Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 01, 2019 | |
Details | ||
Registrant Name | New Jersey Mining Company | |
Registrant CIK | 0001030192 | |
SEC Form | 10-Q | |
Period End date | Mar. 31, 2019 | |
Fiscal Year End | --12-31 | |
Trading Symbol | njmc | |
Tax Identification Number (TIN) | 820490295 | |
Number of common stock shares outstanding | 123,413,569 | |
Filer Category | Non-accelerated Filer | |
Current with reporting | Yes | |
Small Business | true | |
Emerging Growth Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 |
New Jersey Mining Company Conso
New Jersey Mining Company Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 22,725 | $ 248,766 |
Gold sales receivable | 165,401 | 74,673 |
Inventories | 203,576 | 183,069 |
Joint venture receivable | 2,357 | 2,051 |
Note receivable | 150,000 | 150,000 |
Other current assets | 146,917 | 103,223 |
Total current assets | 690,976 | 761,782 |
Property, plant and equipment, net of accumulated depreciation | 6,489,442 | 6,567,350 |
Mineral properties, net of accumulated amortization | 2,756,462 | 2,759,339 |
Investment in joint venture | 435,000 | 435,000 |
Reclamation bond | 103,320 | 103,320 |
Deposit on equipment | 0 | 11,958 |
Total assets | 10,475,200 | 10,638,749 |
Current liabilities: | ||
Accounts payable | 534,916 | 401,501 |
Accrued payroll and related payroll expenses | 73,011 | 58,359 |
Notes payable related parties, current portion | 33,391 | 47,591 |
Notes payable, current portion | 176,171 | 217,679 |
Total current liabilities | 817,489 | 725,130 |
Asset retirement obligation | 156,510 | 154,292 |
Notes payable related parties, long term | 180,700 | 189,236 |
Notes payable, long term | 395,359 | 424,184 |
Total long term liabilities | 732,569 | 767,712 |
Total liabilities | 1,550,058 | 1,492,842 |
Commitments (Note 8) | 0 | 0 |
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; March 31, 2019-123,413,569 shares and December 31, 2018-123,413,569 shares issued and outstanding | 17,492,980 | 17,492,980 |
Accumulated deficit | (11,625,709) | (11,420,305) |
Total New Jersey Mining Company stockholders' equity | 5,867,271 | 6,072,675 |
Non-controlling interest | 3,057,871 | 3,073,232 |
Total stockholders' equity | 8,925,142 | 9,145,907 |
Total liabilities and stockholders' equity | $ 10,475,200 | $ 10,638,749 |
New Jersey Mining Company Con_2
New Jersey Mining Company Consolidated Balance Sheets (Unaudited) - Parenthetical - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Details | ||
Preferred Stock, No Par Value | $ 0 | $ 0 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, No Par Value | $ 0 | $ 0 |
Common Stock, Shares Authorized | 200,000,000 | |
Common Stock, Shares, Issued | 123,413,569 | 123,413,569 |
New Jersey Mining Company Con_3
New Jersey Mining Company Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue: | ||
Gold sales | $ 1,144,675 | $ 1,101,391 |
Total revenue | 1,144,675 | 1,101,391 |
Costs of Sales: | ||
Cost of sales and other direct production costs | 955,793 | 1,025,719 |
Depreciation and amortization | 128,951 | 69,061 |
Total costs of sales | 1,084,744 | 1,094,780 |
Gross profit | 59,931 | 6,611 |
Other operating expenses (income): | ||
Pre-development expense | 65,567 | 0 |
Exploration | 72,882 | 99,232 |
Management | 37,815 | 21,802 |
Professional services | 56,007 | 66,577 |
General and administrative | 49,296 | 51,082 |
Total other operating expenses (income) | 281,567 | 238,693 |
Operating income (expense) | (221,636) | (232,082) |
Other (income) expense: | ||
Interest income | (14,952) | (1,597) |
Interest expense | 16,438 | 25,342 |
Change in fair value of forward gold contracts | 0 | 10,019 |
Total other (income) expense | 1,486 | 33,764 |
Net income (loss) | (223,122) | (265,846) |
Net loss attributable to non-controlling interest | (17,718) | (12,607) |
Net income (loss) attributable to New Jersey Mining Company | $ (205,404) | $ (253,239) |
Net income (loss) per common share-basic and diluted | $ 0 | $ 0 |
Weighted average common shares outstanding-basic and diluted | 123,413,569 | 113,018,469 |
New Jersey Mining Company Con_4
New Jersey Mining Company Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - USD ($) | Common Stock | Retained Earnings | Noncontrolling Interest | Total |
Equity Balance at Dec. 31, 2017 | $ 15,985,512 | $ (12,250,319) | $ 3,112,294 | $ 6,847,487 |
Equity Balance, shares at Dec. 31, 2017 | 112,310,372 | |||
Contribution from non-controlling interest in Mill JV | $ 0 | 0 | 5,400 | 5,400 |
Issuance of common stock for cash net of offering costs | $ 607,571 | 0 | 0 | 607,570 |
Issuance of common stock for cash net of offering costs | 5,012,423 | |||
Issuance of common stock for property | $ 233,333 | 0 | 0 | 233,333 |
Issuance of common stock for property | 1,333,333 | |||
Stock based compensation relating to options | $ 16,634 | 0 | 0 | 16,635 |
Stock based compensation relating to options | 0 | |||
Net income (loss) | $ 0 | (253,239) | (12,607) | (265,846) |
Equity Balance, shares at Mar. 31, 2018 | 118,656,128 | |||
Equity Balance at Mar. 31, 2018 | $ 16,843,050 | (12,503,558) | 3,105,087 | 7,444,579 |
Equity Balance at Dec. 31, 2018 | $ 17,492,980 | (11,420,305) | 3,073,232 | 9,145,907 |
Equity Balance, shares at Dec. 31, 2018 | 123,413,569 | |||
Contribution from non-controlling interest in Mill JV | $ 0 | 0 | 2,357 | 2,357 |
Issuance of common stock for property | 0 | |||
Net income (loss) | $ 0 | (205,404) | (17,718) | (223,122) |
Equity Balance, shares at Mar. 31, 2019 | 123,413,569 | |||
Equity Balance at Mar. 31, 2019 | $ 17,492,980 | $ (11,625,709) | $ 3,057,871 | $ 8,925,142 |
New Jersey Mining Company Con_5
New Jersey Mining Company Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (223,122) | $ (265,846) |
