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Quarterly

Quarterly

v2.3.0.11
Document and Entity Information
6 Months Ended
Jun. 30, 2011
Aug. 12, 2011
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jun. 30, 2011
Entity Registrant Name CAN CAL RESOURCES LTD  
Entity Central Index Key 0001083848  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2011  
Document Fiscal Period Focus Q2  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   37,632,453
v2.3.0.11
CONDENSED BALANCE SHEETS (USD $)
Jun. 30, 2011
Dec. 31, 2010
Current assets:    
Cash $ 144,149 $ 17,202
Other current assets 13,112 18,427
Total current assets 157,261 35,629
Property and equipment (net of accumulated depreciation of $31,839 and $27,454, respectively) 34,101 38,486
Total assets 191,362 74,115
Current liabilities:    
Accounts payable and accrued expenses 42,667 98,795
Accounts payable, related parties 90,632 60,000
Accrued interest 496,274 469,852
Accrued interest, related parties 1,712 680
Accrued salaries 462,004 403,328
Notes payable 360,550 360,550
Notes payable, related parties 53,191 57,191
Unearned rental revenues 22,917 9,167
Total current liabilities 1,529,947 1,459,563
Total liabilities 1,529,947 1,459,563
Commitments and contingencies    
Stockholders' (deficit):    
Preferred stock, $0.001 par value, 10,000,000 shares authorized, no shares issued and outstanding    
Common stock, $0.001 par value, 100,000,000 shares authorized, 37,548,453 and 30,711,203 shares issued and outstanding as of June 30, 2011 and December 31, 2010, respectively 37,548 30,711
Subscriptions payable, 157,893 and 2,193,166 shares at June 30, 2011 and December 31, 2010, respectively 9,474 131,590
Additional paid-in capital 9,168,858 8,707,834
(Deficit) accumulated during exploration stage (10,554,465) (10,255,583)
Total stockholders' (deficit) (1,338,585) (1,385,448)
Total liabilities and stockholders' (deficit) $ 191,362 $ 74,115
v2.3.0.11
CONDENSED BALANCE SHEETS (Parenthetical) (USD $)
Jun. 30, 2011
Dec. 31, 2010
CONDENSED BALANCE SHEETS [Abstract]    
Property and equipment, accumulated depreciation $ 31,839 $ 27,454
Preferred stock, par value per share $ 0.001 $ 0.001
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value per share $ 0.001 $ 0.001
Common stock, shares authorized 100,000,000 100,000,000
Common stock, shares issued 37,548,453 30,711,203
Common stock, shares outstanding 37,548,453 30,711,203
Common stock, shares payable 157,893 2,193,166
v2.3.0.11
CONDENSED STATEMENTS OF OPERATIONS (USD $)
3 Months Ended 6 Months Ended 198 Months Ended
Jun. 30, 2011
Jun. 30, 2010
Jun. 30, 2011
Jun. 30, 2010
Jun. 30, 2011
CONDENSED STATEMENTS OF OPERATIONS [Abstract]          
Material sales         $ 245,500
Cost of sales         263,400
Gross loss         (17,900)
Operating expenses:          
General and administrative 85,603 68,343 147,906 158,531 6,846,634
Exploration costs 12,158 393 20,006 8,390 569,356
Depreciation 2,192 2,442 4,385 4,937 254,939
Officer salary 30,000 30,000 60,000 60,000 1,021,176
Impairment of operating assets         443,772
Total operating expenses 129,953 101,178 232,297 231,858 9,135,877
Loss from operations (129,953) (101,178) (232,297) (231,858) (9,153,777)
Other income (expense):          
Other income 3,000   6,000   56,798
Interest income   8   23 52,945
Rental revenue 7,375 9,166 24,250 16,041 380,158
Gain on sale of fixed assets         26,801
Interest expense (76,671) (19,041) (96,835) (34,278) (1,443,790)
Total other income (expense) (66,296) (9,867) (66,585) (18,214) (927,088)
Loss before provision for income taxes (196,249) (111,045) (298,882) (250,072) (10,080,865)
Provision for income taxes          
Net loss from continuing operations (196,249) (111,045) (298,882) (250,072) (10,080,865)
Income from discontinued operations          
Income from discontinued operations         116,400
Loss on disposal of operations (net of taxes)         (590,000)
Net (loss) $ (196,249) $ (111,045) $ (298,882) $ (250,072) $ (10,554,465)
Weighted average number of common shares outstanding - basic and fully diluted 35,260,847 30,738,196 34,470,674 30,733,555  
Net (loss) per share - basic and fully diluted $ (0.01)   $ (0.01) $ (0.01)  
v2.3.0.11
STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT) (USD $)
Total
Common Stock [Member]
Subscription Receivable [Member]
Subscription Payable [Member]
Rescission Liability Receivable [Member]
Unamortized Equity Grants [Member]
Foreign Currency Translation Adjustment [Member]
Additional Paid-in Capital [Member]
(Deficit) Accumulated During Development Stage [Member]
Balance at Mar. 21, 1995                  
Balance, shares at Mar. 21, 1995                  
Common shares issued for services                  
Common shares issued for services, shares                  
Net loss (1,000)               (1,000)
Balance at Dec. 31, 1995 (1,000)               (1,000)
Balance, shares at Dec. 31, 1995                  
Common shares issued for services 628,400 3,400           625,000  
Common shares issued for services, shares   3,441,217              
Prior Period Adjustment 497,900               497,900
Net loss (497,000)               (497,000)
Balance at Dec. 31, 1996 628,300 3,400           625,000 (100)
Balance, shares at Dec. 31, 1996   3,441,217              
Common shares issued for services 1,054,400 3,000           1,051,400  
Common shares issued for services, shares   3,006,435              
Net loss (1,044,700)               (1,044,700)
Balance at Dec. 31, 1997 638,000 6,400           1,676,400 (1,044,800)
Balance, shares at Dec. 31, 1997   6,447,652              
Common shares issued for cash 211,800 600           211,200  
Common shares issued for cash, shares   557,509              
Foreign currency translation adjustment 8,500           8,500    
Net loss (353,000)               (353,000)
Balance at Dec. 31, 1998 505,300 7,000         8,500 1,887,600 (1,397,800)
Balance, shares at Dec. 31, 1998   7,005,161              
Common shares issued for cash 573,800 1,200           572,600  
Common shares issued for cash, shares   1,248,621              
Foreign currency translation adjustment (11,800)           (11,800)    
Realized foreign currency translation loss 3,300           3,300    
Prior Period Adjustment 15,000               15,000
Elimination of subsidiary upon disposal 116,400               116,400
Net loss (1,038,500)               (1,038,500)
Balance at Dec. 31, 1999 163,500 8,200           2,460,200 (2,304,900)
Balance, shares at Dec. 31, 1999   8,253,782              
Common shares issued for cash 949,600 1,200           948,400  
Common shares issued for cash, shares   1,119,009              
Net loss (962,500)               (962,500)
Balance at Dec. 31, 2000 150,600 9,400           3,408,600 (3,267,400)
Balance, shares at Dec. 31, 2000   9,372,791              
Common shares issued for cash 82,300 800           81,500  
Common shares issued for cash, shares   785,947              
Net loss (704,500)               (704,500)
Balance at Dec. 31, 2001 (471,600) 10,200           3,490,100 (3,971,900)
Balance, shares at Dec. 31, 2001   10,158,738              
Common shares issued for cash 271,000 1,100           269,900  
Common shares issued for cash, shares   1,093,280              
Common shares issued for services 23,900 100           23,800  
Common shares issued for services, shares   92,292              
Options granted for services 7,100             7,100  
Common shares issued for repayment of note payable, related party 119,800 300           119,500  
Common shares issued for repayment of note payable, related party, shares   309,677              
Warrants granted for loan fees on convertible notes payable, related party (33,400)   (16,700)   (16,700) (16,700)   16,700  
Common shares issued for loan fees on convertible notes payable, related party (27,000)   (13,500)   (13,500) (13,500)   13,500  
Common shares issued for loan fees on convertible notes payable, related party, shares   30,000              
Deemed interest on beneficial conversion feature of notes payable, related party 20,500             20,500  
Amortization of loan fees 24,600   8,200   8,200 8,200      
Net loss (709,300)               (709,300)
Balance at Dec. 31, 2002 (774,400) 11,700 (22,000)   (22,000) (22,000)   3,961,100 (4,681,200)
Balance, shares at Dec. 31, 2002   11,683,987              
Common shares issued for cash 164,700 800           163,900  
Common shares issued for cash, shares   823,410              
Common shares issued for services 64,200 400           63,800  
Common shares issued for services, shares   381,260              
Options granted for services 61,300             61,300  
Common shares issued for repayment of note payable, related party 78,300 400           77,900  
Common shares issued for repayment of note payable, related party, shares   364,305              
Deemed interest on beneficial conversion feature of notes payable, related party 38,300             38,300  
Amortization of loan fees 45,000   15,000   15,000 15,000      
Net loss (711,100)               (711,100)
Balance at Dec. 31, 2003 (1,033,700) 13,300 (7,000)   (7,000) (7,000)   4,366,300 (5,392,300)
Balance, shares at Dec. 31, 2003   13,252,962              
Common shares issued for cash 308,000 1,600           306,400  
Common shares issued for cash, shares   1,564,311              
Common shares issued for exercise of warrants 125,600 700           124,900  
Common shares issued for exercise of warrants, shares   701,275              
Common shares issued for services 74,200 400           73,800  
Common shares issued for services, shares   390,224              
Warrants granted for services 12,200             12,200  
Interest expense for warrants granted 280,200                
Common shares issued in satisfaction of accounts payable and accrued liabilities 229,400 900           228,500  
