10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2011

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____.

Commission File No.  001-34075

PIEDMONT MINING COMPANY, INC.

(Exact Name of Registrant as Specified in Its Charter)

North Carolina	56-1378516
(State or Other Jurisdiction Of Incorporation or Organization)	(I.R.S. Employer Identification Number)
18124 Wedge Parkway, Suite 214 Reno, Nevada	89511
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code (212) 734-9848

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days.

Yes x                                No 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T ( § 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

 Yes                               No 

Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.  (Check one):

Large accelerated filer		Accelerated filer	
Non-accelerated filer		Smaller reporting company	x
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes                       No x

As of August 15, 2011, there were 78,376,025 outstanding shares of the issuer’s common stock.

Explanatory Note.  The Company is filing this amendment number 1 to Form 10-Q for the quarterly period ended June 30, 2011 to file as exhibit 101 the interactive data files required under Rule 405 of Regulation S-T.

Item 6. Exhibits

Exhibit	Item
31.1	Certification Pursuant to Section 302*
32.1	Certification Pursuant to 18 U.S.C. Section 1350*
101.INS	XBRL Instance Document**
101.SCH	XBRL Taxonomy Extension Schema Document**
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document**
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document**
101.LAB	XBRL Taxonomy Extension Label Linkbase Document**
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document**

*	Filed herewith
**	XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of Securities Act of 1934, as amended, and otherwise is not subject to liability under these sections.

SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	PIEDMONT MINING COMPANY, INC.,
	a North Carolina Corporation
Dated:  December 1, 2011	/s/ Robert M. Shields, Jr.
	By:  Robert M. Shields, Jr. Its:  Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

EX-31.1

EXHIBIT 31.1

OFFICER’S CERTIFICATE

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Robert M. Shields, Jr. certify that:

I have reviewed this Quarterly Report on Form 10-Q/A of Piedmont Mining Company, Inc.

1.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

2.   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

3.   I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

d.   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

4.   I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:   December 2, 2011	By:
		Name:  Robert M. Shields, Jr.
		Title:  Chief Executive Officer (Principal Executive Officer) and  Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Piedmont Mining Company, Inc. (the “Company”) on Form 10-Q/A for the period ended June 30, 2011, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacities and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

1.           The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.           The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

Date: December 2, 2011	By:
		Name:  Robert M. Shields, Jr.
		Title:  Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

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CONTINGENCY

6 Months Ended

Jun. 30, 2011

Loss Contingency [Abstract]

Contingencies Disclosure [Text Block]

NOTE 4:  CONTINGENCY

During the year ended December 31, 2010, the Company was advised by its attorneys that a third party claimed a balance of $87,372 for uncompleted work expenditure requirements owing to them under a previous agreement.  The Company believes this claim is without foundation or merit and is disputing the amount.  The Company has not recorded a liability in relation to the foregoing matter as the amount and likelihood of loss, if any, cannot be determined at this time.

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MINERAL PROPERTY

6 Months Ended

Jun. 30, 2011

Mineral Property [Abstract]

Mineral Property [Text Block]

NOTE 3:  MINERAL PROPERTY

The Company has entered into exploration agreements as described below. A summary of the carrying amount of capitalized costs is as follows:

	June 30, 2011	December 31, 2010
Mineral Property
PPM Gold	$           -	$              1

	June 30, 2011	December 31, 2010
Reclamation Bonds
PPM Gold	$           -	$    11,566

PPM Gold Project

In April, 2007, the Company signed an “Exploration Agreement with Option to form Joint Venture” (the “Exploration Agreement”) with Miranda US, Inc., a wholly-owned subsidiary of Miranda Gold Corp. (“Miranda”), a Canadian corporation listed on the TSX Venture Exchange.  Under the terms of the Exploration Agreement, the Company has an option to earn a 55% interest in mining claims, located in Humboldt County, Nevada in consideration of incurring $1,750,000 in exploration work over a five year period.

The Company has not been able to meet its work commitment requirements in a timely manner due to a lack of adequate funding.  As a result, the Company wrote down the carrying value of this project to $1 at December 31, 2009.

