Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 01, 2020 | Jun. 30, 2019 | |
Details | |||
Registrant CIK | 0001030192 | ||
Fiscal Year End | --12-31 | ||
Registrant Name | New Jersey Mining Company | ||
SEC Form | 10-K | ||
Period End date | Dec. 31, 2019 | ||
Trading Symbol | NJMC | ||
Trading Exchange | NONE | ||
Tax Identification Number (TIN) | 82-0490295 | ||
Number of common stock shares outstanding | 123,812,144 | ||
Public Float | $ 14,365,560 | ||
Filer Category | Non-accelerated Filer | ||
Current with reporting | Yes | ||
Interactive Data Current | Yes | ||
Voluntary filer | No | ||
Well-known Seasoned Issuer | No | ||
Shell Company | false | ||
Small Business | true | ||
Emerging Growth Company | false | ||
Entity File Number | 000-28837 | ||
Entity Address, Address Line One | 201 N. Third Street | ||
Entity Address, City or Town | Coeur d’Alene | ||
Entity Address, State or Province | ID | ||
Entity Address, Postal Zip Code | 83814 | ||
City Area Code | 208 | ||
Local Phone Number | 625-9001 | ||
Title of 12(g) Security | Common Stock, $0.00 par value | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Document Annual Report | true | ||
Document Transition Report | false |
New Jersey Mining Company Conso
New Jersey Mining Company Consolidated Balance Sheets - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | |
Current assets: | |||
Cash and cash equivalents | $ 217,796 | $ 248,766 | |
Gold sales receivable | 305,924 | 74,673 | |
Inventories | 225,146 | 183,069 | |
Joint venture receivable | 2,410 | 2,051 | |
Note receivable | 0 | 150,000 | |
Other current assets | 158,833 | 103,223 | |
Total current assets | 910,109 | 761,782 | |
Property, plant and equipment, net of accumulated depreciation | 7,015,734 | 6,567,350 | |
Mineral properties, net of accumulated amortization | 2,363,018 | 2,759,339 | |
Investment in joint venture | 435,000 | 435,000 | |
Reclamation bond | 103,320 | 103,320 | |
Deposit | 25,000 | 11,958 | |
Total assets | 10,852,181 | 10,638,749 | |
Current liabilities: | |||
Accounts payable | 529,235 | 401,501 | |
Accrued payroll and related payroll expenses | 80,402 | 58,359 | |
Notes payable related parties, current portion | 34,924 | 47,591 | |
Notes payable, current portion | 303,987 | 217,679 | |
Total current liabilities | 948,548 | 725,130 | |
Asset retirement obligation | 163,369 | 154,292 | |
Notes payable related parties, long term | 181,750 | 189,236 | |
Notes payable, long term | 901,537 | 424,184 | |
Total long term liabilities | 1,246,656 | 767,712 | |
Total liabilities | 2,195,204 | 1,492,842 | |
Commitments (Note 6) | [1] | 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; 123,812,144 and 123,413,569 shares issued and outstanding, respectively | 17,682,999 | 17,492,980 | |
Accumulated deficit | (12,029,910) | (11,420,305) | |
Total New Jersey Mining Company stockholders' equity | 5,653,089 | 6,072,675 | |
Non-controlling interest | 3,003,888 | 3,073,232 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | 8,656,977 | 9,145,907 | |
Total liabilities and stockholders' equity | $ 10,852,181 | $ 10,638,749 | |
[1] | Note 6 |
New Jersey Mining Company Con_2
New Jersey Mining Company Consolidated Balance Sheets - Parenthetical - $ / shares | Dec. 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 | 123,812,144 | 123,413,569 |
New Jersey Mining Company Con_3
New Jersey Mining Company Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Details | ||
Revenue-gold sales | $ 6,119,512 | $ 3,629,837 |
Cost of sales: | ||
Cost of sales and other direct production costs | 4,800,959 | 3,988,779 |
Depreciation and amortization | 580,005 | 367,939 |
Total cost of sales | 5,380,964 | 4,356,718 |
Gross profit (loss) | 738,548 | (726,881) |
Other operating expenses (income): | ||
Pre-development expenses | 117,440 | 195,068 |
Exploration | 214,924 | 467,296 |
Gain on sale of mineral property | 0 | (2,947,862) |
Loss on abandonment of mineral property | 333,333 | 0 |
Management | 153,484 | 155,217 |
Professional services | 151,434 | 186,304 |
General and administrative | 453,958 | 392,654 |
Total other operating expenses (income) | 1,424,573 | (1,551,323) |
Income (loss) from operations | (686,025) | 824,442 |
Other (income) expense: | ||
Timber revenue | (13,235) | 0 |
Timber expense | 1,963 | 0 |
Interest income | (33,017) | (27,511) |
Interest expense | 84,771 | 83,690 |
Change in fair value of forward gold contracts | 0 | 15,984 |
Total other (income) expense | 40,482 | 72,163 |
Net income (loss) | (726,507) | 752,279 |
Net income (loss) attributable to non-controlling interest | (116,902) | (77,735) |
Net income (loss) attributable to New Jersey Mining Company | $ (609,605) | $ 830,014 |
Net income (loss) per common share-basic and diluted | $ 0 | $ 0 |
Weighted average common shares outstanding-basic | 123,658,174 | 120,024,534 |
Weighted average common shares outstanding-diluted | 123,658,174 | 122,339,225 |
New Jersey Mining Company Con_4
New Jersey Mining Company Consolidated Statement of Changes in Stockholders' Equity - 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 | 38,673 | 38,673 |
Issuance of common stock for cash net of issuance costs | $ 1,206,856 | 0 | 0 | 1,206,856 |
Issuance of common stock for cash net of issuance costs | 9,608,578 | |||
Issuance of common stock for services | $ 9,059 | 0 | 0 | 9,059 |
Issuance of common stock for services | 53,286 | |||
Issuance of common stock for options exercised | $ 16,200 | 0 | 0 | 16,200 |
Issuance of common stock for options exercised | 108,000 | |||
Issuance of common stock for mineral property | $ 233,333 | 0 | 0 | 233,333 |
Issuance of common stock for mineral property | 1,333,333 | |||
Stock based compensation | $ 42,020 | 0 | 0 | 42,020 |
Stock based compensation | 0 | |||
Net income (loss) | $ 0 | 830,014 | (77,735) | 752,279 |
Equity Balance, shares at Dec. 31, 2018 | 123,413,569 | |||
Equity Balance at Dec. 31, 2018 | $ 17,492,980 | (11,420,305) | 3,073,232 | 9,145,907 |
Contribution from non-controlling interest in Mill JV | 0 | 0 | 47,558 | 47,558 |
Issuance of common stock for services | 0 | |||
Issuance of common stock for mineral property | 0 | |||
Stock based compensation | $ 190,019 | 0 | 0 | 190,019 |
Stock based compensation | 0 | |||
Issuance of common stock for cashless warrant exercise | $ 0 | 0 | 0 | 0 |
Issuance of common stock for cashless warrant exercise | 398,575 | |||
Net income (loss) | $ 0 | (609,605) | (116,902) | (726,507) |
Equity Balance, shares at Dec. 31, 2019 | 123,812,144 | |||
Equity Balance at Dec. 31, 2019 | $ 17,682,999 | $ (12,029,910) | $ 3,003,888 | $ 8,656,977 |
New Jersey Mining Company Con_5
New Jersey Mining Company Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (726,507) | $ 752,279 |
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: | ||
Depreciation and amortization | 580,005 | 367,939 |
Accretion of asset retirement obligation | 9,077 | 3,901 |
Stock based compensation | 190,019 | 42,020 |
Loss on abandonment of mineral property | 333,333 | 0 |
Change in fair value of forward gold contracts | 0 | 15,984 |
Write down of inventory to net realizable value | 0 | 19,874 |
Gain on sale of mineral property | 0 | (2,947,862) |
Common stock issued for services | 0 | 9,059 |
Change in operating assets and liabilities: | ||
Gold sales receivable | (231,251) | 233,123 |
Inventories | (42,077) | 42,211 |
Joint venture receivable | (359) | 2,631 |
Other current assets | (55,610) | (862) |
Accounts payable | 127,734 | 37,691 |
Accrued payroll and related payroll expenses | 22,043 | 17,649 |
Interest payable related parties | 0 | (10,772) |
Net cash provided (used) by operating activities | 206,407 | (1,415,135) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (95,220) | (317,485) |
Purchase of mineral property | 0 | (374,438) |
Deposit on mineral property | (25,000) | 0 |
Deposit on equipment | 0 | (11,958) |
Proceeds from sale of mineral property | 50,000 | 3,000,000 |
Issuance of note receivable | 0 | (250,000) |
Payment received on note receivable | 150,000 | 100,000 |
Net cash provided (used) by investing activities | 79,780 | 2,146,119 |
Cash flows from financing activities: | ||
Sales of common stock and warrants, net of issuance costs | 0 | 1,206,856 |
Contributions from non-controlling interest | 0 | 16,200 |
Payments on forward gold contracts in cash | 0 | (185,798) |
Gold purchased for payments on forward gold contracts | 0 | (257,981) |
Principal payments on notes payable | (294,562) | (366,689) |
Principal payments on notes, related parties | (70,153) | (1,058,096) |
Contributions from non-controlling interest | 47,558 | 38,673 |
Net cash provided (used) by financing activities | (317,157) | (606,835) |
Net change in cash and cash equivalents | (30,970) | 124,149 |
Cash and cash equivalents, beginning of year | 248,766 | 124,617 |
Cash and cash equivalents, end of year | 217,796 | 248,766 |
