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Drn - Delrand Resources Limited - Consolidated Financial Statements For The

Release Date: 05/04/2012 10:32:06      Code(s): DRN
DRN - Delrand Resources Limited - Consolidated financial statements for the     
years ended 31 December 2011 and 2010                                           
DELRAND RESOURCES LIMITED                                                       
(formerly BRC DiamondCore Ltd.)                                                 
(Incorporated in Canada)                                                        
(Corporation number 627115-4)                                                   
Share code: DRN & ISIN Number: CA2472671072                                     
("Delrand" or "the Company")                                                    
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED 31 DECEMBER 2011 AND      
2010                                                                            
Management`s Report                                                             
The consolidated financial statements, the notes thereto and other financial    
information contained in the Management`s Discussion and Analysis have been     
prepared in accordance with International Financial Reporting Standards and     
are the responsibility of the management of Delrand Resources Limited           
(formerly BRC DiamondCore Ltd., the "Company").  The financial information      
presented elsewhere in the Management`s Discussion and Analysis is consistent   
with the data that is contained in the consolidated financial statements.  The  
consolidated financial statements, where necessary, include amounts which are   
based on the best estimates and judgments of management.                        
In order to discharge management`s responsibility for the integrity of the      
financial statements, the Company maintains a system of internal controls.      
These controls are designed to provide reasonable assurance that the Company`s  
assets are safeguarded, transactions are executed and recorded in accordance    
with management`s authorization, proper records are maintained and relevant     
and reliable information is produced.  These controls include maintaining       
quality standards in hiring and training of employees, policies and procedures  
manuals, a corporate code of conduct and ensuring that there is proper          
accountability for performance within appropriate and well-defined areas of     
responsibility.  The system of internal controls is further supported by a      
compliance function, which is designed to ensure that management and the        
Company`s employees comply with securities legislation and conflict of          
interest rules.                                                                 
The Board of Directors is responsible for overseeing management`s performance   
of its responsibilities for financial reporting and internal control.  The      
Audit Committee, which is composed of non-executive directors, meets with       
management as well as the external auditors, as and when appropriate, to        
ensure that management is properly fulfilling its financial reporting           
responsibilities to the Board of Directors who approve the consolidated         
financial statements.  The external auditors have full and unrestricted access  
to the Audit Committee to discuss the scope of their audits, the adequacy of    
the system of internal controls and review reporting issues.                    
The consolidated financial statements for the year ended December 31, 2011      
have been audited by Deloitte & Touche LLP, Chartered Accountants and Licensed  
Public Accountants, in accordance with Canadian generally accepted auditing     
standards.                                                                      
Signed) "Michiel C.J. de Wit"           (Signed) "Brian P. Scallan"             
Michiel C.J. de Wit                     Brian P. Scallan,                       
President                               Vice President, Finance                 
March 29, 2012                                                                  
Independent Auditor`s Report                                                    
To the Shareholders of Delrand Resources Limited (formerly BRC DiamondCore      
Ltd.)                                                                           
We have audited the accompanying consolidated financial statements of Delrand   
Resources Limited (the "Company"), which comprise the consolidated statements   
of financial position as at December 31, 2011, December 31, 2010 and January    
1, 2010, and the consolidated statements of comprehensive loss, statements of   
changes in equity and statements of cash flow for the years ended December 31,  
2011 and December 31, 2010, and a summary of significant accounting policies    
and other explanatory information.                                              
Management`s Responsibility for the Consolidated Financial Statements           
Management is responsible for the preparation and fair presentation of these    
consolidated financial statements in accordance with International Financial    
Reporting Standards, and for such internal control as management determines is  
necessary to enable the preparation of consolidated financial statements that   
are free from material misstatement, whether due to fraud or error.             
Auditor`s Responsibility                                                        
Our responsibility is to express an opinion on these consolidated financial     
statements based on our audits. We conducted our audits in accordance with      
Canadian generally accepted auditing standards. Those standards require that    
we comply with ethical requirements and plan and perform the audit to obtain    
reasonable assurance about whether the consolidated financial statements are    
free from material misstatement.                                                
An audit involves performing procedures to obtain audit evidence about the      
amounts and disclosures in the consolidated financial statements. The           
procedures selected depend on the auditor`s judgment, including the assessment  
of the risks of material misstatement of the consolidated financial             
statements, whether due to fraud or error. In making those risk assessments,    
the auditor considers internal control relevant to the entity`s preparation     
and fair presentation of the consolidated financial statements in order to      
design audit procedures that are appropriate in the circumstances, but not for  
the purpose of expressing an opinion on the effectiveness of the entity`s       
internal control. An audit also includes evaluating the appropriateness of      
accounting policies used and the reasonableness of accounting estimates made    
by management, as well as evaluating the overall presentation of the            
consolidated financial statements.                                              
We believe that the audit evidence we have obtained in our audits is            
sufficient and appropriate to provide a basis for our audit opinion.            
Opinion                                                                         
In our opinion, the consolidated financial statements present fairly, in all    
material respects, the financial position of Delrand Resources Limited as at    
December 31, 2011, December 31, 2010 and January 1, 2010, and its financial     
performance and its cash flows for the years ended December 31, 2011 and        
December 31, 2010 in accordance with International Financial Reporting          
Standards.                                                                      
Emphasis of Matter                                                              
Without qualifying our opinion, we draw attention to Note 1 - Corporate         
Information and Continuation of the Business in the consolidated financial      
statements which indicates that the Company incurred a net loss of $123,314     
for the year ended December 31, 2011 and, as of that date, the Company`s        
current liabilities exceeded current assets by $533,191 and the Company`s       
deficit was $119,531,417. These conditions, along with other matters as set     
forth in Note 1, indicate the existence of material uncertainties that may      
cast significant doubt about the Company`s ability to continue as a going       
concern.                                                                        
/s/ Deloitte & Touche LLP                                                       
Chartered Accountants                                                           
Licensed Public Accountants                                                     
Toronto, Canada                                                                 
March 29, 2012                                                                  
CONTENTS                                                                        
Consolidated Statements of Financial Position..........                         
Consolidated Statements of Comprehensive Loss.............                      
Consolidated Statements of Changes in Equity..............                      
Consolidated Statements of Cash Flow..............                              
1.   Corporate Information and Continuation of the Business                     
2.   Basis of Preparation                                                       
3.   Summary of Significant Accounting Policies                                 
4.   Subsidiaries and Investment in Associate                                   
5.   Cash                                                                       
6.   Property, Plant and Equipment                                              
7.   Exploration and Evaluation Assets                                          
8.   Accounts Payable and Accrued Liabilities                                   
9.   Notes Payable                                                              
10.  Related Party Transactions                                                 
11.  Share Capital                                                              
12.  Share-Based Payments                                                       
13.  Segmented Reporting                                                        
14.  Financial Risk Management Objectives and Policies                          
15.  Supplemental Cash Flow Information                                         
16.  Commitments and Contingencies                                              
17.  Income Taxes                                                               
18.  First Time Adoption of International Financial Reporting Standards         
CONSOLIDATED STATEMENTS OF FINANICAL POSITION                                   
Expressed in         Notes    December 31,   December 31,   January 1, 2010     
Canadian Dollars                      2011 2010 (Note 18)         (Note 18)     
                                        $              $                 $      
Assets                                                                          
Current Assets                                                                  
Cash                     5          88,068        126,931           664,495     
Other receivable        7b          26,145              -                 -     
Prepaid expenses                    38,342          21,713           163,175    
and other assets                                                                
Total Current                      152,555        148,644           827,670     
Assets                                                                          
                                                                                
Non-Current Assets                                                              
Property, plant and      6               -          4,100           141,794     
equipment                                                                       
Exploration and          7       5,121,486      5,075,041         5,826,755     
evaluation                                                                      
Total Non-Current                5,121,486      5,079,141         5,968,549     
Assets                                                                          
                                                                                
Total Assets                     5,274,041      5,227,785         6,796,219     

Liabilities and                                                                 
Shareholders`                                                                   
Equity                                                                          
Current Liabilities                                                             
Accounts payable         8         530,024         834,176         1,027,172    
and accrued                                                                     
liabilities                                                                     
Notes payable            9               -        400,493                 -     
Income taxes            17          11,076          6,127                 -     
payable                                                                         
Due to related          10         144,646         106,029           377,884    
parties                                                                         
Total Current                      685,746       1,346,825         1,405,056    
Liabilities                                                                     
                                                                                
Non-current                                                                     
Income taxes            17          20,502         15,789            57,030     
payable                                                                         
Total Liabilities                  706,248      1,362,614         1,462,086     

Shareholders`                                                                   
Equity                                                                          
Share capital           11     115,939,566     115,457,876       115,457,876    
Contributed surplus              8,159,644      7,815,398         7,777,105     
Deficit                      (119,531,417)  (119,408,103)     (117,900,848)     
Total Shareholders`              4,567,793       3,865,171         5,334,133    
Equity                                                                          
Total Liabilities and            5,274,041                        6,796,219     
Shareholders` Equity                            5,227,785                       
Going Concern            1                                                      
Common shares                                                                   
Authorized                 Unlimited (Note Unlimited (Note   Unlimited (Note    
                                     11a)           11a)              11a)      
Issued and                                                                      
outstanding                     49,704,341     44,704,320       44,704,320      
The accompanying notes are an integral part of these consolidated financial     
statements.                                                                     
These consolidated financial statements are authorized for issue by the Board   
of Directors on March 29, 2012.                                                 
They are signed on the Company`s behalf by:                                     
/s/ Michiel de Wit                                          /s/ Brian Scallan   
Michiel de Wit                                              Brian Scallan       
Director                                                    Director            
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS                                   
Expressed in Canadian Dollars         Notes   Year ended    Year ended          
                                           December 31,  December 31,           
                                                   2011          2010           
$             $           
Expenses                                                                        
Consulting and professional fees                 308,346       447,319          
General and administrative                       223,467       209,285          
Share-based payment expense              12            -        29,333          
Foreign exchange (gain) loss                     (8,323)         3,356          
Impairment of mineral properties                       -       740,975          
and deferred exploration                                                        
expenditures                                                                    
Gain on disposal of property,             7    (430,085)             -          
plant and equipment                                                             
Interest expense                                   8,000           493          
Bad debt expense                                       -       105,009          
Loss from operations before income             (101,405)   (1,535,770)          
taxes                                                                           
Income tax (expense) recovery                   (21,909)        28,515          
(123,314)   (1,507,255)           
Headline loss                                                                   
Net loss and comprehensive loss                (123,314)   (1,507,255)          
for the year                                                                    

Basic and diluted loss per share                  (0.00)        (0.03)          
Headline loss and diluted loss per                (0.00)        (0.03)          
share                                                                           
Weighted average number of common             47,855,026    44,704,320          
shares outstanding                                                              
The accompanying notes are an integral part of these consolidated financial     
statements.                                                                     
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY                                    
Expressed in     Notes          Common shares Contribut       Deficit     Total 
Canadian Dollars                                    ed               Sharehold  
                                              Surplus                    er`s   
equity   
                       Number of      Amount                                    
                          shares           $                                    
                       (Note 11)                                                
Balance at          18                                                          
January 1, 2010        44,704,320 115,457,876 $7,777,10 $(117,900,848 $5,334,13 
                                                    5             )         3   
Net loss for the                                                                
year                            -           -        -   (1,507,255) (1,507,25  
                                                                           5)   
Share based         12                                                          
compensation                    -           -   38,293             -    38,293  
Balance at                                                                      
December 31,           44,704,320 115,457,876 7,815,398 (119,408,103) 3,865,171 
2010                                                                            
                                                                                
Balance at                                                                      
January 1, 2011        44,704,320 115,457,876 7,815,398 (119,408,103) 3,865,171 
Net loss for the                                                                
year                            -           -        -     (123,314) (123,314)  
Share issuance      11                                                          
(net of costs)          5,000,000     481,690        -             -   481,690  
Warrant issuance    11                                                          
(net of costs)                  -           -  344,246             -   344,246  
Fractional         11a                                                          
shares due to                  21           -        -             -            
consolidation                                                                   
Balance at             49,704,341                                               
December 30,                      115,939,566 8,159,644 (119,531,417) 4,567,793 
2011                                                                            
The accompanying notes are an integral part of these consolidated financial     
statements.                                                                     
CONSOLIDATED STATEMENTS OF CASH FLOW                                            
Expressed in Canadian Dollars       Notes       Year ended       Year ended     
                                             December 31,     December 31,      
                                                     2011             2010      
$                $      
                                                                                
