Income Taxes

12 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Note 12. Income Taxes

At June 30, 2022, the Company has net operating loss carry forwards of $38,209,398 (2021- $38,219,334) expiring between the years 2023 and 2038 which are available to reduce future taxable income. Tax losses incurred after June 30, 2018 of $23,983,360 (2021 - $17,456,576) may be carried forward indefinitely. The tax effects of the significant components within the Company’s deferred tax asset (liability) at June 30, 2022 and 2021 are as follows:

United States	2022			2021
Mineral properties	$	683,600		$	868,970
Asset retirement obligation		939,807			388,425
Fixed assets		204			386
Stock options		540,381			447,913
Net operating losses		13,060,479			11,676,822
	$	15,224,471		$	13,382,516
Valuation allowance		(14,015,248	)		(11,333,208	)
Mineral properties	$	1,209,223		$	2,049,308
Net deferred tax asset	$	—		$	—

The income tax recovery differs from the amounts computed by applying statutory tax to pre-tax losses as a result of the following:

	2022			2021
Loss before taxes	$	(7,559,689	)	$	(5,903,618	)
US Statutory tax rate		21.00	%		21.00	%
Expected income recovery		(1,587,535	)		(1,239,760	)
Non-deductible items		164			157
Change in estimates		(1,094,670	)		1,196,349
Other items		—			—
Change in tax rates		—			—
Change in valuation allowance		2,959,667			43,254
Total income taxes (recovery)		277,627		$	—
Current tax expense (recovery)		—			—
Deferred tax expense (recovery)		277,627			—
	$	—		$	—

The potential tax benefits of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years.

Accounting for uncertainty for Income Tax

Income taxes are determined using assets and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. In addition, a valuation allowance is established to reduce any deferred tax asset for which it is determined that it is more likely than not that some portion of the deferred tax asset will not be realized.

As at June 30, 2022 and 2021, the Company’s consolidated balance sheets did not reflect a liability for uncertain tax positions, nor any accrued penalties or interest associated with income tax uncertainties. The Company is subject to income taxation at the federal and state levels. The Company is subject to US federal tax examinations for the tax years 2019 through 2022. Loss carryforwards generated or utilized in years earlier than 2019 are also subject to examination and adjustment. The Company has no income tax examinations in process.