Common shares issued in satisfaction of accounts payable and accrued liabilities, shares   917,747              
Common shares issued for repayment of note payable 99,700 700           99,000  
Common shares issued for repayment of note payable, shares   702,760              
Common shares issued for repayment of note payable, related party 82,700 300           82,400  
Common shares issued for repayment of note payable, related party, shares   330,747              
Deemed interest on beneficial conversion feature of notes payable, related party 17,600             17,600  
Amortization of loan fees 21,000   7,000   7,000 7,000      
Net loss (1,030,500)               (1,030,500)
Balance at Dec. 31, 2004 (813,600) 17,900           5,591,300 (6,422,800)
Balance, shares at Dec. 31, 2004   17,860,026              
Common shares issued for cash 153,500 800           152,700  
Common shares issued for cash, shares   762,500              
Common shares issued for exercise of warrants 69,800 300           69,500  
Common shares issued for exercise of warrants, shares   349,545              
Common shares issued for services 300                
Common shares issued for services, shares 349,545                
Net loss (421,800)               (421,800)
Balance at Dec. 31, 2005 (1,012,100) 19,000           5,813,500 (6,844,600)
Balance, shares at Dec. 31, 2005   18,972,071              
Common shares issued for cash 644,500 2,400           642,100  
Common shares issued for cash, shares   2,448,213              
Common shares issued for exercise of warrants 43,500 200           43,300  
Common shares issued for exercise of warrants, shares   174,000              
Common shares issued for services 5,000             5,000  
Common shares issued for services, shares   19,500              
Options granted for services 123,500             123,500  
Warrants granted for services 2,200             2,200  
Common shares issued in satisfaction of accounts payable and accrued liabilities 81,000 400           80,600  
Common shares issued in satisfaction of accounts payable and accrued liabilities, shares   385,714              
Common shares issued for repayment of note payable, related party 11,900 100           11,800  
Common shares issued for repayment of note payable, related party, shares   56,821              
Common shares issued for debt conversion 41,900 200           41,700  
Common shares issued for debt conversion, shares   206,767              
Common shares issued for asset acquisition 400,000 1,000           399,000  
Common shares issued for asset acquisition, shares   1,000,000              
Warrants granted in satisfaction of accounts payable and accrued liabilities 35,400             65,400  
Warrants granted in satisfaction of notes payable-related parties 9,600             9,600  
Warrants granted in connection with debt conversion 40,000             40,000  
Net loss (621,000)               (621,000)
Balance at Dec. 31, 2006 (164,600) 23,264           7,277,736 (7,465,600)
Balance, shares at Dec. 31, 2006   23,263,086              
Common shares issued for cash 189,190 492           188,698  
Common shares issued for cash, shares   492,795              
Common shares issued for exercise of warrants 186,343 745           185,598  
Common shares issued for exercise of warrants, shares   745,372              
Common shares issued for services 2,014 4           2,010  
Common shares issued for services, shares   4,000              
Common shares issued in satisfaction of accrued wages 22,000 50           21,950  
Common shares issued in satisfaction of accrued wages, shares   50,000              
Debt forgiveness, related party 147,419             147,419  
Net loss (604,913)               (604,913)
Balance at Dec. 31, 2007 (222,547) 24,555           7,823,411 (8,070,513)
Balance, shares at Dec. 31, 2007   24,555,253              
Common shares issued for cash 8,124 33           8,091  
Common shares issued for cash, shares   32,500              
Net loss (1,016,661)               (1,016,661)
Balance at Dec. 31, 2008 (1,231,084) 24,588           7,831,502 (9,087,174)
Balance, shares at Dec. 31, 2008   24,587,753              
Common shares issued for cash 340,825 2,926 (25,000)         362,899  
Common shares issued for cash, shares   2,926,600              
Common shares issued for services 15,460 122           15,338  
Common shares issued for services, shares   122,000              
Common shares issued for debt conversion 398,593 3,189           395,404  
Common shares issued for debt conversion, shares   3,188,741              
Warrants granted in connection with debt conversion 78,961             78,961  
Common shares cancelled (55,787) (127)           (55,660)  
Common shares cancelled, shares   (126,898)              
Rescission liability receivable (Receipt of payment) (12,125)       (12,125)        
Net loss (595,554)               (595,554)
Balance at Dec. 31, 2009   30,698 (25,000)   (12,125)     8,628,444 (9,682,728)
Balance, shares at Dec. 31, 2009   30,698,196              
Common shares issued for cash 30,000 40 25,000         4,960  
Common shares issued for cash, shares   40,000              
Common shares cancelled   (27)           27  
Common shares cancelled, shares   (26,993)              
Rescission liability receivable (Receipt of payment) 12,125       12,125        
Common shares issued for debt conversion Modified 128,800     128,800          
Finance costs on inducement of conversion 74,403             74,403  
Common shares awarded for commissions 2,790     2,790          
Net loss (572,855)               (572,855)
Balance at Dec. 31, 2010 (1,385,448) 30,711   131,590       8,707,834 (10,255,583)
Balance, shares at Dec. 31, 2010   30,711,203              
Common shares issued for cash 281,435 4,691           276,744  
Common shares issued for cash, shares   4,690,584              
Common shares issued for debt conversion   2,146   (128,800)       126,654  
Common shares issued for debt conversion, shares   2,146,666              
Common shares awarded for commissions 6,684     6,684          
Extension of previously granted warrants, 6,377,496 warrants 57,626                
Net loss (298,882)               (298,882)
Balance at Jun. 30, 2011 $ (1,338,585) $ 37,548   $ 9,474       $ 9,168,858 $ (10,554,465)
Balance, shares at Jun. 30, 2011   37,548,453              
v2.3.0.11
STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) (USD $)
6 Months Ended 12 Months Ended
Jun. 30, 2011
Dec. 31, 2010
Dec. 31, 2004
Dec. 31, 2009
Related Party [Member]
Dec. 31, 2007
Related Party [Member]
Dec. 31, 2006
Related Party [Member]
Dec. 31, 2004
Related Party [Member]
Dec. 31, 2003
Related Party [Member]
Dec. 31, 2002
Related Party [Member]
Reduction in accounts payable and accrued liabilities resulting from issuance of common stock     $ 229,400            
Reduction of debt resulting from issuance of common stock     99,700 398,593     82,700 78,300 119,800
Interest paid in common stock 57,626   14,700 29,093   1,895   43,300 74,800
Accrued wages paid in common stock         $ 22,000        
Common shares awarded for debt conversion, shares   2,146,666              
Finance costs on inducement of conversion, warrants   2,146,666              
Common shares awarded for commissions, shares 51,917 46,500              
Extension of previously granted warrants, warrants 6,377,496                
v2.3.0.11
CONDENSED STATEMENTS OF CASH FLOWS (USD $)
6 Months Ended 198 Months Ended
Jun. 30, 2011
Jun. 30, 2010
Jun. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES      
Net loss $ (298,882) $ (250,072) $ (10,554,465)
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation and amortization 4,385 4,937 271,939
Bad debts     207,100
Gain on sale of fixed assets     (6,501)
Stock based compensation granted for services 6,684   557,748
Stock based compensation granted for financing and interest 57,626   734,190
Beneficial conversion feature on convertible debenture     25,200
Loss on disposal of investment property     938,600
Undistributed earnings of affiliate     (174,300)
Gain on discontinued operations     (116,400)
Loss on foreign currency translation     8,500
Impairment of operating assets     445,667
Decrease (increase) in assets:      
Other current assets 5,315 1,300 (105,707)
Increase (decrease) in liabilities:      
Accounts payable and accrued expenses (56,128) 53,464 (25,245)
Accounts payable and accrued expenses, related parties 30,632   90,632
Accrued interest 26,422 26,587 525,367
Accrued interest, related parties 1,032   1,712
Accrued salaries 58,676 62,616 462,004
Unearned revenues 13,750 11,459 22,917
Net cash used in operating activities (150,488) (89,709) (6,691,042)
CASH FLOWS FROM INVESTING ACTIVITIES      
Purchase of investment property     (1,083,600)
Proceeds from sale of investment property     319,300
Purchase of property and equipment   (767) (769,411)
Proceeds from sale of property and equipment     26,100
Net cash used in investing activities   (767) (1,507,611)
CASH FLOWS FROM FINANCING ACTIVITIES      
Proceeds from convertible debentures     128,800
Proceeds from notes payable     948,400
Principal payments on notes payable     (689,900)
Proceeds from notes payable, related parties   32,125 907,791
Principal payments on notes payable, related parties (4,000)   (383,050)
Proceeds from the issuance of common stock 281,435 42,125 7,430,761
Net cash provided by financing activities 277,435 74,250 8,342,802
Net increase (decrease) in cash 126,947 (16,226) 144,149
Cash, beginning of period 17,202 17,507  
Cash, end of period 144,149 1,281 144,149
Supplemental disclosures:      
Interest paid      
Income taxes paid      
v2.3.0.11
Basis of Presentation
6 Months Ended
Jun. 30, 2011
Basis of Presentation [Abstract]  
Basis of Presentation