Cash flows from operating                                                       
activities                                                                      
Net loss for the year                            (123,314)      (1,507,255)     
Adjustments to reconcile loss to                                                
net cash used in operating                                                      
activities                                                                      
Interest expense                                     8,000              493     
Interest paid - Note payable                       (8,493)                -     
Impairment of properties                                 -          740,975     
Share based payment expense            12                -           29,333     
Bad debt expense                                         -          105,009     
Income taxes                                        21,909         (28,515)     
  Income taxes paid                              (12,247)          (6,598)      
Gain on disposal of property,                    (430,085)                      
plant and equipment                                                       -     
Changes in non-cash working                                                     
capital                                                                         
  Prepaid expenses and other                     (16,629)                       
current assets                                                       36,453     
  Accounts receivable                            (26,145)                -      
  Accounts payable and accrued                  (304,152)                       
liabilities                                                       (192,996)     
Net cash flows used in operating                                                
activities                                       (891,156)        (823,101)     
                                                                                
Cash flows from investing                                                       
activities                                                                      
Proceeds from disposal of capital                                               
asset                                              430,085           64,794     
Expenditures on exploration and                                                 
evaluation                                       (409,600)        (338,757)     
Funds received from Rio Tinto                                                   
                                                  367,255          431,355      
Net cash provided by investing                                                  
activities                                         387,740          157,392     
                                                                                
Cash flows from financing                                                       
activities                                                                      
Issuance of units                                  825,936                -     
Notes payable                           9        (400,000)          400,000     
Due to related parties                              38,617        (271,855)     
Net cash provided by financing                                                  
activities                                         464,553          128,145     
                                                                                