On July 28, 2011, the Bureau of Land Management notified the Company that the PPM project was closed at the request of Miranda and that the reclamation bond was being returned to Miranda.  Miranda has agreed to release the Company from all outstanding liabilities in exchange for the return of the reclamation bond.  As a result, the Company wrote down the remaining carrying value of this project including the reclamation bond to $Nil, and recognized a net recovery of $14,184 at June 30, 2011.

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CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2011	Dec. 31, 2010
ASSETS
Cash	$ 67	$ 176
RECLAMATION BOND (Note 3)	0	11,566
MINERAL PROPERTY (Note 3)	0	1
INTEREST IN OIL LEASES (Note 2)	2	2
Assets, Total	69	11,745
LIABILITIES AND STOCKHOLDERS' DEFICIT
Accounts payable	377,659	366,534
Due to related parties (Note 5)	865,550	754,685
TOTAL LIABILITIES	1,243,209	1,121,219
STOCKHOLDERS' DEFICIT
CAPITAL STOCK (Note 6) Authorized:200,000,000 Common stock no par value 50,000,000 Preferred stock $1.00 par value Common stock issued and outstanding: 78,376,025 shares (December 31, 2010 - 78,376,025)	16,825,810	16,825,810
ADDITIONAL PAID IN CAPITAL	872,643	872,643
ACCUMULATED DEFICIT	(12,564,287)	(12,564,287)
DEFICIT ACCUMULATED DURING THE EXPLORATION STAGE	(6,377,306)	(6,243,640)
STOCKHOLDERS' DEFICIT	(1,243,140)	(1,109,474)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 69	$ 11,745

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NATURE OF OPERATIONS AND BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2011

Accounting Policies [Abstract]

Business Description and Basis of Presentation [Text Block]

NOTE 1:  NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Piedmont Mining Company, Inc. (the “Company”) was formed in 1983 under the laws of North Carolina, USA and is currently in the exploration stage. Since 2002 the Company has been primarily involved in the evaluation and exploration of mineral properties in the state of Nevada.  The Company’s focus has been on the exploration of gold and silver properties in Nevada.

Going Concern

These financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America with the assumptions applicable to a going concern which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business.

The Company is in the exploration stage and to date has not yet generated any net revenues or cash flow from its activities, except for some minor cash flow from interests in two oil wells and advances from management. The Company has a history of losses and has a working capital deficit of $1,243,142 and an accumulated deficit of $18,941,593 at June 30, 2011.  The Company is dependent on the continued support of its creditors and its ability to raise further capital. In the current market conditions there is uncertainty that the necessary funding can be obtained as needed, raising substantial doubt as to the ability of the Company to continue as a going concern.  These financial statements do not reflect any adjustments to the carrying values of assets that might result from the outcome of this uncertainty.

The Company plans to fund its ongoing operations primarily by way of private placements of its securities and advances from management. Management believes that advances from management will contribute toward funding the Company’s activities until appropriate levels of funding can be arranged and/or revenue can be earned from the properties either through production or sale. If the Company is unsuccessful in obtaining adequate funding, its proposed activities will continue to be postponed until market conditions improve.

On March 4, 2011, the Company entered into a Reorganization and Share Exchange Agreement, which was terminated on April 30, 2011, as provided for in the Agreement.  (Refer to Note 8)

Unaudited Interim Financial Statements

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q. They do not include all information and footnotes required by United States generally accepted accounting principles for complete financial statement disclosure. However, except as disclosed herein, there have been no material changes in the information disclosed in the notes to the financial statements for the year ended December 31, 2010, included in the Company’s Form 10-K filed with the Securities and Exchange Commission on March 24, 2011. The unaudited interim consolidated financial statements should be read in conjunction with those financial statements included in the Form 10-K. In the opinion of management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the six months ended June 30, 2011 are not necessarily indicative of the results that may be expected for the year ending December 31, 2011.