Note 1 - Basis of Presentation

The accompanying unaudited condensed financial statements have been prepared in accordance with Securities and Exchange Commission requirements for interim financial statements. Therefore, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The financial statements should be read in conjunction with the Form 10-K for the year ended December 31, 2010 of Can-Cal Resources Ltd. (the "Company").

The interim condensed financial statements present the balance sheets, statements of operations, stockholders' equity (deficit) and cash flows of Can-Cal Resources Ltd. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States.

The interim financial information is unaudited. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present fairly the financial position as of June 30, 2011 and the results of operations and cash flows presented herein have been included in the financial statements. Interim results are not necessarily indicative of results of operations for the full year.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Certain amounts in the prior periods presented have been reclassified to conform to the current period financial statement presentation.

Exploration Stage Company
The Company is currently an exploration stage company. As an exploration stage enterprise, the Company discloses the deficit accumulated during the exploration stage and the cumulative statements of operations and cash flows from inception to the current balance sheet date. The Company has incurred net losses of $10,554,465 and used net cash in operations of $6,691,042 for the period from inception (March 22, 1995) through June 30, 2011. An entity remains in the exploration stage until such time as proven or probable reserves have been established for its deposits. Upon the location of commercially mineable reserves, the Company plans to prepare for mineral extraction and enter the development stage. To date, the exploration stage of the Company's operations consists of contracting with geologists who sample and assess the mining viability of the Company's claims.

Recent Accounting Pronouncements
In June 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2011-05, "Comprehensive Income (Topic 220): Presentation of Comprehensive Income", which is effective for annual reporting periods beginning after December 15, 2011.  ASU 2011-05 will become effective for the Company on January 1, 2012.  This guidance eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders' equity.  In addition, items of other comprehensive income that are reclassified to profit or loss are required to be presented separately on the face of the financial statements.  This guidance is intended to increase the prominence of other comprehensive income in financial statements by requiring that such amounts be presented either in a single continuous statement of income and comprehensive income or separately in consecutive statements of income and comprehensive income.  The adoption of ASU 2011-05 is not expected to have a material impact on our financial position or results of operations.

In May 2011, the FASB issued ASU 2011-04, "Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs", which is effective for annual reporting periods beginning after December 15, 2011.  This guidance amends certain accounting and disclosure requirements related to fair value measurements.  Additional disclosure requirements in the update include: (1) for Level 3 fair value measurements, quantitative information about unobservable inputs used, a description of the valuation processes used by the entity, and a qualitative discussion about the sensitivity of the measurements to changes in the unobservable inputs; (2) for an entity's use of a nonfinancial asset that is different from the asset's highest and best use, the reason for the difference; (3) for financial instruments not measured at fair value but for which disclosure of fair value is required, the fair value hierarchy level in which the fair value measurements were determined; and (4) the disclosure of all transfers between Level 1 and Level 2 of the fair value hierarchy.  ASU 2011-04 will become effective for the Company on January 1, 2012.  We are currently evaluating ASU 2011-04 and have not yet determined the impact that adoption will have on our financial statements.
 