Net decrease in cash during the                                                 
year                                              (38,863)        (537,564)     
Cash, beginning of the year                        126,931          664,495     
Cash, end of the year                               88,068          126,931     
Supplemental cash flow information (Note 15)                                    
The accompanying notes are an integral part of these consolidated financial     
statements.                                                                     
1. CORPORATE INFORMATION AND CONTINUATION OF THE BUSINESS                       
Corporate Information                                                           
The principal business of Delrand Resources Limited (formerly BRC DiamondCore   
Ltd.) (the "Company") is the acquisition and exploration of mineral properties  
in the Democratic Republic of the Congo ("DRC"). In June 2011, the Company      
effected a change in the name of the Company from BRC DiamondCore Ltd. to       
Delrand Resources Limited and a consolidation of the outstanding common shares  
of the Company on a two to one basis. As a result of the share consolidation,   
all of the issued and outstanding share amounts included in the financial       
statements have been restated to reflect the consolidation.                     
These consolidated financial statements as at December 31, 2011, December 31,   
2010 and January 1, 2010 and for the year ended December 31, 2011, December     
31, 2010 include the accounts of the Company and of its wholly-owned            
subsidiaries incorporated in the DRC, BRC DiamondCore Congo SPRL, and in South  
Africa, BRC Diamond South Africa (Proprietary) Limited.                         
The Company is a publicly traded company whose outstanding common shares are    
listed for trading on the Toronto Stock Exchange and the JSE Limited in         
Johannesburg, South Africa. The head office of the Company is located at 1      
First Canadian Place, 100 King St. West, Suite 707O, Toronto, Ontario, M5X      
1E3, Canada.                                                                    
Continuation of the business                                                    
For the year ended December 31, 2011, the Company has incurred a net loss of    
$123,314 (year ended December 31, 2010 - $1,507,255). The Company`s deficit as  
at December 31, 2011 was $119,531,417 (December 31, 2010 - $119,408,103,        
January 1, 2010 - $117,900,848). The Company had a working capital deficit of   
$533,191 as at December 31, 2011 (December 31, 2010 - $1,198,181, January 1,    
2010 - $577,386) and had a net decrease in cash of $38,863 (December 31, 2010   
- decrease in cash of $537,564) and used net cash in operating activities of    
$891,156 during 2011 (December 31, 2010 - $823,101).  These conditions along    
with other matters indicate the existence of material uncertainties that may    
cast significant doubt about the Company`s ability to continue as a going       
concern.  While the financial statements have been prepared on the basis of     
accounting principles applicable to a going concern, adverse conditions may     
cast substantial doubt upon the validity of this assumption.                    
The Company`s ability to continue operations in the normal course of business   
is dependent on several factors, including its ability to secure additional     
funding. Management is exploring all available options to secure additional     
funding, including equity financing and strategic partnerships. In addition,    
the recoverability of amount shown for exploration and evaluation assets is     
dependent upon the existence of economically recoverable reserves, the ability  
of the Company to obtain financing to complete the development of the           
properties where necessary, or alternatively, upon the Company`s ability to     
recover its incurred costs through a disposition of its interests, all of       
which are uncertain.                                                            
In the event the Company is unable to identify recoverable resources, receive   
the necessary permitting, or arrange appropriate financing, the carrying value  
of the Company`s assets could be subject to material adjustment.  Furthermore,  
certain market conditions may cast significant doubt upon the validity of the   
going concern assumption.                                                       
These consolidated financial statements do not include any additional           
adjustments to the recoverability and classification of certain recorded asset  
amounts, classification of certain liabilities and changes to the statements    
of comprehensive loss that might be necessary if the Company was unable to      
continue as a going concern.                                                    
2. BASIS OF PREPARATION                                                         
a) Statement of compliance                                                      
These consolidated financial statements as at and for the years ended December  
31, 2011 and December 31, 2010 have been prepared in accordance with            
International Financial Reporting Standards ("IFRS") issued by the              
International Accounting Standards Board ("IASB"). The Company`s 2010 annual    
consolidated financial statements were previously prepared in accordance with   
Canadian generally accepted accounting principles ("Canadian GAAP").            
The Company`s date of transition to IFRS is January 1, 2010 (the "transition    
date"). Reconciliations and explanations of how the transition of previously    
prepared financial statements in accordance with Canadian GAAP to IFRS has      
affected the reported financial position, financial performance and cash flows  
of the Company are provided in Note 18. This note includes reconciliations of   
equity and loss for comparative periods and of equity at the date of            
transition reported under Canadian GAAP to those reported for those periods     
and at the date of transition under IFRS. The 2010 comparative figures have     
been restated to reflect the adjustments, except as described in the            
accounting policies.                                                            
The accompanying financial information as at and for the years ended December   
31, 2011 and 2010, have been prepared in accordance with the IFRS standards     
and IFRS Interpretation Committee (IFRIC) interpretations issued and            
effective, or issued and early-adopted, at December 31, 2011.                   
b) Basis of measurement                                                         
These consolidated financial statements have been prepared under the            
historical cost convention, except for certain financials assets which are      
presented at fair value, as explained in the summary of significant accounting  
policies set out in Note 3.                                                     
3. SUMMARY OF SIGNFICANT ACCOUNTING POLICIES                                    
The accounting policies set out below have been applied consistently to all     
periods presented in these consolidated financial statements and in preparing   
the opening IFRS consolidated statements of financial position at January 1,    
2010 for the purposes of the transition to IFRS, unless otherwise indicated.    
The exemptions taken in applying IFRS for the first time are set out in Note    
18. The accounting policies have been applied consistently by all group         
entities and for all periods presented.                                         
a)   Basis of Consolidation                                                     
i.   Subsidiaries                                                               
Subsidiaries are entities controlled by the Company. Control exists when    
    the Company has the power, directly or indirectly, to govern the            
    financial and operating policies of an entity so as to obtain benefits      
    from its activities. This control is evidenced through owning more than     
50% of the voting rights or currently exercisable potential voting rights   
    of a company`s share capital. The financial statements of subsidiaries      
    are included in the consolidated financial statements of the Company from   
    the date that control commences until the date that control ceases.         
Consolidation accounting is applied for all of the Company`s                
    subsidiaries.                                                               
ii.  Associate                                                                  
    Where the Company has the power to significantly influence but not          
control the financial and operating policy decisions of another entity,     
    it is classified as an associate. Associates are initially recognized in    
    the consolidated statements of financial position at cost and adjusted      
    thereafter for the post-acquisition changes in the Company`s share of the   
net assets of the associate, under the equity method of accounting. The     
    Company`s share of post-acquisition profits and losses is recognized in     
    the consolidated statement of comprehensive loss, except that losses in     
    excess of the Company`s investment in the associate are not recognized      
unless there is a legal or constructive obligation to recognize such        
    losses. If the associate subsequently reports profits, the Company`s        
    share of profits is recognized only after the Company`s share of the        
    profits equals the share of losses not recognized.                          
Profits and losses arising on transactions between the Company and its      
    associates are recognized only to the extent of unrelated investor`s        
    interests in the associate. The investor`s share in the associate`s         
    profits and losses resulting from these transactions is eliminated          
against the carrying value of the associate.                                
    Any premium paid for an associate above the fair value of the Company`s     
    share of the identifiable assets, liabilities and contingent liabilities    
    acquired is capitalized and included in the carrying amount of the          
Company`s investment in an associate. Where there is objective evidence     
    that the investment in an associate has been impaired, the carrying         
    amount of the investment is tested for impairment in the same way as        
    other non-financial assets.                                                 
iii. Transactions eliminated on consolidation                                   
    Inter-company balances, transactions, and any unrealized income and         
    expenses, are eliminated in preparing the consolidated financial            
    statements.                                                                 
Unrealized losses are eliminated in the same way as unrealized gains, but   
    only to the extent that there is no evidence of impairment.                 
b)   Use of Estimates and Judgments                                             
    The preparation of these consolidated financial statements in conformity    
with IFRS requires management to make judgments, estimates and              
    assumptions that affect the application of accounting policies and the      
    reported amounts of assets, liabilities, income and expenses. Actual        
    results may differ from these estimates.                                    
In preparing these consolidated financial statements, the significant       
    judgments and estimates have been made by management in applying the        
    Company`s accounting policies.  Estimates and underlying assumptions are    
    reviewed on an ongoing basis. Revisions to accounting estimates are         
recognized in the period in which the estimates are revised and in any      
    future periods affected. Information about critical judgments in applying   
    accounting policies that have the most significant effect on the amounts    
    recognized in the consolidated financial statements is included in the      
following notes:                                                            
Estimates:                                                                      
i)   Provisions and contingencies                                               
    The amount recognized as provision, including legal, contractual,           
constructive and other exposures or obligations, is the best estimate of    
    the consideration required to settle the related liability, including any   
    related interest charges, taking into account the risks and uncertainties   
    surrounding the obligation. In addition, contingencies will only be         
resolved when one or more future events occur or fail to occur. Therefore   
    assessment of contingencies inherently involves the exercise of             
    significant judgment and estimates of the outcome of future events. The     
    Company assesses its liabilities and contingencies based upon the best      
information available, relevant tax laws and other appropriate              
    requirements.                                                               
ii)  Impairment                                                                 
    Assets, including property, plant and equipment and exploration and         
evaluation, are reviewed for impairment whenever events or changes in       
    circumstances indicate that their carrying amounts exceed their             
    recoverable amounts. The assessment of the fair value often requires        
    estimates and assumptions such as discount rates, exchange rates,           
commodity prices, rehabilitation and restoration costs, future capital      
    requirements and future operating performance. Changes in such estimates    
    could impact recoverable values of these assets. Estimates are reviewed     
    regularly by management.                                                    
iii) Share-based payment transactions                                           
    The Company measures the cost of equity-settled transactions with           
    employees by reference to the fair value of the equity instruments at the   
    date at which they are granted. Estimating fair value for share-based       
payment transactions requires determining the most appropriate valuation    
    model, which is dependent on the terms and conditions of the grant. This    
    estimate also requires determining the most appropriate inputs to the       
    valuation model including the expected life of the stock option,            
volatility, dividend yield, forfeiture rate and making assumptions about    
    them. The assumptions and models used for estimating fair value for share-  
    based payment transactions are disclosed in Note 12.                        
iv)  Decommissioning and environmental provisions                               
The Company`s operations are subject to environmental regulations in the    
    DRC. Upon any establishment of commercial viability of a site, the          
    Company estimates the cost to restore the site following the completion     
    of commercial activities and depletion of reserves. These future            
obligations are estimated by taking into consideration closure plans,       
    known environmental impacts, and internal and external studies which        
    estimate the activities and costs that will be carried out to meet the      
    decommissioning and environmental obligations. Amounts recorded for         
decommissioning and environmental provisions are based on estimates of      
    decommissioning and environmental costs which may not be incurred for       
    several years or decades. The decommissioning and environmental cost        
    estimates could change due to amendments in laws and regulations in the     
DRC. Additionally, actual estimated decommissioning and reclamation costs   
    may differ from those projected as a result of an increase over time of     
    actual remediation costs, a change in the timing for utilization of         
    reserves and the potential for increasingly stringent environmental         
regulatory requirements. The Company is currently in the exploration        
    stage and as such, there are no decommissioning and environmental           
    reclamation costs as at December 31, 2011.                                  
Judgments:                                                                      
i)   Exploration and evaluation expenditure                                     
    The application of the Company`s accounting policy for exploration and      
    evaluation expenditure requires judgment in determining whether it is       
    likely that future economic benefits will flow to the Company, which may    
be based on assumptions about future events or circumstances. Estimates     
    and assumptions made may change if new information becomes available. If,   
    after the expenditure is capitalized, information becomes available         
    suggesting that the recovery of the expenditure is unlikely, the amount     
capitalized is written off in the statement of comprehensive loss during    
    the period the new information becomes available.                           
ii)  Income taxes                                                               
    The Company is subject to income taxes in various jurisdictions and         
subject to various rates and rules of taxation. Significant judgment is     
    required in determining the provision for income taxes. There are many      
    transactions and calculations undertaken during the ordinary course of      
    business for which the ultimate tax determination is uncertain. The         
Company recognizes liabilities for anticipated tax audit issues based on    
    the Company`s current understanding of the tax law. Where the final tax     
    outcome of these matters is different from the amounts that were            
    initially recorded, such differences will impact the current and deferred   
tax provisions in the period in which such determination is made.           
    In addition, the Company has not recognized deferred tax assets relating    
    to tax losses carried forward. Future realization of the tax losses         
    depends on the ability of the entity to satisfy certain tests at the time   
the losses are recouped, including current and future economic              
    conditions, production rates and production costs.                          
iii) Functional and presentation currency                                       
    Judgment is required to determine the functional currency of each entity.   
These judgments are continuously evaluated and are based on management`s    
    experience and knowledge of the relevant facts and circumstances            
iv)  Impairment                                                                 
    Judgment is involved in assessing whether there is any indication that an   
asset or cash generating unit may be impaired. This assessment is made      
    based on the analysis of, amongst other factors, changes in the market or   
    business environment, events that have transpired that have impacted the    
    asset or cash generating unit, and information from internal reporting.     
v)   Going Concern                                                              
    As described in the continuation of business note, management uses its      
    judgment in determining whether the Company is able to continue as a        
    going concern.                                                              
c)   Foreign Currency Translation                                               
    Functional and presentation currency                                        
    These consolidated financial statements are presented in Canadian dollars   
    ("$"), which is the Company`s functional and presentation currency.         
Foreign currency transactions                                               
    The functional currency for each of the Company`s subsidiaries is the       
    currency of the primary economic environment in which the entity            
    operates. Transactions entered into by the Company`s subsidiaries in a      
currency other than the currency of the primary economic environment in     
    which they operate (their "functional currency") are recorded at the        
    rates ruling when the transactions occur except depreciation and            
    amortization which are translated at the rates of exchange applicable to    
the related assets, with any gains or losses recognized in the              
    consolidated statements of comprehensive loss. Foreign currency monetary    
    assets and liabilities are translated at current rates of exchange with     
    the resulting gain or losses recognized in the consolidated statements of   
comprehensive loss. Exchange differences arising on the retranslation of    
    unsettled monetary assets and liabilities are recognized immediately in     
    net loss. Non-monetary assets and liabilities are translated using the      
    historical exchange rates. Non-monetary assets and liabilities measured     
at fair value in a foreign currency are translated using the exchange       
    rates at the date when the fair value is determined.                        
d)   Cash                                                                       
    Cash includes cash on hand and deposits held with financial institutions.   
e)   Financial Assets                                                           
    Financial assets are classified as either financial assets at fair value    
    through profit or loss ("FVTPL"), loans and receivables, held to maturity   
    investments ("HTM"), or available for sale financial assets ("AFS"), as     
appropriate at initial recognition and, except in very limited              
    circumstances, the classification is not changed subsequent to initial      
    recognition. The classification is determined at initial recognition and    
    depends on the nature and purpose of the financial asset. A financial       
asset is derecognized when contractual rights to the asset`s cash flows     
    expire or if substantially all the risks and rewards of the asset are       
    transferred.                                                                
i.   Financial assets at FVTPL                                                  
Financial assets are classified as FVTPL when the financial asset is held   
    for trading or it is designated upon initial recognition as at FVTPL. A     
    financial asset is classified as held for trading if (1) it has been        
    acquired principally for the purpose of selling or repurchasing in the      
near term; (2) it is part of an identified portfolio of financial           
    instruments that the Company manages and has an actual pattern of short     
    term profit taking; or (3) it is a derivative that is not designated and    
    effective as a hedging instrument. Financial assets at FVTPL are carried    
in the consolidated statement of financial position at fair value with      
    changes in fair value recognized in net loss. Transaction costs are         
    expensed as incurred.                                                       
ii.  Loans and receivables                                                      
Trade receivables, loans and other receivables that have fixed or           
    determinable payments that are not quoted in an active market are           
    classified as loans and receivable.                                         
    Loans and receivables are initially recognized at fair value plus           
transaction costs that are directly attributable to their acquisition or    
    issue, and are subsequently carried at amortized cost less losses for       
    impairment. The impairment loss of receivables is based on a review of      
    all outstanding amounts at period end. Bad debts are written off during     
the period in which they are identified. Amortized cost is calculated       
    taking into account any discount or premium on acquisition and includes     
    fees that are an integral part of the effective interest rate and           
    transaction costs. Gains and losses are recognized in the statements of     
comprehensive loss when the loans and receivables are derecognized or       
    impaired, as well as through the amortization process.                      
    The Company has classified cash as loans and receivables.                   
iii. HTM investments                                                            
HTM financial instruments are initially measured at fair value.             
    Subsequently, HTM financial assets are measured at amortized cost using     
    the effective interest rate method, less any impairment losses. The         
    Company did not classify any assets as HTM.                                 
iv.  AFS financial assets                                                       
    Non-derivative financial assets not included in the above categories are    
    classified as AFS financial assets. They are carried at fair value with     
    changes in fair value generally recognized in other comprehensive loss      
and accumulated in the AFS reserve. Impairment losses are recognized in     
    net loss. Purchases and sales of AFS financial assets are recognized on     
    settlement date with any change in fair value between trade date and        
    settlement date being recognized in the AFS reserve. On sale, the           
cumulative gain or loss recognized in other comprehensive loss is           
    reclassified from the AFS reserve to net loss. The Company has not          
    designated any of its financial assets as AFS.                              
v.   Impairment of financial assets                                             
The Company assesses at each reporting date whether a financial asset or    
    a group of financial assets is impaired. A financial asset or group of      
    financial assets is deemed to be impaired, if, and only if, there is        
    objective evidence of impairment as a result of one or more events that     
has occurred after the initial recognition of the asset and that event      
    has an impact on the estimated future cash flows of the financial asset     
    or the group of financial assets that can be reliably estimated.            
    Financial assets carried at amortized cost, the amount of the impairment    
is the difference between the asset`s carrying amount and the present       
    value of estimated future cash flows, discounted at the asset`s original    
    effective rate.                                                             
    The carrying amount of all financial assets, excluding other receivables,   
is directly reduced by the impairment loss. The carrying amount of other    
    receivables is reduced through the use of an allowance account.             
    Associated allowances are written off when there is no realistic prospect   
    of future recovery and all collateral has been realized or has been         
transferred to the Company. Subsequent recoveries of amounts previously     
    written off are credited against the allowance account. Changes in the      
    carrying amount of the allowance account are recognized in net loss. A      
    provision for impairment is made in relation to other receivable, and an    
impairment loss is recognized in profit and loss when there is objective    
    evidence that the Company will not be able to collect all of the amounts    
    due under the original terms. The carrying amount of the receivable is      
    reduced through use of an allowance account.                                
With the exception of AFS equity instruments, if in a subsequent period     
    the amount of impairment loss decreases and the decrease relates to an      
    event occurring after the impairment was recognized, the previously         
    recognized impairment loss is reversed through net loss. On the date of     
impairment reversal, the carrying amount of the financial asset cannot      
    exceed its amortized cost had the impairment not been recognized.           
    Reversal for AFS equity instruments are not recognized in net loss.         
vi.  Effective interest method                                                  
