Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 01, 2020 | |
Details | ||
Registrant CIK | 0001030192 | |
Fiscal Year End | --12-31 | |
Registrant Name | NEW JERSEY MINING CO | |
SEC Form | 10-Q | |
Period End date | Sep. 30, 2020 | |
Trading Symbol | NJMC | |
Trading Exchange | NONE | |
Tax Identification Number (TIN) | 82-0490295 | |
Number of common stock shares outstanding | 136,998,309 | |
Filer Category | Non-accelerated Filer | |
Current with reporting | Yes | |
Interactive Data Current | Yes | |
Shell Company | false | |
Small Business | true | |
Emerging Growth Company | false | |
Entity File Number | 000-28837 | |
Entity Incorporation, State or Country Code | ID | |
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, no par value | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Document Quarterly Report | true | |
Document Transition Report | false |
New Jersey Mining Company Conso
New Jersey Mining Company Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 | |
Current assets: | |||
Cash and cash equivalents | $ 3,150,812 | $ 217,796 | |
Gold sales receivable | 292,162 | 305,924 | |
Inventories | 220,067 | 225,146 | |
Joint venture receivable | 2,830 | 2,410 | |
Other current assets | 139,432 | 158,833 | |
Total current assets | 3,805,303 | 910,109 | |
Property, plant and equipment, net of accumulated depreciation | 7,092,418 | 7,015,734 | |
Mineral properties, net of accumulated amortization | 3,242,823 | 2,363,018 | |
Investment in joint venture | 435,000 | 435,000 | |
Reclamation bond | 103,320 | 103,320 | |
Deposit on equipment | 0 | 25,000 | |
Total assets | 14,678,864 | 10,852,181 | |
Current liabilities: | |||
Accounts payable and other accrued liabilities | 519,417 | 529,235 | |
Accrued payroll and related payroll expenses | 111,735 | 80,402 | |
Notes payable related parties, current portion | 36,528 | 34,924 | |
Notes payable, current portion | 319,294 | 303,987 | |
Small Business Administration loan, current portion | 1,243 | 0 | |
Total current liabilities | 988,217 | 948,548 | |
Asset retirement obligation | 170,539 | 163,369 | |
Notes payable related parties, long term | 126,712 | 181,750 | |
Convertible debt | 1,010,000 | 0 | |
Convertible debt-related party | 25,000 | 0 | |
Notes payable, long term | 742,590 | 901,537 | |
Small Business Administration loan, long term | 150,735 | 0 | |
Total long-term liabilities | 2,225,576 | 1,246,656 | |
Total liabilities | 3,213,793 | 2,195,204 | |
Commitments (Note 10) | [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; September 30, 2020 - 136,331,642 and December 31, 2019 - 123,812,144 shares issued and outstanding | 20,848,229 | 17,682,999 | |
Accumulated deficit | (12,345,684) | (12,029,910) | |
Total New Jersey Mining Company stockholders' equity | 8,502,545 | 5,653,089 | |
Non-controlling interest | 2,962,526 | 3,003,888 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | 11,465,071 | 8,656,977 | |
Total liabilities and stockholders' equity | $ 14,678,864 | $ 10,852,181 | |
[1] | BS1 |
New Jersey Mining Company Con_2
New Jersey Mining Company Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue: | ||||
Gold sales | $ 1,556,070 | $ 1,852,636 | $ 4,281,401 | $ 4,544,964 |
Total revenue | 1,556,070 | 1,852,636 | 4,281,401 | 4,544,964 |
Costs of Sales: | ||||
Cost of sales and other direct production costs | 1,506,982 | 1,246,683 | 3,831,727 | 3,530,689 |
Depreciation and amortization | 156,325 | 158,768 | 425,641 | 429,626 |
Total costs of sales | 1,663,307 | 1,405,451 | 4,257,368 | 3,960,315 |
Gross profit (loss) | (107,237) | 447,185 | 24,033 | 584,649 |
Other operating expenses: | ||||
Pre-development expense | 0 | 51,873 | 0 | 117,440 |
Exploration | 44,613 | 55,625 | 133,529 | 182,830 |
Loss on write off of equipment | 0 | 0 | 9,537 | 0 |
Management | 38,812 | 39,441 | 112,236 | 114,970 |
Professional services | 33,709 | 32,423 | 146,917 | 113,834 |
General and administrative | 117,762 | 75,971 | 308,232 | 396,316 |
Total other operating expenses | 234,896 | 255,333 | 710,451 | 925,390 |
Operating income (loss) | (342,132) | 191,852 | (686,418) | (340,741) |
Other (income) expense: | ||||
Small Business Administration grant income | (360,054) | 0 | (370,054) | 0 |
Timber revenue net of costs | (14,961) | 0 | (46,613) | (10,571) |
Interest income | (38) | (350) | (1,626) | (32,889) |
