Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Jun. 30, 2015 | |
Document and Entity Information: | ||
Entity Registrant Name | New Jersey Mining Company | |
Document Type | 10-K | |
Document Period End Date | Dec. 31, 2015 | |
Trading Symbol | njmc | |
Amendment Flag | false | |
Entity Central Index Key | 1,030,192 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 94,760,148 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | FY | |
Entity Public Float | $ 6,623,118 | |
Entity Incorporation, State Country Name | Idaho | |
Entity Incorporation, Date of Incorporation | Jul. 18, 1996 |
New Jersey Mining Company Conso
New Jersey Mining Company Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | |
Current assets: | |||
Cash and cash equivalents | $ 62,275 | $ 336,524 | |
Joint venture receivables | 3,109 | 55,022 | |
Note receivable | 58,386 | 58,386 | |
Milling receivables | 40,577 | 117,615 | |
Other current assets | 40,350 | 22,495 | |
Total current assets | 204,697 | 590,042 | |
Property, plant and equipment, net of accumulated depreciation | 5,698,831 | 5,654,199 | |
Mineral properties, net of accumulated amortization | 1,907,089 | 557,458 | |
Deposit on equipment | 13,982 | 12,480 | |
Total assets | 7,824,599 | 6,814,179 | |
Current liabilities: | |||
Accounts payable | 58,267 | 77,913 | |
Accrued payroll and related payroll expenses | 14,513 | 49,960 | |
Notes payable related parties, current portion | 88,114 | 39,384 | |
Milling advance | 200,000 | ||
Notes payable, current portion, net of discount | 488,435 | 180,385 | |
Total current liabilities | 649,329 | 547,642 | |
Asset retirement obligation | 28,656 | 23,366 | |
Notes payable related parties, long term | 598,127 | 141,033 | |
Notes payable, long term, net of discount | 731,940 | 148,288 | |
Total long term liabilities | 1,358,723 | 312,687 | |
Total liabilities | $ 2,008,052 | $ 860,329 | |
Commitments | [1] | ||
Stockholders' equity: | |||
Preferred stock, no par value, 1,000,000 shares authorized; no shares issued or outstanding | $ 0 | $ 0 | |
Common stock, no par value, 200,000,000 shares authorized; 91,760,148 shares issued and outstanding | 13,590,739 | 13,442,395 | |
Accumulated deficit | (10,981,432) | (10,735,658) | |
Total New Jersey Mining Company stockholders' equity | 2,609,307 | 2,706,737 | |
Non-controlling interests | 3,207,240 | 3,247,113 | |
Total stockholders' equity | 5,816,547 | 5,953,850 | |
Total liabilities and stockholders' equity | $ 7,824,599 | $ 6,814,179 | |
[1] | Notes 6, 8 and 12 |
Statement of Financial Position
Statement of Financial Position - Parenthetical | Dec. 31, 2014$ / sharesshares |
Statement of financial position | |
Preferred Stock, Par Value | $ / shares | $ 0 |
Preferred Stock, Shares Authorized | 1,000,000 |
Preferred Stock, Shares Issued | 0 |
Preferred Stock, Shares Outstanding | 0 |
Common Stock, Par Value | $ / shares | $ 0 |
Common Stock, Shares Authorized | 200,000,000 |
Common Stock, Shares Issued | 91,760,148 |
Common Stock, Shares Outstanding | 91,760,148 |
New Jersey Mining Company Cons4
New Jersey Mining Company Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Revenue: | |||
Contract services revenue and other | $ 4,203 | $ 373 | |
Milling revenue | 1,886,970 | 92,165 | |
Total revenue | 1,891,173 | 92,538 | |
Costs and expenses: | |||
Milling | 1,263,931 | 310,309 | |
Exploration | 200,587 | 435,601 | |
Net loss (gain) on sale of equipment | (6,000) | 34,878 | |
(Gain) on forfeiture of milling advance | (125,000) | ||
Impairment of mineral property | 95,598 | ||
Depreciation and amortization | 150,367 | 46,360 | |
Management | 282,299 | 331,517 | |
Professional services | 181,329 | 197,465 | |
General and administrative expenses | 292,134 | 199,465 | |
Total operating expenses | 2,335,245 | 1,555,595 | |
Operating income (loss) | (444,072) | (1,463,057) | |
Other (income) expense: | |||
Timber revenue | (51,815) | ||
Timber expense | 9,707 | 2,187 | |
Royalties and other income | (19,809) | ||
Gain on sale of marketable equity security | $ (24,741) | ||
Gain on remeasurement of previously held equity interest | [1] | (164,696) | |
Interest income | (5,252) | $ (1,859) | |
Interest expense | 22,722 | 17,294 | |
Amortization of discount | 27,350 | ||
Total other (income) expense | (161,984) | (26,928) | |
Income tax (provision) benefit | 0 | 0 | |
Net loss | (282,088) | (1,436,129) | |
Net loss attributable to non-controlling interests | 36,314 | 2,495 | |
Net loss attributable to New Jersey Mining Company | (245,774) | (1,433,634) | |
Other comprehensive loss: | |||
Net loss | (282,088) | (1,436,129) | |
Unrealized gain (loss) on marketable equity security | 18,938 | ||
Reclassification of realized gain on marketable equity security | (24,741) | ||
Comprehensive loss | (282,088) | (1,441,932) | |
Comprehensive loss attributable to non-controlling interests | 36,314 | 2,495 | |
Comprehensive loss attributable to New Jersey Mining Company | $ (245,774) | $ (1,439,437) | |
Net loss per common share-basic and diluted | $ 0 | $ 0.02 | |
Weighted average common shares outstanding-basic and diluted | 91,760,148 | 83,475,216 | |
[1] | Notes 9 and 15 |
New Jersey Mining Company Cons5
New Jersey Mining Company Consolidated Statement of Changes in Stockholders' Equity - USD ($) | Common Stock Shares | Common Stock Amount | Accumulated Deficit | Comprehensive Income (loss) | Non-controlling Interests | Total |
Stockholders' equity at Dec. 31, 2013 | $ 11,755,469 | $ (9,302,024) | $ 5,803 | $ 3,176,620 | $ 5,635,868 | |
Shares issued at Dec. 31, 2013 | 73,760,148 | |||||
Contribution from non-controlling interest in Mill JV | 22,988 | 22,988 | ||||
Allocation of fair value of non-controlling interest in GF&H | 50,000 | 50,000 | ||||
Issuance of common stock and warrants for cash, net of offering costs | 1,485,000 | 1,485,000 | ||||
Issuance of common stock and warrants for cash, net of offering costs, stock | 18,000,000 | |||||
Stock options granted to directors | 201,926 | 201,926 | ||||
Other comprehensive loss | (5,803) | (5,803) | ||||
Net loss attributable to non-controlling interest | (2,495) | (2,495) | ||||
Net loss attributable to the Company | (1,433,634) | (1,433,634) | ||||
Stockholders' equity at Dec. 31, 2014 | 13,442,395 | (10,735,658) | 3,247,113 | 5,953,850 | ||
Shares issued at Dec. 31, 2014 | 91,760,148 | |||||
Net contribution (reduction) of non-controlling interest in Mill JV | (3,559) | (3,559) | ||||
Stock options granted to directors | 148,344 | 148,344 | ||||
Net loss attributable to non-controlling interest | $ (36,314) | (36,314) | ||||
Net loss attributable to the Company | $ (245,774) | (245,774) | ||||
Stockholders' equity at Dec. 31, 2015 | $ 13,590,739 | $ (10,981,432) | $ 3,207,240 | $ 5,816,547 | ||
Shares issued at Dec. 31, 2015 | 91,760,148 |
New Jersey Mining Company Cons6
New Jersey Mining Company Consolidated Statements of Cash Flows | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |||
Cash flows from operating activities: | ||||
Net loss | $ (282,088) | $ (1,436,129) | ||
Adjustments to reconcile net loss to net cash (used) by operating activities | ||||
Depreciation and amortization | 150,367 | 46,360 | ||
(Gain) loss on sale of equipment | (6,000) | 34,878 | ||
Gain of forfeiture of milling advance | (125,000) | |||
Gain on sale of marketable equity security | $ (24,741) | |||
Amortization of discount on note payable | 27,350 | |||
Gain on remeasurement of previously held equity interest | (164,696) | [1] | [1] | |
Accretion of asset retirement obligation | 5,290 | $ (4,608) | ||
Impairment of mineral property | 95,598 | |||
Stock based compensation | 148,344 | 201,927 | ||
Change in operating assets and liabilities | ||||
Joint venture receivables | 25,013 | 6,122 | ||
Milling receivables | 77,038 | (81,165) | ||
Other current assets | (7,909) | (12,975) | ||
Accounts payable | (25,163) | 37,706 | ||
Accrued payroll and related payroll expense | (35,449) | 27,944 | ||
Net cash (used) by operating activities | (117,305) | (1,204,681) | ||
Cash flows from investing activities: | ||||
Purchases of property, plant and equipment | (133,260) | (600,869) | ||
Purchase of controlling interest in GF&H | (100,000) | |||
Deposit on equipment | (13,982) | |||
Purchase of controlling interest in GCJV | (180,000) | |||
Cash acquired in purchase of controlling interest in GCJV | 524 | |||
Proceeds from sale of mineral property | 10,000 | 10,000 | ||
Note receivable | (58,386) | |||
Proceeds from sale of marketable equity security | 28,610 | |||
Proceeds from sale of equipment | 76,676 | |||
Net cash provided (used) by investing activities | (316,718) | (643,970) | ||
Cash flows from financing activities: | ||||
Sales of common stock and warrants, net of issuance costs | 1,485,000 | |||
Principal payments on notes payable | (271,052) | (95,870) | ||
Principal payments on capital lease | (26,367) | |||
Milling advance | (75,000) | 200,000 | ||
Note from related party | 550,000 | |||
Principal payments on note and other payables, related party | (44,174) | (36,701) | ||
Proceeds from non-controlling interest | 22,986 | |||
Net cash provided by financing activities | 159,774 | 1,549,048 | ||
Net change in cash and cash equivalents | (274,249) | (299,603) | ||
Cash and cash equivalents, beginning of year | 336,524 | 636,127 | ||
Cash and cash equivalents, end of year | 62,275 | 336,524 | ||
Supplemental disclosure of cash flow information | ||||
Interest paid in cash, net of amount capitalized | 22,722 | 17,294 | ||
Non-cash investing and financing activities: | ||||
Non-controlling interest in GF&H Company | 50,000 | |||
Deposit on equipment applied to purchase of equipment | 12,480 | |||
Property exchanged on elimination of debt | 175,000 | |||
