PROVISION FOR INCOME TAXES

6 Months Ended

12 Months Ended

Jun. 30, 2015

Dec. 31, 2014

Income Tax Disclosure [Abstract]

10. PROVISION FOR INCOME TAXES

As of June 30, 2015 there is no provision for income taxes, current or deferred.

Net operating losses carryforward	$	2,276,753
Valuation allowance		(2,276,753	)
	$	-

The Company has approximately $6,700,000 in net operating losses as of June 30, 2015. A reconciliation of the Company’s effective tax rate as a percentage of income before taxes and the statutory rate for year ended June 30, 2015 is summarized below:

Federal rate	34	%
State rate	-
Combined Tax Rate	34	%
Valuation allowance	(34	%)
	0	%

As of December 31, 2014, there is no provision for income taxes, current or deferred.

Net operating losses	$	2,164,429
Temporary and permanent tax differences		(378,000	)
Valuation allowance		(1,786,429	)
	$	-

At December 31, 2014, the Company had a net operating loss carry forward in the amount of $5,069,000, available to offset future taxable income through 2034. The Company has established a valuation allowance equal to the full amount of the deferred tax assets due to the uncertainty of the utilization of the operating losses in future periods.

A reconciliation of the Company’s effective tax rate as a percentage of income before taxes and the statutory rate for year ended December 31, 2014 is summarized below:

	Canada	United States
Federal rate	12.6%	34.0%
State rate	-	0.0
Provincial rate	10.0	-
Mining duties	16.0	-
	38.6	34.0
Valuation allowance	(38.6)%	(34.0)
	0.0%	0.0%