In April 2011, the FASB issued ASU 2011-02, "Receivables (Topic 310): A Creditor's Determination of Whether a Restructuring is a Troubled Debt Restructuring". This amendment explains which modifications constitute troubled debt restructurings ("TDR"). Under the new guidance, the definition of a troubled debt restructuring remains essentially unchanged, and for a loan modification to be considered a TDR, certain basic criteria must still be met. For public companies, the new guidance is effective for interim and annual periods beginning on or after June 15, 2011, and applies retrospectively to restructuring occurring on or after the beginning of the fiscal year of adoption. The Company does not expect that the guidance effective in future periods will have a material impact on its consolidated financial statements.
v2.3.0.11
Going Concern
6 Months Ended
Jun. 30, 2011
Going Concern [Abstract]  
Going Concern
Note 2 - Going Concern

The Company incurred a net loss of $298,882 for the six months ended June 30, 2011. Also, the Company's current liabilities exceed its current assets by $1,372,686 as of June 30, 2011. These factors create substantial doubt about the Company's ability to continue as a going concern. The Company's management plans to continue to fund its operations in the short term with a combination of debt and equity financing and with revenue from operations in the long term.

The ability of the Company to continue as a going concern is dependent on securing additional sources of capital and the success of the Company's plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
v2.3.0.11
Related Party
6 Months Ended
Jun. 30, 2011
Related Party [Abstract]  
Related Party
Note 3 - Related Party

On June 30, 2011, the Company extended 348,320 previously granted common stock warrants issued to the Company's former CEO, with an exercise price of $0.15 for an additional 15 months from their expiration on June 30, 2011. These warrants are fully vested and expire on September 30, 2012. The total estimated value using the Black-Scholes Pricing Model, based on a volatility rate of 180% and a call option value of $0.0090, was $3,147 and was recognized as interest expense during the six months ended June 30, 2011.

On June 30, 2011, the Company extended 2,439,920 previously granted common stock warrants issued to the Company's CEO, with an exercise price of $0.15 for an additional 15 months from their expiration on June 30, 2011. These warrants are fully vested and expire on September 30, 2012. The total estimated value using the Black-Scholes Pricing Model, based on a volatility rate of 180% and a call option value of $0.0090, was $22,047 and was recognized as interest expense during the six months ended June 30, 2011.

On June 30, 2011, the Company extended a total of 1,301,312 previously granted common stock warrants issued to the one of the Company's directors, with an exercise price of $0.15 for an additional 15 months from their expiration on June 30, 2011. These warrants are fully vested and expire on September 30, 2012. The total estimated value using the Black-Scholes Pricing Model, based on a volatility rate of 180% and a call option value of $0.0090, was $11,758 and was recognized as interest expense during the six months ended June 30, 2011.

As of June 30, 2011 and December 31, 2010 we owed $282,004 and $282,004 of accrued salaries to our former CEO, respectively. In addition, we owed $180,000 of accrued salaries to our current CEO as of June 30, 2011.

During the year ended December 31, 2010, we received a total of $28,191 in exchange for an unsecured note payable to our CEO, G. Michael Hogan, due on demand, bearing interest at 8.00%.
 
On November 12, 2010, we received a short term loan of $9,000 in exchange for a non-interest bearing, unsecured note payable to an employee, due on demand. On December 30, 2010 the Company repaid $5,000, and the remaining $4,000 was repaid in February of 2011.

On July 1, 2010, the Company entered into a twelve month employment agreement, subject to automatic monthly renewals, with the Company's CEO, G. Michael Hogan. The terms of the agreement include a fixed annual salary of $120,000. The Company may elect to satisfy payment in shares of common stock in lieu of cash at a market value equal to $0.10 above the average closing trading price of the common stock for the preceding five (5) days from the date of such election. No payments have been made in cash or stock as of June 30, 2011.

On June 30, 2010, the Company entered into a twelve month consulting agreement, with a Board of Director's consulting firm, Futureworth Capital Corp. The terms of the agreement include annual compensation of $60,000, payable monthly. The Company may elect to satisfy payment in shares of common stock in lieu of cash at a market value equal to $0.10 above the average closing trading price of the common stock for the preceding five (5) days from the date of such election. No payments have been made in cash or stock as of June 30, 2011. As of June 30, 2011 we owed Futureworth Capital Corp. $90,000, as included in accounts payable, related parties, for service prior to, and during the service period under the consulting agreement.

On September 1, 2010, we received $25,000 in exchange for an unsecured note payable to a Board of Director's consulting firm, Futureworth Capital Corp, due on demand, bearing interest at 8.25%.
v2.3.0.11
Notes Payable
6 Months Ended
Jun. 30, 2011
Notes Payable [Abstract]  
Notes Payable
Note 4 - Notes Payable

Notes payable consisted of the following as of June 30, 2011 and December 31, 2010, respectively:
 
     
June 30,
     
December 31,
 
     
2011
     
2010
 
                 
Note payable to a stockholder, secured by real property, bearing interest at 16.0% per annum, interest only payments payable in semi-annual payments, matured November 2005 (Note: The Company is in default of interest payments totaling $460,000 and $436,000 of principal, respectively).
  $ 300,000     $ 300,000  
                 
Note payable to a stockholder, secured by real property, bearing interest at 8.0% per annum, matured July 2008, and is currently in default.
    25,114       25,114  
                 
Note payable to a stockholder, secured by real property, bearing interest at 8.0% per annum, matured June 2008, and is currently in default.
    35,436       35,436  
                 
Note payable, unsecured, non-interest bearing note to an employee due on demand, related party.
    -       4,000  
                 
Note payable to a member of the Board of Directors, unsecured, due on demand, bearing interest at 8.25%, related party.
    25,000       25,000  
                 
Note payable to the CEO, unsecured, non-interest bearing, due on demand, related party.
    28,191       28,191  
                 
Total notes payable
    413,741       417,741  
                 
   Less: current portion
    413,741       417,741  
                 
Notes payable, less current portion
  $ -     $ -  

Future maturities of long-term debt are as follows as of June 30, 2011:

2011
  $ 413,741  
2012
    -  
2013
    -  
2014
    -  
Thereafter
    -  
    $ 413,741  

Interest expense totaled $96,835 and $34,278 for the six months ended June 30, 2011 and 2010, respectively, including $57,626 related to expenses from the extension of warrants to purchase 6,377,496 shares of common stock for an additional 15 month term.

The Company is in default of its semi-annual interest payment of $24,000 for 2002 through June 30, 2011 (a total of $460,000) and the principal on a note payable of $300,000.

v2.3.0.11
Changes in Securities
6 Months Ended
Jun. 30, 2011
Changes in Securities [Abstract]  
Changes in Securities
Note 5 - Changes in Securities

1996

During 1996 the Company issued 3,441,217 shares of Can-Cal common stock to various investors resulting in cash proceeds of $628,400.

1997

On January 15, 1997 the Company issued 500,000 shares of Can-Cal common stock along with a cash payment of $100,000 in exchange for a 50% interest in S&S Joint Venture. Additionally, the Company agreed to loan the joint venture up to $48,000.

On February 13, 1997 the Board approved the acquisition of Scotmar Industries, Inc. 200,000 shares of Can-Cal common stock were issued in return for all of the issued and outstanding stock of the acquired company.

On October 27, 1997 the Board approved the issuance of 2,181,752 restricted common shares to ARUM, LLC to repay an existing debt of $315,046 and to purchase a property located in San Bernadino County, California, known as the Pisgah property.

During November, 1997 the Board approved the sale of 124,683 restricted common shares to various investors.