Purchase of property and equipment with note payable | $ 92,320 | $ 175,000 | ||
[1] | Notes 9 and 15 |
1. Description of Business
1. Description of Business | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
1. Description of Business | 1. Description of Business New Jersey Mining Company (“the Company”) was incorporated as an Idaho corporation on July 18, 1996. The Company's primary business is exploring for and developing gold, silver, and base metal mineral resources in the Greater Coeur d’Alene Mining District of North Idaho and extending into Western Montana. It is currently evaluating new mineral investment and development opportunities in the western United States. The Company is currently focused on advanced stage exploration and development assets that could be developed into near-term cash flow. During late 2014, one of its mineral properties had a new mine developed and put into production by a lessee. The New Jersey Mill was also put into production in 2014 to process ore from the Golden Chest Mine. The mine and mill were in production through the first three quarters of 2015. Production has since been halted due to continued low gold prices but is expected to resume in the second or third quarter of 2016. |
3. Going Concern
3. Going Concern | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
3. Going Concern | 3. Going Concern As shown in the accompanying financial statements, the Company had minimal revenue and a net loss of $282,088 in 2015, an accumulated deficit, negative working capital, and a Cash and Cash Equivalents balance of $62,275 at December 31, 2015. These factors raise substantial doubt about the CompanyÂ’s ability to continue as a going concern. However, the Company did put the New Jersey Mill into production in 2015 and is proceeding with plans to both mine and mill ore from the Golden Chest property in 2016 if successful in raising the required startup funds. In the first three quarters of 2015 the Company did generated revenue from milling ores from the Golden Chest Mine. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue its operations. |
4. Note Receivable
4. Note Receivable | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
4. Note Receivable | 4. Note Receivable On September 30, 2014 the Company loaned $58,386 to Premium Exploration (USA) Inc under a convertible promissory note. The note carries simple interest at 8% and matures on August 1, 2015 at which time the principal and interest is due. At any time prior to expiration the note is convertible to shares of Premium Exploration Inc. Premium Exploration has since filed for bankruptcy however the Company is listed as a creditor in the bankruptcy proceedings and still expects to receive payment and has accrued no reserve for uncollectibility at December 31, 2015 |
5. Property, Plant and Equipmen
5. Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
5. Property, Plant and Equipment | 5. Property, Plant and Equipment Property, plant and equipment at December 31, 2015 and 2014, consisted of the following: 2015 2014 Mill land $ 225,289 $ 225,289 Mill building 536,193 536,193 Milling equipment 4,209,440 4,001,751 4,970,922 4,763,233 Less accumulated depreciation (285,420) (152,151) Total mill 4,685,502 4,611,082 Building and equipment at cost 362,188 252,348 Less accumulated depreciation (217,738) (216,926) Total building and equipment 144,450 35,442 Bear Creek Land 196,204 150,000 Little Baldy Land 72,139 82,139 BOW Land 230,449 230,449 Eastern Star Land 250,817 425,817 Gillig Land 79,137 79,137 Highwater Land 40,133 40,133 Total Land 868,879 1,007,675 Total $ 5,698,831 $ 5,654,199 During the year ended December 31, 2015 and 2014 $16,295 and $25,021, respectively in interest was capitalized in conjunction with the mill expansion project. During the year ended December 31, 2012, a lease agreement was entered into with Hecla Mining Company on the CompanyÂ’s Little Baldy land holding. Under the agreement, Hecla has paid $10,000 each year in 2015 and 2014, respectively, to the Company for the option to obtain NJMCÂ’s interest in the land. The Company has recorded these lease payments as a reduction in the carrying value of the land for the years ended December 31, 2015 and 2014. For year ended December 31, 2014, milling and other equipment include assets under capital lease amounting to $91,625. The lease is being amortized over its terms. Accumulated amortization at December 31, 2014 was $91,625. The lease was concluded in September 2014 and the equipment title was transferred to the Company for no additional consideration. During the year ended December 31, 2014, the Company entered into a purchase and sale agreement to acquire the Eastern Star Elk City property for $425,000. The agreement called for a down payment of $125,000 in April 2014 and a promissory note for the balance at 5% per annum. As scheduled, the next payment of $125,000 was made on August 15, 2014. Final payment of $175,000 was due on July 15, 2015. The agreement was structured such that the Company could opt to not make the final payment and receive title to parcels of the Elk City property covered by the first two payments. The Company opted out of making the final payment and has received title to the property for which payment has been made. |
6. Notes Payable
6. Notes Payable | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
6. Notes Payable | 6. Notes Payable At December 31, 2015 and 2014 notes payable are as follows 2015 2014 Property with shop 36 month note payable, 4.91% interest rate payable monthly, remaining principal of note due in one payment at end of term, monthly payments of $459 $ 42,726 $ 46,337 Property, 15 month note payable, 5% interest per annum, collateralized by property, one remaining payment of $175,000, elimination upon cancellation of deed of trust - 175,000 Property 120 month note payable, 11.0% interest rate payable monthly, remaining principal of note due in one payment at end of term, collateralized by property, monthly payments of $1,124 105,196 107,336 Tailings pump, 36 month note payable, 17.53% interest per annum, collateralized by pump, monthly payments of $3,268 76,097 Mineral property, 10 quarterly payments, 0.0% interest rate discounted at 10%, collateralized by property, quarterly payments of $125,000 1,125,000 Total notes payable 1,349,019 328,673 Due within one year 572,806 180,385 Due after one year $ 776,213 $ 148,288 Future principal payments of debt and related discount amortization at December 31, 2015 are as follows: Note Discount Net 2016 $ 572,806 $ (84,371) $ 488,435 2017 535,648 (41,222) 494,426 2018 142,156 (3,049) 139,107 2019 2,806 2,806 2020 3,131 3,131 Thereafter 92,472 92,472 Total $ 1,349,019 $ (128,642) $ 1,220,377 |
7. Mineral Properties
7. Mineral Properties | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
7. Mineral Properties | 7. Mineral Properties Mineral properties and deferred development costs are as follows: December 31, 2015 December 31, 2014 New Jersey $ 215,127 $ 288,365 McKinley 250,000 250,000 Golden Chest 1,445,229 Silver Button/Roughwater 25,500 Toboggan 5,000 5,000 Less accumulated amortization (8,267) (11,407) Total $ 1,907,089 $ 557,458 New Jersey The Coleman property is located at the New Jersey Mine area of interest and consists of 62 acres of patented mining claims, mineral rights to 108 acres of fee land, 80 acres of land for which the Company owns the surface but not the mineral rights, and approximately 130 acres of unpatented mining claims. The Coleman property was acquired in October 2002. As of December 31, 2015, an impairment analysis determined that the propertyÂ’s value had been impaired based upon current mineral prices and market conditions and a non receiving impairment loss of $70,098 was recognized. At December 31, 2015 and 2014 the balance includes asset retirement costs of $23,365. Fair value of the property was determined using Level 3 fair value inputs based on recent sales of comparable properties in the immediate area. McKinley The McKinley Project is an exclusive exploration and mining lease which covers several historic mines and prospects, including the McKinley Mine, Ibex Mine, and Big Easy Mine, on private land located in central Idaho near the town of Lucile. On December 31, 2013, NJMC received all rights and agreements, intellectual property, historic and recent due diligence, surveys and maps, along with a 12-month option to purchase the historic McKinley Mine, located on 62 acres within the overall land package. The option to purchase the McKinley mine has been extended by an additional 24 months to November 18, 2016. Golden Chest The Golden Chest is an exploration and underground mine project located near Murray, Idaho consisting of 25 patented and 70 unpatented mining claims. Previously owned by GCJV the property is now owned by NJMC after the Company acquired the remaining 52.22% interest in the 4 th Silver Button/Roughwater The Silver Button claim is the remaining property of the ten claims acquired from Roughwater Mining Company. During 2005, the other nine Roughwater unpatented claims were dropped. In 2001, the Company purchased the property through the issuance of 255,000 shares of its common stock to Roughwater Mining Company. The shares were valued at $0.10 per share, for a total acquisition cost of $25,500. As of December 31, 2015 an impairment analysis determined that the property had no value using Level 3 fair value inputs based on current mineral prices and market conditions and an impairment loss for the entire $25,500 carrying value was recognized. Toboggan Toboggan is a gold and silver exploration project consisting of 106 claims covering 2,100 acres of federal land administered by the U.S. Forest Service. In 2001, the Company issued 50,000 shares of stock to an individual to acquire the rights. The shares were valued at $0.10 per share for a total acquisition cost of $5,000. This cost was for a portion of the claims in the Toboggan property that were purchased; the remaining claims were staked by the Company. |