Recent accounting pronouncements with future effective dates are not expected to have an impact on the Company’s current financial statements

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INTEREST IN OIL LEASES

6 Months Ended

Jun. 30, 2011

Interest In Oil Leases Disclosure [Abstract]

Interest In Oil Leases Disclosure [Text Block]

NOTE 2:  INTEREST IN OIL LEASES

The Company was granted interests in two oil wells in Tennessee in consideration for $2 consisting of a 10.5% undivided working interest in one well and a 6% over-riding royalty interest in another.  There was no cash flow from oil production in 2010 or in 2011 to date.

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CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $)	Jun. 30, 2011	Dec. 31, 2010
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	78,376,025	78,376,025
Common stock, shares outstanding	78,376,025	78,376,025
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized	50,000,000	50,000,000

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DOCUMENT AND ENTITY INFORMATION	6 Months Ended
	Jun. 30, 2011	Aug. 15, 2011
Entity Registrant Name	Piedmont Mining Company, Inc.
Entity Central Index Key	0001366826
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	pied
Entity Common Stock, Shares Outstanding		78,376,025
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2011
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2011

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CONSOLIDATED STATEMENTS OF LOSS (USD $)	3 Months Ended		6 Months Ended		114 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011
REVENUES
Oil revenues	$ 0	$ 0	$ 0	$ 0	$ 3,233
EXPENSES
Depreciation	0	0	0	0	146,383
Exploration, geological and geophysical costs (Note 2)	0	25,000	54	25,577	2,347,353
Finance fees	0	0	0	0	191,200
General and administrative	8,799	33,922	20,526	46,241	1,010,174
Impairment (recovery) of mineral properties (Note 3)	(14,184)	0	(14,184)	0	327,790
Management fees	42,000	42,000	84,000	84,000	1,266,872
Professional fees	880	33,206	43,270	64,653	1,076,502
Operating Expenses, Total	37,495	134,128	159,417	220,471	6,366,274
LOSS BEFORE OTHER ITEMS	(63,246)	(134,128)	(133,666)	(220,471)	(6,363,041)
OTHER ITEMS
Interest income	0	0	0	0	32,325
Other non-operating losses	0	0	0		(46,590)
NET LOSS FOR THE PERIOD	$ (63,246)	$ (134,128)	$ (133,666)	$ (220,471)	$ (6,377,306)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING BASIC AND DILUTED (in shares)	78,376,025	72,145,802	78,376,025	70,899,312
BASIC AND DILUTED LOSS PER SHARE (in dollars per share)	$ 0	$ 0	$ 0	$ 0

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SUPPLEMENTAL CASH FLOW INFORMATION

6 Months Ended

Jun. 30, 2011

Supplemental Cash Flow Elements [Abstract]

Cash Flow, Supplemental Disclosures [Text Block]

NOTE 7: SUPPLEMENTAL CASH FLOW INFORMATION

Other information	Six months ended June 30, 2011		Six months ended June 30, 2010
Cash paid for interest	$	-	$	-
Cash paid for income taxes	$	-	$	-

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CAPITAL STOCK

6 Months Ended

Jun. 30, 2011

Stockholders Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

NOTE 6:  CAPITAL STOCK

Share Capital

The Company’s capitalization is 50,000,000 authorized preferred shares with a par value of $1.00 per share and 200,000,000 common shares with no par value.

Preferred Stock transactions:

On March 4, 2011, the Company entered into a Series A Preferred Stock Purchase Agreement with Financial Resolutions of America Corporation (“FRAC”), pursuant to which FRAC purchased an aggregate of 200,000 shares of Company’s Series A Preferred Stock, for an aggregate purchase price of $479,290, which was paid in the form of a promissory note with the indebtedness represented by such note to be due and payable in full at the contemplated closing.  The agreement was terminated on April 30, 2011, the preferred shares were returned and the promissory note was canceled.

Common share transactions:

During the six months ended June 30, 2011, the Company did not have any common share transactions.

Stock-Based Compensation and Other Equity Transactions

The Company does not have a stock-based compensation plan. The Company’s Compensation Committee makes recommendations to the Board of Directors for the granting of awards of stock options to its officers and directors on a discretionary basis.

No stock options were granted during the six months ended June 30, 2011

Below is a summary of the stock option activity for the six months ended June 30, 2011.