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: | ||
Depreciation and amortization | 128,951 | 69,061 |
Accretion of asset retirement obligation | 2,218 | 4,031 |
Stock based compensation | 0 | 16,635 |
Change in fair value of forward gold contracts | 0 | 10,019 |
Change in operating assets and liabilities: | ||
Gold sales receivable | (90,728) | 211,984 |
Inventories | (20,507) | (58,162) |
Joint venture receivable | (306) | (718) |
Other current assets | (43,696) | (27,811) |
Accounts payable and other accrued liabilities | 133,415 | (10,672) |
Accrued payroll and related payroll expenses | 14,652 | 1,779 |
Interest payable to related parties | 0 | 3,659 |
Net cash provided (used) by operating activities | (99,121) | 70,265 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (36,208) | (182,634) |
Purchase of mineral property | 0 | (7,179) |
Net cash provided (used) by investing activities | (36,208) | (189,813) |
Cash flows from financing activities: | ||
Sales of common stock and warrants, net of issuance costs | 0 | 607,570 |
Payments on forward gold contracts | 0 | (62,900) |
Gold purchased for payments on forward gold contracts | 0 | (84,214) |
Principal payments on notes payable | (70,333) | (48,871) |
Principal payments on notes payable, related parties | (22,736) | (42,852) |
Contributions from non-controlling interest | 2,357 | 5,400 |
Net cash provided (used) by financing activities | (90,712) | 374,133 |
Net change in cash and cash equivalents | (226,041) | 254,585 |
Cash and cash equivalents, beginning of period | 248,766 | 124,617 |
Cash and cash equivalents, end of period | 22,725 | 379,202 |
Non-cash investing and financing activities: | ||
Deposit on equipment applied to purchase of equipment | 0 | 30,000 |
Note payable for equipment purchase | 0 | 125,000 |
Forward gold contract exchanged for note payable, related party | 0 | 492,783 |
Shares of common stock issued for mineral property | $ 0 | $ 233,333 |
1. Description of Business
1. Description of Business | 3 Months Ended |
Mar. 31, 2019 | |
Notes | |
1. Description of Business | 1. The Company and Significant Accounting Policies These unaudited interim consolidated financial statements have been prepared by the management of New Jersey Mining Company (the Company) in accordance with accounting principles generally accepted in the United States of America for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete consolidated financial statements. In the opinion of the Companys management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the interim consolidated financial statements have been included. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company's financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of the Company's financial position and results of operations. Operating results for the three month period ended March 31, 2019 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2019. For further information refer to the financial statements and footnotes thereto in the Companys audited financial statements for the year ended December 31, 2018 as filed with the Securities and Exchange Commission. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its majority-owned subsidiary, the New Jersey Mill Joint Venture (NJMJV). Intercompany accounts and transactions are eliminated. The portion of entities owned by other investors is presented as non-controlling interests on the consolidated balance sheets and statements of operations. Revenue Recognition Gold Revenue Recognition and Receivables- Sales and accounts receivable for concentrate shipments are recorded net of charges by the customer for treatment, refining, smelting losses, and other charges negotiated with the customers. Charges are estimated upon shipment of concentrates based on contractual terms, and actual charges typically do not vary materially from estimates. Costs charged by customers include fixed costs per ton of concentrate and price escalators. Refining, selling and shipping costs related to sales of doré and metals from doré are recorded to cost of sales as incurred. See Note 12 for more information on our sales of products. Other Revenue Recognition- Inventories Inventories are stated at the lower of full cost of production or estimated net realizable value based on current metal prices. Costs consist of mining, transportation, and milling costs including applicable overhead, depreciation, depletion and amortization relating to the operations. Costs are allocated based on the stage at which the ore is in the production process. Supplies inventory is stated at the lower of cost or estimated net realizable value. Fair Value Measurements When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period that are included in earnings are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date. At March 31, 2019 and December 31, 2018, the Company determined they had no assets or liabilities that required measurement at fair value on a recurring basis. Reclassifications Certain prior period amounts have been reclassified to conform to the 2019 financial statement presentation. Reclassifications had no effect on net income (loss), stockholders equity, or cash flows as previously reported. New Accounting Pronouncement Accounting Standards Updates Adopted In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02 Leases (Topic 842). The update modified the classification criteria and requires lessees to recognize the assets and liabilities on the balance sheet for most leases. The update was effective for fiscal years beginning after December 15, 2018, with early adoption permitted. Adoption of this update as of January 1, 2019 did not have a material impact on the Companys consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07 Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The update involves simplification of several aspects of accounting for nonemployee share-based payment transactions by expanding the scope of Topic 718 to include nonemployee awards. The update was effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. Adoption of this update as of January 1, 2019 did not have a material impact on the Companys consolidated financial statements. Accounting Standards Updates to Become Effective in Future Periods In August 2018, the FASB issued ASU No. 