8. Asset Retirement Obligation
8. Asset Retirement Obligation | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
8. Asset Retirement Obligation | 8. Asset Retirement Obligation The Company has established asset retirement obligations associated with the ultimate closing of its mineral properties. 2015 2014 Balances at January 1 $ 23,366 $ 10,949 Accretion expense (net true up) 5,291 (4,608) Incurred 17,025 Balance December 31 $ 28,656 $ 23,366 Upon completion of Gold Hills lease at the Golden Chest Gold Hill remediated their disturbances. |
9. Mining and Milling Venture A
9. Mining and Milling Venture Agreements | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
9. Mining and Milling Venture Agreements | 9. Mining and Milling Venture Agreements Golden Chest LLC (“GCJV”) In December of 2010, a limited liability company was formed between the Company and Marathon Gold USA (MUSA). MUSA’s contribution to GCJV was $4,000,000 paid in installments ending on November 30, 2011. The Company contributed to GCJV all of its interests in the Golden Chest Mine, including unpatented claims and some mining equipment with a carrying value of $553,205. At inception, GCJV purchased the patented mining claims for $3.75 million with $500,000 paid at closing in December 2010 and the remainder due under a Promissory Note and Mortgage at the rate of $500,000 per year with quarterly payments and the $250,000 balance due in the seventh and final year. The note is collateralized by a first mortgage on the claims. Funding in 2012 and future funding for the venture is being paid by each partner at a percentage equal to their ownership, which in 2012 and through June of 2013 was 50 percent per partner. In May and June of 2013, the Company elected not to participate in some funding calls resulting in dilution of its ownership interest in GCJV. During the year ended December 31, 2012 the Company began accounting for the GCJV using the equity method because significant influence was obtained during the year. After dilution of its share in 2013, significant influence was no longer possessed and accounting for the Joint Venture reverted back to the cost method. On September 3, 2013, GCJV signed a lease agreement with Juniper Resources, LLC (Juniper) of Boise, Idaho for a defined portion of the Golden Chest mine property. The lease with Juniper called for an initial payment of $50,000 to GCJV, which was received, and a work requirement of 1,500 to 3,000 meters of core drilling which was completed during 2014. Juniper signed the lease and made a payment of $200,000 to GCJV at the end of November 2013. Juniper was required to make land payments of $125,000 per quarter on the promissory note on behalf of GCJV. Additionally, Juniper paid a 2% net smelter royalty to GCJV on all gold production from the leased area with the $250,000 initial payments treated as an advance on this royalty. The lease was assigned to Gold Hill Reclamation and Mining Inc. (“Gold Hill”), a company affiliated with Juniper, on September 3, 2013. The lease had a term of 39 months. A Milling advance of $200,000 was received from Gold Hill November 7, 2014 to facilitate the start-up of the mill. The advance was to be paid back to Gold Hill as a reduction in future invoices for milling services once full production was achieved. Payments totaling $75,000 were made in the second and third quarter of 2015. Gold Hill began shipping ore in the 4 th rd In December of 2015 the Company became the 100% owner of the Golden Chest property after purchasing the 52.22% share of GCJV held by MUSA (Note 15). Prior to the purchase of the remaining interest in GCJV accounts receivable from GCJV were a part of normal operations which include operating costs, payroll, drilling costs, and drilling income; GCJV had contracted drilling services with NJMC as needed. As of December 31, 2014 an account receivable existed with GCJV for $21,175. New Jersey Mill Venture Agreement In January 2011, the New Jersey Mill Venture agreement was signed by the Company and United Mine Services, Inc. (UMS) relating to the New Jersey mineral processing plant. To earn a 35 percent interest in the venture, UMS provided $3.2 million funding to expand the processing plant to 15 tonnes/hr. The Company is the operator of the venture and charges operating costs to UMS for milling its ore up to 7,000 tonnes/month, retain a milling capacity of 3,000 tonnes/month, and as the operator of the venture receive a fee of $2.50/tonne milled. UMS subsequently dissolved and its interest in the mill was transferred to Crescent Silver, LLC (Crescent). As of December 31, 2015 and 2014, an account receivable existed with the Mill Joint Venture from Crescent for $3,109 and $33,846 respectively. |
10. Income Taxes
10. Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
10. Income Taxes | 10. Income Taxes The Company did not recognize a provision (benefit) for income taxes for the years ended December 31, 2015and 2014. At December 31, 2015 and 2014, the Company had deferred tax assets principally arising from the net operating loss carry forwards for income tax purposes multiplied by an expected rate of 40%. As management of the Company cannot determine that it is more likely than not that the Company will realize the benefit of the deferred tax assets, a valuation allowance equal to the deferred tax asset has been established at December 31, 2015 and December 31, 2014. The significant components of the deferred tax asset at December 31, 2015 and 2014 were as follows: December 31, December 31, 2015 2014 Deferred tax asset Net operating loss carry forward $ 3,436,000 $ 3,995,000 Exploration/development 798,000 834,000 Asset retirement obligation/accrual 11,000 9,000 Lease income 27,000 23,000 Total deferred tax assets 4,272,000 4,861,000 Valuation allowance (4,153,000) (4,171,000) Net 119,000 690,000 Deferred tax liabilities Acquisition of mineral interest (90,000) (90,000) Property, plant, and equipment (29,000) (600,000) Total deferred tax liabilities (119,000) (690,000) Net deferred tax asset $ 0 $ 0 At December 31, 2015 and 2014 the Company had net operating loss carry forwards of approximately $9,623,000 and $8,754,000 respectively for both federal and the state of Idaho, which expire in the years 2018 through 2035. The income tax benefit shown in the financial statements for the years ended December 31, 2015 and 2014 differs from the statutory rate as follows: December 31, 2015 December 31, 2014 Provision (benefit) at statutory rate $ (86,000) $ (499,000) State taxes, net of federal taxes (12,000) (71,000) Affect prior year restatement/adjustments 116,000 177,000 Increase (decrease) in valuation allowance (18,000) 393,000 Total provision (benefit) $ 0 $ 0 We are open to examination of our income tax filings in the United States and state jurisdictions for the 2013 through 2015 tax years. In the event that the Company is assessed penalties and or interest, penalties will be charged to other operating expense and interest will be charged to interest expense. Certain tax positions taken in the 2013 through 2014 tax years could result in minor adjustments to our exploration and development costs for tax purposes. However, these adjustments would not result in a tax provision, but only revise to the net operating loss carry forward balance. |
11. Equity
11. Equity | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
11. Equity | 11. Equity The Company has authorized 200,000,000 shares of no par common stock at December 31, 2015 and 2014. In addition, the Company has authorized 1,000,000 shares of no par preferred stock, none of which had been issued at December 31, 2015 or 2014. Stock Purchase Warrants Outstanding Transactions in common stock purchase warrants for the year ended December 31, 2014 and 2013, are as follows: Number of Warrants Exercise Prices Balance December 31, 2013 11,000,000 $ 0.15 Issued in connection with private placement 10,200,000 0.10-0.20 Balance December 31, 2014 21,200,000 0.10-0.20 Expired (11,000,000) $ 0.15 Balance December 31, 2015 10,200,000 $ 0.10-0.20 These warrants expire as follows: Shares Exercise Price Expiration Date 3,000,000 $0.15 March 4, 2017 6,000,000 $0.20 August 11, 2017 1,200,000 $0.10 August 11, 2019 Stock Options In April 2014 the Board of Directors of the Company established a stock option plan to authorize the granting of stock options to officers and employees. Upon exercise of the options shares are issued from the available authorized shares of the Company. On April 30, 2014, 2,250,000 options were issued to management, 750,000 options vested immediately and the remaining 1,500,000 vested at a rate of 750,000 each year on the anniversary for 2 additional years, and they expire 3 years after resting date. Each option allows the holder to purchase one share of the CompanyÂ’s stock at $0.10 prior to expiration. Utilizing the Black Scholes option pricing model, an expected life of three years, a risk free rate of 0.87%, and expected volatility of 161.30% compensation cost of $173,844 is associated with these options. Of this $115,896 was recorded as a general and administrative expense in 2014 and $43,461 was recognized in 2015, at December 31, 2015 unrecognized compensation cost related to these options was $14,487 which is expected to be recognized over the next 0.25 years. On December 31, 2014, 