Interest expense | 40,247 | 26,960 | 113,903 | 59,959 |
Total other (income) expense | (334,806) | 26,610 | (304,390) | 16,499 |
Net income (loss) | (7,327) | 165,242 | (382,028) | (357,240) |
Net income (loss) attributable to non-controlling interest | (18,034) | (22,086) | (66,254) | (79,396) |
Net income (loss) attributable to New Jersey Mining Company | $ 10,707 | $ 187,328 | $ (315,774) | $ (277,844) |
Net income (loss) per common share-basic and diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average common shares outstanding-basic | 129,394,027 | 123,812,144 | 126,059,427 | 123,606,287 |
Weighted average common shares outstanding-diluted | 133,092,547 | 124,786,628 | 126,059,427 | 123,606,287 |
New Jersey Mining Company Con_3
New Jersey Mining Company Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - USD ($) | Common Stock | Retained Earnings | Noncontrolling Interest | Total |
Equity balance at Dec. 31, 2018 | $ 17,492,980 | $ (11,420,305) | $ 3,073,232 | $ 9,145,907 |
Equity Balance, shares at Dec. 31, 2018 | 123,413,569 | |||
Contribution from non-controlling interest | $ 0 | 0 | 2,357 | 2,357 |
Net income (loss) | $ 0 | (205,404) | (17,718) | (223,122) |
Equity Balance, shares at Mar. 31, 2019 | 123,413,569 | |||
Equity balance at Mar. 31, 2019 | $ 17,492,980 | (11,625,709) | 3,057,871 | 8,925,142 |
Equity balance at Dec. 31, 2018 | $ 17,492,980 | (11,420,305) | 3,073,232 | 9,145,907 |
Equity Balance, shares at Dec. 31, 2018 | 123,413,569 | |||
Conversion of convertible debt to common stock | 0 | |||
Equity Balance, shares at Sep. 30, 2019 | 123,812,144 | |||
Equity balance at Sep. 30, 2019 | $ 17,682,999 | (11,698,149) | 3,022,048 | 9,006,898 |
Equity balance at Mar. 31, 2019 | $ 17,492,980 | (11,625,709) | 3,057,871 | 8,925,142 |
Equity Balance, shares at Mar. 31, 2019 | 123,413,569 | |||
Contribution from non-controlling interest | $ 0 | 0 | 21,876 | 21,876 |
Issuance of common stock for cashless warrant exercise | $ 0 | 0 | 0 | 0 |
Issuance of common stock for cashless warrant exercise | 398,575 | |||
Stock based compensation relating to options | $ 190,019 | 0 | 0 | 190,019 |
Stock based compensation relating to options | 0 | |||
Net income (loss) | $ 0 | (259,768) | (39,592) | (299,360) |
Equity Balance, shares at Jun. 30, 2019 | 123,812,144 | |||
Equity balance at Jun. 30, 2019 | $ 17,682,999 | (11,885,477) | 3,040,155 | 8,837,677 |
Contribution from non-controlling interest | 0 | 0 | 3,979 | 3,979 |
Net income (loss) | $ 0 | 187,328 | (22,086) | 165,242 |
Equity Balance, shares at Sep. 30, 2019 | 123,812,144 | |||
Equity balance at Sep. 30, 2019 | $ 17,682,999 | (11,698,149) | 3,022,048 | 9,006,898 |
Equity balance at Dec. 31, 2019 | $ 17,682,999 | (12,029,910) | 3,003,888 | 8,656,977 |
Equity Balance, shares at Dec. 31, 2019 | 123,812,144 | |||
Net income (loss) | $ 0 | (146,268) | (15,921) | (162,189) |
Equity Balance, shares at Mar. 31, 2020 | 123,812,144 | |||
Equity balance at Mar. 31, 2020 | $ 17,682,999 | (12,176,178) | 2,990,626 | 8,497,447 |
Equity balance at Dec. 31, 2019 | $ 17,682,999 | (12,029,910) | 3,003,888 | 8,656,977 |
Equity Balance, shares at Dec. 31, 2019 | 123,812,144 | |||
Exercise of common stock warrants for cash | $ 208,334 | 0 | 0 | 208,334 |
Exercise of common stock warrants for cash, shares | 1,041,667 | |||
Conversion of convertible debt to common stock | $ 50,000 | 0 | 0 | 50,000 |
Conversion of convertible debt to common stock, shares | 277,778 | |||
Equity Balance, shares at Sep. 30, 2020 | 136,331,642 | |||
Equity balance at Sep. 30, 2020 | $ 20,848,229 | (12,345,684) | 2,962,526 | 11,465,071 |
Equity balance at Mar. 31, 2020 | $ 17,682,999 | (12,176,178) | 2,990,626 | 8,497,447 |
Equity Balance, shares at Mar. 31, 2020 | 123,812,144 | |||
Issuance of common stock and warrants for cash | $ 200,000 | 0 | 0 | 200,000 |
Issuance of common stock and warrants for cash | 1,481,481 | |||
Net income (loss) | $ 0 | (180,213) | (32,299) | (212,512) |
Equity Balance, shares at Jun. 30, 2020 | 125,293,625 | |||
Equity balance at Jun. 30, 2020 | $ 17,882,999 | (12,356,391) | 2,977,730 | 8,504,338 |
Issuance of common stock and warrants for cash | $ 2,706,896 | 0 | 0 | 2,706,896 |
Issuance of common stock and warrants for cash | 9,718,572 | |||
Net income (loss) | $ 0 | 10,707 | (18,034) | (7,327) |