The effective interest method calculates the amortized cost of a            
    financial instrument asset or liability and allocates interest income       
    over the corresponding period. The effective interest rate is the rate      
    that discounts estimated future cash receipts over the expected life of     
the financial asset or liability, or where appropriate, a shorter period.   
    Income is recognized on an effective interest basis for debt instruments    
    other than those financial assets classified as FVTPL.                      
f)   Financial Liabilities                                                      
Financial liabilities are classified as FVTPL, or other financial           
    liabilities, as appropriate upon initial recognition. A financial           
    liability is derecognized when the obligation under the liability is        
    discharged, cancelled or expired.                                           
i.   Financial liabilities classified as other financial liabilities are        
    initially recognized at fair value less directly attributable transaction   
    costs. Subsequent to the initial recognition, other financial liabilities   
    are measured at amortized cost using the effective interest method. The     
Company`s other financial liabilities include accounts payable and          
    accrued liabilities and notes payable.                                      
ii.  Financial liabilities classified as FVTPL include financial liabilities    
    held for trading and financial liabilities designated upon initial          
recognition as FVTPL. Financial liabilities are classified as held-for-     
    trading if they are acquired for the purpose of selling in the near term.   
    This category includes derivative financial instruments (including          
    separated embedded derivatives) held for trading unless they are            
designated as effective hedging instruments. Gains or losses on             
    liabilities held for trading are recognized in the consolidated statement   
    of comprehensive loss. The Company does not have any financial              
    liabilities classified as FVTPL.                                            
g)   Loss Per Share                                                             
    Basic loss per share is computed by dividing the net loss applicable by     
    the weighted average number of common shares outstanding during the         
    reporting period. Diluted loss per share is computed by dividing the net    
loss by the sum of the weighted average number of common shares issued      
    and outstanding during the reporting period and all additional common       
    shares for the assumed exercise of stock options and warrants outstanding   
    for the reporting period, if dilutive. The treasury stock method is used    
for the assumed proceeds upon the exercise of stock options and warrants    
    that are used to purchase common shares at the average market price         
    during the reporting period. As the Company is incurring losses, basic      
    and diluted loss per share are the same because the exercise of             
outstanding stock options and share purchase warrants in the diluted loss   
    per share calculation is be anti-dilutive.                                  
h)   Property, Plant and Equipment ("PPE")                                      
i.   Recognition and measurement                                                
Items of PPE are measured at cost less accumulated depreciation and         
    accumulated impairment losses. Cost includes expenditures that are          
    directly attributable to the acquisition of the asset. The cost of self-    
    constructed assets includes the cost of materials, directed labor and any   
other cost directly attributable to bring the asset to the location and     
    condition necessary to be capable of operating in the manner intended by    
    the Company. Assets in the course of construction are capitalized in the    
    capital construction in progress category and transferred to the            
appropriate category of PPE upon completion. When components of an asset    
    have different useful lives, depreciation is calculated on each separate    
    component.                                                                  
ii.  Subsequent costs                                                           
The cost of replacing part of an item of PPE is recognized in the           
    carrying amount of the item if it is probable that the future economic      
    benefits embodied within the part will flow to the Company and its cost     
    can be measured reliably. The carrying amount of the replaced part is       
derecognized and included in net loss. If the carrying amount of the        
    replaced component is not known, it is estimated based on the cost of the   
    new component less estimated depreciation. The costs of the day to day      
    servicing of property, plant and equipment are recognized in net loss as    
incurred.                                                                   
iii. Depreciation                                                               
    Depreciation is based on the cost of an asset less its residual value.      
    Significant components of individual assets are assessed to determine       
whether a component has an estimated useful life that is different from     
    that of the remainder of that asset, in which case that component is        
    depreciated separately. Depreciation is recognized in net loss on a         
    straight line basis over the estimated useful lives of each item or         
component of an item of PPE as follows:                                     
    -    Furniture and office equipment     two to seven years                  
    -    Vehicles                           four years                          
         Computer equipment                 three years                         
-    Exploration and mining assets      two to four years                   
    Depreciation methods, useful lives and residual values are reviewed         
    annually and adjusted, if appropriate. Depreciation commences when an       
    asset is available for use. Changes in estimates are accounted for          
prospectively.                                                              
iv.  Gains and losses                                                           
    Gains and losses on disposal of an item of PPE are determined by            
    comparing the proceeds from disposal with the carrying amount of the PPE,   
and are recognized net within other income/expenses in the statement of     
    comprehensive loss.                                                         
v.   Repairs and maintenance                                                    
    Repairs and maintenance costs are charged to expense as incurred, except    
major inspections or overhauls that are performed at regular intervals      
    over the useful life of an asset are capitalized as part of PPE.            
vi.  De-recognition                                                             
    An item of PPE is derecognized upon disposal or when no future economic     
benefits are expected to arise from the continued use of the asset. Any     
    gain or loss arising on de-recognition of the assets (calculated as the     
    difference between the net disposal proceeds and the carrying amount of     
    the item) is included in net loss in the period the item is derecognized.   
i)   Exploration and Evaluation Assets                                          
    All direct costs related to exploration and evaluation of mineral           
    properties, net of incidental revenues, are capitalized under exploration   
    and evaluation assets. Exploration and evaluation expenditures include      
such costs as acquisition of rights to explore; sampling, trenching and     
    surveying costs; costs related to topography, geology, geochemistry and     
    geophysical studies; drilling costs and costs in relation to technical      
    feasibility and commercial viability of extracting a mineral resource.      
A regular review of each property is undertaken to determine the            
    appropriateness of continuing to carry forward costs in relation to         
    exploration and evaluation of mineral properties. Should the carrying       
    value of the expenditure not yet amortized exceed its estimated             
recoverable amount in any year, the excess is written off to the            
    consolidated statements of comprehensive loss.                              
    The Company has not recognized impairment of exploration and evaluation     
    assets during the year ended December 31, 2011 (year ended December 31,     
2010 - $740,975).                                                           
j)   Impairment of Non-financial Assets                                         
    The Company`s PPE is assessed for indication of impairment at each          
    consolidated statements of financial position date. Exploration and         
evaluation assets are assessed for impairment when facts and                
    circumstances suggest that the carrying amount of an exploration and        
    evaluation asset may exceed its recoverable amount. Internal factors,       
    such as budgets and forecasts, as well as external factors, such as         
expected future prices, costs and other market factors are also monitored   
    to determine if indications of impairment exist. If any indication of       
    impairment exists, an estimate of the asset`s recoverable amount is         
    calculated. The recoverable amount is determined as the higher of the       
fair value less costs to sell for the asset and the asset`s value in use.   
    This is determined for an individual asset, unless the asset does not       
    generate cash inflows that are largely independent of those from other      
    assets or the Company`s assets. If this is the case, the individual         
assets are grouped together into cash generating units ("CGU") for          
    impairment purposes. Such CGUs represent the lowest level for which there   
    are separately identifiable cash inflows that are largely independent of    
    the cash flows from other assets.                                           
If the carrying amount of the asset exceeds its recoverable amount, the     
    asset is impaired and an impairment loss is charged to the consolidated     
    statements of comprehensive loss so as to reduce the carrying amount to     
    its recoverable amount (i.e., the higher of fair value less cost to sell    
and value in use). Fair value less cost to sell is the amount obtainable    
    from the sale of an asset or CGU in an arm`s length transaction between     
    knowledgeable, willing parties, less the costs of disposal. Value in use    
    is determined as the present value of the future cash flows expected to     
be derived from an asset or CGU. Estimated future cash flows are            
    calculated using estimated future prices, mineral reserves and resources    
    and operating and capital costs. All assumptions used are those that an     
    independent market participant would consider appropriate. The estimated    
future cash flows are discounted to their present value using a pre-tax     
    discount rate that reflects current market assessments of the time value    
    of money and the risks specific to the asset for which estimates of         
    future cash flows have not been adjusted.                                   
k)   Income Taxes                                                               
    Income tax expense consists of current and deferred tax expense. Income     
    tax expense is recognized in profit and loss, except to the extent that     
    it relates to items recognized in other comprehensive income or directly    
in equity. In this case, the tax is also recognized in other                
    comprehensive income or directly in equity.                                 
    Current income tax assets and liabilities for the current and prior         
    periods are measured at the amount expected to be recovered from or paid    
to the taxation authorities. The tax rates and tax laws used to compute     
    current income tax assets and liabilities are measured at future            
    anticipated tax rates, which have been enacted or substantively enacted     
    at the reporting date. Current tax assets and current tax liabilities are   
only offset if a legally enforceable right exists to set off the amounts,   
    and the Company intends to settle on a net basis, or to realize the asset   
    and settle the liability simultaneously.                                    
    Deferred taxation is provided on all qualifying temporary differences at    
the reporting date between the tax basis of assets and liabilities and      
    their carrying amounts for financial reporting purposes. Deferred tax       
    assets are only recognized to the extent that it is probable that the       
    deductible temporary differences will reverse in the foreseeable future     
and future taxable profit will be available against which the temporary     
    difference can be utilized.                                                 
    Deferred tax liabilities and assets are not recognized for temporary        
    differences between the carrying amount and tax bases of investments in     
controlled entities where the parent entity is able to control the timing   
    of the reversal of the temporary differences and it is probable that the    
    differences will not reverse in the foreseeable future. Deferred tax        
    assets and liabilities are offset when there is a legally enforceable       
right to offset current tax assets and liabilities and when the deferred    
    tax balances relate to the same taxation authority.                         
l)   Share-Based Payments                                                       
    Equity-settled share-based payments for directors, officers and employees   
are measured at fair value at the date of grant and recorded as             
    compensation expense in the financial statements.  The fair value           
    determined at the grant date of the equity-settled share-based payments     
    is expensed on a straight-line basis over the vesting period based on the   
Company`s estimate of shares that will eventually vest.  The number of      
    forfeitures likely to occur is estimated on grant date.  Any                
    consideration paid by the optionee on exercise of equity-settled share-     
    based payments is credited to share capital.  Shares are issued from        
treasury upon the exercise of equity-settled share-based instruments.       
    Compensation expense on stock options granted to non-employees is           
    measured at the earlier of the completion of performance and the date the   
    options are vested using the fair value method and is recorded as an        
expense in the same period as if the Company had paid cash for the goods    
    or services received.                                                       
    When the value of goods or services received in exchange for the share-     
    based payment cannot be reliably estimated, the fair value is measured by   
use of a Black-Scholes valuation model.  The expected life used in the      
    model is adjusted, based on management`s best estimate, for the effects     
    of non-transferability, exercise restrictions, and behavioural              
    considerations.                                                             
m)   Provisions and Contingencies                                               
    Provisions are recognized when a legal or constructive obligation exists,   
    as a result of past events, and it is probable that an outflow of           
    resources that can be reliably estimated will be required to settle the     
obligation. Where the effect is material, the provision is discounted       
    using an appropriate current market-based pre-tax discount rate. The        
    increase in the provision due to passage of time is recognized as           
    interest expense.                                                           
When a contingency substantiated by confirming events, can be reliably      
    measured and is likely to result in an economic outflow, a liability is     
    recognized as the best estimate required to settle the obligation. A        
    contingent liability is disclosed where the existence of an obligation      
will only be confirmed by future events, or where the amount of a present   
    obligation cannot be measured reliably or will likely not result in an      
    economic outflow. Contingent assets are only disclosed when the inflow of   
    economic benefits is probable. When the economic benefit becomes            
virtually certain, the asset is no longer contingent and is recognized in   
    the consolidated financial statements.                                      
n)   Related Party Transactions                                                 
    are considered to be related if one party has the ability, directly or      
indirectly, to control the other party or exercise significant influence    
    over the other party in making financial and operating decisions. Parties   
    are also considered to be related if they are subject to common control     
    or common significant influence, related parties may be individuals or      
corporate entities. A transaction is considered to be a related party       
    transaction when there is a transfer of resources or obligations between    
    related parties. Related party transactions that are in the normal course   
    of business and have commercial substance are measured at the exchange      
amount.                                                                     
o)   New Accounting Standards Adopted                                           
    Accounting standards expected to be effective for the period ended          
    December 31, 2011 have been adopted as part of the transition to IFRS. In   
addition, the following accounting standards have been adopted during the   
    year:                                                                       
    A revised version of IAS 24 Related party disclosures ("IAS 24") was        
    issued by the IASB on November 4, 2009. IAS 24 requires entities to         
disclose in their consolidated financial statements information about       
    transactions with related parties. Generally, two parties are related to    
    each other if one party controls, or significantly influences, the other    
    party. IAS 24 has simplified the definition of a related party and          
removed certain of the disclosures required by the predecessor standard.    
    The revised standard is effective for annual periods beginning on or        
    after January 1, 2011. The adoption of this issuance did not have a         
    significant impact on the Company`s consolidated financial statements.      
IFRS 7 Financial instruments: disclosures ("IFRS 7") The Accounting         
    Standards Board ("AcSB") approved the incorporation of the IASB`s           
    amendments to IFRS 7 Financial Instruments: Disclosures and the related     
    amendment to IFRS 1 First-time Adoption of International Financial          
Reporting Standards into Part I of the Canadian Institute of Chartered      
    Accountants Handbook. These amendments were made to Part I in January       
    2011 and are effective for annual periods beginning on or after July 1,     
    2011. Earlier application is permitted. The amendments relate to required   
disclosures for transfers of financial assets to help users of the          
    financial statements evaluate the risk exposures relating to such           
    transfers and the effect of those risks on an entity`s financial            
    position. The Company`s adoption of IFRS 7 had no significant impact on     
its consolidated financial statements.                                      
p)   Accounting Standards Issued But Not Net Effective                          
    The Company has reviewed new and revised accounting pronouncements that     
    have been issued but are not yet effective and determined that the          
following may have an impact on the Company:                                
    IFRS 9 Financial instruments ("IFRS 9") was issued by the IASB on           
    November 12, 2009 and will replace IAS 39 Financial Instruments:            
    Recognition and Measurement ("IAS 39"). IFRS 9 replaces the multiple        
rules in IAS 39 with a single approach to determine whether a financial     
    asset is measured at amortized cost or fair value and a new mixed           
    measurement model for debt instruments having only two categories:          
    amortized cost and fair value. The approach in IFRS 9 is based on how an    
entity manages its financial instruments in the context of its business     
    model and the contractual cash flow characteristics of the financial        
    assets. The new standard also requires a single impairment method to be     
    used, replacing the multiple impairment methods in IAS 39. IFRS 9 is        
effective for annual periods beginning on or after January 1, 2015. The     
    Company is currently evaluating the impact of IFRS 9 on its consolidated    
    financial statements.                                                       
    IFRS 10 Consolidated Financial Statements ("IFRS 10") establishes           
principles for the presentation and preparation of consolidated financial   
    statements when an entity controls one or more other entities. IFRS 10      
    supersedes IAS 27 "Consolidated and Separate Financial Statements" and      
    SIC-12 "Consolidated - Special Purpose Entities" and is effective for       
annual periods beginning on or after January 1, 2013. Earlier application   
    is permitted. The Company is currently evaluating the impact of this        
    standard on its consolidated financial statements.                          
    IFRS 11 Joint Arrangements ("IFRS 11") establishes principles for           
financial reporting by parties to a joint arrangement. IFRS 11 supersedes   
    the current IAS 31 "Interests in Joint Ventures" and SIC-13 "Jointly        
    Controlled Entities - Non-Monetary Contributions by Venturers" and is       
    effective for annual periods beginning on or after January 1, 2013.         
Earlier application is permitted. The Company is currently evaluating the   
    impact of this standard on its consolidated financial statements.           
    IFRS 12 Disclosure of Interests in Other Entities ("IFRS 12") applies to    
    entities that have an interest in a subsidiary, a joint arrangement, an     
associate or an unconsolidated structured entity. IFRS 12 is effective      
    for annual periods beginning on or after January 1, 2013. Earlier           
    application is permitted. The Company is currently evaluating the impact    
    of this standard on its consolidated financial statements.                  
IFRS 13 Fair Value Measurements ("IFRS 13") defines fair value, sets out    
    in a single IFRS framework for measuring fair value and requires            
    disclosures about fair value measurements. IFRS 13 applies to IFRSs that    
    require or permit fair value measurements or disclosures about fair value   
measurements (and measurements, such as fair value less costs to sell,      
    based on fair value or disclosures about those measurements), except in     
    specified circumstances. IFRS 13 is to be applied for annual periods        
    beginning on or after January 1, 2013. Earlier application is permitted.    
The Company is currently evaluating the impact of this standard on its      
    consolidated financial statements.                                          
    An amendment to IAS 1, Presentation of financial statements was issued by   
    the IASB in June 2011. The amendment requires separate presentation for     
items of other comprehensive income that would be reclassified to net       
    loss in the future, such as foreign currency differences on disposal of a   
    foreign operation, if certain conditions are met from those that would      
    never be reclassified to net loss. The effective date is July 1, 2012 and   
earlier adoption is permitted. The Company is currently evaluating the      
    impact of this amendment on its consolidated financial statements.          
    An amendment to IAS 12, Income Taxes ("IAS 12") was issued by the IASB in   
    June 2011. The amendment requires that deferred tax on non-depreciable      
assets to be determined based on the rebuttable presumption that the        
    assets will be recovered entirely through sale. The amendments to IAS 12    
    are effective for annual periods beginning on or after January 1, 2012.     
    The Company is currently evaluating the impact of the amendments on its     
consolidated financial statements.                                          
    IAS 19, Employee Benefits ("IAS 19") was re-issued by the IASB in June      
    2011. IAS continues to prescribe the accounting for employee benefits,      
    but amendments make the OCI presentation changes in respect of pensions     
(and similar items) only, but all other long term benefits are required     
    to be measured in the same way even though changes in the recognised        
    amount are fully reflected in net loss. Also changed in IAS 19 is the       
    treatment for termination benefits, specifically the point in time when     
an entity would recognise a liability for termination benefits. The         
    amendments to IAS 19 are effective for annual periods beginning on or       
    after January 1, 2013. The Company is currently evaluating the impact of    
    the amendments on its consolidated financial statements.                    
IAS 27, Separate financial statements ("IAS 27") was re-issued by the       
    IASB in May 2011 to only prescribe the accounting and disclosure            
    requirements for investments in subsidiaries, joint ventures and            
    associates when an entity prepares separate financial statements. The       
consolidation guidance will now be included in IFRS 10. The amendments to   
    IAS 27 are effective for annual periods beginning on or after January 1,    
    2013. The Company is currently evaluating the impact of the amendments on   
    its consolidated financial statements.                                      
IAS 28, Investments in associates and joint ventures ("IAS 28") was re-     
    issued by the IASB in May 2011. IAS 28 continues to prescribe the           
    accounting for investments in associates, but is now the only source of     
    guidance describing the application of the equity method. The amended IAS   
28 will be applied by all entities that have an ownership interest with     
    joint control of, or significant influence over, an investee. The           
    amendments to IAS 28 are effective for annual periods beginning on or       
    after January 1, 2013. The Company is currently evaluating the impact of    
the amendments on its consolidated financial statements.                    
    IFRIC 20, Stripping costs in the production phase of a surface mine         
    ("IFRIC 20") was issued by the IASB in October 2011 clarifying the          
    requirements for accounting for stripping costs in the production phase     
of a surface mine. The interpretation is effective for annual periods       
    beginning on or after January 1, 2013. The Company is currently             
    evaluating the impact of the interpretation on its consolidated financial   
    statements.                                                                 
4. SUBSIDIARIES AND INVESTMENT IN ASSOCIATES                                    
The table below lists the Company`s subsidiaries as follows:                    
Name of Subsidiary                       Place of   Proportion     Principal    
                                   Incorporation of Ownership      Activity     
Interest                   
BRC DiamondCore Congo SPRL    Democratic Republic         100%       Mineral    
                                    of the Congo                Exploration     
BRC Diamond South Africa             South Africa         100%       Dormant    