500,000 options which vested immediately and expire after two years were issued to R Patrick Highsmith in connection with his hiring as the CompanyÂ’s President and CEO. Each option allows the holder to purchase one share of the CompanyÂ’s stock at $0.11 prior to expiration. Utilizing the Black Scholes option pricing model, an expected life of two years, a risk free rate of 0.49%, and expected volatility of 158.10% compensation cost of $36,250 is associated with these options and was recorded as a general and administrative expense in 2014. These options expire December 1, 2016. On December 12, 2014, 1,500,000 options were issued to management, 750,000 options vested immediately and the remaining 750,000 vested after one year. The options expire 5 years after their vestment date. Each option allows the holder to purchase one share of the CompanyÂ’s stock at $0.15 prior to expiration. Utilizing the Black Scholes option pricing model, an expected life of five years, a risk free rate of 1.65%, and expected volatility of 150.60% compensation cost of $99,558 is associated with these options. Of this $49,780 was recorded as a general and administrative expense in both 2015 and 2014. At December 31, 2015, no unrecognized compensation cost related to these options remained. On December 12, 2014 an additional 250,000 options were issued to past President and CEO R. Patrick Highsmith with a vesting date of December 2015. As part of the resignation and release agreement those options are no longer valid. On December 30, 2015, 1,500,000 options were granted to management, 750,000 options vested immediately and the remaining 750,000 vested on December 30, 2016.The options expire 5 years after their corresponding vesting date. Each option allows the holder to purchase one share of the CompanyÂ’s stock at $0.10 prior to expiration. Utilizing the Black Scholes option pricing model, an expected life of five years, a risk free rate of 1.80%, and expected volatility of 158.50%, a compensation cost of $110,208 is associated with the options. Of this, $55,104 was recorded as a general and administrative expense in 2015. The remaining unrecognized compensation cost of $55,104 is expected to be recognized in 2016. Number of Options Exercise Prices Weighted Average Remaining Term Balance January 1, 2014 0 0 Issued 4,500,000 $ 0.10-0.15 $ 0.12 Balance December 31, 2014 4,500,000 $ 0.10-0.15 $ 0.12 Exercisable at December 31, 2014 2,000,000 $ 0.10-0.15 $ 0.12 Cancelled (250,000) $ 0.15 $ 0.15 Issued 1,500,000 $ 0.10 $ 0.10 Balance December 31, 2015 5,750,000 $ 0.10-0.15 $ 0.11 Exercisable at December 31, 2015 4,250,000 $ 0.10-0.15 $ 0.12 Outstanding options had no intrinsic value at December 31, 2015. Common Stock issued For Cash The Company completed a private placement in the first quarter of 2014. Each unit consisted of two shares of the CompanyÂ’s common stock and one purchase warrant, each warrant exercisable for one share of the CompanyÂ’s stock at $0.15 through March 2017. At closing of the private placement in March 2014, 3,000,000 units consisting of 6,000,000 shares and 3,000,000 warrants were sold for net proceeds of $405,000 after deducting the 10% commission. The Company completed a private placement in the third quarter of 2014. Each unit consisted of two shares of the CompanyÂ’s common stock and one purchase warrant for $0.20; each warrant is exercisable for one share of the CompanyÂ’s stock at $0.20 through August 2017; 6,000,000 units were sold for net proceeds of $1,080,000 after deducting the 10% commission. In addition to the 10% cash commission 1,200,000 warrants were issued to the placing broker. These warrants are exercisable at $0.10 through August 11, 2019. No stock was issued for cash in 2015. |
3. Related Party Transactions
3. Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
3. Related Party Transactions | 12. Related Party Transactions Grant Brackebusch owns 10.4% of Mine Systems Design, Inc. ("MSD"), a firm that has various related party transactions with the Company. Delbert Steiner was CEO and Director from August 29, 2013 to December 1, 2014, at that time he resigned as CEO and became Chairman of the Board and remained a director of the Company. John Swallow was President from August 29, 2013 to December 1, 2014, at that time he resigned as President and remained as a director of the company. The Company hired R. Patrick Highsmith as CEO, President, and a director of the Company on December 1, 2014. On May 4, 2015 R. Patrick Highsmith resigned as CEO, President, and a director of the Company. On May 4, 2015 Delbert Steiner was reappointed as CEO and remains as a director of the Company. On May 4, 2015, John Swallow was reappointed as President and remains as a director of the Company. The Company had the following transactions with related parties: In August 2012 the Company was extended a 48 month note payable by MSD, a Company in which our CompanyÂ’s Vice President owns 10.4% at 12% interest for $223,806 to purchase property which had a total purchase price of $230,449. As of December 31, 2015 and 2014, $141,033 and $180,417, respectively, of this note remained. $44,378 in principal is payable within 1 year and the remaining $96,654 due after one year as follows: 2017-$50,007, 2018-$46,648. Monthly payments are $4,910. In September 2014, the Company purchased a 2004 Pick-up from director Delbert Steiner for $7,500 in cash. In the fourth quarter of 2015 the Company entered into a 120 month note payable to President John Swallow at 5% interest for $550,000 to purchase the outstanding interest in the GCJV (Note 15) and for continuing operations. As of December 31, 2015 $545,208 of this note remained with $43,736 in principal payable within 1 year and the remaining $501,472 due after one year as follows: 2017-$45,974, 2018-$48,326, 2019-$50,798, 2020-$53,397, and thereafter 302,977. Monthly payments are $5,834. |
13. Investment in Marketable Se
13. Investment in Marketable Security | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
13. Investment in Marketable Security | 13. Investment in Marketable Security In 2006, the Company purchased 1,875,000 common shares of Gold Crest Mines Inc for $7,500. 907,820 of these shares were sold prior to 2014. In 2014 the remaining 967,180 shares were sold for $28,610, the $24,741 over the remaining cost of $3,869 was recorded as a gain on the sale of marketable equity security. No shares remained at December 31, 2014. |
14. Acquisition Gf&h Company
14. Acquisition Gf&h Company | 12 Months Ended |
Dec. 31, 2014 | |
Notes | |
14. Acquisition Gf&h Company | 14. Acquisition GF&H Company On July 11, 2014, the Company completed its acquisition of two thirds of the issued and outstanding common shares of GF&H Company (“GF&H”). NJMC acquired GF&H to further its land holdings in the area of its Golden Chest Property. This transaction was accounted for as a business combination. The Company acquired two thirds of the issued and outstanding common shares of GF&H for $100,000 in cash. GF&H sole asset was 347 acres of land near Murray Idaho; it had no liabilities. A summary of the acquisition is as follows: New Jersey Mining Company Non-controlling Interest Consideration (66 2/3%) (33 1/3%) Total Cash $100,000 $100,000 Fair value of non-controlling interest $50,000 $ 50,000 $100,000 $50,000 $150,000 Assets acquired Land and mineral interest $150,000 The consolidated statement of operations of the Company for the year ended December 31, 2014 includes expenses incurred by GF&H of $2,577 and no revenue since the acquisition date. GF&H has had minimal operating activity over the past several years. The unaudited pro forma financial information below represents the combined results of the Company’s operations as if 2014 Revenue: $ 92,538 Operating expenses (1,528,667) Net loss from continuing operations (1,436,129) Net loss per common share, basic and diluted .02 |
15. Acquisition GCJV
15. Acquisition GCJV | 12 Months Ended |
Dec. 31, 2015 | |
GCJV Acquisition | |
15. Acquisition GCJV | 15. Acquisition of GCJV In December of 2015 the Company became the 100% owner of the GCJV (Note 9). The Company received the 52.22% share of GCJV held by MUSA in exchange for $180,000 and a 2% NSR royalty payable to MUSA on all future gold production from the property. In addition to the assets of GCJV, a note payable of $1,250,000 for the patented mining claims was assumed by the Company. A summary of the acquisition is as follows: December 2, 2015 Consideration Cash for MUSAÂ’s 52.22% interest $ 180,000 Assumed fair value of NJMCÂ’s 47.77% 164,696 Total consideration $ 344,696 Fair value of assets acquired Cash $ 524 Prepaid claim fees 9,946 Buildings and equipment 131,700 Golden Chest Mineral property 1,427,050 Fair value of liabilities Note payable on property (1,094,007) Payables (130,517) Net assets acquired $ 344,696 As the CompanyÂ’s carrying value of their previously held 47.77% interest was Nil at the time of acquisition, a gain was recorded as remeasurement of previously held interest. The fair value of the remeasurement was established based upon the purchase price of 52.22% of GCJV held by MUSA for $180,000 which resulted in an impued full value for the property of $344,696 which implied that the original investment held a value of $164,696. The note discount was calculated at an assumed rate of 10% for the remaining 10 quarterly payments on the full note value of $1,125,000 at the date of acquisition resulting in a discount of $155,992 to be amortized over the remainder of the note. At December 31, 2015 the balance remaining of the discount was $128,642. The Company purchased the outstanding share in GCJV to consolidate ownership and facilitate exploration and mining plans going forward. GCJV had minimal operating activity over the past several years with the exception of the lease of the Skookum project which in 2015 included $1,093,317 in depreciation expenses and lease payments of $125,000 per quarter that were made by Juniper. The unaudited pro forma financial information below represents the combined results of the CompanyÂ’s operations as if 2015 2014 Revenue $ 1,891,173 $ 97,258 Operating expenses (3,273,219) (1,549,870) Net loss from continuing operations (1,382,046) (1,452,612) Amortization of discount on note payable (96,110) (158,873) Net loss per common share, basic and diluted $ 0.02 $ 0.02 |