Supplemental disclosure of cash flow information: | ||
Interest paid in cash | 84,771 | 94,462 |
Non-cash investing and financing activities: | ||
Deposit on equipment applied to purchase of equipment | 11,958 | 30,000 |
Note payable for equipment purchase | 858,223 | 735,762 |
Note from related party for equipment purchase | 50,000 | 0 |
Shares of common stock issued for mineral property | 0 | 233,333 |
Forward gold contract exchanged for note payable, related party | $ 0 | $ 492,784 |
1. Description of Business
1. Description of Business | 12 Months Ended |
Dec. 31, 2019 | |
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, developing, and extraction of gold, silver, and base metal mineral resources in the Greater Coeur dAlene Mining District of North Idaho and extending into Western Montana. The Company is currently focused on mining and milling ore from the Golden Chest property. It is also evaluating new mineral investment and development opportunities in the western United States. |
2. Summary of Significant Accou
2. Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Notes | |
2. Summary of Significant Accounting Policies | 2. Summary of Significant Accounting 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 NJMJV partially owned by other investors is presented as non-controlling interest on the consolidated balance sheets and statements of operations. 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 ventures management committee. For joint ventures in which the Company does not have joint control or significant influence, the cost method is used. For those joint ventures in which there is joint control between the parties, the equity method is utilized whereby the Companys 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, 2019 and 2018, the Companys percentage ownership and method of accounting for each joint venture is as follows: December 31, 2019 December 31, 2018 Joint Venture % Ownership Significant Influence? Accounting Method % Ownership Significant Influence? Accounting Method NJMJV 65% Yes Consolidated 65% Yes Consolidated Butte Highlands Joint Venture (BHJV) 50% No Cost 50% No Cost Non-controlling Interest Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the Companys stockholders equity and its net income (loss). Non-controlling interests represent non-controlling investors initial contribution at the date of the original acquisition, ongoing contributions, and percentage share of earnings since inception. 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, settlement pricing of gold sales, fair value of stock based compensation, estimation of asset retirement obligations and reclamation liabilities. Actual results could differ from those estimates. Revenue Recognition Gold Revenue Recognition and Receivables- Gold Revenue Recognition and Receivables, continued- Other Revenue Recognition- Inventories Inventories include concentrate inventory and supplies inventory. Concentrate inventory is valued at the lower of full cost of production or estimated net realizable value based on current metal prices. Costs consist of mining, transportation, royalties, 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. Income Taxes Income taxes are accounted for under the liability method. Under this method deferred income tax liabilities or assets are determined at the end of each period 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. Uncertain tax positions are evaluated in a two-step process, whereby (i) it is determined whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (ii) for those tax positions that meet the more-likely-than-not recognition threshold, the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the related tax authority would be recognized. 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 are 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. At December 31, 2019 and 2018, the Company did not have any assets or liabilities that were valued at a fair value measurement other than its gold sales receivable. Due to the time elapsed from shipment to the customer and the final settlement with the customer, management must estimate the prices at which sales of gold concentrates will be settled. Previously recorded sales and accounts receivable are adjusted to estimated settlement metals prices until final settlement by the customer. See Note 13 for further information. Financial Instruments The carrying amounts of financial instruments including cash and cash equivalents, reclamation bond, note receivable, notes payable to related parties, and notes payable approximate their fair values. Concentration Sales In 2018 and 2019, the Company has sold its gold flotation concentrate product to a concentrate broker, H&H Metals Corp, a related party (see Note 13). In 2019 and 2018 floatation concentrates accounted 96% and 91%, respectively, of all gold sales. The remaining 4% and 9% in 2019 and 2018, respectively, was dore sold to a third party. Net Income (Loss) Per Share Net income (loss) per share is computed by dividing the net amount excluding net income (loss) attributable to a non-controlling interest 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 year ended December 31, 2019, all outstanding stock options (5,262,500) and warrants (12,900,123) were excluded from the computation of diluted loss per share because they were anti-dilutive due to the net loss in that year. For the year ended December 31, 2018, stock options of 6,792,000 and warrants of 1,200,000 are included in the calculation of diluted income per share. Excluded from the 2018 diluted earnings per share calculation were 262,500 options and 12,900,123 warrants. These options and warrants were excluded because their exercise prices were greater than the average trading prices of the Companys common stock for the respective period. 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. 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 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 lives of most of the Companys buildings are 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 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 estimated 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. Consideration received by the Company pursuant to joint ventures or mineral interest agreements is applied against the carrying value of the related mineral interest. When and if payments received exceed the carrying value, the excess amount is recognized as a gain in the consolidated statement of operations in the period the consideration is received. 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. Pre-Development Activities Pre-development activities involve cost incurred that may ultimately benefit production, such as underground ramp development, pumping, and open-pit development, which are expensed due to the lack of evidence of economic development, which is necessary to demonstrate future recoverability of these expenses. These costs are charged to operations as incurred. Claim Fees Unpatented claim fees paid at time of staking are expensed when incurred. Recurring renewal fees which are paid annually are recorded as other current assets and expensed over the course of the year. Impairment of Long-Lived Assets The Company evaluates the carrying amounts of its long-lived assets 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 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 discounted future cash flows expected to result from the use of an asset are less than the carrying amount of the asset. The Companys 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 Companys investments in mineral properties. 