The Company`s investment in Rio Tinto Exploration DRC Oriental Limited ("DRC    
Oriental") which meets the definition of an associate of the Company, is        
summarized as follows:                                                          
Delrand Resources Limited                 December  December   January          
                                         31, 2011  31, 2010   1, 2010           
                                                                                
Percentage of ownership interest            25.00%    25.00%     0.00%          
Common shares held                                                              
                                              250       250         -           
Total investment                           $     -         $         $          
                                                          -         -           
On January 26, 2010, the Company entered into an agreement (the "Iron Ore       
Agreement") with Rio Tinto Minerals Development Limited ("Rio Tinto Minerals")  
for the exploration for iron ore in areas within the Orientale Province of the  
DRC.  These areas are covered by exploration permits (the "Permits") which had  
been controlled by the Company.  Under the Iron Ore Agreement, which is in the  
form of a shareholders` agreement, the Company owns 25% and Rio Tinto Minerals  
owns 75% of the capital stock of a company ("Holdco"), which owns a DRC         
registered company called Rio Tinto Exploration RDC Orientale SPRL. The         
registered company holds the Permits.   The Company`s investment in Holdco is   
accounted for in the consolidated financial statements using the equity         
method. For the years ended December 31, 2011 and December 31, 2010, Holdco     
was an inactive company which did not have any significant assets or            
liabilities and had no significant balances in the statement of comprehensive   
income. As such, there has been no change in the value of the investment since  
the date of acquisition.                                                        
Under the Iron Ore Agreement, all iron ore exploration up to and including the  
completion of any pre-feasibility study, as required to obtain an exploitation  
permit, will be funded by Rio Tinto Minerals.  The Company will not suffer any  
dilution during this period, such that the Company`s 25% interest in the        
properties will be maintained during this period.  The exploration will be      
carried out by Rio Tinto Minerals or one of its affiliates as the operator.     
After the completion of the pre-feasibility study, funding for the project is   
to be provided by Rio Tinto Minerals and the Company based on their             
proportionate respective interests in the said holding company.                 
5. CASH                                                                         
Cash of the Company includes cash on hand and deposits held at financial        
institutions.                                                                   
6. PROPERTY, PLANT AND EQUIPMENT                                                
The Company`s property, plant and equipment are summarized as follows:          
              Notes   Exploration Computer  Vehicles  Furniture     Total       
                           assets equipmen                  and                 
                                         t               office                 
equipment                 
                                $        $         $          $         $       
Cost                                                                            
Balance at                 316,476                                              
January 1, 2010                      28,658   254,436     18,106   617,676      
Additions                        -        -         -          -         -      
Disposals                (207,371)        -              (1,256)  (302,950      
                                            (94,323)                    )       
Balance at                 109,105                                              
December 31, 2010                    28,658   160,113     16,850   314,726      
Additions                        -        -         -          -         -      
Disposals                        -        -         -          -         -      
Balance at                                                                      
December 31, 2011          109,105   28,658   160,113     16,850   314,726      
Accumulated                                                                     
Depreciation                                                                    
Balance at                 216,384   19,478   225,820     14,200   475,882      
January 1, 2010                                                                 
Depreciation for            34,398             28,616      2,686                
the year                              6,985                         72,685      
Disposals                (142,578)           (94,323)    (1,040)                
                                                                 (237,941       
                                                                        )       
Balance at                 108,204                                              
December 31, 2010                    26,463   160,113     15,846   310,626      
Depreciation for               901    2,195         -      1,004                
the year                                                             4,100      
Disposals                        -        -         -          -                
-       
Balance at                 109,105            160,113     16,850                
December 31, 2011                    28,658                        314,726      
Carrying amounts                                                                
Balance at                 100,092    9,180    28,616      3,906   141,794      
January 1, 2010                                                                 
Balance at                     901    2,195         -      1,004                
December 31, 2010                                                    4,100      
Balance at                                                                      
December 31, 2011                -        -         -          -         -      
During the year ended December 31, 2011, the Company sold the containerized     
bulk sampling plant from the Kwango project for a gain of $430,085 as           
described in Note 7 (d). This asset had a nil carrying value.                   
7. EXPLORATION AND EVALUATION ASSETS                                            
The following table summarizes the Company`s tangible exploration and           
evaluation expenditures with respect to its properties in the DRC:              
Notes   Tshikapa      Lubao  Tshikapa    Northern      Total     
                        Project            (Candore)         DRC                
                                                         Project                
Cost                                                                            
Balance as at                      $325,416  $415,559  $2,184,441 $5,824,536    
January 1,            $2,899,120                                                
2010                                                                            
Additions                120,972          -         -   (131,711)   (10,739)    
Impairment                     -                                -  (740,975)    
                                 (325,416) (415,559)                            
Balance as at                                                                   
December 31,           3,020,092          -         -   2,052,730  5,072,822    
2010                                                                            
Additions                 19,762          -         -      26,683     46,445    
Balance as at                                                                   
December 31,           3,039,854          -         -   2,079,413  5,119,267    
2011                                                                            
There are $2,219 of intangible exploration and evaluation expenditures as at    
December 31, 2011 (December 31, 2010: $2,219). There have not been any          
additions or disposals to intangible assets since January 1, 2010.              
a.   Tshikapa Project                                                           
    The Tshikapa project is located in the south-western part of the Kasai      
    Occidental province of the DRC near the town of Tshikapa. The Tshikapa      
    project is located within the so-called Tshikapa triangle, bordering the    
Kasai River in the east, the Loange River in the west and the Angolan       
    border in the south. The properties also lie within the broader             
    kimberlite emplacement corridor which extends from known kimberlite pipes   
    located in Angola. The Tshikapa diamond field has been extensively mined    
by alluvial diamond companies and small-scale miners, and it is estimated   
    that it has produced over 100 million carats of diamonds since 1912. The    
    Company has focused its attention on the Tshikapa triangle through nine     
    exploration permits covering an area of 1,429 kmSquared.  One of these      
permits is held by the Company`s wholly-owned DRC subsidiary and the        
    other eight permits are controlled through option agreements with the       
    permit holders. Six of the permits controlled through option agreements     
    related to Acacia SPRL, the terms of which option provide that payment of   
$356,881 (US$350,000) gives the Company 55% ownership in the resulting      
    joint venture entity. Acacia has advised the Company of its wish to         
    modify the option agreement. The remaining two permits relate to Caspian    
    Oil & Gas and entitle the Company to 65% of a joint venture entity after    
spending $203,932 (US$200,000)                                              
b.   Northern DRC Project                                                       
    The Company`s northern DRC diamond project is located in Orientale          
    Province of the DRC and consists of 46 exploration permits, two of which    
are held by the Company directly through its DRC subsidiary and the         
    balance of which are held through an option agreement with the holder of    
    the permits.  Rio Tinto Mining and Exploration Limited ("Rio Tinto") is     
    also party to this agreement. Under this agreement, funding for the         
exploration of the areas covered by the permits is provided by Rio Tinto.   
    Funds received from Rio Tinto under this agreement are deducted from        
    exploration and evaluation expenditures in the Company`s statement of       
    financial position.  Assuming ongoing satisfactory exploration results,     
the Company will acquire a 30% interest in the said permits subject to      
    certain conditions. The 44 exploration permits under option cover an area   
    of 7,313 kmSquared. The two additional exploration permits held by the      
    Company`s DRC subsidiary cover an area of 749 kmSquared directly north of   
the optioned ground.                                                        
c.   During the year ended December 31, 2010, the Company decided to            
    discontinue its Lubao and Candore projects which resulted in an             
    impairment loss of $740,975.                                                
d.   In April 2011, the Company sold the containerized bulk sampling plant      
    that had been constructed for the alluvial deposits on the Kwango River     
    in southern DRC. The Kwango project had previously been abandoned by the    
    Company and the related licences relinquished when it was concluded that    
the project would not be economically viable.  The gross proceeds from      
    the sale of the plant were $550,977 (US$575,000) and were recorded as a     
    gain on disposal of property, plant and equipment in the statement of       
    comprehensive loss.                                                         
e.   During the year ended December 31, 2010, a drill rig was sold which        
    resulted in a gain on sale of $90,170. The gain on sale was capitalized     
    to exploration and evaluation assets.                                       
8. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES                                     
Accounts payable and accrued liabilities are mainly comprised of amounts    
    outstanding for purchases relating to exploration activities and amounts    
    payable for professional services. The credit period for purchases          
    typically ranges from 30 to 90 days.                                        
9. NOTES PAYABLE                                                                
    In December 2010, the Company entered into two promissory notes payable     
    with arm-length parties (the "Notes") in amounts of $100,000 and            
    $300,000, respectively. The Notes bore simple interest at a rate of 5%      
per annum and were unsecured and due on demand.  The fair value             
    approximated the carrying value as at December 31, 2010. The Notes were     
    fully repaid in May 2011 including accrued interest of $8,493.              
10. RELATED PARTY TRANSACTIONS                                                  
a)   Key Management Remuneration                                                
The Company`s related parties include key management.  Key management includes  
directors (executive and non-executive), the President and Vice President,      
Finance.  The remuneration of the key management of the Company as defined      
above, during the year ended December 31, 2011 and 2010 was as follows:         
                                                Years ended                     
                                                  December   December           
                                                  31, 2011   31, 2010           
Salaries                                           $270,310   $301,907          
                                                  $270,310   $301,907           
B)   Other Related Parties                                                      
During the year ended, December 31 2011, legal expenses of $31,697 (year ended  
December 31, 2010: $98,017), incurred in connection with general corporate      
matters, were paid to a law firm of which a director and officer of the         
Company was a partner until February 2011. As at December 31, 2011, $56,338     
(December 31, 2010: $90,778, January 1, 2010: $49,113) owing to this legal      
firm was included in accounts payable.                                          
As at December 31, 2011, an amount of $133,333 was owed to two directors of     
the Company representing consulting fees (December 31, 2010: $102,311, January  
1, 2010: $276,849).  During the year ended December 31, 2011, consulting fees   
of $200,000 were incurred to the two directors (year ended December 31, 2010:   
$200,000 to the two directors).                                                 
As at December 31, 2011, an amount of $11,313 (December 31, 2010: $3,719        
January 1, 2010: $3,922) was owed to Banro Corporation ("Banro").  Banro owns   
17,716,994 common shares of the Company, representing a 35.64% interest in the  
Company.  During the year ended December 31, 2010, a drill rig was sold to      
Banro by the Company for gross proceeds of $154,964.                            
On May 27, 2011 the Company closed a non-brokered private placement of          
1,250,000 units of the Company at a price of $0.20 per unit for proceeds of     
$250,000.  The purchasers of the units under this private placement were        
directors and officers of the Company (see Note 11a).                           
All amounts due to related parties are unsecured, non-interest bearing and due  
on demand. All transactions are in the normal course of operations and are      
measured at the exchange value.                                                 
11. SHARE CAPITAL                                                               
a)   Authorized                                                                 
The Company`s authorized share capital consists of an unlimited number of   
    common shares with no par value.                                            
    The holders of the common shares are entitled to receive notice of and to   
    attend all meetings of the shareholders of the Company and shall have one   
vote for each common share held at all meetings of the shareholders of      
    the Company. The holders of the common shares are entitled to (a) receive   
    any dividends as and when declared by the board of directors, out of the    
    assets of the Company properly applicable to the payment of dividends, in   
such amount and in such form as the board of directors may from time to     
    time determine, and (b) receive the remaining property of the Company in    
    the event of any liquidation, dissolution or winding-up of the Company.     
    On May 11, 2011, the Company closed a non-brokered private placement of     
3,750,000 units of the Company at a price of $0.16 per unit for proceeds    
    of $600,000, and on May 27, 2011 the Company closed a non-brokered          
    private placement of 1,250,000 units of the Company at a price of $0.20     
    per unit for proceeds of $250,000.  Each of the said units was comprised    
of one common share of the Company and one warrant of the Company           
    entitling the holder to purchase one common share of the Company at a       
    price of $0.22 for a period of three years from the date of issuance of     
    the warrant. The purchasers of the units under the May 27, 2011 private     
placement were directors and officers of the Company.                       
    In June 2011, the Company consolidated its outstanding common shares on a   
    two to one basis. Immediately prior to the consolidation, the Company had   
    99,408,640 common shares outstanding (December 31, 2010: 89,408,640,        
January 1, 2010: 89,408,640). Upon effecting the consolidation, and as of   
    December 31, 2011, the Company had 49,704,341 common shares outstanding     
    (December 31, 2010: 44,704,320).  The Company issued 21 additional common   
    shares due to the consolidation.                                            
Number of       Amount          
                                                shares                          
Balance at January 1, 2010                                              $       
                                                 44,704,320  115,457,876        
Shares issued for:                                                              
Cash                                                       -            -       
Balance at December 31, 2010                                                    
                                                 44,704,320 $115,457,876        
Shares issued for:                                                      $       
Cash                                               5,000,000      481,690       
Exercise of stock options                                  -            -       
Consolidation of shares: 2 to 1                           21                    
Balance at December 31, 2011                      49,704,341 $115,939,566       
b)   Share purchase warrants                                                    
    The Company`s outstanding warrants have been adjusted to reflect the two    
    to one share consolidation that occurred in June 2011 (see Note 11a). As    
at December 31, 2011, the Company had outstanding warrants to purchase      
    15,000,000 (December 31, 2010: 10,000,000) common shares of the Company.    
    Of the 15,000,000 warrants outstanding, 10,000,000 are exercisable at a     
    price of $0.132 per share until November 2013 and the remaining 5,000,000   
are exercisable at a price of $0.22 per share until May 2014.               
c)   Loss per share                                                             
    Loss per share was calculated on the basis of the weighted average number   
    of common shares outstanding for year ended December 31, 2011, amounting    
to 47,855,026  (year ended December 31, 2010: 44,704,320) common shares.    
    Diluted loss per share was calculated using the treasury stock method.      
    Total stock options for the year ended December 31, 2011 of 1,061,771       
    (year ended December 31 2010: 1,140,000) and warrants of 15,000,000 (year   
ended December 31, 2010: 10,000,000) were excluded from the calculation     
    of diluted loss per share as their effect would have been anti-dilutive.    
12. SHARE BASED PAYMENTS                                                        
In August 2011, the Company`s board of directors established a new stock        
option plan for the Company (the "New Plan").   In establishing the New Plan,   
the Board of Directors also provided that no additional stock options may be    
granted under the Company`s other stock option plan (the "Old Plan") and        
terminated the Old Plan effective upon the exercise, expiry, termination or     
cancellation of all of the currently outstanding stock options that were        
granted under the Old Plan.                                                     
Under the New Plan, non-transferable options to purchase common shares of the   
Company may be granted by the Company`s Board of Directors to any director,     
officer, employee or consultant of the Company or any subsidiary of the         
Company.  The New Plan contains provisions providing that the term of an        
option may not be longer than ten years and the exercise price of an option     
shall not be lower than the last closing price of the Company`s shares on the   
Toronto Stock Exchange prior to the date the stock option is granted.  Unless   
the Board of Directors makes a specific determination otherwise, stock options  
granted under the New Plan and all rights to purchase Company shares pursuant   
thereto shall expire and terminate immediately upon the optionee who holds      
such stock options ceasing to be at least one of a director, officer or         
employee of or consultant to the Company or a subsidiary of the Company, as     
the case may be.  Stock options granted pursuant to the New Plan vest as        
follows: 75% of the stock options vest on the 12 month anniversary of their     
grant date and the remaining 25% of such stock options vest on the 18 month     
anniversary of their grant date.  The total number of common shares of the      
Company issuable upon the exercise of all outstanding stock options granted     
under the New Plan shall not at any time exceed 12% of the total number of      
outstanding common shares of the Company, from time to time.                    
The Company`s outstanding stock options have been adjusted to reflect the two   
to one share consolidation that was implemented by the Company in June 2011.    
As at December 31, 2011, the Company had outstanding under the Old Plan stock   
options to acquire 1,040,000 (December 31, 2010 - 1,140,000) common shares of   
the Company at a weighted-average exercise price of $4.59 (December 31, 2010 -  
$2.42) per share. There are currently no stock options outstanding under the    
New Plan.                                                                       
The following tables summarize information about stock options (post-           
consolidation):                                                                 
For year ended December 31, 2011:                                               
Exer  Openin  During the Year               Closin  Weighted Vested  Unves      
cise  g                                     g       average  &       ted        
Pric  Balanc                                Balanc  remainin Exerci             
e     e                                     e       g        sable              
Rang                                                contract                    
e                                                   ual life                    
(Cdn                                                (years)                     
$)                                                                              
             Grant  Exerci  Expir  Forfei                                       
ed     sed     ed     ted                                          
2.10- 800,00                                800,00  1.66     800,00             
5.00  0       -      -       -      -       0                0       -          
5.20- 100,00                                                                    
7.50  0       -      -       100,0  -       -       -        -       -          
                            00                                                  
7.52- 240,00                                240,00  0.39     240,00             
16.0  0       -      -       -      -       0                0       -          
0                                                                               
     1,140,                                                                     
     000     -      -       100,0  -       1,040,           1,040,  -           
                            00             000              000                 
Weig   $       $  -   $ -     $      $  -    $                $       $  -      
hted  4.84                   7.50           4.59             4.59               
Aver                                                                            
age                                                                             
Exer                                                                            
cise                                                                            
Pric                                                                            
e                                                                               
(Cdn                                                                            
$)**                                                                            
For the year ended December 31, 2010:                                           
Exercis   Openi During the Year             Closi  Weighted  Vested  Unves      
e Price   ng                                ng     average   &       ted        
Range     Balan                             Balan  remainin  Exercis            
(Cdn$)    ce                                ce     g         able               
                                                  contract                      
ual life                      
                                                  (years)                       
               Gran   Exerci Expi  Forfei                                       
               ted    sed    red   ted                                          
2.10 -    1,130                             800,0  2.66      800,000            
5.00      ,700  -      -      233,  97,500  00                       -          
                             200                                                
5.20 -    100,0                             100,0  0.49      100,000            
7.50      00    -      -      -     -       00                       -          
7.52 -    240,0                             240,0  1.39      240,000            
16.00     00    -      -      -     -       00                       -          
         1,470                                                                  
,700  -      -      233,  97,500  1,140            1,140,0 -           
                             200           ,000             00                  
Weighte    $                   $     $       $                $                 
d         4.68  -      -      4.97  2.10    4.84             4.84    -          
Average                                                                         
Exercis                                                                         
e Price                                                                         
(Cdn$)                                                                          
The fair value at grant date is determined using a Black-Scholes option         
pricing model that takes into account the exercise price, the term of the       
option, the impact of dilution, the share price at grant date and expected      
price volatility of the underlying share, the expected dividend yield and the   
risk free interest rate for the term of the option. The contractual life of     
all options on the date of grant is 5 years.                                    
The expected price volatility is based on the historic volatility (based on     
the remaining life of the options), adjusted for any expected changes to        
future volatility due to publicly available information.                        
During the year ended December 31, 2011, the Company recognized in the          
statement of comprehensive loss as an expense $nil (year ended December 31,     
2010 $29,333) representing the fair value at the date of grant of stock         
options previously granted to employees, directors and officers under the       
Company`s Stock Option Plan. The weighted average fair value of stock options   
issued was estimated at $1.87 per share option at the grant date using the      
Black-Scholes option-pricing model. In addition, an amount of $nil for the      
year ended December 31, 2011 (year ended December 31, 2010: $8,893) related to  
stock options issued to employees of the Company`s subsidiary in the DRC was    
capitalized to exploration and evaluation assets.                               
These amounts were credited accordingly to contributed surplus in the           
consolidated statements of financial position.                                  
Replacement options                                                             
In connection with the acquisition by the Company of all of the outstanding     
shares of Diamond Core Resources Limited ("Diamond Core") on February 11,       
2008, 617,710 (the "Replacement Options") stock options were issued by the      
Company to employees of Diamond Core to substitute for their stock options in   
Diamond Core.  Diamond Core was subsequently disposed of by the Company.  As    
at December 31, 2011, there were 21,771 replacement options outstanding         
(December 31, 2010: 70,752).                                                    
13. SEGMENTED REPORTING                                                         
The Company has one operating segment: the acquisition, exploration and         
development of mineral properties located in the DRC. The operations of the     
Company are located in two geographic locations, Canada and the DRC.            
Geographic segmentation of non-current assets is as follows:                    
December 31, 2011                                                               
                            Property,       Exploration    Total                
plant and       and            Assets               
                            equipment       evaluation                          
DRC                          $0              $5,121,486     $5,121,48           
                                                           6                    
Canada                                                                          
                            -               -              -                    
                            $0              $5,121,486     $5,121,48            
                                                           6                    
December 31, 2010                                                               
                            Property,       Exploration    Total                
                            plant and       and            Assets               
                            equipment       evaluation                          
DRC                          $4,100          $5,075,041     $5,079,14           
                                                           1                    
Canada                                                                          
                            -               -              -                    
$4,100          $5,075,041     $5,079,14            
                                                           1                    
                                                                                