Equity Balance, shares at Sep. 30, 2020 | 136,331,642 | |||
Equity balance at Sep. 30, 2020 | $ 20,848,229 | $ (12,345,684) | $ 2,962,526 | $ 11,465,071 |
New Jersey Mining Company Con_4
New Jersey Mining Company Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (382,028) | $ (357,240) |
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: | ||
Depreciation and amortization | 425,641 | 429,626 |
Loss on write off of equipment | 9,537 | 0 |
Adjustment of inventory to net realizable value | 32,098 | 0 |
Accretion of asset retirement obligation | 7,170 | 6,757 |
Stock based compensation | 0 | 190,019 |
Change in operating assets and liabilities: | ||
Gold sales receivable | 13,762 | (107,931) |
Inventories | (27,019) | 15,060 |
Joint venture receivable | (420) | (4,351) |
Other current assets | 19,401 | (46,091) |
Accounts payable and other accrued liabilities | (7,738) | (6,154) |
Accrued payroll and related payroll expenses | 31,333 | 19,372 |
Interest payable to related parties | 0 | 1,688 |
Net cash provided (used) by operating activities | 121,737 | 140,755 |
Cash flows from investing activities: | ||
Payment received on note receivable | 0 | 150,000 |
Proceeds from sale of mineral property | 0 | 50,000 |
Purchases of property, plant and equipment | (286,889) | (71,655) |
Purchase of mineral property | (798,088) | 0 |
Additions to mineral property | (64,692) | 0 |
Net cash provided (used) by investing activities | (1,149,669) | 128,345 |
Cash flows from financing activities: | ||
Exercise of stock purchase warrants | 208,334 | 0 |
Proceeds from sale of common stock and warrants net of issuance cost | 2,906,896 | 0 |
Principal payments on notes payable | (360,640) | (226,232) |
Principal payments on notes payable, related parties | (53,434) | (39,180) |
Issuance of convertible debt | 1,085,000 | 0 |
Proceeds from Small Business Administration loan | 149,900 | 0 |
Contributions from non-controlling interest | 24,892 | 28,212 |
Net cash provided (used) by financing activities | 3,960,948 | (237,200) |
Net change in cash and cash equivalents | 2,933,016 | 31,900 |
Cash and cash equivalents, beginning of period | 217,796 | 248,766 |
Cash and cash equivalents, end of period | 3,150,812 | 280,666 |
Non-cash investing and financing activities: | ||
Deposit on property applied to purchase of mineral property | 25,000 | 0 |
Note payable for equipment purchase | 217,000 | 858,223 |
Conversion of convertible debt to common stock | 50,000 | 0 |
Note from related party for equipment purchase | $ 0 | $ 50,000 |
1. The Company and Significant
1. The Company and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
1. The Company and Significant Accounting Policies | 1. The Company and Significant Accounting Policies These unaudited interim consolidated financial statements have been prepared by the management of New Jersey Mining Company (the “Company”) in accordance with accounting principles generally accepted in the United States of America for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete consolidated financial statements. In the opinion of the Company’s management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the interim consolidated financial statements have been included. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company's financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of the Company's financial position and results of operations. Operating results for the three and nine month periods ended September 30, 2020 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2020. For further information refer to the financial statements and footnotes thereto in the Company’s audited consolidated financial statements for the year ended December 31, 2019 as filed with the Securities and Exchange Commission. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its majority-owned subsidiary, the New Jersey Mill Joint Venture (“NJMJV”). Intercompany accounts and transactions are eliminated. The portion of entities owned by other investors is presented as non-controlling interests on the consolidated balance sheets and statements of operations. Revenue Recognition Gold Revenue Recognition and Receivables- Sales and accounts receivable for concentrate shipments are recorded net of charges by the customer for treatment, refining, smelting losses, and other charges negotiated with the customers. Charges are estimated upon shipment of concentrates based on contractual terms, and actual charges typically do not vary materially from estimates. Costs charged by customers include fixed costs per ton of concentrate and price escalators. Refining, selling and shipping costs related to sales of doré and metals from doré are recorded to cost of sales as incurred. See Note 4 for more information on our sales of products. Other Revenue Recognition- Inventories Inventories are stated at the lower of full cost of production or estimated net realizable value based on current metal prices. Costs consist of mining, transportation, and milling costs including applicable overhead, depreciation, depletion and amortization relating to the operations. Costs are allocated based on the stage at which the ore is in the production process. Supplies inventory is stated at the lower of cost or estimated net realizable value. Fair Value Measurements When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period that are included in earnings are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date. At September 30, 2020 and December 31, 2019, the Company determined they had no assets or liabilities that required measurement at fair value on a recurring basis. Reclassifications Certain prior period amounts have been reclassified to conform to the 2020 financial statement presentation. Reclassifications had no effect on net income (loss), stockholders’ equity, or cash flows as previously reported. New Accounting Pronouncement Accounting Standards Updates Adopted In August 2018, the Financial Accounting Standards Board (“FASB”) issued Auditing Standards Update (“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 was adopted as of January 1, 2020, and its adoption did not have a material impact on the Company’s consolidated financial statements. Accounting Standards Updates to Become Effective in Future Periods In December 2019, the FASB issued ASU No. 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The update contains a number of provisions intended to simplify the accounting for income taxes. The update is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. Management is evaluating the impact of this update on the Company’s consolidated financial statements. In August 2020, the FASB issued ASU No. 2020-06 Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The update is to address issues identified as a result of the complexity associated with applying generally accepted accounting principles for certain financial instruments with characteristics of liabilities and equity. The update is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years and with early adoption permitted. Management is evaluating the impact of this update on the Company’s consolidated financial statements. |
2. Going Concern
2. Going Concern | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
2. Going Concern | 2. Going Concern The Company is currently producing from both the open-pit and underground at the Golden Chest Mine. In the past, the Company has been successful in raising required capital from sale of common stock, forward gold contracts, and debt. As a result of its planned production, equity sales and potential debt borrowings or restructurings, management believes cash flows from operations and existing cash are sufficient to conduct planned operations and meet contractual obligations for the next 12 months. |
3. Inventories
3. Inventories | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
3. Inventories | 3. Inventories At September 30, 2020 and December 31, 2019, the CompanyÂ’s inventories consisted of the following: September 30, 2020 December 31, 2019 Gold concentrate $ 164,455 $ 197,862 Materials and supplies 55,612 27,284 Total $ 220,067 $ 225,146 The carrying value of inventory is determined each period based on the lower of cost or net realizable value. At September 30, 2020 gold concentrate is carried at net realizable value. At December 31, 2019, gold concentrate inventory is carried at allocated production costs. |
4. Sales of Products
4. Sales of Products | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