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 and 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 assets 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. Separate from asset retirement obligations, the Company records liability for remediation costs when a reasonable estimate of fair value can be determined. Accrued remediation costs are not discounted. Reclamation Bond Various laws and permits require that financial assurances be in place for certain environmental and reclamation obligations and other potential liabilities. At December 31, 2019 and 2018, the Company had a $103,320 reclamation bond for the Golden Chest Mine. Stock Based Compensation All transactions in which goods or services are received for the issuance of shares of the Companys common stock or options to purchase shares of common stock are accounted for based on the fair value of the goods or services received or the fair value of the equity interest issued, whichever is more reliably measurable. The value of common stock awards is determined based upon the closing price of the Companys stock on the date of the award. The Company estimates the fair value of 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 the Companys common stock price over the expected term (volatility), the risk-free interest rate and the dividend yield. Changes in the subjective assumptions can materially affect the estimate of the fair value of stock-based compensation. Derivatives The Company measures derivative contracts as assets or liabilities based on their fair value. Gains or losses resulting from changes in the fair value of derivatives in each period are recorded in current earnings (losses). None of the Companys derivative contracts qualify for hedge accounting. The Company does not hold or issue derivative financial instruments for speculative trading purposes. Going Concern The Company has accumulated deficit at December 31, 2019 and incurred a consolidated net loss in 2019 of $726,507. The Company is currently producing from the open-pit and underground at the Golden Chest. During 2019, production generated cash flow from operations of $206,407 compared to cash flow used in operations of $1,415,135 in 2018. Planned production for the next 18 months indicates the trend to improve. In prior years, the Company has been successful in raising required funds for ongoing operations from sale of its common stock or borrowing. Management believes it has the ability to meet its contractual obligations with continuing cash flows from operations, existing cash, and potential financings for the next 12 months. Recent 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 because the Company has no long-term operating leases. 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
3. Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Notes | |
3. Inventories | 3. Inventories At December 31, 2019, inventories consisted of $197,862 in concentrate inventory and $27,284 in supplies inventory. At December 31, 2018, inventories consisted of $137,530 in concentrate inventory and $45,539 in supplies inventory. At December 31, 2018, the Company recognized an expense of $19,874 due to writing down concentrate inventory to net realizable value. |
4. Note Receivable
4. Note Receivable | 12 Months Ended |
Dec. 31, 2019 | |
Notes | |
4. Note Receivable | 4. Note Receivable On June 6, 2018, the Company loaned $250,000 to West Materials, Inc. and William J. West (collectively West) which bore interest at 8% if the loan went into default and had a term of fifteen months. Five equal payments were due quarterly with the first two payments received in cash during 2018 and the remaining outstanding $150,000 received in 2019. The note receivable was collateralized by a mortgage on the Butte Gulch real property and a related net smelter royalty right. |
5. Property, Plant and Equipmen
5. Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Notes | |
5. Property, Plant and Equipment | 5. Property, Plant and Equipment Property, plant and equipment at December 31, 2019 and 2018 consisted of the following: 2019 2018 Mill Land $ 225,289 $ 225,289 Building 536,193 536,193 Equipment 4,192,940 4,192,940 4,954,422 4,954,422 Less accumulated depreciation (759,617) (557,502) Total mill 4,194,805 4,396,920 Buildings and equipment Buildings 143,725 124,677 Equipment 2,628,261 1,631,908 2,771,986 1,756,585 Less accumulated depreciation (818,527) (453,625) Total building and equipment 1,953,459 1,302,960 Land Bear Creek 266,934 266,934 BOW 230,449 230,449 Eastern Star 250,817 250,817 Gillig 79,137 79,137 Highwater 40,133 40,133 Total land 867,470 867,470 Total $ 7,015,734 $ 6,567,350 |
6. Mineral Properties
6. Mineral Properties | 12 Months Ended |
Dec. 31, 2019 | |
Notes | |
6. Mineral Properties | 6. Mineral Properties Mineral properties at December 31, 2019 and 2018 are as follows: 2019 2018 New Jersey $ 248,289 $ 248,289 McKinley 200,000 250,000 Golden Chest 1,677,972 1,677,972 Crown Point - 333,333 Butte Potosi 274,440 274,440 Less accumulated amortization (37,683) (24,695) Total $ 2,363,018 $ 2,759,339 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. McKinley The McKinley project is located near the town of Lucille, Idaho and encompasses three historic hard rock mines on private land in central Idaho. The Company started exploring the property in 2013. A prior lessee is due a 1% to 2% NSR sliding scale royalty on future production based on the price of gold capped at a total of $500,000. In the third quarter of 2019, a $50,000 non-refundable deposit was received from PM&G Company along with a letter of intent contemplating purchase of the McKinley project from the Company. The carrying value of the McKinley project was reduced by $50,000 in 2019 reflecting receipt of this payment. The transaction has not been completed as of the issuance date of these consolidated financial statements. 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. A 2% Net Smelter Royalty is payable on production at the Golden Chest to a former joint venture partner. Royalty expense of $118,223 and $77,758 was recognized as costs of sales and other direct production costs in the years ended December 31, 2019 and 2018, respectively. Crown Point On March 2, 2018, the Company entered into an agreement with J-J Farms LLC and Achievement Holdings LLC (Crown Point) to lease a group of patented and unpatented mining claims. The initial payment was 1,333,333 shares of the Companys restricted common stock valued at $0.175/share for a fair value of $233,333. An additional payment was made in September of 2018 for $100,000 in cash. Per the agreement, future payments for the mineral property were as follows: · · The Company made no payments under this agreement in 2019. In December of 2019, the Company abandoned the property and recognized a loss of $333,333. Butte Potosi In 2018, the Company purchased the Butte Potosi property near its Golden Chest mine for $250,440 and a 2% net smelter return on all ores mined and shipped from the property. The Company incurred an additional $24,000 to improve access to the property. This property consists of patented mining claims some of which include both the surface and mineral rights and some of which include only the mineral rights. Toboggan Toboggan was a gold and silver exploration project consisting of 106 claims covering 2,100 acres of federal land administered by the U.S. Forest Service. The Little Baldy prospect which was a part of the Toboggan project was under a 2011 lease agreement with Hecla Mining Company (Hecla). The lease had a 20-year term and called for annual payments to the Company of $10,000 through the fifth year, then escalating to $15,000 for three years, $20,000 for one year, and $48,000 thereafter. In 2018 which was the seventh year of the lease the Company sold property including the Little Baldy and Toboggan to Hecla for $3,000,000. This sale resulted in a net gain of $2,947,862 which was recognized in 2018. |
7. Notes Payable
7. Notes Payable | 12 Months Ended |
Dec. 31, 2019 | |
Notes | |
7. Notes Payable | 7. Notes Payable At December 31, 2019 and 2018, notes payable are as follows: 2019 2018 Property with shop, 48 month note payable, 6.49% interest rate payable monthly through August 2023, monthly payments of $707 $ 27,624 $ 31,319 Haul truck, 20 month note payable, 10.0% interest rate payable monthly through May 2019, monthly payments of $6,020 - 31,657 Compressor, 48 month note payable, 5.25% interest rate payable monthly through November 2021, monthly payments of $813 19,018 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 $3,550 124,238 152,125 Caterpillar excavator and skid steer, 48 month note payable, 6.8% interest rate payable monthly through June 2022, monthly payments of $2,392 65,835 89,199 2018 pick-up truck, 72 month note payable, 9% interest rate payable monthly through June 2024, monthly payments of $701 30,863 36,230 2008 pick-up truck, 60 month note payable, 9% interest rate payable monthly through June 2023, monthly payments of $562 20,088 24,798 Haul truck, 13 month note payable, 8.0% interest rate payable monthly through July 2019, monthly payments of $5,000 - 34,085 Caterpillar 938 loader, 60 month note payable, 6.8% interest rate payable monthly through August 2023, monthly payments of $3,751 145,709 179,552 MultiQuip DCA70 Generator, 48 month note payable, 7.25% interest rate payable through August 2022, monthly payments of $635 18,433 24,480 Caterpillar AD22 haul truck, 48 month note payable, 6.45% interest rate payable monthly through June 2023, monthly payments of $12,979 485,896 - Paus PFL-20 LHD, 60 month note payable, 4.78% interest rate payable through October 2024, monthly payments of $5,181 267,820 - Total notes payable 1,205,524 641,863 Due within one year 303,987 217,679 Due after one year $ 901,537 $ 424,184 All notes are collateralized by the property or equipment purchased in connection with each note. Future principal payments of debt at December 31, 2019 are as follows: 2020 $ 303,987 2021 325,165 2022 321,231 2023 200,607 2024 54,534 Total $ 1,205,524 |
8. Asset Retirement Obligation