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The update removes, modifies and makes additions to the disclosure requirements on fair value measurements. The update is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. Management is evaluating the impact of this update on the Companys fair value measurement disclosures. |
2. Going Concern
2. Going Concern | 3 Months Ended |
Mar. 31, 2019 | |
Notes | |
2. Going Concern | 2. Going Concern The Company is currently producing from both the open-pit and underground at the Golden Chest Mine. In early March 2019 the Company increase production by 40 percent as more ore became available from the open pit and underground which is expected to improve cash flows from operations. In the past, the Company has been successful in raising required capital from sale of common stock, forward gold contracts, and additional debt. As a result of its planned production, equity sales and ability to restructure debt, management believes cash flows from operations and existing cash are sufficient to conduct planned operations and meet contractual obligations for the next 12 months. |
3. Inventories
3. Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Notes | |
3. Inventories | 3. Inventories At March 31, 2019 and December 31, 2018, the Companys inventories consisted of the following: March 31, 2019 December 31, 2018 Gold concentrate $ 180,850 $ 137,530 Materials and supplies 22,726 45,539 Total $ 203,576 $ 183,069 At March 31, 2019, gold concentrate inventory is carried at allocated production costs as it is lower than estimated net realizable value based on current metal prices. |
4. Sales of Products
4. Sales of Products | 3 Months Ended |
Mar. 31, 2019 | |
Notes | |
4. Sales of Products | 4. Sales of Products Our products consist of both gold floatation concentrates which we sell to a broker (H&H Metal), and an unrefined gold-silver product known as doré which we sell to a precious metal refinery. Revenue is recognized upon the completion of the performance obligations and transfer of control of the product to the customer, and the transaction price can be determined or reasonably estimated. For gold flotation concentrate sales, the performance obligation is met when the transaction price can be reasonably estimated and revenue is recognized generally at the time when risk is transferred to H&H Metal based on contractual terms. Based on contractual terms, we have determined the performance obligation is met and title is transferred to H&H Metal when the Company receives its first provisional payment on the concentrate because, at that time, 1) legal title is transferred to the customer, 2) the customer has accepted the concentrate lot and obtained the ability to realize all of the benefits from the product, 3) the concentrate content specifications are known, have been communicated to H&H Metal, and H&H Metal has the significant risks and rewards of ownership to it, 4) it is very unlikely a concentrate will be rejected by H&H Metal upon physical receipt, and 5) we have the right to payment for the concentrate. Concentrates lots that have been sold are held at our mill from 30 to 60 days, until H&H Metal provides shipping instructions. Judgment is required in identifying the performance obligations for our concentrate sales. We have determined that the individual performance obligation is satisfied at a point in time when control of the concentrate is transferred to H&H Metal which is when H&H Metal pays us the first provisional payment on the concentrate based on contractual terms. Our concentrate sales sometimes involve variable consideration, as they can be subject to changes in metals prices between the time of shipment and their final settlement. However, we are able to reasonably estimate the transaction price for the concentrate sales at the time of shipment using forward prices for the estimated month of settlement, and previously recorded sales and accounts receivable are adjusted to estimated settlement metals prices until final settlement for financial reporting purposes. Also, it is unlikely a significant reversal of revenue for any one concentrate lot will occur. As such, we use the expected value method to price the concentrate until the final settlement date occurs, at which time the final transaction price is known. At March 31, 2019, metals contained in concentrates and exposed to future price changes totaled 1,375 ounces of gold. Sales and accounts receivable for concentrate shipments are recorded net of charges for treatment and other charges negotiated by us with H&H Metal, which represent components of the transaction price. Charges are estimated by us upon transfer of risk of the concentrates based on contractual terms, and actual charges typically do not vary materially from our estimates. Costs charged by the customer include fixed treatment, refining and costs per ton of concentrate and may include penalty charges for lead and zinc content above a negotiated baseline as well as excessive moisture. For sales of metals from