XML 24 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 2 - Summary of Significant Accounting Policies: Mineral Property Acquisition and Exploration Costs (Policies)
9 Months Ended
Oct. 31, 2012
Policies  
Mineral Property Acquisition and Exploration Costs

Mineral Property Acquisition and Exploration Costs

 

The Company is an exploration stage mining company and has not yet realized any revenue from its operations.  Mineral property acquisition costs are initially capitalized in accordance with ASC 805-20-55-37, previously referenced as the FASB Emerging Issues Task Force (“EITF”) Issue 04-2.  The Company assesses the carrying costs for impairment under ASC 930 at each fiscal quarter end.  When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs incurred to develop such property will be capitalized.  The Company has determined that all property payments are impaired and written off the acquisition costs to project expenses.  Once capitalized, such costs will be amortized using the units of production method over the estimated life of the probable reserve.

 

To date, mineral property exploration costs have been expensed as incurred.  To date the Company has not established any proven or probable reserves on its mineral properties.

Depreciation, Amortization and Capitalization

The Company records depreciation and amortization, when appropriate, using both straight-line and declining balance methods over the estimated useful life of the assets (five to seven years). Expenditures for maintenance and repairs are charged to expense as incurred. Additions, major renewals and replacements that increase the property’s useful life are capitalized.  Property sold or retired, together with the related accumulated depreciation is removed from the appropriate accounts and the resultant gain or loss is included in net income.