Income Taxes

12 Months Ended

Apr. 30, 2016

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 5 - INCOME TAXES

There was no income tax provision for the years ended April 30, 2016 and 2015 due to the Company’s net losses.

The components of the Company's net deferred tax assets are as follows:

	April 30, 2016		April 30, 2015
Net operating loss carryforward		1,371,800		1,347,800
Stock-based compensation		193,300		106,700
Equipment and mining interests		645,000		600,000
Other		3,700		3,600
Total		2,213,800		2,058,100
Valuation allowance		(2,213,800)		(2,058,100)
DEFERRED TAX ASSET	$	-	$	-

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 assets, a valuation allowance equal to 100% of the deferred tax assets has been recorded at April 30, 2016 and 2015.

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

	April 30,
	2016			2015
Expected income tax benefit based on statutory rate	$	(147,100)	(35%)	$	(410,500)	(35%)
Effect of state taxes		(4,200)	(1%)		(13,300)	(1%)
Other		(4,400)	(1%)		7,700	1%
Change in valuation allowance		155,700	37%		416,100	35%
Total income tax benefit	$	-	-%	$	-	-%

At April 30, 2016 and 2015, respectively, the Company had federal and state net operating loss carry forwards of approximately $3,810,000 and $3,740,000 which will expire in fiscal years ending April 30, 2030 through April 30, 2036.

The Company has no tax position at April 30, 2016 and 2015 for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. It is not anticipated that unrecognized tax benefits would significantly increase or decrease within 12 months of the reporting date. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. No such interest or penalties were recognized during the periods presented. The Company had no accruals for interest and penalties at April 30, 2016 and 2015. The Company’s federal income tax returns for fiscal years 2013 through 2016 remain open and subject to examination.