doré, the performance obligation is met, the transaction price is known, and revenue is recognized at the time of transfer of control of the agreed-upon metal quantities to the customer. Sales of products by metal for the three month periods ended March 31, 2019 and 2018 were as follows: March 31, 2019 March 31, 2018 Gold $ 1,241,539 $ 1,208,904 Silver 2,510 3,973 Less: Smelter and refining charges (99,374) (111,486) Total $ 1,144,675 $ 1,101,391 Sales by significant product type for the three month periods ended March 31, 2019 and 2018 were as follows: March 31, 2019 March 31, 2018 Concentrate sales to H&H Metal $ 1,133,898 $ 824,029 Dore sales to refinery 10,777 277,362 Total $ 1,144,675 $ 1,101,391 At March 31, 2019 and December 31, 2018, our gold sales receivable balance related to contracts with customers of $165,401 and $74,673, respectively, consist only of amounts due from H&H Metal. There is no allowance for doubtful accounts. We have determined our contracts do not include a significant financing component. For doré sales, payment is received at the time the performance obligation is satisfied. Consideration for concentrate sales is variable, and we receive payment for a significant portion of the estimated value of concentrate parcels at the time the performance obligation is satisfied. We do not incur significant costs to obtain contracts, nor costs to fulfill contracts which are not addressed by other standards. Therefore, we have not recognized an asset for such costs as of March 31, 2019 or December 31, 2018. |
5. Related Party Transactions
5. Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Notes | |
5. Related Party Transactions | 5. Related Party Transactions At March 31, 2019 and December 31, 2018, the Company had the following note and interest payable to related parties: March 31, 2019 December 31, 2018 Mine Systems Design (MSD), a company in which our Companys Vice President owns 10.4%, 12% interest, monthly payments of $4,910 through March 2019 $ - $ 14,696 Ophir Holdings LLC, a company owned by three of the Companys Officers, 6% interest, monthly payments of $3,777 with a balloon payment of $148,285 in February 2021 214,091 222,131 214,091 236,827 Total 214,091 236,827 Current portion (33,391) (47,591) Long term portion $ 180,700 $ 189,236 Related party interest expense for the three month periods ended March 31, 2019 and 2018 is as follows: March 31 2019 2018 $ 3,589 $ 18,097 Future principal payments of related party notes payable at March 31, 2019 are as follows: 12 months ended March 31, 2020 $ 33,391 2021 180,700 Total $ 214,091 During the three month periods ended March 31, 2019 and 2018, the Company paid $3,000 per month to the Companys chairman of the board, Del Steiner for consulting purposes. As of March 31, 2019, and December 31, 2018, gold sales receivable from H&H Metals, who owns 4% of the Companys outstanding common stock, were $165,401 and $74,673, respectively. Concentrate sales to H&H Metals were $1,133,898 and $824,029, during the quarters ended March 31, 2019 and 2018, respectively. |
6. Joint Ventures
6. Joint Ventures | 3 Months Ended |
Mar. 31, 2019 | |
Notes | |
6. Joint Ventures | 6. Joint Ventures New Jersey Mill Joint Venture Agreement The Company owns 65% of the New Jersey Mill Joint Venture and has significant influence in its operations. Thus the venture is included in the consolidated financial statements along with presentation of the non-controlling interest. At March 31, 2019 and December 31, 2018, an account receivable existed with Crescent Silver, LLC, the other joint venture participant (Crescent), for $2,357 and $2,051, respectively, for shared operating costs as defined in the JV agreement. Butte Highlands JV, LLC (BHJV) 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 Companys common stock valued at $210,000 for a total consideration of $435,000. Highland Mining, LLC (Highland) is the other 50% owner and manager of the joint venture. Under the agreement, Highland will fund all future project exploration and mine development costs. The agreement stipulates that Highland is manager of BHJV and will manage BHJV until such time as all mine development costs, less $2 million are distributed to Highland out of the proceeds from future mine production. The Company has determined that because it does not currently have significant influence over the joint ventures activities, it accounts for its investment on a cost basis. The Company purchased the interest in the BHJV to provide additional opportunities for exploration and development and expand the Companys mineral property portfolio. |
7. Earnings per Share
7. Earnings per Share | 3 Months Ended |
Mar. 31, 2019 | |
Notes | |
7. Earnings per Share | 7. Earnings per Share For the three month periods ending March 31, 2019 and 2018, all outstanding stock options (Note 11) and warrants (Note 11) were excluded from the computation of diluted loss per share because they were anti-dilutive due to net losses in those periods. |
8. Property, Plant and Equipmen
8. Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2019 | |
Notes | |
8. Property, Plant and Equipment | 8. Property, Plant, and Equipment Property, plant and equipment at March 31, 2019 and December 31, 2018 consisted of the following: March 31, 2019 December 31, 2018 Mill Mill land $ 225,289 $ 225,289 Mill building 536,193 536,193 Milling equipment 4,192,940 4,192,940 4,954,422 4,954,422 Less accumulated depreciation (602,276) (557,502) Total mill 4,352,146 4,396,920 Building and equipment Buildings 124,677 124,677 Equipment 1,680,074 1,631,908 1,864,751 1,756,585 Less accumulated depreciation (534,925) (453,625) Total building and equipment 1,269,826 1,302,960 Land Bear Creek 266,934 266,934 Little Baldy 230,449 230,449 BOW 250,817 250,817 Eastern Star 79,137 79,137 Gillig 40,133 40,133 Highwater 867,470 867,470 Total Land $ 6,489,442 $ 6,567,350 |