8. Asset Retirement Obligation | 12 Months Ended |
Dec. 31, 2019 | |
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 where there has been or currently is operations. Obligations were established for the New Jersey mill in 2014 and the Golden Chest mine in 2016. 2019 2018 Balance at January 1 $ 154,292 $ 121,560 Accretion expense 9,077 3,901 Revision of estimated reclamation costs - 28,831 Balance at December 31 $ 163,369 $ 154,292 During the year ended December 31, 2018, the obligations for the Golden Chest and New Jersey mill properties were revised in consideration of additional disturbance activity and timing of future reclamation. The estimated reclamation costs were discounted using credit adjusted, risk-free interest rate of 5.0% from the time the obligation was incurred to the time management expects to pay the retirement obligation. |
9. Joint Venture Arrangements
9. Joint Venture Arrangements | 12 Months Ended |
Dec. 31, 2019 | |
Notes | |
9. Joint Venture Arrangements | 9. Joint Venture Arrangements New Jersey Mill Venture Agreement (NJMJV) In January 2011, the Company and United Mine Services, Inc. (UMS) entered into a joint venture agreement 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, 2019 and 2018, an account receivable existed with the Mill Joint Venture from Crescent for $2,410 and $2,051, respectively. To date, no ore has been processed under this joint venture arrangement. Butte Highlands Joint Venture On January 29, 2016, the Company purchased a 50% interest in Butte Highlands JV, LLC (BHJV) for a total consideration of $435,000. Highland Mining, LLC (Highland) is the other 50% owner and manager of the joint venture. Under the operating 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 will account for its investment on a cost basis. |
10. Income Taxes
10. Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Notes | |
10. Income Taxes | 10. Income Taxes The Company did not recognize a provision (benefit) for income taxes for the years ended December 31, 2019 and 2018. At December 31, 2019 and 2018, the Company had net deferred tax assets principally arising from the net operating loss carryforward for income tax purposes multiplied by an expected blended federal and state tax rate of 27%. 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 100% of the net deferred tax asset exists at December 31, 2019 and 2018. The significant components of net deferred tax assets at December 31, 2019 and 2018 were as follows: 2019 2018 Deferred tax assets Net operating loss carry forward $ 3,420,600 $ 3,014,000 Mineral properties 304,300 455,200 Asset retirement obligation 5,800 4,400 Stock based compensation 219,000 167,900 Other 11,200 7,150 Total deferred tax assets 3,960,900 3,648,650 Valuation allowance (2,985,400) (2,794,150) 975,500 854,500 Deferred tax liabilities Property, plant, and equipment (975,500) (854,500) Total deferred tax liabilities (975,500) (854,500) Net deferred tax assets $ - $ - At December 31, 2019 the Company had net operating loss carry forwards of approximately $12,750,000 for both federal and state purposes, $11,100,000 of which expire between 2021 through 2037. The remaining balance of $1,650,000 will never expire but its utilization is limited to 80% of taxable income in any future year. The income tax provision (benefit) for the years ended December 31, 2019 and 2018 differ from the statutory rate of 21% as follows: 2019 2018 Provision (benefit) at statutory rate for the period $ (152,600) $ 158,000 State taxes, net of federal taxes (42,500) 44,000 Adjustment of prior year tax estimates 3,850 6,450 Increase (decrease) in valuation allowance 191,250 (208,450) Total provision (benefit) $ - $ - The Company is open to examination of our income tax filings in the United States and state jurisdictions for the 2017 through 2019 tax years. Tax attributes from years prior to that can be adjusted as a result of examinations. 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. |
11. Equity
11. Equity | 12 Months Ended |
Dec. 31, 2019 | |
Notes | |
11. Equity | 11. Equity The Company has authorized 200,000,000 shares of no par common stock at December 31, 2019 and 2018. In addition, the Company has authorized 1,000,000 shares of no par preferred stock, none of which had been issued at December 31, 2019 or 2018. 2019 Activity: · 2018 Activity · · · · · Stock Purchase Warrants Outstanding Transactions in common stock purchase warrants for the years ended December 31, 2019 and 2018 are 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 14,100,123 $0.10-0.22 Exercised (1,200,000) 0.10 Balance December 31, 2019 12,900,123 $0.18-0.22 These warrants expire as follows: Shares Exercise Price Expiration Date 2,137,500 $0.20 February 28, 2020 4,250,000 $0.20 March 28, 2020 1,708,334 $0.20 November 3, 2020 2,506,212 $0.22 March 30, 2020 1,923,077 $0.22 April 20, 2020 375,000 $0.18 December14, 2023 12,900,123 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. Options reserved to any one related person on an annual basis may not upon exercise exceed 5% and the aggregate number of all options outstanding will not exceed 10% of the issued outstanding common shares as a whole calculated at that time. In 2017, the Company granted a total of 662,500 options to consultants and employees of the Company. These options vested in 2018. The options had a fair value of $66,539 which was being recognized ratably over the vesting period. Compensation cost of $42,020 was recognized on these options in 2018. No additional options were granted in 2018 and there was no unrecognized compensation at December 31, 2018. In June 2019, 2,100,000 stock options were granted to non-officer employees. These options vested immediately and are exercisable at $0.14 for 3 years. Total stock based compensation recognized on these options was $190,019. The weighted average fair value of stock option awards granted and the key assumptions used in the Black-Scholes valuation model to calculate the fair value of the options are as follows: For the Year Ended December 31, 2019 Weighted average fair value $0.09 Options issued 2,100,000 Exercise price $0.14 Expected term (in years) 3.0 Risk-free rate 1.81% Volatility 98.6% Transactions in stock options for the years ended December 31, 2019 and 2018 are as follows: Number of Options Exercise Prices Balance December 31, 2017 7,662,500 0.10-0.18 Exercised (108,000) 0.15 Expired (500,000) 0.10 Balance December 31, 2018 7,054,500 0.10-0.18 Granted 2,100,000 0.14 Expired (3,892,000) 0.10-0.15 Balance December 31, 2019 5,262,500 0.10-0.18 Exercisable at December 31, 2019 5,262,500 $ 0.10-0.18 At December 31, 2019, the stock options have an intrinsic value of approximately $54,000 and have a weighted average remaining term of 1.62 years. |
12. Related Party Transactions
12. Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Notes | |
12. Related Party Transactions | 12. Related Party Transactions At December 31, 2019 and 2018, the Company had the following notes payable to related parties: 2019 2018 Mine Systems Design, 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 two officers and one former officer of the Company, 6% interest, monthly payments of $3,777 with a balloon payment of $148,285 in February 2021 189,236 222,131 H&H Metals, shareholder and concentrate broker, 8% interest, principal and interest due March 2021 27,438 - Total 216,674 236,827 Current portion 34,924 47,591 Long term portion $ 181,750 $ 189,236 At December 31, 2019, $34,924 of related party debt is payable in 2020 and the remaining $181,750 is payable in 2021. Related party interest expense for the years ending December 31, 2019 and 2018 was $15,169 and $40,624, respectively. There is no accrued interest payable at December 31, 2019 or 2018 on these notes. During the years ended December 31, 2019 and 2018, the Company paid $9,000 and $40,500, respectively, to the Companys previous chairman of the board, Del Steiner for consulting purposes. He retired in July 2019. As of December 31, 2019 and 2018, gold sales receivable from H&H Metals, who owns 4% of the Companys outstanding common stock, were $305,924 and $74,673, respectively. Concentrate sales to H&H Metals were $5,857,942 and $3,305,731, during the years ended December 31, 2019 and 2018, respectively. The Company leases office space from certain related parties on a month to month basis. Payments under these short-term lease arrangements totaled $24,000 and $23,375 for the years ended December 31, 2019 and 2018, respectively, and are included in general and administrative expenses on the Consolidated Statement of Operations. |
13. Sales of Products
13. Sales of Products | 12 Months Ended |
Dec. 31, 2019 | |
Notes | |