	Number of Options			Weighted Average Exercise Price
Total Options:
Outstanding, December 31, 2010		4,250,000		$	0.245
Expired June 30, 2011		(2,500,000	)		0.242
Outstanding, June 30 2011		1,750,000		$	0.25

The following tables summarize information and terms of the options outstanding and exercisable:

					Weighted
		Weighted			Average
		Average	Weighted		Remaining	Weighted
		Remaining	Average		Contractual	Average
Range of Exercise Prices	Number of Shares	Contractual Life (in years)	Exercise Price	Number of Shares	Life (in years)	Exercise Price
Options outstanding at June 30, 2011				Options exercisable at June 30,, 2011
$ 0.25	1,750,000	0.607	$      0.25	1,750,000	0.67	$     0.25
Options outstanding at December 31, 2010				Options exercisable at December 31,2010
$ 0.23 – 0.28	4,250,000	0.62	$      0.245	4,250,000	0.62	$     0.245

Common stock purchase warrants

Total outstanding warrants at June 30, 2011 were 2,737,500. The exercise prices on all warrants range from $0.03 to $0.16 per share. The warrants are exercisable immediately upon issuance and expiration dates range from two and five years from the date of issuance.

During the six months ended June 30, 2011, the Company did not issue any warrants.

A summary of the Company’s stock purchase warrants as of June 30, 2011 is presented below:

	Number of Warrants			Weighted Average Exercise Price		Weighted Average Remaining Life (years)
Balance, December 31, 2010		3,162,500			$0.057		1.52
Expired		(425,000	)		0.112		-
Balance at June 30, 2011		2,737,500			$0.049		1.23

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REORGANIZATION AND SHARE EXCHANGE AGREEMENT

6 Months Ended

Jun. 30, 2011

Reorganisation and Share Exchange Agreement [Abstract]

Reorganisation and Share Exchange Agreement [Text Block]

NOTE 8:  REORGANIZATION AND SHARE EXCHANGE AGREEMENT

On March 4, 2011, the Company entered into a Reorganization and Share Exchange Agreement (the “Share Exchange Agreement”) with FRAC, a California corporation which operates a judgment recovery business using its proprietary servicing platform, and all of FRAC’s shareholders.  Pursuant to the agreement, the FRAC Shareholders would exchange all of the common stock of FRAC owned by them, representing all of the issued and outstanding shares of common stock of FRAC, for shares of Series C Preferred Stock of the Company (the “Exchange”).  Upon consummation of the proposed Exchange, it was contemplated that FRAC shareholders would hold shares in the Company and FRAC would become a wholly owned subsidiary of the Company.

Concurrently with the Share Exchange Agreement and as contemplated therein, on March 4, 2011, the Company entered into a Series A Preferred Stock Purchase Agreement with FRAC, pursuant to which FRAC purchased an aggregate of 200,000 shares of Company’s Series A Preferred Stock, which in the aggregate represent voting rights equal to approximately 70% of the Company’s total voting power, for an aggregate purchase price of $479,290, which was paid in the form of a promissory note with the indebtedness represented by such note to be due and payable in full at the contemplated closing. In the event the Share Exchange Agreement is terminated, FRAC would return the shares of Series A Preferred Stock in exchange for cancellation of the promissory note issued in connection with the purchase of such shares.

In connection with the transactions contemplated by the Share Exchange Agreement, the Company filed Articles of Amendment to designate shares of Series A Preferred Stock and Series B Preferred Stock as follows:

· Designation of Series A Preferred Stock.  On March 4, 2011, the Company filed Articles of Amendment amending the Company’s Articles of Incorporation to designate 200,000 shares of the Company’s authorized Preferred Stock as Series A Preferred Stock. Shares of Series A Preferred Stock have been designated with the following rights, privileges, and preferences:  Each share of Series A Preferred Stock shall entitle the holder thereof to 1,000 votes, and the right to vote, together as a single class with holders of all common stock and preferred stock then outstanding, on any question or matter upon which holders of the Company’s common stock are entitled to vote.  Shares of Series A Preferred Stock shall not entitle the holders thereof to any dividends or liquidation preferences and such shares shall not be convertible into any other security of the Company.