During December, 1997 the Board approved the issuance of 42,000 restricted common shares in return for services rendered.

1998

In July, 1998 the Board approved the issuance 122,000 restricted common shares to various investors.

In October, 1998 the Board approved the sale of 172,450 restricted common shares to various investors.

During December, 1998 the Board approved the sale of 263,059 restricted common shares to various investors.
 
1999

On February 1, 1999, the Board of Directors approved the Sale of 62,500 shares of Can-Cal common stock to a Board member.

On February 8, 1999 the Board approved the sale of 70,000 shares of Can-Cal common stock to a Board member.

On March 1, 1999 the Board approved the issuance of 32,121 shares of Can-Cal common stock in return for services rendered.

On March 15, 1999 the Board approved the sale of 86,000 shares of Can-Cal common stock to various investors.

On March 17, 1999 the Board approved the issuance of 40,000 shares of Can-Cal common stock in return for equipment.

On March 10, 1999 the Board approved the sale of 295,500 shares of Can-Cal common stock to various investors.

On April 1, 1999 the Board approved the sale of 1,000 shares of restricted common stock in return for equipment.

On July 21, 1999 the Board approved the sale of 357,500 shares of common stock to various investors.

On August 24, 1999 the Board approved the sale of 274,000 shares of common stock to various investors.

On September 7, 1999 the Board approved the sale of 20,000 shares of common stock to an investor.

On November 9, 1999 the board approved the issuance of 10,000 shares of common stock to an investor.

2000

On February 27, 2000, the Board of Directors approved the sale of 500,000 shares of common stock to three of its directors (all of whom reside in Canada), an offshore trust and another person affiliated with the Company.

On July 3, 2000, the Board of Directors exercised the option to acquire technology related to the extraction and processing of ore and, in accordance with the agreement with the two owners of that technology, issued 200,000 shares of Can-Cal's common stock to them.

On November 24, 2000, the Company borrowed $300,000 from a lender. As part of the transaction, the Company issued 45,000 shares of its common stock as a loan placement fee and granted the lender an option to purchase up to 300,000 shares of its common stock. On November 24, 2000, the lender exercised its option in full and purchased 300,000 shares of Can-Cal's common stock.

In July 2000 the Board of Directors authorized the sale of 74,009 shares of its common stock to eight persons, all of whom reside outside the United States. During the third quarter 46,670 shares were sold and the remaining 27,339 shares were sold during the fourth quarter. All of those shares were issued on December 15, 2000.

2001

In September, 2001, the Board of Directors authorized the sale of 20,000 shares of its common stock to an individual.

During October, 2001 the Company signed an Investment Agreement with two funds (Dutchess Private Equities Fund LP and DRH Investment Company LLC) to sell to those funds up to $8,000,000 in common stock of the Company, for a period of three years. In connection with the Investment Agreement, the Company issued 606,059 shares of restricted common stock to Dutchess Fund and its advisor, and to a broker-dealer firm, for services valued at $400,000, to induce those entities to enter into the Investment Agreement and perform services contemplated under such agreement. The Company also issued 37,000 shares of restricted common stock to the attorney for Dutchess Fund.
 
 
On November 2, 2001 the Board of Directors approved the sale of 82,888 shares of restricted common stock.

On December 12, 2001 the Board of Directors approved the sale of 40,000 shares of restricted common stock.

2002

On January 8, 2002, we sold 36,000 restricted common shares to three investors (one Canadian resident, and two private companies controlled and owned by Canadian residents) for $12,600 cash ($0.35 per share, representing a discount of approximately 50% from market price). These investors also were issued warrants to purchase 36,000 additional restricted shares, at a price of $0.35 per share; the warrants will expire January 8, 2004.

On February 11, 2002, 10,000 restricted common shares were sold to one investor (a Canadian resident) for $3,500 cash ($0.35 per share, representing a discount of approximately 50% from market price). This investor also was issued warrants to purchase 10,000 additional restricted shares, at a price of $0.35 per share; the warrants will expire February 11, 2004. Complete information about the Company was provided to these investors. These shares and warrants were sold pursuant to the exemption provided by Regulation S of the 1933 Act. No commissions were paid.

On January 31, 2002, we issued 309,677 restricted common shares to a lender (First Colony Merchant) for payment of past due and current interest on debt, $119,800. No commissions were paid.

From March 1, 2002 through June 3, 2002, 369,600 restricted common shares were issued to 48 investors (all Canadian residents or companies controlled and owned by Canadian residents) for $92,400 cash ($0.25 per share, representing discounts ranging from 0% to approximately 50% from market prices at the time of issuance). These investors also were issued warrants to purchase 369,600 additional restricted shares, at a price of $0.25 per share; the warrants will expire two years from the date of issuance. No commissions were paid.

On June 21, 2002, 40,000 restricted common shares were issued to Financial Communications Corp. for public relations services, valued at approximately $14,000.

From July 1, 2002 through December 24, 2002, 609,720 restricted common shares were issued to 20 investors (19 whom are Canadian residents or companies controlled and owned by Canadian residents, and one who is a resident of Great Britain) for $152,400 cash ($0.25 per share, representing prices that ranged from 22% over market to approximately 40% below market prices at the time of issuance). The investors also were issued warrants to purchase a total of 609,720 additional restricted shares, at a price of $0.25 per share; the warrants will expire two years from the date of issuance. No commissions were paid.

During September 2002, the Company issued 32,281 shares of the Company's common stock for $5,500 in cash related to the Dutchess Private Equities Fund, net of offering costs of $200, and issued 30,000 shares to Joseph B. LaRocco, attorney for Dutchess Fund and DRH Investment Company, LLC for legal services to such entities.

During October 2002, the Company issued 35,679 shares of the Company's common stock for $4,600 in cash related to the Dutchess Private Equities Fund, net of offering costs of $700.

In November 2002, the Company issued 52,292 restricted common shares to four individuals in exchange for various services, valued at approximately $9,900.

2003

During 2003, 673,410 restricted common shares were issued to 19 Canadian residents or companies controlled and owned by Canadian resident investors for $134,682 and 150,000 restricted common shares were issued to 12 U.S. resident investors for $30,000 (all shares were priced at $0.20 per share, representing premiums of up to 25% and discounts ranging from 0% to approximately 25% from market prices at the time of issuance). With respect to 237,410 restricted common shares, the investors were also issued warrants to purchase 474,820 additional restricted common shares and with respect to 473,500 restricted common shares, the investors were also issued warrants to purchase 473,500 additional restricted common shares; all warrants were priced at $0.20 per share and will expire two years from the date of issuance. With respect to 112,500 restricted common shares, the investors were also issued 112,500 warrants to purchase additional restricted common shares, at a price of $0.25 per share for a period of two years from the date of issuance. The shares and warrants were sold to Canadian investors pursuant to the exemption provided by Regulation S of the 1933 Act, and the shares and warrants sold to U.S. investors were sold pursuant to the exemption provided by section 4(2) of the 1933 Act.
 
During 2003, 364,305 restricted common shares were issued in conversion of $35,000 principal and interest on a debenture held by Dutchess Fund. The conversion prices were $0.099 for 50,710 shares ($5,000 of the debenture); $0.112 for 44,643 shares ($5,000 of the debenture); $0.061 for 81,433 shares ($5,000 of the debenture); $0.067 for 75,075 shares ($5,000 of the debenture); and $0.1334 for 112,444 shares ($15,000 of the debenture). All of the prices were determined by the conversion formula in the debenture (80% of the average bid prices for the three lowest (out of 15) trading days before conversion. These shares were sold pursuant to the exemption provided by section 4(2) of the 1933 Act.