13. Sales of Products | 13. 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, the Company has 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 up to 60 days, until H&H Metal provides shipping instructions. 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. The embedded derivative contained in our concentrate sales is adjusted to fair value through earnings each period prior to final settlement. 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 December 31, 2019, metals that had been sold but not final settled thus exposed to future price changes totaled 1,544 ounces of gold. The Company has received provisional payments on the sale of these ounces with the remaining amount due reflected in gold sales receivable. 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 doré and 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 years ended December 31, 2019 and 2018 were as follows: 2019 2018 Gold $ 6,534,503 $ 3,971,567 Silver 19,605 11,584 Less: Smelter and refining charges (434,596) (353,314) Total $ 6,119,512 $ 3,629,837 Sales by significant product type for the years ended December 31, 2019 and 2018 were as follows: 2019 2018 Concentrate sales to H&H Metal $ 5,857,942 $ 3,305,731 Dore sales to refineries 261,570 324,106 Total $ 6,119,512 $ 3,629,837 At December 31, 2019 and 2018, our gold sales receivable balance related to contracts with customers of $305,924 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. |
14. Forward Gold Contracts
14. Forward Gold Contracts | 12 Months Ended |
Dec. 31, 2019 | |
Notes | |
14. Forward Gold Contracts | 14. Forward Gold Contracts Prior to 2018, the Company entered into some forward gold contracts which called for the Company to deliver ounces of gold. Under the terms of the contracts, the gold to be delivered did not need to be produced from the Golden Chest property. In addition, the counterparties could request cash payment instead of gold ounces for each quarterly payment. The cash payments were based on average gold prices for the applicable quarter. The contracts were accounted for as derivatives requiring their value to be adjusted to fair value each period end. One of the forward gold contracts was with Ophir Holdings LLC, (Ophir) a company owned by three of the Companys officers at the time of the transaction. On January 1, 2018, Ophir agreed to convert their Forward Gold Contract which at that time had an outstanding balance of 419.5 ounces with a fair value of $492,784 to a conventional debt structure at 6% interest (see Note 12). The change in balance for the forward gold contracts for the year ended December 31, 2018 is as follows: 2018 Beginning balance $ 920,579 Conversion to note payable (492,784) Payments in cash (185,798) Payments in gold purchased by the Company (257,981) Change in fair value 15,984 Ending balance $ - The final gold ounces due under these contracts were delivered in September 2018. |
15. Subsequent Events
15. Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Notes | |
15. Subsequent Events | 15. Subsequent Events In February 2020, the Company completed a land acquisition of approximately 368 acres of patented mining claims for $751,000. The claims are situated one mile west of its Golden Chest Mine. Funding for this acquisition was obtained through the issue of convertible promissory notes. The notes bear interest at an annual rate of 8.0% for a term of three years and the principal amount is convertible at the option of the debtors for the Companys common shares at $0.18 per share prior to the notes maturity. |
2. Summary of Significant Acc_2
2. Summary of Significant Accounting Policies: Principles of Consolidation (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Policies | |
Principles of Consolidation | 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 NJMJV partially owned by other investors is presented as non-controlling interest on the consolidated balance sheets and statements of operations. |
2. Summary of Significant Acc_3
2. Summary of Significant Accounting Policies: Accounting For Investments in Joint Ventures (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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 ventures management committee. For joint ventures in which the Company does not have joint control or significant influence, the cost method is used. For those joint ventures in which there is joint control between the parties, the equity method is utilized whereby the Companys 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, 2019 and 2018, the Companys percentage ownership and method of accounting for each joint venture is as follows: December 31, 2019 December 31, 2018 Joint Venture % Ownership Significant Influence? Accounting Method % Ownership Significant Influence? Accounting Method NJMJV 65% Yes Consolidated 65% Yes Consolidated Butte Highlands Joint Venture (BHJV) 50% No Cost 50% No Cost |
2. Summary of Significant Acc_4
2. Summary of Significant Accounting Policies: Non-controlling Interests (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Policies | |
Non-controlling Interests | Non-controlling Interest Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the Companys stockholders equity and its net income (loss). Non-controlling interests represent non-controlling investors initial contribution at the date of the original acquisition, ongoing contributions, and percentage share of earnings since inception. |
2. Summary of Significant Acc_5
2. Summary of Significant Accounting Policies: Use of Estimates (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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, settlement pricing of gold sales, fair value of stock based compensation, estimation of asset retirement obligations and reclamation liabilities. Actual results could differ from those estimates. |
2. Summary of Significant Acc_6
2. Summary of Significant Accounting Policies: Revenue Recognition (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Policies | |
Revenue Recognition | Revenue Recognition Gold Revenue Recognition and Receivables- Gold Revenue Recognition and Receivables, continued- Other Revenue Recognition- |
2. Summary of Significant Acc_7
2. Summary of Significant Accounting Policies: Inventories (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Policies | |
Inventories | Inventories Inventories include concentrate inventory and supplies inventory. Concentrate inventory is valued at the lower of full cost of production or estimated net realizable value based on current metal prices. Costs consist of mining, transportation, royalties, 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. |
2. Summary of Significant Acc_8
2. Summary of Significant Accounting Policies: Income Taxes (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Policies | |
Income Taxes | Income Taxes Income taxes are accounted for under the liability method. Under this method deferred income tax liabilities or assets are determined at the end of each period 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. Uncertain tax positions are evaluated in a two-step process, whereby (i) it is determined whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (ii) for those tax positions that meet the more-likely-than-not recognition threshold, the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the related tax authority would be recognized. |
2. Summary of Significant Acc_9
2. Summary of Significant Accounting Policies: Fair Value Measurements (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Policies | |
Fair Value Measurements | 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 are 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. At December 31, 2019 and 2018, the Company did not have any assets or liabilities that were valued at a fair value measurement other than its gold sales receivable. Due to the time elapsed from shipment to the customer and the final settlement with the customer, management must estimate the prices at which sales of gold concentrates will be settled. Previously recorded sales and accounts receivable are adjusted to estimated settlement metals prices until final settlement by the customer. See Note 13 for further information. |
2. Summary of Significant Ac_10
2. Summary of Significant Accounting Policies: Financial Instruments (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Policies | |
Financial Instruments | Financial Instruments The carrying amounts of financial instruments including cash and cash equivalents, reclamation bond, note receivable, notes payable to related parties, and notes payable approximate their fair values. |
2. Summary of Significant Ac_11
2. Summary of Significant Accounting Policies: Concentration Sales (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Policies | |
Concentration Sales | Concentration Sales In 2018 and 2019, the Company has sold its gold flotation concentrate product to a concentrate broker, H&H Metals Corp, a related party (see Note 13). In 2019 and 2018 floatation concentrates accounted 96% and 91%, respectively, of all gold sales. The remaining 4% and 9% in 2019 and 2018, respectively, was dore sold to a third party. |