9. Mineral Properties
9. Mineral Properties | 3 Months Ended |
Mar. 31, 2019 | |
Notes | |
9. Mineral Properties | 9. Mineral Properties Mineral properties at March 31, 2019 and December 31, 2018 consisted of the following: March 31, 2019 December 31, 2018 New Jersey $ 248,289 $ 248,289 McKinley 250,000 250,000 Golden Chest 1,677,972 1,677,972 Crown Point 333,333 333,333 Butte Potosi 274,440 274,440 Less accumulated amortization (27,572) (24,695) Total $ 2,756,462 $ 2,759,339 |
10. Notes Payable
10. Notes Payable | 3 Months Ended |
Mar. 31, 2019 | |
Notes | |
10. Notes Payable | 10. Notes Payable At March 31, 2019 and December 31, 2018, notes payable are as follows: March 31, 2019 December 31, 2018 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 in June 2019, monthly payments of $459 $ 30,268 $ 31,319 Haul truck, 20 month note payable, 10.0% interest rate payable monthly through May 2019, monthly payments of 6,020 14,245 31,657 Compressor, 48 month note payable, 5.25% interest rate payable monthly through November 2021, monthly payments of $813 25,509 27,616 Jumbo drill and 1 yrd. LHD, 12 month note payable, 8% interest rate payable monthly through January 2019, monthly payments of $10,874 - 10,802 Atlas Copco loader, 60 month note payable, 10.5% interest rate payable monthly through June 2023, monthly payments of $3,550 145,425 152,125 Caterpillar excavator and skid steer, 48 month note payable, 6.8% interest rate payable monthly through June 2022, monthly payments of $2,392 83,505 89,199 2018 pick-up, 72 month note payable, 9% interest rate payable monthly through June 2024, monthly payments of $701 34,933 36,230 2008 pick-up, 60 month note payable, 9% interest rate payable monthly through June 2023, monthly payments of $562 23,660 24,798 Haul truck, 13 month note payable, 8.0% interest rate payable monthly through July 2019, monthly payments of 5,000 19,671 34,085 Caterpillar 938 loader, 60 month note payable, 6.8% interest rate payable monthly through August 2023, monthly payments of $3,751 171,305 179,552 MultiQuip DCA70 Generator, 48 month note payable, 7.25% interest rate payable through August 2022, monthly payments of $635 23,009 24,480 Total notes payable 571,530 641,863 Due within one year 176,171 217,679 Due after one year $ 395,359 $ 424,184 All notes are collateralized by the property or equipment purchased in connection with each note. Future principal payments of notes payable at March 31, 2019 are as follows: 12 months ended March 31, 2020 $ 176,171 2021 121,133 2022 129,011 2023 105,110 2024 38,273 2025 1,832 Total $ 571,530 |
11. Equity
11. Equity | 3 Months Ended |
Mar. 31, 2019 | |
Notes | |
11. Equity | 11. Stockholders Equity The Company offered a private placement in the first quarter of 2018. The private placement was for 5,012,423 units, each unit consisted of one share of the Companys stock and one half of one stock purchase warrant with each whole warrant exercisable for one share of the Companys stock at $0.22 for 24 months. The Company sold 5,012,423 units for net proceeds of $607,570. Stock Purchase Warrants Outstanding The activity in stock purchase warrants is as follows: Number of Warrants Exercise Prices Balance December 31, 2017 9,295,834 0.10-0.20 Issued in connection with private placements 4,804,289 0.18-0.22 Balance December 31, 2018 and March 31, 2019 14,100,123 $0.10-0.22 11. Stockholders Equity, continued These warrants expire as follows: Shares Exercise Price Expiration Date 1,200,000 $0.10 August 11, 2019 2,137,500 $0.20 February 28, 2020 4,250,000 $0.20 March 28, 2020 1,708,334 $0.20 November 3, 2020 4,429,289 $0.22 March 30, 2020 375,000 $0.18 December 14, 2023 14,100,123 - - |
12. Stock Options
12. Stock Options | 3 Months Ended |
Mar. 31, 2019 | |
Notes | |
12. Stock Options | 12. Stock Options Stock based compensation costs are included in management, production, exploration, and general and administrative expenses where applicable. No options were issued in 2018 or the first quarter of 2019. Number of Options Exercise Prices Balance December 31, 2017 7,662,500 0.10-0.18 Expired (500,000) 0.10 Issued (108,000) 0.15 Balance December 31, 2018 and March 31, 2019 7,054,500 0.10-0.18 Exercisable at March 31, 2019 7,054,500 $ 0.10-0.18 At March 31, 2019, outstanding stock options have a weighted average remaining term of approximately one year and an intrinsic value of approximately $248,340. |
13. Asset Retirement Obligation
13. Asset Retirement Obligation | 3 Months Ended |
Mar. 31, 2019 | |
Notes | |
13. Asset Retirement Obligation | 13. Asset Retirement Obligation The Company has established asset retirement obligations associated with the ultimate closing of its mineral properties where there has been or currently are operations. Activity for the three months ended March 31, 2019 and 2018 is as follows: Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Balance at beginning of period $ 154,292 $ 121,560 Accretion expense 2,218 4,013 Revision of estimated reclamation costs - 10,771 Balance at end of period $ 156,510 $ 136,344 The estimated retirement obligation costs were discounted using credit adjusted, risk-free interest rate of 6.0% from the time the obligation was incurred to the time management expects to pay the retirement obligations. |
14. Note Receivable
14. Note Receivable | 3 Months Ended |
Mar. 31, 2019 | |
Notes | |