16. Subsequent Events
16. Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
16. Subsequent Events | 16. Subsequent Events On January 29, 2016 the Company purchased a 50% interest in Butte Highlands JV, LLC (“BHJV”) from Timberline Resources Corporation for $225,000 in cash and 3,000,000 restricted shares of the Company’s common stock valued at $210,000 for a total consideration of $435,000. The purchase was made utilizing proceeds from a promissory note at 5% interest rate extended to the Company by President John Swallow (Note 12). Highland Mining, LLC is the other 50% owner of the JV. |
Accounting For Investments in J
Accounting For Investments in Joint Ventures (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Accounting For Investments in Joint Ventures | Accounting for Investments in Joint Ventures For joint ventures where the Company holds more than 50% of the voting interest and has significant influence, the joint venture is consolidated with the presentation of non-controlling interest. In determining whether significant influence exists, the Company considers its participation in policy-making decisions and its representation on the venture’s management committee. For joint ventures in which the Company does not have joint control or significant influence, the cost method is used. Under the cost method, these investments are carried at the lower of cost or fair value. For those joint ventures in which there is joint control between the parties, the equity method is utilized whereby the Company’s share of the ventures’ earnings and losses is included in the statement of operations as earnings in joint ventures and its investments therein are adjusted by a similar amount. The Company periodically assesses its investments in joint ventures for impairment. If management determines that a decline in fair value is other than temporary it will write-down the investment and charge the impairment against operations. At December 31, 2015 and December 31, 2014, the Company’s percentage ownership and method of accounting for each joint venture is as follows: December 31, 2015 December 31, 2014 Joint Venture % Ownership Significant Influence? Accounting Method % Ownership Significant Influence? Accounting Method New Jersey Mill Joint Venture(“NJMJV”) 67% Yes Consolidated 66% Yes Consolidated Golden Chest LLC Joint Venture (“GCJV”) 100% Yes Consolidated 48% No Cost |
Non-controlling Interests in Co
Non-controlling Interests in Consolidated Financial Statements (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Non-controlling Interests | |
Non-controlling Interests in Consolidated Financial Statements | Non-controlling Interests in Consolidated Financial Statements Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the CompanyÂ’s equity. Non-controlling interests consist of the amount of those interests at the date of the original acquisition and the non-controlling investorÂ’s share of changes in equity since that date. |
Use of Estimates (Policies)
Use of Estimates (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes for items such as depreciation lives and methods, potential impairment of long-lived assets, deferred income taxes, estimation of asset retirement obligations and reclamation liabilities. Actual results could differ from those estimates. |
Revenue Recognition (Policies)
Revenue Recognition (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Revenue Recognition | Revenue Recognition Revenue is recognized when title and risk of ownership of metals or metal bearing concentrate have passed and collection is reasonably assured. Revenue from the sale of metals may be subject to adjustment upon final settlement of estimated metal prices, weights and assays, and are recorded as adjustments to revenue in the period of final settlement of prices, weights and assays; such adjustments are typically not material in relation to the initial invoice amounts. Revenue received from drilling and exploration contracts with third parties is recognized when the contract has been established, the services are rendered and collection of payment is deemed probable. These services are not a part of normal operations. Income received as the operator of the Company's joint ventures is recognized in the months during which those operations occur. Revenue received from engineering services provided is recognized when services are rendered and collection of payment is deemed probable. These services are not a part of normal operations. Revenues from mill operations and custom milling are recognized in the period in which the milling is performed and collection of payment is deemed probable. |
Income Taxes (Policies)
Income Taxes (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Income Taxes | Income Taxes Income taxes are accounted for under the liability method. Under this method deferred income tax liabilities or assets at the end of each period are determined using the tax rate expected to be in effect when the taxes are expected to be paid or recovered. A valuation allowance is recorded to reduce the deferred tax assets, if there is uncertainty regarding their realization. |
Fair Values of Financial Instru
Fair Values of Financial Instruments (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Fair Values of Financial Instruments | Fair Values of Financial Instruments The Company discloses the following information for each class of assets and liabilities that are measured at fair value: 1. the fair value measurement; 2. the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3); 3. for fair value measurements using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: a. total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings, and a description of where those gains or losses included in earnings are reported in the statement of operations; b. the amount of these gains or losses attributable to the change in unrealized gains or losses relating to those assets or liabilities still held at the reporting period date and a description of where those unrealized gains or losses are reported; c. purchases, sales, issuances, and settlements (net); and d. transfers into and/or out of Level 3. 4. the amount of the total gains or losses for the period included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date and a description of where those unrealized gains or losses are reported in the statement of operations; and 5. in annual periods only, the valuation technique(s) used to measure fair value and a discussion of changes in valuation techniques, if any, during the period. The carrying amounts of financial instruments including cash and cash equivalents, reclamation bonds, milling advance, note receivable, notes payable to related parties, and notes payable approximate their fair values. |
Net Income (loss) Per Share (Po
Net Income (loss) Per Share (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Net Income (loss) Per Share | Net Income (Loss) Per Share Net income (loss) per share is computed by dividing the net amount by the weighted average number of common shares outstanding during the year. Diluted net income (loss) per share reflects the potential dilution that could occur from common shares issuable through stock options, warrants, and other convertible securities. For the years ended December 31, 2015 and 2014, the effect of the CompanyÂ’s potential issuance of shares from the exercise of 10,200,000 warrants and 5,750,000 stock options in 2015 and 21,200,000 warrants and 4,500,000 stock options in 2014 would have been anti-dilutive. Accordingly, only basic net loss per share has been presented. Outstanding warrants and options are discussed in detail in Note 9 of the financial statements. |
Reclassifications (Policies)
Reclassifications (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the 2015 financial statement presentation. Reclassifications had no effect on net loss, stockholders' equity, or cash flows as previously reported. |
Cash and Cash Equivalents (Poli
Cash and Cash Equivalents (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers cash in banks and other deposits with an original maturity of three months or less when purchased to be cash and cash equivalents. |
Property, Plant and Equipment (
Property, Plant and Equipment (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation and amortization are based on the estimated useful lives of the assets and are computed using straight-line or units-of-production methods. The expected useful life of most of the CompanyÂ’s buildings is up to 50 years and equipment life expectancy ranges between 2 and 10 years. When assets are retired or sold, the costs and related allowances for depreciation and amortization are eliminated from the accounts and any resulting gain or loss is reflected in operations. |
Mineral Properties (Policies)