4. Sales of Products | 4. Sales of Products Our products consist of both gold flotation concentrates which we sell to a single broker (H&H Metal), and an unrefined gold-silver product known as doré which we sell to a precious metal refinery. Revenue is recognized upon the completion of the performance obligations and transfer of control of the product to the customer, and the transaction price can be determined or reasonably estimated. For gold flotation concentrate sales, the performance obligation is met when the transaction price can be reasonably estimated and revenue is recognized generally at the time when risk is transferred to H&H Metal based on contractual terms. Based on contractual terms, we have determined the performance obligation is met and title is transferred to H&H Metal when the Company receives its first provisional payment on the concentrate because, at that time, 1) legal title is transferred to the customer, 2) the customer has accepted the concentrate lot and obtained the ability to realize all of the benefits from the product, 3) the concentrate content specifications are known, have been communicated to H&H Metal, and H&H Metal has the significant risks and rewards of ownership to it, 4) it is very unlikely a concentrate will be rejected by H&H Metal upon physical receipt, and 5) we have the right to payment for the concentrate. Concentrates lots that have been sold are held at our mill from 30 to 60 days, until H&H Metal provides shipping instructions. 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. Also, it is unlikely a significant reversal of revenue for any one concentrate lot will occur. As such, we use the expected value method to price the concentrate until the final settlement date occurs, at which time the final transaction price is known. At September 30, 2020, metals that had been sold but not final settled thus exposed to future price changes totaled 1,415 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 arsenic, lead and zinc content above a negotiated baseline as well as excessive moisture. For sales of metals from 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 three and nine month periods ended September 30, 2020 and 2019 were as follows: September 30, 2020 September 30, 2019 Three Months Nine Months Three Months Nine Months Gold $ 1,654,334 $ 4,629,816 $ 1,979,595 $ 4,870,402 Silver 2,593 6,881 6,899 14,556 Less: Smelter and refining charges (100,857) (355,296) (133,858) (339,994) Total $ 1,556,070 $ 4,281,401 1,852,636 $ 4,544,964 Sales by significant product type for the three and nine month periods ended September 30, 2020 and 2019 were as follows: September 30, 2020 September 30, 2019 Three Months Nine Months Three Months Nine Months Concentrate sales to H&H Metal $ 1,476,395 $ 4,144,583 $ 1,788,031 $ 4,390,686 Dore sales to refinery 79,675 136,818 64,605 154,278 Total $ 1,556,070 $ 4,281,401 $ 1,852,636 $ 4,544,964 At September 30, 2020 and December 31, 2019, our gold sales receivable balance related to contracts with customers of $292,162 and $305,924, 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. |
5. Related Party Transactions
5. Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
5. Related Party Transactions | 5. Related Party Transactions At September 30, 2020 and December 31, 2019, the Company had the following notes and interest payable to related parties: September 30, 2020 December 31, 2019 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 $110,835 in February 2022 $ 163,240 $ 189,236 H&H Metals, shareholder and concentrate broker, 8% interest, balance due April 2021 - 27,438 Total 163,240 216,674 Current portion (36,528) (34,924) Long term portion $ 126,712 $ 181,750 As of September 30, 2020 and December 31, 2019, there was no accrued interest payable to related parties. Related party interest expense for the three and nine months ended September 30, 2020 and 2019 is as follows. 2020 2019 Three Months Nine Months Three Months Nine Months $ 2,537 $ 8,588 $ 4,068 $ 11,497 During 2019, the Company made three $3,000 payments for a total of $9,000 to the CompanyÂ’s chairman of the board, Del Steiner for consulting purposes. Mr. Steiner retired in July 2019. All sales of concentrate and the CompanyÂ’s gold sales receivable are with H&H Metals, owner of 4.5% of the CompanyÂ’s outstanding common stock. See Note 4. In February 2020, the CompanyÂ’s corporate secretary, Monique Hayes, participated in the CompanyÂ’s convertible debt offering for $25,000. During the three and nine month periods ended September 30, 2020, interest expense on her note was $504 and $1,238, respectively. See Note 16. The Company leases office space from certain related parties on a month to month basis. Payments under these short-term lease arrangements are included in general and administrative expenses on the Consolidated Statement of Operations and are as follows: 2020 2019 Three Months Nine Months Three Months Nine Months $ 6,210 $ 18,630 $ 6,151 $ 18,395 |