During 2003, 205,166 restricted common shares in payment of $31,500 of services by Luis Vega, consulting geologist. The price per share was determined by dividing the amount owed by the average closing price of the Company's stock for each day's service. These shares were sold pursuant to the exemption provided by section 4(2) of the 1933 Act.

On March 14, 2003, 24,960 restricted common shares were issued to Catherine Nichols, a Canadian resident, for marketing services amounting to $5,000. The price per share was based on the average closing share price for the period during which the services were rendered. These shares were sold pursuant to the exemption provided by Regulation S of the 1933 Act.

During the period from July 15 to December 31, 2003, 112,326 restricted common shares in payment of $22,250 of investor relations services by Jeffrey Whitford, a Canadian resident who is a consultant to the Company. The price per share was based on the average monthly closing share prices for the period. These shares were sold pursuant to the exemption provided by Regulation S of the 1933 Act.

33,600 restricted common shares were issued to pay $4,200 of legal services provided by Stephen E. Rounds, outside company counsel. The price per share was based on the average closing share price for the period during which the services were rendered. These shares were sold pursuant to the exemption provided by section 4(2) of the 1933 Act.

On December 30, 2003, 5,208 restricted common shares were issued to Terry Brown, a Mexican resident, for technical consulting services amounting to $1,250. The price per share was based on the average closing share price for the period during which the services were rendered. These shares were sold pursuant to the exemption provided by Regulation S of the 1933 Act.

2004

During 2004, 2,255,586 restricted common shares were issued to 107 Canadian residents or companies controlled and owned by Canadian resident investors for $431,425 and 10,000 restricted common shares were issued to one U.S. resident investor for $2,000 (245,000 shares were priced at $0.18 per share, 1,620,131 shares were priced at $0.20 per share, 261,200 shares were priced at $0.25 per share, and 139,255 shares were issued as a 25% premium on the conversion of warrants, representing premiums of up to 25% and discounts ranging from 0% to approximately 25% from market prices at the time of issuance). With respect to 1,319,308 of these restricted common shares, the investors were also issued warrants to purchase 1,259,308 additional restricted common shares at $0.25 per share and 60,000 additional restricted common shares at $0.20 per share. With respect to 245,000 restricted common shares, the investors were also issued warrants to purchase 245,000 additional restricted common shares at $0.25, and with respect to another 245,000 restricted common shares, the investors were also issued warrants to purchase 245,000 additional restricted common shares at $0.50 per share. Of these, we also sold 5,000 shares to a director of the Company for proceeds of $1,000 and issued warrants to purchase 5,000 restricted common shares, exercisable at $0.25 per share for a two year period. All warrants will expire two years from the date of issuance. The shares and warrants were sold to Canadian investors pursuant to the exemption provided by Regulation S of the 1933 Act, and the shares and warrants sold to U.S. investors were sold pursuant to the exemption provided by section 4(2) of the 1933 Act.
 
During 2004, 702,760 restricted common shares were issued in conversion of $99,657 principal and interest on a debenture held by Dutchess Fund. The conversion prices were $0.216 for 92,593 shares ($20,000 of the debenture); $0.160 for 31,250 shares ($5,000 of the debenture); $0.144 for 34,722 shares ($5,000 of the debenture); $0.128 for 544,195 shares ($69,657 of the debenture). All of the prices were determined by the conversion formula in the debenture (80% of the average bid prices for the three lowest (out of 15) trading days before conversion). These shares were sold pursuant to the exemption provided by section 4(2) of the 1933 Act.

During 2004, 215,336 restricted common shares were issued in payment of $40,932 of services by Luis Vega, consulting geologist. The price per share was determined by dividing the amount owed by the average closing price of the Company's stock for each day's service. These shares were sold pursuant to the exemption provided by section 4(2) of the 1933 Act.

On February 4, 2004, 10,000 restricted common shares were issued to Yvonne St. Pierre, a Canadian resident, for computer-related services, in the amount of $2,500. These shares were issued pursuant to the exemption provided by Regulation S of the 1933 Act.

Between February 10 and March 31, 2004, 75,000 restricted common shares were issued to Jeff Whitford, a Canadian resident, for investor relation services, in the amount of $15,000. In addition, Mr. Whitford received 50,000 warrants at an exercise price of $0.20 per share; the warrants will expire between February 2006 and March 2006. The warrants were valued at $12,200 utilizing the Black Scholes model. These shares were issued pursuant to the exemption provided by Regulation S of the 1933 Act.

On December 22, 2004, 2,500 restricted common shares were issued to Karen Barra, a U.S. resident, for services amounting to $500. The price per share was $0.20 based on private placement offering for the period during which the services were rendered. These shares were sold pursuant to the exemption provided by Regulation S of the 1933 Act.

During 2004, 15,367 restricted common shares were issued in payment of accounts payable amounting to $3,842. The price per share was based on the average closing share price for the period during which the services were rendered. These shares were sold pursuant to the exemption provided by Regulation S of the 1933 Act.

During 2004, 87,388 restricted common shares were issued to Terry Brown, a Mexican resident, for technical consulting services amounting to $15,247. The price per share was based on the average closing share price for the period during which the services were rendered. These shares were sold pursuant to the exemption provided by Regulation S of the 1933 Act.

On March 1, 2004, in connection with the conversion of $82,687 in notes payable and $225,595 in accrued officers' salary payable, we issued 1,233,127 restricted common shares at $0.25 per share and 1,233,127 warrants, with an exercise price of $0.30 and expiring on March 1, 2006, to two officers, two directors, and a former director and his insurance agency. These persons and the insurance agency are accredited investors.

2005

During the twelve months ended December 31, 2005, we sold 712,500 restricted common shares to 21 Canadian residents for a total of $142,500, and issued warrants to purchase 712,500 restricted common shares, exercisable at $0.25 per share. These securities were issued in private transactions in reliance on the exemption from registration with the SEC provided by Regulation S.
 
A prior U.S. shareholder exercised other warrants, at exercise prices ranging from $0.22, for proceeds of $11,000, which resulted in the issuance of 50,000 restricted common shares. These securities were issued in private transactions in reliance on the exemption available under Section 4(2) of the 1933 Act.

We also issued, for services, 349,545 restricted common shares for a total value of $69,800 valued at fair market value at date of issuance and granted 13,575 warrants (exercisable for two years at $0.25 per share) valued at fair market value at date of issuance. These securities were issued to two Canadian residents, and one Mexican Corporation in reliance on the exemption from registration available under Regulation S, and one U.S. resident, in reliance on the exemption provided by Section 4(2) of the 1933 Act.

2006

During the twelve months ended December 31, 2006, we sold 2,622,213 restricted common shares to 76 Canadian residents, 8 US residents, 5 Israeli Nationals and 1 Swiss National for a total of $688,000, and issued warrants to purchase 2,348,213 restricted common shares, exercisable between $0.25 to $.45 per share. These securities were issued in private transactions, with respect to the Canadian residents, in reliance on the exemption from registration with the SEC provided by Regulation S, and with respect to the U.S. citizen, in reliance on the exemption available under Section 4(2) of the 1933 Act.