January 1, 2010                                                                 
Property,       Exploration    Total                
                            plant and       and            Assets               
                            equipment       evaluation                          
DRC                          $141,794        $5,826,755     $5,968,54           
9                    
Canada                                                                          
                            -               -              -                    
                            $141,794        $5,826,755     $5,968,54            
9                    
14. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES                           
a)   Fair value of financial assets and liabilities                             
    The consolidated statements of financial position carrying amounts for      
cash, other assets, accounts payable and accrued liabilities and notes      
    payable approximate fair value due to their short-term nature.  Due to      
    the use of subjective judgments and uncertainties in the determination of   
    fair values these values should not be interpreted as being realizable in   
an immediate settlement of the financial instruments.                       
    Fair value hierarchy                                                        
    The following provides a description of financial instruments that are      
    measured subsequent to initial recognition at fair value, grouped into      
Levels 1 to 3 based on the degree to which the fair value is observable:    
    -    Level 1 fair value measurements are those derived from quoted prices   
         (unadjusted) in active markets for identical assets or liabilities;    
    -    Level 2 fair value measurements are those derived from inputs other    
than quoted prices included within Level 1 that are observable for     
         the asset or liability, either directly (i.e. as prices) or            
         indirectly (i.e. derived from prices); and                             
    -    Level 3 fair value measurements are those derived from valuation       
techniques that include inputs for the asset or liability that are     
         not based on observable market data (unobservable inputs).             
    The fair values of financial assets and liabilities carried at amortized    
    cost are approximated by their carrying values.  Cash and notes payable     
are ranked level 2 as it is based on similar loans in the market.           
b)   Risk Management Policies                                                   
    The Company is sensitive to changes in commodity prices and foreign-        
    exchange. The Company`s Board of Directors has overall responsibility for   
the establishment and oversight of the Company`s risk management            
    framework. Although the Company has the ability to address its price-       
    related exposures through the use of options, futures and forward           
    contacts, it does not generally enter into such arrangements.               
c)   Foreign Currency Risk                                                      
    Foreign currency risk is the risk that a variation in exchange rates        
    between the Canadian dollar and United States dollar or other foreign       
    currencies will affect the Company`s operations and financial results. A    
portion of the Company`s transactions are denominated in United States      
    dollars, Congolese francs and South African rand. The Company is also       
    exposed to the impact of currency fluctuations on its monetary assets and   
    liabilities.  The Company`s functional currency is the Canadian dollar.     
The majority of major expenditures are transacted in US dollars.  The       
    Company maintains the majority of its cash in Canadian dollars but it       
    does hold balances in US dollars.  Significant foreign exchange gains or    
    losses are reflected as a separate component of the consolidated            
statement of comprehensive loss. The Company does not use derivative        
    instruments to reduce its exposure to foreign currency risk.                
    The following table indicates the impact of foreign currency exchange       
    risk on net working capital as at December 31, 2011. The table below also   
provides a sensitivity analysis of a 10 percent strengthening of the        
    Canadian dollar against foreign currencies as identified which would have   
    increased (decreased) the Company`s net loss by the amounts shown in the    
    table below. A 10 percent weakening of the Canadian dollar against the      
same foreign currencies would have had the equal but opposite effect as     
    at December 31, 2011.                                                       
                                    U.S   Congolese     South                   
                                 dollar       franc   African                   
rand                   
                                      $           $         $                   
Cash                                                                            
                                 76,862           -         -                   
Prepaid expenses                                                                
                                 38,341           -    13,500                   
Accounts payable                                                                
                              (162,345)           -   (9,135)                   
Total foreign currency                                                          
financial assets and            (47,142)           -     4,365                  
liabilities                                                                     
Foreign exchange rate at                                                        
December 31, 2011                 1.0170     0.00108    0.1259                  
Total foreign currency                                                          
financial assets and            (47,943)           -       550                  
liabilities in CDN $                                                            
Impact of a 10% strengthening                                                   
of the CDN $ on net loss         (4,794)           -        55                  
d)   Credit Risk                                                                
    Financial instruments which are potentially subject to credit risk for      
the Company consist primarily of cash. Cash is maintained with several      
    financial institutions of reputable credit in Canada, the DRC and South     
    Africa and may be redeemed upon demand.  It is therefore the Company`s      
    opinion that such credit risk is subject to normal industry risks and is    
considered minimal.                                                         
e)   Liquidity Risk                                                             
    Liquidity risk is the risk that the Company will not be able to meet its    
    financial obligations as they become due. The Company attempts to ensure    
that there is sufficient cash to meet its liabilities when they are due     
    and manages this risk by regularly evaluating its liquid financial          
    resources to fund current and long-term obligations and to meet its         
    capital commitments in a cost-effective manner. The key to success in       
managing liquidity is the degree of certainty in the cash flow              
    projections. If future cash flows are fairly uncertain, the liquidity       
    risk increases. The Company`s liquidity requirements are met through a      
    variety of sources, including cash, existing credit facilities and equity   
capital markets.  In light of market conditions, the Company initiated a    
    series of measures to bring its spending in line with the projected cash    
    flows from its operations and available project specific facilities in      
    order to preserve its financial position and maintain its liquidity         
position. Accounts payable and accrued liabilities of $530,024 and          
    amounts due to related parties of $144,646 are due within one year and      
    represent all significant contractual commitments, obligations, and         
    interest and principal repayments on financial liabilities. Please refer    
to Note 1, Continuation of Business.                                        
f)   Mineral Property Risk                                                      
    The Company`s operations in the DRC are exposed to various levels of        
    political risk and uncertainties, including political and economic          
instability, government regulations relating to exploration and mining,     
    military repression and civil disorder, all or any of which may have a      
    material adverse impact on the Company`s activities or may result in        
    impairment in or loss of part or all of the Company`s assets.               
g)   Market Risk                                                                
    Market risk is the potential for financial loss from adverse changes in     
    underlying market factors, including foreign-exchange rates, commodity      
    prices, interest rates and stock based compensation costs.                  
h)   Interest rate risk                                                         
    Interest rate risk is the potential impact on any Company earnings due to   
    changes in bank lending rates and short term deposit rates. The Company     
    is not exposed to significant interest rate risk other than cash flow       
interest rate risk on its cash. The Company does not use derivative         
    instruments to reduce its exposure to interest rate risk. A fluctuation     
    of interest rates of 1% would not affect significantly the fair value of    
    cash.                                                                       
i)   Title risk                                                                 
    Title to mineral properties involves certain inherent risks due to the      
    difficulties of determining the validity of certain claims as well as the   
    potential for problems arising from the frequently ambiguous conveyancing   
history characteristic of many mining properties.  Although the Company     
    has investigated title to all of its mineral properties for which it        
    holds concessions or other mineral licenses, the Company cannot give any    
    assurance that title to such properties will not be challenged or           
impugned and cannot be certain that it will have valid title to its         
    mineral properties.  The Company relies on title opinions by legal          
    counsel who base such opinions on the laws of countries in which the        
    Company operates.                                                           
j)   Country risk                                                               
    The DRC is a developing country and as such, the Company`s exploration      
    projects in the DRC could be adversely affected by uncertain political or   
    economic environments, war, civil or other disturbances, and a changing     
fiscal regime and by DRC`s underdeveloped industrial and economic           
    infrastructure.                                                             
    Company`s operations in the DRC may be effected by economic pressures on    
    the DRC. Any changes to regulations or shifts in political attitudes are    
beyond the control of the Company and may adversely affect its business.    
    Operations may be affected in varying degrees by factors such as DRC        
    government regulations with respect to foreign currency conversion,         
    production, price controls, export controls, income taxes or reinvestment   
credits, expropriation of property, environmental legislation, land use,    
    water use and mine safety.                                                  
    There can be no assurance that policies towards foreign investment and      
    profit repatriation will continue or that a change in economic conditions   
will not result in a change in the policies of the DRC government or the    
    imposition of more stringent foreign investment restrictions. Such          
    changes cannot be accurately predicted.                                     
k)   Capital Management                                                         
The Company manages its cash, common shares, warrants and stock options     
    as capital. The Company`s main objectives when managing its capital are:    
    -    to maintain a flexible capital structure which optimizes the cost of   
         capital at acceptable risk while providing  an appropriate return to   
its shareholders;                                                      
    -    to maintain a sufficient capital base so as to maintain investor,      
         creditor and market confidence and to sustain future development of    
         the business;                                                          
-    to safeguard the Company`s ability to obtain financing; and            
    -    to maintain financial flexibility in order to have access to capital   
         in the event of future acquisitions.                                   
    The Company manages its capital structure and makes adjustments to it in    
accordance with the objectives stated above, as well as responds to         
    changes in economic conditions and the risk characteristics of the          
    underlying assets.                                                          
    There were no significant changes to the Company`s approach to capital      
management during the period ended December 31, 2011.                       
    Neither the Company nor any of its subsidiaries are subject to externally   
    imposed capital requirements.                                               
                  December 31, 2011  December 31, 2010   January 1, 2010        
Cash           $          88,068   $        126,931    $      664,495        
   Share          $     115,939,566   $    115,457,876    $  115,457,876        
   capital                                                                      
   Deficit        $   (119,531,417)   $  (119,408,103)    $(117,900,848)        
Contributed    $       8,159,644   $      7,815,398    $    7,777,105        
   surplus                                                                      
15. SUPPLEMENTAL CASH FLOW INFORMATION                                          
During the years indicated the Company undertook the following significant non- 
cash transactions:                                                              
                                Note      December 31,      December 31,        
                                                  2011              2010        
Depreciation included in            7           $ 4,100          $ 72,685       
exploration and evaluation                                                      
assets                                                                          
Stock-based compensation           11            $    -          $  9,590       
included in exploration and                                                     
evaluation assets                                                               
16. COMMITMENTS AND CONTINGENCIES                                               
The Company is committed to the payment of surface fees and taxes.  For the     
year ended December 31, 2011, these fees and taxes are estimated to be          
$127,981 (US$ 132,000) compared to $109,409 (US$ 110,000) incurred in the year  
ended December 31, 2010. The surface fees and taxes are required to be paid     
annually under the DRC Mining Code in order to keep exploration permits in      
good standing.                                                                  
Six of the exploration permits comprising part of the Company`s Tshikapa        
project in the DRC are held through an option agreement with Acacia SPRL.       
Acacia SPRL has advised the Company of its wish to modify the option            
agreement.  The Company continues its discussions with Acacia SPRL and          
believes it can reach an agreement that is satisfactory for both parties.       
In addition to the above matters, the Company and its subsidiaries are also     
subject to routine legal proceedings and tax audits. The Company does not       
believe that the outcome of any of these matters, individually or in            
aggregate, would have a material adverse effect on its consolidated losses,     
cash flow or financial position.                                                
Labour disputes                                                                 
The Company is in dispute with two of its previous directors and officers.      
One of the individuals had applied in 2008 for a summary judgment against the   
Company in the Witwatersrand Local Division of the High Court of South Africa   
in respect of a dispute relating to a settlement agreement pertaining to his    
departure.  The application for summary judgment was dismissed and the Company  
was granted leave to defend the claim.  This individual has not taken further   
steps to progress that matter. However, in October 2010, almost two years       
after the original claim, the same former director and officer instituted       
fresh proceedings against the Company. He has repeated the claim made           
previously, but this time in a summons lodged before the North Gauteng High     
Court in South Africa.  This former director and officer is claiming he is      
owed payment of 1.2 million South African rand plus interest.  The trial date   
for this matter has been set down for September 10, 2012.  The other            
individual has referred two disputes to the Commission for Conciliation         
Mediation and Arbitration in Johannesburg, South Africa and an action to the    
High Court in that same jurisdiction.  He elected to withdraw an application    
for summary judgment.  The Company is unable to determine and estimate an       
amount as the probability and liability amount is uncertain. The Company is     
defending all these actions.                                                    
17. INCOME TAXES                                                                
The provision for income taxes is at an effective tax rate which differs from   
the basic corporate tax rate for the following reasons:                         
                                                                                
