| INCOME TAXES |
A reconciliation of income taxes at statutory rates with the reported taxes is as follows: | | | | | | | | | 2025 | | 2024 | Loss before income taxes | | $ | (5,524,828) | | $ | (5,230,946) | | | | | | | | Expected income tax (recovery) | | | (1,492,000) | | | (1,412,000) | Other | | | — | | | — | Items not deductible for income tax purposes | | | 96,000 | | | 191,000 | Impact of flow through shares | | | 271,000 | | | 377,000 | Share issue costs | | | (68,000) | | | (39,000) | Adjustment to prior years provision versus statutory tax returns and expiry of non-capital losses | | | (162,000) | | | — | Change in unrecognized deductible temporary differences | | | 1,355,000 | | | 883,000 | Total income tax expense (recovery) | | $ | — | | $ | — |
The following is the analysis of recognized deferred tax assets and liabilities: | | | | | | | Year ended December 31, | | 2025 | | 2024 | Deferred tax liabilities | | | | | | | Marketable securities | | $ | (466,000) | | $ | (14,000) | Loan payable | | | (1,000) | | | — | | | | | | | | Deferred tax assets | | | | | | | Non-capital losses | | | 467,000 | | | 14,000 | Net deferred tax assets (liabilities) | | $ | — | | $ | — |
The significant components of the Company’s temporary differences, unused tax credits and unused tax losses that have not been included on the consolidated statement of financial position are as follows: | | | | | | | | | | | | | | Expiry Date | | | | | | 2025 | | Range | | 2024 | Exploration and evaluation assets | | $ | 3,665,000 | | No expiry date | | $ | 2,419,000 | Investment tax credit | | $ | 441,000 | | 2030 to 2032 | | $ | 441,000 | Property, plant, and equipment | | $ | 18,957,000 | | No expiry date | | $ | 16,220,000 | Right-of-use assets/lease liabilities | | $ | 8,000 | | 2027 to 2030 | | $ | — | Share issue costs | | $ | 322,000 | | 2026 to 2029 | | $ | 177,000 | Debt with accretion | | $ | — | | No expiry date | | $ | 320,000 | Asset retirement obligation | | $ | 13,754,000 | | No expiry date | | $ | 14,220,000 | Non-capital losses available for future periods | | $ | 48,620,000 | | 2026 to 2045 | | $ | 43,005,000 |
Tax attributes are subject to review, and potential adjustment, by tax authorities.
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