We also issued, for services, 8,500 restricted common shares for a total value of $2,325 and these securities were issued to one U.S. resident in reliance on the exemption provided by Section 4(2) of the 1933 Act.

On July 3, 2006, the Company issued 2,200 shares of its par value common stock for services received by an individual. As of September 30, 2006, the Company recorded consulting expense in the amount of $462, the fair value of the shares issued on the date of grant. Additionally, the Company granted a warrant to purchase 2,200 shares of the Company's common stock at an exercise price of $0.25 for a period of 2 years. The Company recorded an expense in the amount of $373, the fair value of the warrant on the date of grant. Fair value was determined using the Black Scholes option pricing model based on the following assumptions: expected dividends: $-0-; volatility: 187%; risk free interest rate: 5.12%.

On July 3, 2006, the Company issued 8,800 shares of its par value common stock for services received from an individual. As of September 30, 2006, the Company recorded consulting expense in the amount of $2,200, the fair value of the shares issued on the date of grant. Additionally, the Company granted a warrant to purchase up to 8,800 shares of the Company's common stock at an exercise price of $0.25 for a period of 2 years. The Company recorded an expense in the amount of $1,812, the fair value of the warrant on the date of grant. Fair value was determined using the Black Scholes option pricing model based on the following assumptions: expected dividends: $-0-; volatility: 187%; risk free interest rate: 5.12%.

On July 3, 2006, an officer of the Company elected to convert half of his accrued salary in exchange for 385,714 shares of common stock valued at $81,000, the fair value of the shares issued on the date of grant. Additionally, the Company granted a warrant to purchase up to 385,714 shares of the Company's common stock at an exercise price of $0.25 for a period of two years. The Company recorded an expense in the amount of $65,418, the fair value of the warrant on the date of grant. Fair value was determined using the Black Scholes option pricing model based on the following assumptions: expected dividends: $-0-; volatility: 187%; risk free interest rate: 5.12%.

On July 3, 2006, the Company issued 56,821 shares of its common stock for conversion of a note in the amount of $11,932 from a shareholder of the Company. Additionally, the Company granted a warrant to purchase up to 56,821 shares of the Company's common stock at an exercise price of $0.25 for a period of two years. The Company recorded an expense in the amount of $9,637, the fair value of the warrant on the date of grant. Fair value was determined using the Black Scholes option pricing model based on the following assumptions: expected dividends: $-0-; volatility: 187%; risk free interest rate: 5.12%.

On July 11, 2006, the Company issued 206,767 shares of its par value common stock pursuant to the convertible debenture agreement entered into on January 24, 2006 whereby the Company received a $40,000 convertible at a rate of $0.20 per share bearing interest of 10% per annum. The note holder elected to convert all accrued interest totaling $1,895 into 6,767 shares of the Company's par value common stock.
 
On August 22, 2006, the Company entered into an agreement to purchase mining claims located in Mohave County, Arizona in exchange for 1,000,000 shares of the Company's par value common stock. The Company recorded an asset totaling $400,000, the fair value of the underlying shares.

2007

During the twelve months ended December 31, 2007, we sold 1,238,167 restricted common shares to 72 Canadian residents and 4 US residents for a total of $375,534 and issued warrants to purchase 492,795 restricted common shares, exercisable between $0.35 and $.65 per share. These securities were issued in private transactions, with respect to the Canadian residents, in reliance on the exemption from registration with the SEC provided by Regulation S, and with respect to the U.S. citizen, in reliance on the exemption available under Section 4(2) of the 1933 Act.

On April 30, 2007, the Company also issued 50,000 shares of restricted common stock as part of a settlement agreement with a former officer of the Company for compensation of accrued salaries. The common stock was rendered to a U.S. citizen, in reliance on the exemption available under Section 4(2) of the 1933 Act. The shares were valued at a total of $22,000. In addition to monthly cash payments of $3,500 per month the Company has recorded debt forgiveness of $147,419 in accordance with the terms of the settlement agreement. Due to the related party nature of the transaction the gain has been recorded to additional paid in capital, therefore there has been no impact on the Company's net loss.

On June 29, 2007, the Company also issued 4,000 shares of restricted common stock for services rendered to a U.S. citizen, in reliance on the exemption available under Section 4(2) of the 1933 Act. The shares were valued at a total of $2,000.

2008

During the year ended December 31, 2008, the Company issued 32,500 shares of common stock and warrants to purchase 32,500 shares common stock for cash totaling $8,124. The warrants are fully vested upon grant, expire in two years and have an exercise price of $0.35 per share.

2009

During the year ended December 31, 2009, the Company issued 2,926,600 shares of its common stock and an equal number of warrants pursuant to a unit offering whereby each recipient received one share of common stock and one warrant certificate for a unit price of $0.125. The Company recorded proceeds from the offering of $340,825 and a subscription receivable in the amount of $25,000, subsequently paid in January 2010.

On June 30, 2009, certain note holders elected to convert the principal balance of their notes together with accrued interest into shares of the Company's common stock at a rate of $0.125 per share. In addition, the Company agreed to issue a warrant to purchase two shares of the Company's common stock for each share converted. The total principal balance converted was $369,500 and was converted into 2,956,000 common shares. Total accrued interest converted was $29,093 or 232,741 common shares.

During the year ended December 31, 2009, the Company issued a total of 107,000 shares of its restricted common stock to individuals for services rendered to the Company. As of December 31, 2009, the Company recorded an expense of $14,260 representing the fair value of the grant.

On December 31, 2009, the Company authorized the issuance of 9,000 and 6,000 shares of its restricted common stock to a director and officer of the Company, respectively for services performed for the Company. As of December 31, 2009, we recorded an expense of $1,200, representing the fair value of the issuance on the date of grant.
 
2010

On January 20, 2010, the Company issued 40,000 shares of its common stock and an equal number of warrants pursuant to a unit offering in exchange for proceeds of $5,000. The warrants are exercisable over fifteen months at an exercise price of $0.15 per share.

On January 20, 2010, the Company received $25,000 in payment on a subscription receivable outstanding at December 31, 2009.

On March 17, 2010, the Company received $12,125 in payment on a rescission receivable outstanding at December 31, 2009.

On December 31, 2010, the Company cancelled 26,993 previously granted shares to related parties.

On December 31, 2010, the Company converted $128,800 of previously issued convertible debentures to a total of nine investors in exchange for a total of 2,146,666 shares, at $0.06 per share, and a total of 2,146,666 warrants exercisable at $0.08 per share over a two year term, that were not issued until January 5, 2011. The shares were presented as a subscription payable of $128,800 at December 31, 2010. A total of $3,598 of accrued interest was forgiven by the note holders, as presented in other income. The total estimated value of the warrants granted as an inducement for conversion using the Black-Scholes Pricing Model, based on a volatility rate of 179% and a call option value of $0.0347, was $74,403, as presented in the income statement as interest expense.

Finders acting in connection with the conversion are entitled to receive aggregate fees of $2,790 and 46,500 shares of common stock. The fair market value of the common stock payable based on the closing stock price at the grant date was $2,790.

2011

On January 4, 2011, the Company issued 680,000 shares of its common stock and an equal number of warrants pursuant to a unit offering in exchange for proceeds of $40,800. The warrants are exercisable over two years at an exercise price of $0.08 per share.