Year ended December 31,                            2011             2010        
                                                                                

Canadian basic Federal and                                                      
Provincial income tax rates                       28.3%            31.0%        
                                                                                
Net Income (loss) before tax                 $(101,405)   $  (1,535,770)        
Recovery of income taxes based on              (28,698)        (476,089)        
statutory    rates                                                              
     Benefit of losses                       (129,025)                0         
previously not recognized                                                       
     Foreign rate differential                   7,526           10,560         
     Difference in future tax                   17,273           41,338         
rates                                                                           
Stock option expense                            -            9,093         
     Unrecognized benefit of                   132,924          415,098         
losses                                                                          
     Change in provision related                21,909         (28,515)         
to Ontario harmonization                                                        
Income tax (recovery) expense                 $  21,909      $  (28,515)        
The change in the Canadian statutory rate over the prior year is a result of a  
reduction in the federal and provincial tax rates.                              
Income Tax Provision (Recovery)                                                 
The Company recorded current and deferred income taxes related to the           
transitional debit from the harmonization of Ontario corporate income tax with  
Federal.                                                                        
Year ended December 31,             2011                2010                    
                                                                                
Current tax expense                17,196              6,127                    
Deferred tax expense (recovery)    4,713               (34,642)                 
Total income tax expense           $  21,909           $(28,515)                
(recovery)                                                                      
Non-Current Income Tax                                                          
The Company has a non-current income tax payable as a result of the Ontario     
harmonization as at December 31, 2011 and 2010.                                 
  As at December 31,               2011                2010                     
  Non-current income tax payable   $ 20,502            $ 15,789                 
As at December 31, 2011 the Company has unrecognized temporary differences of   
approximately $115,427,672 (2010 - 114,868,016)                                 
Unrecognized Income Tax Assets                                                  
The following information summarizes the main temporary differences for which   
no deferred tax asset has been recognized:                                      
As at December 31,                  2011                2010                    
                                                                                
Deductible temporary differences    18,794,641          18,967,661              
Tax losses                          96,633,031          95,900,355              
Total                               $  115,427,672      $ 114,868,016           
                                                                                
Deferred tax assets have not been recognized in respect of these items because  
the Company does not have a history of taxable earnings.                        
The following table summarizes the Company`s net operating tax losses and       
temporary differences not recognized that can be applied against future         
taxable profit. The Company capital losses not recognized can be applied        
against future capital gains.                                                   