14. Note Receivable | 14. Note Receivable On June 6, 2018, the Company loaned $250,000 to West Materials, Inc. and William J. West (collectively West) which bears interest at 8% if the loan goes into default and has a term of fifteen months. Five equal payments are due quarterly with the first two payments received in cash during 2018. For each payment, the Company has the option of receiving payment in cash or 48.45 troy ounces of gold. The Company plans to opt for cash payment unless the price of gold increases to a level where it would be more beneficial. The note receivable is collateralized by a mortgage on the Butte Gulch real property and a related net smelter royalty rights. |
1. Description of Business_ Pri
1. Description of Business: Principles of Consolidation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Policies | |
Principles of Consolidation | The consolidated financial statements include the accounts of the Company and its majority-owned subsidiary, the New Jersey Mill Joint Venture (NJMJV). Intercompany accounts and transactions are eliminated. The portion of entities owned by other investors is presented as non-controlling interests on the consolidated balance sheets and statements of operations. |
1. Description of Business_ Rev
1. Description of Business: Revenue Recognition (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Policies | |
Revenue Recognition | Gold Revenue Recognition and Receivables- Sales and accounts receivable for concentrate shipments are recorded net of charges by the customer for treatment, refining, smelting losses, and other charges negotiated with the customers. Charges are estimated upon shipment of concentrates based on contractual terms, and actual charges typically do not vary materially from estimates. Costs charged by customers include fixed costs per ton of concentrate and price escalators. Refining, selling and shipping costs related to sales of doré and metals from doré are recorded to cost of sales as incurred. See Note 12 for more information on our sales of products. Other Revenue Recognition- |
1. Description of Business_ Inv
1. Description of Business: Inventories (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Policies | |
Inventories | Inventories are stated at the lower of full cost of production or estimated net realizable value based on current metal prices. Costs consist of mining, transportation, and milling costs including applicable overhead, depreciation, depletion and amortization relating to the operations. Costs are allocated based on the stage at which the ore is in the production process. Supplies inventory is stated at the lower of cost or estimated net realizable value. |
1. Description of Business_ Fai
1. Description of Business: Fair Value Measurements (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Policies | |
Fair Value Measurements | When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period that are included in earnings are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date. At March 31, 2019 and December 31, 2018, the Company determined they had no assets or liabilities that required measurement at fair value on a recurring basis. |
1. Description of Business_ Rec
1. Description of Business: Reclassifications (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Policies | |
Reclassifications | Certain prior period amounts have been reclassified to conform to the 2019 financial statement presentation. Reclassifications had no effect on net income (loss), stockholders equity, or cash flows as previously reported. |
1. Description of Business_ New
1. Description of Business: New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Policies | |
New Accounting Pronouncements | Accounting Standards Updates Adopted In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02 Leases (Topic 842). The update modified the classification criteria and requires lessees to recognize the assets and liabilities on the balance sheet for most leases. The update was effective for fiscal years beginning after December 15, 2018, with early adoption permitted. Adoption of this update as of January 1, 2019 did not have a material impact on the Companys consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07 Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The update involves simplification of several aspects of accounting for nonemployee share-based payment transactions by expanding the scope of Topic 718 to include nonemployee awards. The update was effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. Adoption of this update as of January 1, 2019 did not have a material impact on the Companys consolidated financial statements. Accounting Standards Updates to Become Effective in Future Periods In August 2018, the FASB issued ASU No. 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The update removes, modifies and makes additions to the disclosure requirements on fair value measurements. The update is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. Management is evaluating the impact of this update on the Companys fair value measurement disclosures. |
3. Inventories_ Schedule of Inv
3. Inventories: Schedule of Inventory, Current (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Tables/Schedules | |
Schedule of Inventory, Current | March 31, 2019 December 31, 2018 Gold concentrate $ 180,850 $ 137,530 Materials and supplies 22,726 45,539 Total $ 203,576 $ 183,069 |
4. Sales of Products_ Schedule
4. Sales of Products: Schedule of sales of products by metal (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Tables/Schedules | |
Schedule of sales of products by metal | March 31, 2019 March 31, 2018 Gold $ 1,241,539 $ 1,208,904 Silver 2,510 3,973 Less: Smelter and refining charges (99,374) (111,486) Total $ 1,144,675 $ 1,101,391 |
4. Sales of Products_ Schedul_2
