8. INCOME TAXES

12 Months Ended

Jun. 30, 2015

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

8. INCOME TAXES

There was no income tax expense for the years ended June 30, 2015 and 2014 due to the Company's net losses.

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

	June 30, 2015			June 30, 2014
Deferred Tax Asset
Exploration costs	$	154,416		$	41,390
Federal and state operating net losses		302,826			234,034
Total deferred tax assets		457,242			275,424
Deferred tax liability		-			-
Net deferred tax asset		457,242			275,424
Valuation allowance		(457,242	)		(275,424	)
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 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 June 30, 2015 and 2014.   The effective tax rate was 0% for the years ended June 30, 2015 and 2014.

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

	June 30,
	2015					2014
Expected income tax benefit based on statutory rate	$	(159,485	)	(35	%)	$	(83,230	)	(35	%)
Permanent differences
Meals and entertainment		156		-	%		866		1	%
Effect of state taxes		(22,489	)	(5	%)		(11,625	)	(5	%)
Non-recognition due to increase in valuation account		181,818		40	%		93,989		40	%
Total income tax benefit	$	-		-	%	$	-		-	%

At June 30, 2015 and 2014, respectively, the Company had federal and state net operating loss carry forwards of approximately $757,065 and $585,085 which will expire in fiscal years ending June 30, 2032 through June 30, 2035.

The Company has concluded that the guidance regarding accounting for uncertainty in income taxes had no significant impact on its results of operations or financial position as of June 30, 2015 and 2014. Therefore, the Company does not have an accrual for uncertain tax positions as of June 30, 2015 or 2014. 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. Fiscal years 2012 through 2014 remain subject to examination by state and federal tax authorities.