Country   Type                           Amount       Expiry Date               
Canada    Net operating losses           $4,072,586   2027 - 2031               
Canada    Capital losses                 92,560,445   No expiry                 
Canada    Deductible temporary           950,461      2012 - no                 
         differences                                 expiry                     
Congo     Deductible temporary           17,844,180   No expiry                 
         differences                                                            
18. FIRST TIME ADOPTION OF INTERNATIONAL FINANICIAL REPORTING STANDARDS         
IFRS 1, First Time Adoption of International Financial Reporting Standards      
("IFRS 1"), requires that comparative financial information be provided. As a   
result, the first date at which the Company has applied IFRS was January 1,     
2010. IFRS 1 requires first-time adopters to retrospectively apply all          
effective IFRS standards as of the reporting date, which for the Company will   
be December 31, 2011. However, it also provides for certain optional            
exemptions and certain mandatory exceptions for first-time IFRS adoption.       
Prior to transition to IFRS, the Company prepared its financial statement in    
accordance with Canadian GAAP.                                                  
In preparing the Company`s opening IFRS consolidated statements of financial    
position, the Company has adjusted amounts reported previously in the           
financial statements prepared in accordance with previous Canadian GAAP. The    
IFRS 1 applicable exemptions and exceptions applied in the conversion from      
Canadian GAAP to IFRS are as follows:                                           
i.   Share-based payment transactions                                           
The Company has elected not to retrospectively apply IFRS 2, Share based    
    payments ("IFRS 2") to equity instruments that were granted and that vest   
    before the transition date. As a result of applying this exemption, the     
    Company has applied the provision of IFRS 2 retrospectively to all          
outstanding equity instruments that were unvested as of to the date of      
    transition to IFRS.                                                         
ii.  Deemed Cost of Exploration and Evaluation Assets                           
    The Company has elected to measure its exploration and evaluation assets    
at the date of transition to IFRS at the amount determined under Canadian   
    GAAP. Per IFRS 1, the Company has tested these assets for impairment at     
    the date of transition to IFRS in accordance with IFRS 6 respectively.      
iii. Estimates                                                                  
The estimates previously made by the Company under Canadian GAAP were not   
    revised for the application of IFRS except where necessary to reflect any   
    difference in accounting policy or where there was objective evidence       
    that those estimates were in error.  As a result, the Company has not       
used hindsight to create or revise estimates.                               
IFRS employs a conceptual framework that is similar to Canadian GAAP. However   
significant differences exist in certain matters of recognition, measurement    
and disclosure. While the adoption has not changed the Company`s actual cash    
flows, it has resulted in changes to the Company`s consolidated statement of    
financial position and statement comprehensive loss. The statements of          
comprehensive loss have been changed to comply with IAS 1 Presentation of       
Financial Statements. The Canadian GAAP consolidated balance sheets as at       
January 1, 2010 and December 31, 2010, the consolidated statements of           
comprehensive loss for the year ended December 31, 2010 as well as the          
consolidated statement of cash flows for the year ended December 31, 2010 have  
been reconciled to IFRS, with a summary of the significant changes in share-    
based payments as follows:                                                      
a)   Share Based Payments                                                       
    Under IFRS 2, Share Based Payments, each tranche of an award with           
    different graded vesting is accounted for as a separate award and the       
resulting fair value is amortized over the vesting period of the            
    respective tranches.  Under Canadian GAAP, the Company was accounting for   
    these as a single award. In addition, under IFRS 2, the Company is          
    required to estimate the number of forfeitures likely to occur on grant     
date and reflect this in the share-based payment expense revising for       
    actual experiences in subsequent periods.  Under Canadian GAAP,             
    forfeitures were recognized as they occurred.                               
    The impact of adjustments relates to share based payments on the            
Company`s consolidated statement of financial position is as follows:       
                                                                                
                                                                                
                                     December 31, 2010 January 1, 2010          
$                 $                        
    Exploration and evaluation       -                 17,920                   
    Contributed surplus              -                 76,587                   
    Deficit                          -                  (58,667)                
-                 17,920                   
b)   Mineral Properties                                                         
    Under Canadian GAAP, exploration and development costs relating to          
    mineral properties and rights are deferred and carried as an asset until    
the properties are in production or until the project is abandoned.         
    Canadian GAAP does not provide a single accounting standard for             
    exploration and evaluation of mineral resources. In contrast, IFRS 6        
    Exploration for and Evaluation of Mineral Resources provides specific       
industry guidance on the treatment of exploration and evaluation            
    expenditures. Expenditures related to the development of mineral            
    resources are not recognised as exploration and evaluation assets, but      
    based on the nature of the Company`s properties, no development             
activities have occurred. As a result, the Company has reclassified         
    expenses recorded under mineral properties into exploration and             
    evaluation assets.                                                          
    Based on the foregoing, the reclassification of mineral properties to       
exploration and evaluation is as follows:                                   
                                     December 31, 2010   January 1, 2010        
                                                     $                 $        
    Mineral properties and deferred        (5,075,041)       (5,808,835)        
exploration expenditures CDN                                                
    GAAP balance                                                                
    Reallocation - IFRS:                                                        
    Exploration and evaluation               5,075,041         5,808,835        
-                 -        
The Canadian GAAP consolidated balance sheet including changes in equity as at  
January 1, 2010 has been reconciled to IFRS as follows:                         
                                                            January 1, 2010     

                          Notes  Canadian GAAP     Effect of           IFRS     
                                               Transition to                    
                                                        IFRS                    
Assets                                                                          
Current Assets                                                                  
Cash and cash                                 $  $          -    $   664,495    
equivalents                             664,495                                 
Prepaid expenses and                                        -        163,175    
other assets                            163,175                                 
Total Current Assets                    827,670             -        827,670    
                                                                                
Non-Current Assets                                                              
Property, plant and                     141,794             -        141,794    
equipment                                                                       
Mineral properties and         b                  (5,808,835)                   
deferred exploration                  5,808,835                            -    
expenditures                                                                    
Exploration and             a, b              -     5,826,755      5,826,755    
evaluation                                                                      
Total Non-Current Assets              5,950,629        17,920      5,968,549    
                                                                                
Total Assets                          6,778,299        17,920      6,796,219    
                                                                                
Liabilities and                                                                 
Shareholders` Equity                                                            
Current Liabilities                                                             
Accounts payable and                                                            
accrued liabilities                   1,027,172             -      1,027,172    
Due to related parties                  377,884             -        377,884    
Total Current                         1,405,056             -      1,405,056    
Liabilities                                                                     

Non-current                                                                     
Deferred tax liability                   57,030             -         57,030    
Total Liabilities                     1,462,086             -      1,462,086    

Shareholders` Equity                                                            
Share capital                       115,457,876             -    115,457,876    
Contributed surplus            a      7,700,518        76,587      7,777,105    
Deficit                        a                     (58,667)  (117,900,848)    
                                 (117,842,181)                                  
Total Shareholders`                   5,316,213        17,920      5,334,133    
Equity                                                                          
Total Liabilities and                 6,778,299        17,920      6,796,219    
Shareholders` Equity                                                            
The Canadian GAAP consolidated balance sheet including changes in equity as at  
December 31, 2010 has been reconciled to IFRS as follows:                       
December 31, 2010          
                        Notes Canadian GAAP    Effect of          IFRS          
                                              Transition                        
                                                 to IFRS                        
Assets                                                                          
Current Assets                                                                  
Cash                                       $    $       -  $    126,931         
                                    126,931                                     
Prepaids expenses and                                                           
other assets                          21,713            -        21,713         
Total Current Assets                 148,644            -       148,644         
                                                                                
Non-Current Assets                                                              
Property, plant and                                                             
equipment                              4,100            -         4,100         
Mineral properties and       b     5,075,041  (5,075,041)             -         
deferred exploration                                                            
expenditures                                                                    
Exploration and              b                                                  
evaluation                                 -    5,075,041     5,075,041         
Total Non-Current                  5,079,141                                    
Assets                                                  -     5,079,141         
                                                                                
Total Assets                       5,227,785                                    
-     5,227,785          
                                                                                
Liabilities and                                                                 
Shareholders` Equity                                                            
Current Liabilities                                                             
Accounts payable and                                                            
accrued liabilities                  834,176            -       834,176         
Notes payable                        400,493            -       400,493         
Income taxes payable                   6,127            -         6,127         
Due to related parties               106,029            -       106,029         
Total Current                      1,346,825            -     1,346,825         
Liabilities                                                                     

Non-current                                                                     
Deferred income tax                                                             
liabilities                           15,789            -        15,789         
Total Liabilities                  1,362,614            -     1,362,614         
                                                                                
Shareholders` Equity                                                            
Share capital                    115,457,876            -   115,457,876         
Contributed surplus                7,815,398            -     7,815,398         
Deficit                                                 - (119,408,103)         
                              (119,408,103)                                     
Total Shareholders`                3,865,171            -     3,865,171         
Equity                                                                          
Total Liabilities and              5,227,785            -     5,227,785         
Shareholders` Equity                                                            
The Canadian GAAP consolidated statements of operations and other               
comprehensive loss for the year ended December 31, 2010 have been reconciled    
to IFRS as follows:                                                             
                               Year Ended December 31, 2010                     
                         Notes     Canadian   Effect of            IFRS         
GAAP  Transition                         
                                                to IFRS                         
Expenses                                                                        
Consulting and                             $           $     $   447,319        
professional fees                    447,319           -                        
General and                                                                     
administrative                       209,778           -         209,778        
Share based payment           a                                                 
expense                               88,000    (58,667)          29,333        
Foreign exchange (loss)                                                         
gain                                   3,356           -           3,356        
Impairment of mineral                                                           
properties and deferred              740,975           -         740,975        
exploration expenditures                                                        
Bad debt expense                                                                
                                    105,009           -         105,009         
Loss from operations                            (58,667)     (1,535,770)        
                                (1,594,437)                                     
                                                                                
Income tax recovery                                                             
28,515           -          28,515         
                                                                                
Loss for the year                               (58,667)     (1,507,255)        
                                (1,565,922)                                     

Comprehensive loss for                     $           $    $(1,507,255)        
the year                         (1,565,922)    (58,667)                        
                                                                                
Loss per share, basic                                                           
and diluted                           (0.03)           -          (0.03)        
The Canadian GAAP reconciliation to IFRS of the consolidated statement of cash  
flow for the year ended December 31, 2010 is as follows:                        
Year ended December 31, 2010                
                             Notes      Canadian  Effect of          IFRS       
                                            GAAP Transition                     
                                                    to IFRS                     
Cash flows from operating                                                       
activities                                                                      
Net loss for the year             a  $(1,565,922)  $  58,667  $(1,507,255)      
Adjustments to reconcile loss                                                   
to net cash used in operating                                                   
activities                                                                      
Impairment of properties                  740,975          -       740,975      
Share based payment expense       a        88,000   (58,667)        29,333      
Interest expense                              493          -           493      
Bad debt expense                          105,009          -       105,009      
Income taxes                             (28,515)          -      (28,515)      
Changes in non-cash working                                                     
capital                                                                  -      
  Prepaid expenses and other                                                    
current assets                             36,453          -        36,453      
  Accounts payables and                                                         
accrued        liabilities              (192,996)          -     (192,996)      
Income taxes paid                         (6,598)          -       (6,598)      
Net cash flows from operating           (823,101)          -     (823,101)      
activities                                                                      

Cash flows from investing                                                       
activities                                                                      
Proceeds from disposal of                                                       
capital asset                              64,794          -        64,794      
Expenditures on exploration                                                     
and evaluation                          (338,757)          -     (338,757)      
Funds received from Rio Tinto             431,355          -       431,355      
Net cash provided by                      157,392          -       157,392      
investing activities                                                            
                                                                                
Cash flows from financing                                                       
activities                                                                      
Due to related parties                  (271,855)          -     (271,855)      
Notes payable                             400,000          -       400,000      
Net cash provided by                      128,145          -       128,145      
financing activities                                                            
                                                                                
Net decrease in cash during             (537,564)          -     (537,564)      
the year                                                                        
Cash, beginning of the year               664,495          -       664,495      
Cash, end of the year                 $   126,931  $       -   $   126,931      
The Canadian GAAP reconciliation to IFRS of the consolidated statement of       
changes in equity as at January 1, 2010 is as follows:                          
January 1, 2010                                         
                 Notes    Canadian GAAP   Effect of                 IFRS        
                                         Transition                             
                                            to IFRS                             
Share Capital              $ 115,457,876    $      -       $  115,457,876       
Contributed           a                                                         
Surplus                        7,700,518      76,587            7,777,105       
Deficit               a                                                         
(117,842,181)    (58,667)        (117,900,848)        
Total                      $   5,316,213           $       $    5,334,133       
Shareholders`                                 17,920                            
Equity                                                                          
The Canadian GAAP reconciliation to IFRS of the consolidated statement of       
changes in equity for the year ended December 31, 2010 is as follows:           
                            Year ended December 31, 2010                        
                      Notes   Canadian GAAP  Effect of                IFRS      
Transition                          
                                               to IFRS                          
Share Capital                  $ 115,457,876  $       -       $ 115,457,876     
Contributed                a                                                    
Surplus                            7,815,398          -           7,815,398     
Deficit                    a                                                    
                              (119,408,103)          -       (119,408,103)      
Total                          $   3,865,171  $       -       $   3,865,171     
Shareholders`                                                                   
Equity                                                                          
Sponsor                                                                         
Arcay Moela (Proprietary) Limited                                               
5 April 2012                                                                    
Date: 05/04/2012 10:32:01 Supplied by www.sharenet.co.za                     
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