4. Sales of Products: Schedule of sales by significant product type (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Tables/Schedules | |
Schedule of sales by significant product type | March 31, 2019 March 31, 2018 Concentrate sales to H&H Metal $ 1,133,898 $ 824,029 Dore sales to refinery 10,777 277,362 Total $ 1,144,675 $ 1,101,391 |
5. Related Party Transactions_
5. Related Party Transactions: Related Party interest expense (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Tables/Schedules | |
Related Party interest expense | March 31, 2019 December 31, 2018 Mine Systems Design (MSD), a company in which our Companys Vice President owns 10.4%, 12% interest, monthly payments of $4,910 through March 2019 $ - $ 14,696 Ophir Holdings LLC, a company owned by three of the Companys Officers, 6% interest, monthly payments of $3,777 with a balloon payment of $148,285 in February 2021 214,091 222,131 214,091 236,827 Total 214,091 236,827 Current portion (33,391) (47,591) Long term portion $ 180,700 $ 189,236 |
Related Party Interest Expense | March 31 2019 2018 $ 3,589 $ 18,097 |
5. Related Party Transactions_2
5. Related Party Transactions: Related Party Principal Payments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Tables/Schedules | |
Related Party Principal Payments | 12 months ended March 31, 2020 $ 33,391 2021 180,700 Total $ 214,091 |
8. Property, Plant and Equipm_2
8. Property, Plant and Equipment: Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Tables/Schedules | |
Property, Plant and Equipment | March 31, 2019 December 31, 2018 Mill Mill land $ 225,289 $ 225,289 Mill building 536,193 536,193 Milling equipment 4,192,940 4,192,940 4,954,422 4,954,422 Less accumulated depreciation (602,276) (557,502) Total mill 4,352,146 4,396,920 Building and equipment Buildings 124,677 124,677 Equipment 1,680,074 1,631,908 1,864,751 1,756,585 Less accumulated depreciation (534,925) (453,625) Total building and equipment 1,269,826 1,302,960 Land Bear Creek 266,934 266,934 Little Baldy 230,449 230,449 BOW 250,817 250,817 Eastern Star 79,137 79,137 Gillig 40,133 40,133 Highwater 867,470 867,470 Total Land $ 6,489,442 $ 6,567,350 |
9. Mineral Properties_ Schedule
9. Mineral Properties: Schedule of mineral properties (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Tables/Schedules | |
Schedule of mineral properties | March 31, 2019 December 31, 2018 New Jersey $ 248,289 $ 248,289 McKinley 250,000 250,000 Golden Chest 1,677,972 1,677,972 Crown Point 333,333 333,333 Butte Potosi 274,440 274,440 Less accumulated amortization (27,572) (24,695) Total $ 2,756,462 $ 2,759,339 |
10. Notes Payable_ Schedule of
10. Notes Payable: Schedule of Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Tables/Schedules | |
Schedule of Debt | March 31, 2019 December 31, 2018 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 in June 2019, monthly payments of $459 $ 30,268 $ 31,319 Haul truck, 20 month note payable, 10.0% interest rate payable monthly through May 2019, monthly payments of 6,020 14,245 31,657 Compressor, 48 month note payable, 5.25% interest rate payable monthly through November 2021, monthly payments of $813 25,509 27,616 Jumbo drill and 1 yrd. LHD, 12 month note payable, 8% interest rate payable monthly through January 2019, monthly payments of $10,874 - 10,802 Atlas Copco loader, 60 month note payable, 10.5% interest rate payable monthly through June 2023, monthly payments of $3,550 145,425 152,125 Caterpillar excavator and skid steer, 48 month note payable, 6.8% interest rate payable monthly through June 2022, monthly payments of $2,392 83,505 89,199 2018 pick-up, 72 month note payable, 9% interest rate payable monthly through June 2024, monthly payments of $701 34,933 36,230 2008 pick-up, 60 month note payable, 9% interest rate payable monthly through June 2023, monthly payments of $562 23,660 24,798 Haul truck, 13 month note payable, 8.0% interest rate payable monthly through July 2019, monthly payments of 5,000 19,671 34,085 Caterpillar 938 loader, 60 month note payable, 6.8% interest rate payable monthly through August 2023, monthly payments of $3,751 171,305 179,552 MultiQuip DCA70 Generator, 48 month note payable, 7.25% interest rate payable through August 2022, monthly payments of $635 23,009 24,480 Total notes payable 571,530 641,863 Due within one year 176,171 217,679 Due after one year $ 395,359 $ 424,184 |
10. Notes Payable_ Schedule o_2
10. Notes Payable: Schedule of Maturities of Long-term Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Tables/Schedules | |
Schedule of Maturities of Long-term Debt | 12 months ended March 31, 2020 $ 176,171 2021 121,133 2022 129,011 2023 105,110 2024 38,273 2025 1,832 Total $ 571,530 |
11. Equity_ Common Stock Purcha
11. Equity: Common Stock Purchase Warrant Transactions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Tables/Schedules | |
Common Stock Purchase Warrant Transactions | Number of Warrants Exercise Prices Balance December 31, 2017 9,295,834 0.10-0.20 Issued in connection with private placements 4,804,289 0.18-0.22 Balance December 31, 2018 and March 31, 2019 14,100,123 $0.10-0.22 |
11. Equity_ WarrantExpirations0
11. Equity: WarrantExpirations0TextBlock (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Tables/Schedules | |
WarrantExpirations0TextBlock | Shares Exercise Price Expiration Date 1,200,000 $0.10 August 11, 2019 2,137,500 $0.20 February 28, 2020 4,250,000 $0.20 March 28, 2020 1,708,334 $0.20 November 3, 2020 4,429,289 $0.22 March 30, 2020 375,000 $0.18 December 14, 2023 14,100,123 - - |
12. Stock Options_ Share-based
12. Stock Options: Share-based Compensation, Stock Options, Activity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Tables/Schedules | |