2. Summary of Significant Ac_12
2. Summary of Significant Accounting Policies: Net Income (loss) Per Share (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Policies | |
Net Income (loss) Per Share | Net Income (Loss) Per Share Net income (loss) per share is computed by dividing the net amount excluding net income (loss) attributable to a non-controlling interest 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 year ended December 31, 2019, all outstanding stock options (5,262,500) and warrants (12,900,123) were excluded from the computation of diluted loss per share because they were anti-dilutive due to the net loss in that year. For the year ended December 31, 2018, stock options of 6,792,000 and warrants of 1,200,000 are included in the calculation of diluted income per share. Excluded from the 2018 diluted earnings per share calculation were 262,500 options and 12,900,123 warrants. These options and warrants were excluded because their exercise prices were greater than the average trading prices of the Companys common stock for the respective period. |
2. Summary of Significant Ac_13
2. Summary of Significant Accounting Policies: Reclassifications (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Policies | |
Reclassifications | 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. |
2. Summary of Significant Ac_14
2. Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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. |
2. Summary of Significant Ac_15
2. Summary of Significant Accounting Policies: Property, Plant and Equipment (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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 lives of most of the Companys buildings are 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. |
2. Summary of Significant Ac_16
2. Summary of Significant Accounting Policies: Mineral Properties (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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 estimated 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. Consideration received by the Company pursuant to joint ventures or mineral interest agreements is applied against the carrying value of the related mineral interest. When and if payments received exceed the carrying value, the excess amount is recognized as a gain in the consolidated statement of operations in the period the consideration is received. |
2. Summary of Significant Ac_17
2. Summary of Significant Accounting Policies: Mine Exploration and Development Costs (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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. |
2. Summary of Significant Ac_18
2. Summary of Significant Accounting Policies: Pre-Development Activities (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Policies | |
Pre-Development Activities | Pre-Development Activities Pre-development activities involve cost incurred that may ultimately benefit production, such as underground ramp development, pumping, and open-pit development, which are expensed due to the lack of evidence of economic development, which is necessary to demonstrate future recoverability of these expenses. These costs are charged to operations as incurred. |
2. Summary of Significant Ac_19
2. Summary of Significant Accounting Policies: Claim fees (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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 other current assets and expensed over the course of the year. |
2. Summary of Significant Ac_20
2. Summary of Significant Accounting Policies: Impairment of Long-lived Asset (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Policies | |
Impairment of Long-lived Asset | Impairment of Long-Lived Assets The Company evaluates the carrying amounts of its long-lived assets 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 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 discounted future cash flows expected to result from the use of an asset are less than the carrying amount of the asset. The Companys 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 Companys investments in mineral properties. |
2. Summary of Significant Ac_21
2. Summary of Significant Accounting Policies: Asset Retirement Obligations and Remediation Costs (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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 and 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 assets 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. Separate from asset retirement obligations, the Company records liability for remediation costs when a reasonable estimate of fair value can be determined. Accrued remediation costs are not discounted. |
2. Summary of Significant Ac_22
2. Summary of Significant Accounting Policies: Reclamation Bond (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Policies | |
Reclamation Bond | Reclamation Bond Various laws and permits require that financial assurances be in place for certain environmental and reclamation obligations and other potential liabilities. At December 31, 2019 and 2018, the Company had a $103,320 reclamation bond for the Golden Chest Mine. |
2. Summary of Significant Ac_23
2. Summary of Significant Accounting Policies: Share Based Compensation (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Policies | |
Share Based Compensation | Stock Based Compensation All transactions in which goods or services are received for the issuance of shares of the Companys common stock or options to purchase shares of common stock are accounted for based on the fair value of the goods or services received or the fair value of the equity interest issued, whichever is more reliably measurable. The value of common stock awards is determined based upon the closing price of the Companys stock on the date of the award. The Company estimates the fair value of 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 the Companys common stock price over the expected term (volatility), the risk-free interest rate and the dividend yield. Changes in the subjective assumptions can materially affect the estimate of the fair value of stock-based compensation. |
2. Summary of Significant Ac_24
2. Summary of Significant Accounting Policies: Derivatives (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Policies | |
Derivatives | Derivatives The Company measures derivative contracts as assets or liabilities based on their fair value. Gains or losses resulting from changes in the fair value of derivatives in each period are recorded in current earnings (losses). None of the Companys derivative contracts qualify for hedge accounting. The Company does not hold or issue derivative financial instruments for speculative trading purposes. |
2. Summary of Significant Ac_25
2. Summary of Significant Accounting Policies: Going Concern (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Policies | |
Going Concern | Going Concern The Company has accumulated deficit at December 31, 2019 and incurred a consolidated net loss in 2019 of $726,507. The Company is currently producing from the open-pit and underground at the Golden Chest. During 2019, production generated cash flow from operations of $206,407 compared to cash flow used in operations of $1,415,135 in 2018. Planned production for the next 18 months indicates the trend to improve. In prior years, the Company has been successful in raising required funds for ongoing operations from sale of its common stock or borrowing. Management believes it has the ability to meet its contractual obligations with continuing cash flows from operations, existing cash, and potential financings for the next 12 months. |
2. Summary of Significant Ac_26
2. Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Policies | |
Recent Accounting Pronouncements | Recent 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 because the Company has no long-term operating leases. 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. Summary of Significant Ac_27
2. Summary of Significant Accounting Policies: Accounting For Investments in Joint Ventures: Schedule of Cost Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Tables/Schedules | |
Schedule of Cost Method Investments | December 31, 2019 December 31, 2018 Joint Venture % Ownership Significant Influence? Accounting Method % Ownership Significant Influence? Accounting Method NJMJV 65% Yes Consolidated 65% Yes Consolidated Butte Highlands Joint Venture (BHJV) 50% No Cost 50% No Cost |
5. Property, Plant and Equipm_2
5. Property, Plant and Equipment: Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Tables/Schedules | |