On January 4, 2011, the Company issued 170,000 shares of its common stock and an equal number of warrants pursuant to a unit offering in exchange for proceeds of $10,200. The warrants are exercisable over two years at an exercise price of $0.08 per share.

On January 5, 2011, the Company issued 2,146,666 shares of its common stock to a total of nine investors in satisfaction for subscriptions payable on a total of $128,800 of previously converted debentures.

On January 26, 2011, the Company issued 85,000 shares of its common stock and an equal number of warrants pursuant to a unit offering in exchange for proceeds of $5,100. The warrants are exercisable over two years at an exercise price of $0.08 per share.

On January 26, 2011, the Company issued 85,000 shares of its common stock and an equal number of warrants pursuant to a unit offering in exchange for proceeds of $5,100. The warrants are exercisable over two years at an exercise price of $0.08 per share.

On February 25, 2011, the Company sold 170,000 shares of its common stock and an equal number of warrants pursuant to a unit offering in exchange for proceeds of $10,200. The warrants are exercisable over two years at an exercise price of $0.08 per share. The shares were subsequently issued on April 12, 2010.

On March 16, 2011, the Company sold 100,000 shares of its common stock and an equal number of warrants pursuant to a unit offering in exchange for proceeds of $6,000. The warrants are exercisable over two years at an exercise price of $0.08 per share. The shares were subsequently issued on April 12, 2010.
 
 
On March 16, 2011, the Company sold 85,000 shares of its common stock and an equal number of warrants pursuant to a unit offering in exchange for proceeds of $5,100. The warrants are exercisable over two years at an exercise price of $0.08 per share. The shares were subsequently issued on April 12, 2010.

On March 16, 2011, the Company sold 170,000 shares of its common stock and an equal number of warrants pursuant to a unit offering in exchange for proceeds of $10,200. The warrants are exercisable over two years at an exercise price of $0.08 per share. The shares were subsequently issued on April 12, 2010.

On March 16, 2011, the Company sold 343,334 shares of its common stock and an equal number of warrants pursuant to a unit offering in exchange for proceeds of $20,600. The warrants are exercisable over two years at an exercise price of $0.08 per share. The shares were subsequently issued on April 12, 2010.

On April 1, 2011, the Company sold a total of 320,000 shares of its common stock and an equal number of warrants pursuant to unit offerings to a total of three investors in exchange for total proceeds of $19,200. The warrants are exercisable over two years at an exercise price of $0.08 per share.

On May 31, 2011, the Company sold a total of 255,000 shares of its common stock and an equal number of warrants pursuant to unit offerings to a total of two investors in exchange for total proceeds of $15,300. The warrants are exercisable over two years at an exercise price of $0.08 per share.

On June 10, 2011, the Company sold a total of 565,250 shares of its common stock and an equal number of warrants pursuant to unit offerings to a total of six investors in exchange for total proceeds of $33,915. The warrants are exercisable over two years at an exercise price of $0.08 per share.

On June 22, 2011, the Company sold a total of 595,000 shares of its common stock and an equal number of warrants pursuant to unit offerings to a total of three investors in exchange for total proceeds of $35,700. The warrants are exercisable over two years at an exercise price of $0.08 per share.

On June 29, 2011, the Company sold a total of 1,067,000 shares of its common stock and an equal number of warrants pursuant to unit offerings to a total of five investors in exchange for total proceeds of $64,020. The warrants are exercisable over two years at an exercise price of $0.08 per share.

Finders acting in connection with the sales of common stock during the six months ending June 30, 2011 are entitled to receive aggregate fees of $4,570 and 111,392 shares of common stock. The fair market value of the common stock payable was $6,684.
v2.3.0.11
Options and Warrants
6 Months Ended
Jun. 30, 2011
Options and Warrants [Abstract]  
Options and Warrants
Note 6 - Options and Warrants

Options

There were no options issued during the six months ended June 30, 2011 and 2010, respectively.

The following table summarizes the Company's option activity related to employees and consultants:

   
Options
Outstanding
   
Weighted Average
Exercise Price
 
             
Balance, January 1, 2010
    1,000,000     $ 0.18  
  Granted
    -       -  
  Cancelled
    -       -  
  Exercised
    -       -  
  Expired
    -       0.18  
Balance, December 31, 2010
    1,000,000       0.18  
  Granted
    -       -  
  Cancelled
    -       -  
  Exercised
    -       -  
  Expired
    (500,000 )     (0.16 )
Balance, June 30, 2011
    500,000     $ 0.20  
 
Warrants

On January 22, 2010, the Company granted 40,000 stock warrants with an exercise price of $0.15 per share for its common stock. These stock warrants were granted in connection with financing activities relating to stock sold on January 22, 2010. These warrants were exercisable upon issuance and expired on March 31, 2011.

On December 31, 2010, the Company granted 2,146,666 stock warrants with an exercise price of $0.08 per share for its common stock. These stock warrants were granted in connection with the conversion of $128,800 of previously issued convertible debentures on December 31, 2010 to a total of nine investors in exchange for a total of 2,146,666 shares. These warrants were exercisable upon issuance and expire on December 31, 2012.

On June 30, 2011, the Company extended a total of 6,377,496 previously granted common stock warrants with an exercise price of $0.15 for an additional 15 months from their expiration on June 30, 2011. These warrants are fully vested and expire on September 30, 2012. The total estimated value using the Black-Scholes Pricing Model, based on a volatility rate of 129% and a call option value of $0.0094, was $57,626 and was recognized as interest expense during the six months ended June 30, 2011. A total of 4,089,552 of these warrants, with an estimated value of $36,952 related to officers and directors.

A total of 1,064,000 and 1,935,100 warrants expired during the six months ended June 30, 2011 and the year ended December 31, 2010, respectively.

The following table summarizes the Company's warrant activities:

   
Warrants
Outstanding
   
Weighted Average
Exercise Price
 
             
Balance, January 1, 2010
    9,336,596     $ 0.15  
  Granted
    2,186,666       0.08  
  Cancelled
    -       -  
  Exercised
    -       -  
  Expired
    (1,935,100 )     (0.17 )
Balance, December 31, 2010
    9,588,162       0.13  
  Granted
    4,690,584       0.08  
  Cancelled
    -       -  
  Exercised
    -       -  
  Expired
    (1,064,000 )     (0.15 )
Balance, June 30, 2011
    13,214,746     $ 0.11  
v2.3.0.11
Commitments and Contingencies
6 Months Ended
Jun. 30, 2011
Commitments and Contingencies [Abstract]  
Commitments and Contingencies
Note 7 - Commitments and Contingencies

Mining Claims - The Company has a lease and purchase option agreement covering six patented claims in the Cerbat Mountains, Hualapai Mining District and Mohave County Arizona. The Company pays $1,500 per quarter as minimum advance royalties. The Company has the option to purchase the property for $250,000 plus interest at a rate of 8% compounded annually from and after the date of its exercise of the option to purchase the property. If the Lessee exercises its option to purchase, all funds paid to Lessors shall be credited toward the purchase price as of the date the payments were made.
v2.3.0.11
Subsequent Events
6 Months Ended
Jun. 30, 2011
Subsequent Events [Abstract]  
Subsequent Events
Note 8 - Subsequent Events

On July 15, 2011, the Company issued 84,000 shares of its common stock and an equal number of warrants pursuant to a unit offering in exchange for proceeds of $5,040. The warrants are exercisable over two years at an exercise price of $0.08 per share.