Share-based Compensation, Stock Options, Activity | Number of Options Exercise Prices Balance December 31, 2017 7,662,500 0.10-0.18 Expired (500,000) 0.10 Issued (108,000) 0.15 Balance December 31, 2018 and March 31, 2019 7,054,500 0.10-0.18 Exercisable at March 31, 2019 7,054,500 $ 0.10-0.18 |
13. Asset Retirement Obligati_2
13. Asset Retirement Obligation: Schedule of Asset Retirement Obligations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Tables/Schedules | |
Schedule of Asset Retirement Obligations | Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Balance at beginning of period $ 154,292 $ 121,560 Accretion expense 2,218 4,013 Revision of estimated reclamation costs - 10,771 Balance at end of period $ 156,510 $ 136,344 |
3. Inventories_ Schedule of I_2
3. Inventories: Schedule of Inventory, Current (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Details | ||
Gold concentrate | $ 180,850 | $ 137,530 |
Materials and supplies | 22,726 | 45,539 |
Total | $ 203,576 | $ 183,069 |
4. Sales of Products_ Schedul_3
4. Sales of Products: Schedule of sales of products by metal (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Details | ||
Gold sales | $ 1,241,539 | $ 1,208,904 |
Silver sales | 2,510 | 3,973 |
Smelter and refining charges | (99,374) | (111,486) |
Total | $ 1,144,675 | $ 1,101,391 |
4. Sales of Products_ Schedul_4
4. Sales of Products: Schedule of sales by significant product type (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Details | ||
Concentrate sales | $ 1,133,898 | $ 824,029 |
Dore sales | 10,777 | 277,362 |
Total | $ 1,144,675 | $ 1,101,391 |
4. Sales of Products (Details)
4. Sales of Products (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Details | ||
Gold sales receivable | $ 165,401 | $ 74,673 |
5. Related Party Transactions_3
5. Related Party Transactions: Related Party interest expense (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Details | |||
Total | $ 214,091 | $ 236,827 | |
Current portion | (33,391) | (47,591) | |
Long term portion | 180,700 | $ 189,236 | |
Interest Expense, Related Party | $ 3,589 | $ 18,097 |
5. Related Party Transactions_4
5. Related Party Transactions: Related Party Principal Payments (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Details | ||
Long-term Debt, Maturities, Repayments of Principal in Year Two | $ 33,391 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 180,700 | |
Total | $ 214,091 | $ 236,827 |
5. Related Party Transactions (
5. Related Party Transactions (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Details | |||
Gold sales receivable | $ 165,401 | $ 74,673 | |
Concentrate sales | $ 1,133,898 | $ 824,029 |
8. Property, Plant and Equipm_3
8. Property, Plant and Equipment: Property, Plant and Equipment (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Details | ||
Mill land | $ 225,289 | $ 225,289 |
Mill building | 536,193 | 536,193 |
Milling equipment | 4,192,940 | 4,192,940 |
Mill buildings and improvements, accumulated depreciation | (602,276) | (557,502) |
Mill Buildings and Improvements, Net | 4,352,146 | 4,396,920 |
Buildings and Improvements, Gross | 124,677 | 124,677 |
Equipment | 1,680,074 | 1,631,908 |
Buildings and improvements, accumulated depreciation | (534,925) | (453,625) |
Buildings and improvements net | 1,269,826 | 1,302,960 |
Bear Creek Land | 266,934 | 266,934 |
Little Baldy Land | 230,449 | 230,449 |
BOW Land | 250,817 | 250,817 |
Eastern Star Land | 79,137 | 79,137 |
Gillig Land | 40,133 | 40,133 |
Highwater Land | 867,470 | 867,470 |
Land | $ 6,489,442 | $ 6,567,350 |
9. Mineral Properties_ Schedu_2
9. Mineral Properties: Schedule of mineral properties (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Details | ||
Mineral Properties 1 | $ 248,289 | $ 248,289 |
Mineral Properties 2 | 250,000 | 250,000 |
Mineral Properties 3 | 1,677,972 | 1,677,972 |
Mineral Properties 4 | 333,333 | 333,333 |
Mineral Properties 6 | 274,440 | 274,440 |
Accumulated Amortization of Other Deferred Costs | (27,572) | (24,695) |
Mineral properties net | $ 2,756,462 | $ 2,759,339 |
10. Notes Payable_ Schedule o_3
10. Notes Payable: Schedule of Debt (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Details | ||
Notes Payable Current and Noncurrent | $ 571,530 | $ 641,863 |
Due within one year | 176,171 | 217,679 |
Due after one year | $ 395,359 | $ 424,184 |
10. Notes Payable_ Schedule o_4
10. Notes Payable: Schedule of Maturities of Long-term Debt (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Details | ||
Notes Payable Current and Noncurrent | $ 571,530 | $ 641,863 |
11. Equity_ Common Stock Purc_2
11. Equity: Common Stock Purchase Warrant Transactions (Details) - shares | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Details | |||
Class of Warrant or Right, Outstanding | 14,100,123 | 14,100,123 | 9,295,834 |
Class of Warrant or Right, Outstanding | 14,100,123 | 14,100,123 | 9,295,834 |
11. Equity_ WarrantExpiration_2
11. Equity: WarrantExpirations0TextBlock (Details) - shares | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Details | |||
Class of Warrant or Right, Outstanding | 14,100,123 | 14,100,123 | 9,295,834 |
12. Stock Options (Details)
12. Stock Options (Details) | Mar. 31, 2019USD ($) |
Details | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 248,340 |
13. Asset Retirement Obligati_3
13. Asset Retirement Obligation: Schedule of Asset Retirement Obligations (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Details | ||
Balance at beginning of period | $ 154,292 | $ 121,560 |
Asset Retirement Obligation, Period Increase (Decrease) | 2,218 | 4,013 |
Asset Retirement Obligation, Liabilities Incurred | 0 | 10,771 |
Asset Retirement Obligation | $ 156,510 | $ 136,344 |