Mineral Properties (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Mineral Properties | Mineral Properties Significant payments related to the acquisition of mineral properties, mineral rights, and mineral leases are capitalized. If a commercially mineable ore body is discovered, such costs are amortized when production begins using the units-of-production method based on proven and probable reserves. If no commercially mineable ore body is discovered, or such rights are otherwise determined to have no value, such costs are expensed in the period in which it is determined the property has no future economic value. |
Mine Exploration and Developmen
Mine Exploration and Development Costs (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Mine Exploration and Development Costs | Mine Exploration and Development Costs The Company expenses exploration costs as such in the period they occur. Mine development costs are capitalized as deferred development costs after proven and probable reserves have been identified. Amortization of deferred development costs is calculated using the units-of-production method over the expected life of the operation based on the estimated recoverable mineral ounces. |
Claim fees (Policies)
Claim fees (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Claim fees | Claim Fees Unpatented claim fees paid at time of staking are expensed when incurred. Recurring renewal fees which are paid annually are recorded as prepaid and expensed over the course of the year. |
Impairment of Properties (Polic
Impairment of Properties (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Impairment of Properties | Impairment of Properties and Property Evaluations The Company evaluates the carrying amounts of its mineral properties, including deferred development costs, for impairment whenever events and circumstances indicate the carrying value may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. Estimated discounted and undiscounted future net cash flows from each mineral property are calculated using estimated future production, three year average metals prices, operating capital and costs, and reclamations costs. An impairment loss is recognized when the estimated future cash flows expected to result from the use of an asset are less than the carrying amount of the asset. The CompanyÂ’s estimates of future cash flows are subject to risks and uncertainties. It is reasonably possible that changes in estimates could occur which may affect the expected recoverability of the CompanyÂ’s investments in mineral properties. |
Asset Retirement Obligations an
Asset Retirement Obligations and Remediation Costs (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Asset Retirement Obligations and Remediation Costs | Asset Retirement Obligations and Remediation Costs Mineral properties are subject to standards for mine reclamation that have been established by various governmental agencies. Asset retirement obligations are related to the retirement of the mine when a contractual obligation has been established, if a reasonable estimate of fair value can be determined. These obligations are initially measured at fair value with the resulting cost capitalized at the present value of estimated reclamation costs. An asset and a related liability are recorded for the fair value of these costs. The liability is accreted and the asset amortized over the life of the related asset. Adjustments are made for changes resulting from either the timing or amount of the original estimate underlying the obligation. If there is an impairment to an assetÂ’s carrying value and a decision is made to permanently close the property, changes to the liability are recognized and charged to the provision for closed operations and environmental matters. |
Reclamation Bonds (Policies)
Reclamation Bonds (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Reclamation Bonds | Reclamation Bonds Various laws and permits require that financial assurances be in place for certain environmental and reclamation obligations and other potential liabilities. There is currently no balance being carried for any reclamation bonds. |
Share Based Compensation Or Pay
Share Based Compensation Or Payments (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Share Based Compensation Or Payments | Share Based Compensation or Payments All transactions in which goods or services are received for the issuance of shares of the Company’s common stock are accounted for based on the fair value of the goods or services received or the fair value of the common stock issued, whichever is more reliably measurable. We estimate the fair value of our stock-based compensation using the Black-Scholes model, which requires the input of some subjective assumptions. These assumptions include estimating the length of time employees will retain their vested stock options before exercising them (“expected life”), the estimated volatility of our common stock price over the expected term (“volatility”), employee forfeiture rate, the risk-free interest rate and the dividend yield. Changes in the subjective assumptions can materially affect the estimate of fair value of stock-based compensation. The value of common stock awards is determined based upon the closing price of our stock on the date of the award. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements On January 5, 2016, the FASB issued Accounting Standards Update (ASU) 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2014-09, Revenue from Contracts with Customers |
Accounting For Investments in40
Accounting For Investments in Joint Ventures: Schedule of Cost Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Cost Method Investments | December 31, 2015 December 31, 2014 Joint Venture % Ownership Significant Influence? Accounting Method % Ownership Significant Influence? Accounting Method New Jersey Mill Joint Venture(“NJMJV”) 67% Yes Consolidated 66% Yes Consolidated Golden Chest LLC Joint Venture (“GCJV”) 100% Yes Consolidated 48% No Cost |
5. Property, Plant and Equipm41
5. Property, Plant and Equipment: Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Property, Plant and Equipment | 2015 2014 Mill land $ 225,289 $ 225,289 Mill building 536,193 536,193 Milling equipment 4,209,440 4,001,751 4,970,922 4,763,233 Less accumulated depreciation (285,420) (152,151) Total mill 4,685,502 4,611,082 Building and equipment at cost 362,188 252,348 Less accumulated depreciation (217,738) (216,926) Total building and equipment 144,450 35,442 Bear Creek Land 196,204 150,000 Little Baldy Land 72,139 82,139 BOW Land 230,449 230,449 Eastern Star Land 250,817 425,817 Gillig Land 79,137 79,137 Highwater Land 40,133 40,133 Total Land 868,879 1,007,675 Total $ 5,698,831 $ 5,654,199 |
6. Notes Payable_ Schedule of D
6. Notes Payable: Schedule of Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Debt | At December 31, 2015 and 2014 notes payable are as follows 2015 2014 Property with shop 36 month note payable, 4.91% interest rate payable monthly, remaining principal of note due in one payment at end of term, monthly payments of $459 $ 42,726 $ 46,337 Property, 15 month note payable, 5% interest per annum, collateralized by property, one remaining payment of $175,000, elimination upon cancellation of deed of trust - 175,000 Property 120 month note payable, 11.0% interest rate payable monthly, remaining principal of note due in one payment at end of term, collateralized by property, monthly payments of $1,124 105,196 107,336 Tailings pump, 36 month note payable, 17.53% interest per annum, collateralized by pump, monthly payments of $3,268 76,097 Mineral property, 10 quarterly payments, 0.0% interest rate discounted at 10%, collateralized by property, quarterly payments of $125,000 1,125,000 Total notes payable 1,349,019 328,673 Due within one year 572,806 180,385 Due after one year $ 776,213 $ 148,288 |
6. Notes Payable_ Schedule of M
6. Notes Payable: Schedule of Maturities of Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Maturities of Long-term Debt | Note Discount Net 2016 $ 572,806 $ (84,371) $ 488,435 2017 535,648 (41,222) 494,426 2018 142,156 (3,049) 139,107 2019 2,806 2,806 2020 3,131 3,131 Thereafter 92,472 92,472 Total $ 1,349,019 $ (128,642) $ 1,220,377 |
7. Mineral Properties_ Schedule
7. Mineral Properties: Schedule of mineral properties (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of mineral properties | December 31, 2015 December 31, 2014 New Jersey $ 215,127 $ 288,365 McKinley 250,000 250,000 Golden Chest 1,445,229 Silver Button/Roughwater 25,500 Toboggan 5,000 5,000 Less accumulated amortization (8,267) (11,407) Total $ 1,907,089 $ 557,458 |
8. Asset Retirement Obligation_
8. Asset Retirement Obligation: Schedule of Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Asset Retirement Obligations | 2015 2014 Balances at January 1 $ 23,366 $ 10,949 Accretion expense (net true up) 5,291 (4,608) Incurred 17,025 Balance December 31 $ 28,656 $ 23,366 |
10. Income Taxes_ Schedule of D
10. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | December 31, December 31, 2015 2014 Deferred tax asset Net operating loss carry forward $ 3,436,000 $ 3,995,000 Exploration/development 798,000 834,000 Asset retirement obligation/accrual 11,000 9,000 Lease income 27,000 23,000 Total deferred tax assets 4,272,000 4,861,000 Valuation allowance (4,153,000) (4,171,000) Net 119,000 690,000 Deferred tax liabilities Acquisition of mineral interest (90,000) (90,000) Property, plant, and equipment (29,000) (600,000) Total deferred tax liabilities (119,000) (690,000) Net deferred tax asset $ 0 $ 0 |
10. Income Taxes_ Schedule of E
10. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Effective Income Tax Rate Reconciliation | December 31, 2015 December 31, 2014 Provision (benefit) at statutory rate $ (86,000) $ (499,000) State taxes, net of federal taxes (12,000) (71,000) Affect prior year restatement/adjustments 116,000 177,000 Increase (decrease) in valuation allowance (18,000) 393,000 Total provision (benefit) $ 0 $ 0 |