Property, Plant and Equipment | 2019 2018 Mill Land $ 225,289 $ 225,289 Building 536,193 536,193 Equipment 4,192,940 4,192,940 4,954,422 4,954,422 Less accumulated depreciation (759,617) (557,502) Total mill 4,194,805 4,396,920 Buildings and equipment Buildings 143,725 124,677 Equipment 2,628,261 1,631,908 2,771,986 1,756,585 Less accumulated depreciation (818,527) (453,625) Total building and equipment 1,953,459 1,302,960 Land Bear Creek 266,934 266,934 BOW 230,449 230,449 Eastern Star 250,817 250,817 Gillig 79,137 79,137 Highwater 40,133 40,133 Total land 867,470 867,470 Total $ 7,015,734 $ 6,567,350 |
6. Mineral Properties_ Schedule
6. Mineral Properties: Schedule of mineral properties (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Tables/Schedules | |
Schedule of mineral properties | 2019 2018 New Jersey $ 248,289 $ 248,289 McKinley 200,000 250,000 Golden Chest 1,677,972 1,677,972 Crown Point - 333,333 Butte Potosi 274,440 274,440 Less accumulated amortization (37,683) (24,695) Total $ 2,363,018 $ 2,759,339 |
7. Notes Payable_ Schedule of D
7. Notes Payable: Schedule of Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Tables/Schedules | |
Schedule of Debt | 2019 2018 Property with shop, 48 month note payable, 6.49% interest rate payable monthly through August 2023, monthly payments of $707 $ 27,624 $ 31,319 Haul truck, 20 month note payable, 10.0% interest rate payable monthly through May 2019, monthly payments of $6,020 - 31,657 Compressor, 48 month note payable, 5.25% interest rate payable monthly through November 2021, monthly payments of $813 19,018 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 $3,550 124,238 152,125 Caterpillar excavator and skid steer, 48 month note payable, 6.8% interest rate payable monthly through June 2022, monthly payments of $2,392 65,835 89,199 2018 pick-up truck, 72 month note payable, 9% interest rate payable monthly through June 2024, monthly payments of $701 30,863 36,230 2008 pick-up truck, 60 month note payable, 9% interest rate payable monthly through June 2023, monthly payments of $562 20,088 24,798 Haul truck, 13 month note payable, 8.0% interest rate payable monthly through July 2019, monthly payments of $5,000 - 34,085 Caterpillar 938 loader, 60 month note payable, 6.8% interest rate payable monthly through August 2023, monthly payments of $3,751 145,709 179,552 MultiQuip DCA70 Generator, 48 month note payable, 7.25% interest rate payable through August 2022, monthly payments of $635 18,433 24,480 Caterpillar AD22 haul truck, 48 month note payable, 6.45% interest rate payable monthly through June 2023, monthly payments of $12,979 485,896 - Paus PFL-20 LHD, 60 month note payable, 4.78% interest rate payable through October 2024, monthly payments of $5,181 267,820 - Total notes payable 1,205,524 641,863 Due within one year 303,987 217,679 Due after one year $ 901,537 $ 424,184 |
7. Notes Payable_ Schedule of M
7. Notes Payable: Schedule of Maturities of Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Tables/Schedules | |
Schedule of Maturities of Long-term Debt | 2020 $ 303,987 2021 325,165 2022 321,231 2023 200,607 2024 54,534 Total $ 1,205,524 |
8. Asset Retirement Obligation_
8. Asset Retirement Obligation: Schedule of Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Tables/Schedules | |
Schedule of Asset Retirement Obligations | 2019 2018 Balance at January 1 $ 154,292 $ 121,560 Accretion expense 9,077 3,901 Revision of estimated reclamation costs - 28,831 Balance at December 31 $ 163,369 $ 154,292 |
10. Income Taxes_ Schedule of D
10. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | 2019 2018 Deferred tax assets Net operating loss carry forward $ 3,420,600 $ 3,014,000 Mineral properties 304,300 455,200 Asset retirement obligation 5,800 4,400 Stock based compensation 219,000 167,900 Other 11,200 7,150 Total deferred tax assets 3,960,900 3,648,650 Valuation allowance (2,985,400) (2,794,150) 975,500 854,500 Deferred tax liabilities Property, plant, and equipment (975,500) (854,500) Total deferred tax liabilities (975,500) (854,500) Net deferred tax assets $ - $ - |
10. Income Taxes_ Schedule of E
10. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Tables/Schedules | |
Schedule of Effective Income Tax Rate Reconciliation | 2019 2018 Provision (benefit) at statutory rate for the period $ (152,600) $ 158,000 State taxes, net of federal taxes (42,500) 44,000 Adjustment of prior year tax estimates 3,850 6,450 Increase (decrease) in valuation allowance 191,250 (208,450) Total provision (benefit) $ - $ - |
11. Equity_ Common Stock Purcha
11. Equity: Common Stock Purchase Warrant Transactions (Tables) | 12 Months Ended |
Dec. 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 14,100,123 $0.10-0.22 Exercised (1,200,000) 0.10 Balance December 31, 2019 12,900,123 $0.18-0.22 |
11. Equity_ WarrantExpirations0
11. Equity: WarrantExpirations0TextBlock (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Tables/Schedules | |
WarrantExpirations0TextBlock | Shares Exercise Price Expiration Date 2,137,500 $0.20 February 28, 2020 4,250,000 $0.20 March 28, 2020 1,708,334 $0.20 November 3, 2020 2,506,212 $0.22 March 30, 2020 1,923,077 $0.22 April 20, 2020 375,000 $0.18 December14, 2023 12,900,123 |
11. Equity_ Share-based Compens
11. Equity: Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Tables/Schedules | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | For the Year Ended December 31, 2019 Weighted average fair value $0.09 Options issued 2,100,000 Exercise price $0.14 Expected term (in years) 3.0 Risk-free rate 1.81% Volatility 98.6% |
11. Equity_ Share-based Compe_2
11. Equity: Share-based Compensation, Stock Options, Activity (Tables) | 12 Months Ended |
Dec. 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 Exercised (108,000) 0.15 Expired (500,000) 0.10 Balance December 31, 2018 7,054,500 0.10-0.18 Granted 2,100,000 0.14 Expired (3,892,000) 0.10-0.15 Balance December 31, 2019 5,262,500 0.10-0.18 Exercisable at December 31, 2019 5,262,500 $ 0.10-0.18 |
12. Related Party Transactions_
12. Related Party Transactions: Related Party interest expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Tables/Schedules | |
Related Party interest expense | 2019 2018 Mine Systems Design, 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 two officers and one former officer of the Company, 6% interest, monthly payments of $3,777 with a balloon payment of $148,285 in February 2021 189,236 222,131 H&H Metals, shareholder and concentrate broker, 8% interest, principal and interest due March 2021 27,438 - Total 216,674 236,827 Current portion 34,924 47,591 Long term portion $ 181,750 $ 189,236 |
13. Sales of Products_ Schedule
13. Sales of Products: Schedule of sales of products by metal (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Tables/Schedules | |
Schedule of sales of products by metal | 2019 2018 Gold $ 6,534,503 $ 3,971,567 Silver 19,605 11,584 Less: Smelter and refining charges (434,596) (353,314) Total $ 6,119,512 $ 3,629,837 |
13. Sales of Products_ Schedu_2
13. Sales of Products: Schedule of sales by significant product type (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Tables/Schedules | |
Schedule of sales by significant product type | 2019 2018 Concentrate sales to H&H Metal $ 5,857,942 $ 3,305,731 Dore sales to refineries 261,570 324,106 Total $ 6,119,512 $ 3,629,837 |
14. Forward Gold Contracts_ Cha
14. Forward Gold Contracts: Change in balance forward gold contracts (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Tables/Schedules | |
Change in balance forward gold contracts | 2018 Beginning balance $ 920,579 Conversion to note payable (492,784) Payments in cash (185,798) Payments in gold purchased by the Company (257,981) Change in fair value 15,984 Ending balance $ - |
1. Description of Business (Det
1. Description of Business (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Details | |
Entity Incorporation, Date of Incorporation | Jul. 18, 1996 |
2. Summary of Significant Ac_28
2. Summary of Significant Accounting Policies: Accounting For Investments in Joint Ventures: Schedule of Cost Method Investments (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Details | ||
Investment Owned, Percent of Net Assets | 65.00% | 65.00% |
investment owned percentage of net assets 2 | 50.00% | 50.00% |
2. Summary of Significant Ac_29
2. Summary of Significant Accounting Policies: Net Income (loss) Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Stock options | ||
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants | 5,262,500 | 262,500 |
Warrants | ||
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants | 12,900,123 | 12,900,123 |
2. Summary of Significant Ac_30
2. Summary of Significant Accounting Policies: Going Concern (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Details | ||
Net income (loss) | $ 726,507 | $ (752,279) |
Net cash provided (used) by operating activities | 206,407 | (1,415,135) |
Net cash provided (used) by operating activities | $ (206,407) | $ 1,415,135 |
3. Inventories (Details)