· Designation of Series B Preferred Stock.  On March 4, 2011, the Company filed Articles of Amendment amending the Company’s Articles of Incorporation to designate 10,000,000 shares of the Company’s authorized Preferred Stock as Series B Preferred Stock.  Shares of Series B Preferred Stock have been designated with the following rights, privileges, and preferences: Each share of Series B Preferred Stock shall automatically convert into shares of the Company’s post-Reverse Split Common Stock at a rate of one post-Reverse Split share of the Company’s Common Stock.

On April 30, 2011 the Reorganization and Share Exchange Agreement was terminated with no further obligations on either side. Accordingly, the Series A Preferred Stock was returned to the Company in exchange for cancellation of the promissory note originally issued for such shares.  No Series B Preferred Stock was issued.

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SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2011

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE 9:  SUBSEQUENT EVENTS

Refer to Note 3.

Management has evaluated events occurring between the end of its fiscal quarter June 30, 2011 to the date of filing.

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended		114 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss for the period	$ (133,666)	$ (220,471)	$ (6,377,306)
Adjustments to reconcile net loss to net cash from operating activities
- depreciation	0	0	146,383
- impairment (recovery) of mineral properties	(14,184)	0	327,790
- stock based compensation	0	0	409,468
- warrants issued as finance fee	0	0	92,100
-non-cash expenses			47,468
- stock issued as finance fee	0	0	100,000
- other income	0	0	21,100
- loss on other non-operating activities	0	0	(21,000)
Changes in operating assets and liabilities:
- prepaid expenses and other	0	0	949
- due to related parties	110,865	111,187	770,343
- accounts payable and accrued liabilities	36,876	70,318	645,956
NET CASH USED IN OPERATING ACTIVITIES	(109)	(38,966)	(3,836,748)
CASH FLOWS USED IN INVESTING ACTIVITIES
Refund of reclamation bond	0	0	1,797
Purchase of property and equipment	0	0	(5,579)
Purchase of oil and gas interests	0	0	(2)
Mineral property costs	0	0	(296,042)
Proceeds from non-operating activities	0	0	97,125
NET CASH USED IN INVESTING ACTIVITIES	0	0	(202,701)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of shares for cash, net of issuance costs		22,500	3,747,674
Convertible notes	0	0	291,145
NET CASH FROM FINANCING ACTIVITIES		22,500	4,038,819
DECREASE IN CASH	(109)	(16,466)	(630)
CASH, BEGINNING	176	16,466	697
CASH, ENDING	$ 67	$ 0	$ 67

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DUE TO RELATED PARTIES AND RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2011

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

NOTE 5:  DUE TO RELATED PARTIES AND RELATED PARTY TRANSACTIONS

During the six months ended June 30, 2011 the Company incurred management fees of $84,000 (2010: $84,000) to the Company’s President and CEO. In addition, the Company reimbursed the President for office rent which totaled $9,600 for the six months ended June 30, 2011 (2010: $9,600).  At June 30, 2011, a balance of $656,578 (December 31, 2010: $561,039) was owing to the President and CEO for unpaid management fees, rent and expense reimbursements.

During the six months ended June 30, 2011, the Company incurred exploration costs and fees of $Nil (2010: $420) to the Company’s Vice-President.  At June 30, 2011 a balance of $33,668 (December 31, 2010: $33,668) was owing to the Vice-President for unpaid fees, exploration costs and expense reimbursements.

From time to time, the Company’s officers and directors advance loans to the Company. These loans bear interest at 5% per annum. These loans are unsecured and have no fixed repayment terms. The unpaid balance relating to these advances, which include accrued interest, at June 30, 2011 was $175,304 (December 31, 2010: $159,978).

No stock options were granted to officers or directors by the Company for the six month period ended June 30, 2011.  All related party transactions involving provision of services or transfer of tangible assets in the normal course of business were recorded at the exchange amount, which is the value established and agreed to by the related parties.