11. Equity_ Common Stock Purcha
11. Equity: Common Stock Purchase Warrant Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Common Stock Purchase Warrant Transactions | Number of Warrants Exercise Prices Balance December 31, 2013 11,000,000 $ 0.15 Issued in connection with private placement 10,200,000 0.10-0.20 Balance December 31, 2014 21,200,000 0.10-0.20 Expired (11,000,000) $ 0.15 Balance December 31, 2015 10,200,000 $ 0.10-0.20 |
11. Equity_ Warrant Expirations
11. Equity: Warrant Expirations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Warrant Expirations | Shares Exercise Price Expiration Date 3,000,000 $0.15 March 4, 2017 6,000,000 $0.20 August 11, 2017 1,200,000 $0.10 August 11, 2019 |
11. Equity_ Schedule of Share-b
11. Equity: Schedule of Share-based Compensation, Stock Options, Activity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Share-based Compensation, Stock Options, Activity | Number of Options Exercise Prices Weighted Average Remaining Term Balance January 1, 2014 0 0 Issued 4,500,000 $ 0.10-0.15 $ 0.12 Balance December 31, 2014 4,500,000 $ 0.10-0.15 $ 0.12 Exercisable at December 31, 2014 2,000,000 $ 0.10-0.15 $ 0.12 Cancelled (250,000) $ 0.15 $ 0.15 Issued 1,500,000 $ 0.10 $ 0.10 Balance December 31, 2015 5,750,000 $ 0.10-0.15 $ 0.11 Exercisable at December 31, 2015 4,250,000 $ 0.10-0.15 $ 0.12 |
14. Acquisition Gf&h Company_ F
14. Acquisition Gf&h Company: Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
GFH Acquisition | |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | New Jersey Mining Company Non-controlling Interest Consideration (66 2/3%) (33 1/3%) Total Cash $100,000 $100,000 Fair value of non-controlling interest $50,000 $ 50,000 $100,000 $50,000 $150,000 Assets acquired Land and mineral interest $150,000 |
14. Acquisition Gf&h Company_ B
14. Acquisition Gf&h Company: Business Acquisition, Pro Forma Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
GFH Acquisition | |
Business Acquisition, Pro Forma Information | 2014 Revenue: $ 92,538 Operating expenses (1,528,667) Net loss from continuing operations (1,436,129) Net loss per common share, basic and diluted .02 |
15. Acquisition GCJV_ Finite-Li
15. Acquisition GCJV: Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
GCJV Acquisition | |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | December 2, 2015 Consideration Cash for MUSAÂ’s 52.22% interest $ 180,000 Assumed fair value of NJMCÂ’s 47.77% 164,696 Total consideration $ 344,696 Fair value of assets acquired Cash $ 524 Prepaid claim fees 9,946 Buildings and equipment 131,700 Golden Chest Mineral property 1,427,050 Fair value of liabilities Note payable on property (1,094,007) Payables (130,517) Net assets acquired $ 344,696 |
15. Acquisition GCJV_ Business
15. Acquisition GCJV: Business Acquisition, Pro Forma Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
GCJV Acquisition | |
Business Acquisition, Pro Forma Information | 2015 2014 Revenue $ 1,891,173 $ 97,258 Operating expenses (3,273,219) (1,549,870) Net loss from continuing operations (1,382,046) (1,452,612) Amortization of discount on note payable (96,110) (158,873) Net loss per common share, basic and diluted $ 0.02 $ 0.02 |
1. Description of Business (Det
1. Description of Business (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Details | |
Entity Incorporation, State Country Name | Idaho |
Entity Incorporation, Date of Incorporation | Jul. 18, 1996 |
Accounting For Investments in56
Accounting For Investments in Joint Ventures: Schedule of Cost Method Investments (Details) | Dec. 31, 2015 | Dec. 31, 2014 |
Details | ||
Investment Owned, Percent of Net Assets | 67.00% | 66.00% |
investment owned percentage of net assets 2 | 100.00% | 48.00% |
Net Income (loss) Per Share (De
Net Income (loss) Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Incremental Common Shares Attributable to Dilutive Effect of Written Put Options | 10,200,000 | 21,200,000 |
Warrants | 4,500,000 |
3. Going Concern (Details)
3. Going Concern (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Details | ||||
Net loss | $ 282,088 | $ 282,088 | $ 1,436,129 | |
Cash and cash equivalents | $ 62,275 | $ 62,275 | $ 336,524 | $ 636,127 |
4. Note Receivable (Details)
4. Note Receivable (Details) | Dec. 31, 2014USD ($) |
Details | |
Notes, Loans and Financing Receivable, Net, Current | $ 58,386 |
5. Property, Plant and Equipm60
5. Property, Plant and Equipment: Property, Plant and Equipment (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Details | ||
Mill land | $ 225,289 | $ 225,289 |
Mill building | 536,193 | 536,193 |
Milling equipment | 4,209,440 | 4,001,751 |
Mill buildings and improvements, accumulated depreciation | (285,420) | (152,151) |
Mill Buildings and Improvements, Net | 4,685,502 | 4,611,082 |
Buildings and Improvements, Gross | 362,188 | 252,348 |
Buildings and improvements, accumulated depreciation | (217,738) | (216,926) |
Buildings and improvements net | 144,450 | 35,442 |
Bear Creek Land | 196,204 | 150,000 |
Little Baldy Land | 72,139 | 82,139 |
BOW Land | 230,449 | 230,449 |
Eastern Star Land | 250,817 | 425,817 |
Gillig Land | 79,137 | 79,137 |
Highwater Land | 40,133 | 40,133 |
Land | 868,879 | 1,007,675 |
Property, plant and equipment, net of accumulated depreciation | $ 5,698,831 | $ 5,654,199 |
5. Property, Plant and Equipm61
5. Property, Plant and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Interest expense, mill | $ 16,295 | $ 25,021 |
Cash received for land interest | 10,000 | |
Capital Lease Obligations | $ 91,625 | |
Accumulated Amortization of Other Deferred Costs | 91,625 | |
Purchase and sale agreement, property | 425,000 | |
Purchase and sale agreement, down payment | 125,000 | |
Purchase and sale agreement, scheduled payment | 125,000 | |
Purchase and sale agreement, optional final payment | $ 175,000 |
6. Notes Payable_ Schedule of62
6. Notes Payable: Schedule of Debt (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Details | ||
Note payable, property 1 | $ 42,726 | $ 46,337 |
Note payable, property 2 | 175,000 | |
Note payable, property 3 | 105,196 | 107,336 |
Note payable, tailings pump | 76,097 | |
Note payable, property 4 | 1,125,000 | |
Notes Payable | 1,349,019 | 328,673 |
Notes payable, current portion, net of discount | 572,806 | 180,385 |
Notes payable, long term, net of discount | $ 776,213 | $ 148,288 |
6. Notes Payable_ Schedule of63
6. Notes Payable: Schedule of Maturities of Long-term Debt (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Note payable maturity 2016 | $ 572,806 | |
Note payable maturity 2016, discount | (84,371) | |
Note payable maturity 2016, net | 488,435 | |
Note payable maturity 2017 | 535,648 | |
Note payable maturity 2017, discount | (41,222) | |
Note payable maturity 2017, net | 494,426 | |
Note payable maturity 2018 | 142,156 | |
Note payable maturity 2018, discount | (3,049) | |
Note payable maturity 2018, net | 139,107 | |
Note payable maturity 2019 | 2,806 | |
Note payable maturity 2019, net | 2,806 | |
Note payable maturity 2020 | 3,131 | |
Note payable maturity 2020, net | 3,131 | |
Note payable maturity after five years | 92,472 | |
Note payable maturity after five years, net | 92,472 | |
Notes Payable | 1,349,019 | $ 328,673 |
Note payable maturity, discount | (128,642) | |
Notes payable net | $ 1,220,377 |
7. Mineral Properties_ Schedu64
7. Mineral Properties: Schedule of mineral properties (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Mineral Properties 1 | $ 215,127 | $ 288,365 |
Mineral Properties 2 | 250,000 | 250,000 |
Mineral Properties 3 | 1,445,229 | |
Mineral Properties 4 | 25,500 | |
Mineral Properties 5 | 5,000 | 5,000 |
Mineral properties amortization | (8,267) | (11,407) |
Mineral properties net | $ 1,907,089 | $ 557,458 |
8. Asset Retirement Obligation
8. Asset Retirement Obligation (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Details | |
Fair Value Assumptions, Risk Free Interest Rate | 5.40% |
8. Asset Retirement Obligatio66
8. Asset Retirement Obligation: Schedule of Asset Retirement Obligations (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Details | |||
Asset retirement obligation | $ 28,656 | $ 23,366 | $ 10,949 |
Asset Retirement Obligation, Period Increase (Decrease) | 5,291 | (4,608) | |
Asset Retirement Obligation, Liabilities Incurred | 17,025 | ||
Asset retirement obligation | 28,656 | 23,366 | 10,949 |
Asset retirement obligation | $ 28,656 | $ 23,366 | $ 10,949 |
9. Mining and Milling Venture67
9. Mining and Milling Venture Agreements (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Details | ||
Accounts and Other Receivables, Net, Current | $ 3,109 | $ 33,846 |
10. Income Taxes_ Schedule of68
10. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Deferred Tax Assets, Operating Loss Carryforwards | $ 3,436,000 | $ 3,995,000 |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | 798,000 | 834,000 |
Effective Income Tax Rate Reconciliation, Deduction, Other, Amount | 11,000 | 9,000 |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Leases, Amount | 27,000 | 23,000 |
Deferred Tax Assets, Gross | 4,272,000 | 4,861,000 |
Valuation Allowance | (4,153,000) | (4,171,000) |
Deferred Tax Assets, Net of Valuation Allowance | 119,000 | 690,000 |
Deferred Tax Liabilities, Other | (90,000) | (90,000) |
Deferred Tax Liabilities, Property, Plant and Equipment | (29,000) | (600,000) |
Deferred Tax Liabilities, Net | (119,000) | (690,000) |
Deferred Tax Assets, Net | $ 0 | $ 0 |
10. Income Taxes (Details)
10. Income Taxes (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Details | ||