3. Inventories (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Details | ||
Inventory, Finished Goods, Gross | $ 197,862 | $ 137,530 |
Inventory, Finished Goods, Net of Reserves | 27,284 | 45,539 |
Write down of inventory to net realizable value | $ 0 | $ 19,874 |
4. Note Receivable (Details)
4. Note Receivable (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Details | ||
Notes Issued | $ 0 | $ 250,000 |
5. Property, Plant and Equipm_3
5. Property, Plant and Equipment: Property, Plant and Equipment (Details) - USD ($) | Dec. 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 | (759,617) | (557,502) |
Mill Buildings and Improvements, Net | 4,194,805 | 4,396,920 |
Buildings and equipment, buildings | 143,725 | 124,677 |
Buildings and equipment, equipment | 2,628,261 | 1,631,908 |
Buildings and improvements, accumulated depreciation | (818,527) | (453,625) |
Buildings and improvements net | 1,953,459 | 1,302,960 |
Bear Creek Land | 266,934 | 266,934 |
BOW Land | 230,449 | 230,449 |
Eastern Star Land | 250,817 | 250,817 |
Gillig Land | 79,137 | 79,137 |
Highwater Land | 40,133 | 40,133 |
Land | 867,470 | 867,470 |
Property, plant and equipment, net of accumulated depreciation | $ 7,015,734 | $ 6,567,350 |
6. Mineral Properties_ Schedu_2
6. Mineral Properties: Schedule of mineral properties (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Details | ||
Mineral Properties 1 | $ 248,289 | $ 248,289 |
Mineral Properties 2 | 200,000 | 250,000 |
Mineral Properties 3 | 1,677,972 | 1,677,972 |
Mineral Properties 4 | 0 | 333,333 |
Mineral Properties 5 | 274,440 | 274,440 |
Mineral properties amortization | (37,683) | (24,695) |
Total | $ 2,363,018 | $ 2,759,339 |
6. Mineral Properties (Details)
6. Mineral Properties (Details) | 12 Months Ended |
Dec. 31, 2019 | |
New Jersey | |
Mineral property description | 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. |
McKinley | |
Mineral property description | The McKinley project is located near the town of Lucille, Idaho and encompasses three historic hard rock mines on private land in central Idaho. The Company started exploring the property in 2013. |
Golden Chest | |
Mineral property description | The Golden Chest is an exploration and underground mine project located near Murray, Idaho consisting of 25 patented and 70 unpatented mining claims. |
Crown Point | |
Mineral property description | On March 2, 2018, the Company entered into an agreement with J-J Farms LLC and Achievement Holdings LLC (“Crown Point”) to lease a group of patented and unpatented mining claims. |
Butte Potosi | |
Mineral property description | In 2018, the Company purchased the Butte Potosi property near its Golden Chest mine for $250,440 and a 2% net smelter return on all ores mined and shipped from the property. |
Toboggan | |
Mineral property description | Toboggan was a gold and silver exploration project consisting of 106 claims covering 2,100 acres of federal land administered by the U.S. Forest Service. |
7. Notes Payable_ Schedule of_2
7. Notes Payable: Schedule of Debt (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Details | ||
Total notes payable | $ 1,205,524 | $ 641,863 |
Due within one year | 303,987 | 217,679 |
Due after one year | $ 901,537 | $ 424,184 |
7. Notes Payable_ Schedule of_3
7. Notes Payable: Schedule of Maturities of Long-term Debt (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Details | ||
Total notes payable | $ 1,205,524 | $ 641,863 |
8. Asset Retirement Obligatio_2
8. Asset Retirement Obligation: Schedule of Asset Retirement Obligations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Details | ||
Balance at beginning of period | $ 154,292 | $ 121,560 |
Asset Retirement Obligation, Period Increase (Decrease) | 9,077 | 3,901 |
Asset Retirement Obligation, Liabilities Incurred | 0 | 28,831 |
Balance at December 31 | $ 163,369 | $ 154,292 |
10. Income Taxes_ Schedule of_2
10. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Details | ||
Deferred Tax Assets, Operating Loss Carryforwards | $ 3,420,600 | $ 3,014,000 |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | 304,300 | 455,200 |
Effective Income Tax Rate Reconciliation, Deduction, Other, Amount | 5,800 | 4,400 |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Payment Arrangement, Amount | 219,000 | 167,900 |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Leases, Amount | 11,200 | 7,150 |
Deferred Tax Assets, Gross | 3,960,900 | 3,648,650 |
Valuation Allowance | (2,985,400) | (2,794,150) |
Deferred Tax Assets, Net of Valuation Allowance | 975,500 | 854,500 |
Property, plant, and equipment | (975,500) | (854,500) |
Total deferred tax liabilities | (975,500) | (854,500) |
Net deferred tax assets | $ 0 | $ 0 |
10. Income Taxes (Details)
10. Income Taxes (Details) $ in Millions | Dec. 31, 2019USD ($) |
Details | |
Operating Loss Carryforwards | $ 12,750,000 |
10. Income Taxes_ Schedule of_3
10. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Details | ||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $ (152,600) | $ 158,000 |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | (42,500) | 44,000 |
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Amount | 3,850 | 6,450 |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 191,250 | (208,450) |
Income Tax Expense (Benefit) | $ 0 | $ 0 |
11. Equity (Details)
11. Equity (Details) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
Details | ||
Common Stock, Shares Authorized | 200,000,000 | |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
11. Equity_ Common Stock Purc_2
11. Equity: Common Stock Purchase Warrant Transactions (Details) - shares | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Details | |||
Class of Warrant or Right, Outstanding | 12,900,123 | 14,100,123 | 9,295,834 |
11. Equity_ WarrantExpiration_2
11. Equity: WarrantExpirations0TextBlock (Details) - shares | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Details | |||
Class of Warrant or Right, Outstanding | 12,900,123 | 14,100,123 | 9,295,834 |
11. Equity_ Share-based Compe_3
11. Equity: Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (Details) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 |
Details | |||
Weighted average fair value | $ 0.09 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 2,100,000 | (108,000) | |
Exercise price per share | $ 0.14 | ||
Expected terms | 3.0 | ||
Risk-free rate | 1.81% | ||
Expected volatility | 98.60% |
11. Equity_ Share-based Compe_4
11. Equity: Share-based Compensation, Stock Options, Activity (Details) - shares | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Details | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 5,262,500 | 7,054,500 | 7,662,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 2,100,000 | (108,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | (3,892,000) | (500,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 5,262,500 | 7,054,500 | 7,662,500 |
12. Related Party Transaction_2
12. Related Party Transactions: Related Party interest expense (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Details | ||
Total | $ 216,674 | $ 236,827 |
Notes payable related parties, current portion | 34,924 | 47,591 |
Long term portion | $ 181,750 | $ 189,236 |
13. Sales of Products_ Schedu_3
13. Sales of Products: Schedule of sales of products by metal (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Details | ||
Gold sales | $ 6,534,503 | $ 3,971,567 |
Silver sales | 19,605 | 11,584 |
Smelter and refining charges | (434,596) | (353,314) |
Total | $ 6,119,512 | $ 3,629,837 |
13. Sales of Products_ Schedu_4
13. Sales of Products: Schedule of sales by significant product type (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Details | ||
Concentrate sales | $ 5,857,942 | $ 3,305,731 |
Dore sales | 261,570 | 324,106 |
Total | $ 6,119,512 | $ 3,629,837 |
13. Sales of Products (Details)
13. Sales of Products (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Details | ||
Gold sales receivable | $ 305,924 | $ 74,673 |
14. Forward Gold Contracts_ C_2
14. Forward Gold Contracts: Change in balance forward gold contracts (Details) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Details | |
Change in balance for the forward gold contracts beginning | $ 920,579 |
Change in balance for the forward gold contracts conversion | (492,784) |
Change in balance for the forward gold contracts cash payments | (185,798) |
Change in balance for the forward gold contracts gold purchased | (257,981) |
Change in balance for the forward gold contracts, change in fair value | 15,984 |
Change in balance for the forward gold contracts ending | $ 0 |
15. Subsequent Events (Details)
15. Subsequent Events (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Details | |
Subsequent Event, Description | In February 2020, the Company completed a land acquisition of approximately 368 acres of patented mining claims for $751,000. |