensation			58,844		-
	Charitable contribution carryover			1,190		-
	Federal operating net losses			448,763		225,398
		Deferred tax asset		685,096		307,823
Deferred tax liability:
	Mineral interest			(109,199)		(71,925)
Net deferred tax asset				575,897		233,586
	Less valuation allowance			(575,897)		(233,586)
Deferred tax asset			$	-	$	-

There was no income tax expense for the years ended April 30, 2012 and 2011 due to the Company’s net losses.  Deferred income taxes arise from timing differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. A deferred tax asset valuation allowance is recorded when it is more likely than not that deferred tax assets will not be realized. As management of the Company cannot determine that it is more likely than not that the Company will realize the benefit of the net deferred tax asset, a valuation allowance equal to 100% of the net deferred tax asset has been recorded at April 30, 2012 and 2011.  The Company utilizes an effective federal tax rate of 35%.  There is no state tax effect.

A reconciliation between the statutory federal income tax rate and the Company's tax provision is as follows:

			April 30,
			2012		2011
Expected income tax benefit based on statutory rate			(1,184,064)	(35%)	$	(120,701)	(35%)
Permanent differences
	Extinguishment of debt		573,851	17%		-	-
	Interest expense from debt discount		264,110	8%		-	-
	Meals and entertainment		3,792	-%		-	-
Non-recognition due to increase in valuation account			342,311	10%		120,701	35%
	Total income tax benefit	$	-	-%	$	-	-%

The Company has concluded that the guidance regarding accounting for uncertainty in income taxes had no significant impact on our results of operations or financial position as of April 30, 2012 or 2011. Therefore, the Company does not have an accrual for uncertain tax positions as April 30, 2012 or 2011.  As a result, tabular reconciliation of beginning and ending balances would not be meaningful.  If interest and penalties were to be assessed, the Company would charge interest to interest expense, and penalties to other operating expense.  It is not anticipated that unrecognized tax benefits would significantly increase or decrease within 12 months of the reporting date.

At April 30, 2012 and 2011 respectively, the Company had federal net operating loss carry forwards of approximately $1,282,180 and  $643,994 which will expire in fiscal years ending April 30, 2028 through April 30, 2031.