Operating Loss Carryforwards | $ 9,623,000 | $ 8,754,000 |
10. Income Taxes_ Schedule of70
10. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $ (86,000) | $ (499,000) |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | (12,000) | (71,000) |
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Amount | 116,000 | 177,000 |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | (18,000) | 393,000 |
Income tax (provision) benefit | $ 0 | $ 0 |
11. Equity (Details)
11. Equity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Stock options issued to management | 2,250,000 | |
Stock options issued to management Value | $ 173,844 | |
Stock options issued to management | 500,000 | |
Stock options issued to officer value | 36,250 | |
Stock options issued to management | 1,500,000 | |
Stock options issued to management Value | 99,558 | |
Stock options issued to management | 1,500,000 | |
Stock options issued to management Value | 110,208 | |
Units Issued in connection with private placement for cash | 3,000,000 | |
Units Issued in connection with private placement Description | units consisting of 6,000,000 shares and 3,000,000 warrants | |
Units Issued in connection with private placement Net Proceeds | $ 405,000 | |
Units Issued in connection with private placement for cash 2 per unit value | $ 0.20 | |
Units Issued in connection with private placement for cash 2 | 6,000,000 | |
Units Issued in connection with private placement Net Proceeds 2 | $ 1,080,000 | |
Agent Warrants Issued in connection with private placement Net Proceeds | 1,200,000 | |
Agent Warrants Issued in connection with private placement per warrant value | $ 0.10 |
11. Equity_ Common Stock Purc72
11. Equity: Common Stock Purchase Warrant Transactions (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Details | |||
Class of Warrant or Right, Outstanding | 10,200,000 | 21,200,000 | 11,000,000 |
Warrants Issued in connection with private placement | $ 10,200,000 | ||
Warrants expired | $ (11,000,000) |
11. Equity_ Warrant Expiratio73
11. Equity: Warrant Expirations (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Details | |
Warrants Issued in connection with private placement | shares | 3,000,000 |
Exercise price, private placement warrants | $ / shares | $ 0.15 |
Warrant Expiration Date | March 4, 2017 |
Warrants Issued in connection with private placement | shares | 6,000,000 |
Exercise price, private placement warrants | $ / shares | $ 0.20 |
Warrant Expiration Date | August 11, 2017 |
Warrants Issued in connection with private placement, broker | shares | 1,200,000 |
Exercise price, private placement warrants, Broker | $ / shares | $ 0.10 |
Warrant Expiration Date Broker | August 11, 2019 |
11. Equity_ Schedule of Share74
11. Equity: Schedule of Share-based Compensation, Stock Options, Activity (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Details | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 5,750,000 | 4,500,000 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 1,500,000 | 4,500,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 4,250,000 | 2,000,000 | |
Expired | $ (250,000) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 1,500,000 | 4,500,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 5,750,000 | 4,500,000 | 0 |
3. Related Party Transactions (
3. Related Party Transactions (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Description of Related Parties | Grant Brackebusch owns 10.4% of Mine Systems Design, Inc. ("MSD"), a firm that has various related party transactions with the Company. Delbert Steiner was CEO and Director from August 29, 2013 to December 1, 2014, at that time he resigned as CEO and became Chairman of the Board and remained a director of the Company. John Swallow was President from August 29, 2013 to December 1, 2014, at that time he resigned as President and remained as a director of the company. The Company hired R. Patrick Highsmith as CEO, President, and a director of the Company on December 1, 2014. On May 4, 2015 R. Patrick Highsmith resigned as CEO, President, and a director of the Company. On May 4, 2015 Delbert Steiner was reappointed as CEO and remains as a director of the Company. On May 4, 2015, John Swallow was reappointed as President and remains as a director of the Company. |
MSD | |
Related Party Transaction, Description of Transaction | In August 2012 the Company was extended a 48 month note payable by MSD, a Company in which our Company’s Vice President owns 10.4% at 12% interest for $223,806 to purchase property which had a total purchase price of $230,449. As of December 31, 2015 and 2014, $141,033 and $180,417, respectively, of this note remained. $44,378 in principal is payable within 1 year and the remaining $96,654 due after one year as follows: 2017-$50,007, 2018-$46,648. Monthly payments are $4,910. |
Pickup | |
Related Party Transaction, Description of Transaction | In September 2014, the Company purchased a 2004 Pick-up from director Delbert Steiner for $7,500 in cash. |
Note payable | |
Related Party Transaction, Description of Transaction | In the fourth quarter of 2015 the Company entered into a 120 month note payable to President John Swallow at 5% interest for $550,000 to purchase the outstanding interest in the GCJV (Note 15) and for continuing operations. As of December 31, 2015 $545,208 of this note remained with $43,736 in principal payable within 1 year and the remaining $501,472 due after one year as follows: 2017-$45,974, 2018-$48,326, 2019-$50,798, 2020-$53,397, and thereafter 302,977. Monthly payments are $5,834. |
13. Investment in Marketable 76
13. Investment in Marketable Security (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2006 | |
Details | |||
Marketable Security Original Purchase | 1,875,000 | ||
Marketable Security Original Purchase Value | 7,500 | ||
Marketable Security Sold | 967,180 | 907,820 | |
Marketable Security Sold Value | 28,610 | ||
Available-for-sale Securities, Gross Realized Gains | $ 24,741 |
14. Acquisition Gf&h Company (D
14. Acquisition Gf&h Company (Details) | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Subsidiary expenses, detail | $ 2,577 |
GFH Acquisition | |
Business acquisition cash paid | $ 100,000 |
14. Acquisition Gf&h Company_78
14. Acquisition Gf&h Company: Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination (Details) | Dec. 31, 2014USD ($) |
Business Acquisition Cost of Acquired Entity Controlling Interest | $ 100,000 |
Business Acquisition Cost of Acquired Entity Controlling Interest | 100,000 |
Business Acquisition Cost of Acquired Entity Noncontrolling Interest | 50,000 |
Business Acquisition Contribution from Noncontrolling Interest, Fair Value | 50,000 |
Business Acquisition Cost of Acquired Entity Noncontrolling Interest | 50,000 |
GFH Acquisition | |
Business Acquisition Cost of Acquired Entity Controlling Interest | 100,000 |
Business Acquisition Cost of Acquired Entity Controlling Interest | 100,000 |
Business Acquisition Cost of Acquired Entity Total Interest | 150,000 |
Land and mineral interest | $ 150,000 |
14. Acquisition Gf&h Company_79
14. Acquisition Gf&h Company: Business Acquisition, Pro Forma Information (Details) - GFH Acquisition | 12 Months Ended |
Dec. 31, 2014USD ($)$ / shares | |
Business Acquisition, Pro Forma Revenue | $ | $ 92,538 |
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations before Changes in Accounting and Extraordinary Items, Net of Tax, Per Share, Diluted | $ / shares | $ (1,528,667) |
Business Acquisition, Pro Forma Net Income (Loss) | $ | $ (1,436,129) |
Basic Earnings Per Share, Pro Forma | $ / shares | $ 0.02 |
15. Acquisition GCJV (Details)
15. Acquisition GCJV (Details) - GCJV Acquisition - USD ($) | Dec. 31, 2015 | Dec. 02, 2015 |
Business acquisition cash paid | $ 180,000 | |
Royalty Payable | 2.00% | |
Note payable assumed | $ 1,250,000 |
15. Acquisition GCJV_ Finite-81
15. Acquisition GCJV: Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination (Details) - GCJV Acquisition | Dec. 02, 2015USD ($) |
Business acquisition cash paid | $ 180,000 |
Business acquisition assumed fair value | 164,696 |
Business acquisition consideration paid | 344,696 |
Business acquisition fair value assets acquired cash | 524 |
Business acquisition fair value assets prepaid claim fees | 9,946 |
Business acquisition fair value assets buildings and equipment | 131,700 |
Business acquisition fair value assets mineral property | 1,427,050 |
Business acquisition fair value assets acquired net | $ 344,696 |
15. Acquisition GCJV_ Busines82
15. Acquisition GCJV: Business Acquisition, Pro Forma Information (Details) - GCJV Acquisition - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition, Pro Forma Revenue | $ 1,891,173 | $ 97,258 |
Operating Expenses | $ (3,273,219) | $ (1,549,870) |
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations before Changes in Accounting and Extraordinary Items, Net of Tax, Per Share, Diluted | $ (1,382,046) | $ (1,452,612) |
Business Acquisition ProForma Amortization of Discount on Note Payable | $ (96,110) | $ (158,873) |
Basic Earnings Per Share, Pro Forma | $ 0.02 | $ 0.02 |
16. Subsequent Events (Details)
16. Subsequent Events (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Details | |
Subsequent Event, Description | On January 29, 2016 the Company purchased a 50% interest in Butte Highlands JV, LLC (“BHJV”) from Timberline Resources Corporation for $225,000 in cash and 3,000,000 restricted shares of the Company’s common stock valued at $210,000 for a total consideration of $435,000. The purchase was made utilizing proceeds from a promissory note at 5% interest rate extended to the Company by President John Swallow (Note 12). Highland Mining, LLC is the other 50% owner of the JV. |