6. Joint Ventures
6. Joint Ventures | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
6. Joint Ventures | 6. Joint Ventures New Jersey Mill Joint Venture Agreement The Company owns 65% of the New Jersey Mill Joint Venture and has significant influence in its operations. Thus the venture is included in the consolidated financial statements along with presentation of the non-controlling interest. At September 30, 2020 and December 31, 2019, an account receivable existed with Crescent Silver, LLC, the other joint venture participant (“Crescent”), for $2,830 and $2,410, respectively, for shared operating costs as defined in the JV agreement. Butte Highlands JV, LLC (“BHJV”) On January 29, 2016, the Company purchased a 50% interest in Butte Highlands JV, LLC (“BHJV”) from Timberline Resources Corporation for $225,000 in cash and 3,000,000 restricted shares of the Company’s common stock valued at $210,000 for a total consideration of $435,000. Highland Mining, LLC (“Highland”) is the other 50% owner and manager of the joint venture. Under the agreement, Highland will fund all future project exploration and mine development costs. The agreement stipulates that Highland is manager of BHJV and will manage BHJV until such time as all mine development costs, less $2 million are distributed to Highland out of the proceeds from future mine production. The Company has determined that because it does not currently have significant influence over the joint venture’s activities, it accounts for its investment on a cost basis. The Company purchased the interest in the BHJV to provide additional opportunities for exploration and development and expand the Company’s mineral property portfolio. |
7. Earnings per Share
7. Earnings per Share | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
7. Earnings per Share | 7. Earnings 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 period. 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. Such common stock equivalents are included or excluded from the calculation of diluted net income (loss) per share for each period as follows: September 30, 2020 September 30, 2019 Three Months Nine Months Three Months Nine Months Incremental shares included in diluted net income (loss) per share Stock options 2,669,034 - 974,484 - Stock purchase warrants 1,029,486 - - - 3,698,520 - 974,484 - Excluded in diluted net income (loss) per share as inclusion would have an antidilutive effect: Convertible debt 5,138,889 5,138,889 - - Stock options - 4,612,500 262,500 8,404,500 Stock purchase warrants 4,859,286 6,641,694 12,900,123 12,900,123 9,998,175 16,393,083 13,162,623 21,304,623 |
8. Property, Plant and Equipmen
8. Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
8. Property, Plant and Equipment | 8. Property, Plant, and Equipment Property, plant and equipment at September 30, 2020 and December 31, 2019 consisted of the following: September 30, 2020 December 31, 2019 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 (880,175) (759,617) Total mill 4,074,247 4,194,805 Building and equipment Buildings 153,265 143,725 Equipment 3,113,073 2,628,261 3,266,338 2,771,986 Less accumulated depreciation (1,115,637) (818,527) Total building and equipment 2,150,701 1,953,459 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 $ 7,092,418 $ 7,015,734 |
9. Mineral Properties
9. Mineral Properties | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
9. Mineral Properties | 9. Mineral Properties Mineral properties at September 30, 2020 and December 31, 2019 consisted of the following: September 30, 2020 December 31, 2019 Golden Chest Mineral Property $ 1,539,002 $ 1,524,002 Infrastructure 253,649 153,970 Total Golden Chest 1,792,651 1,677,972 New Jersey 248,289 248,289 McKinley 200,000 200,000 Butte Potosi 274,440 274,440 Alder Gulch 773,101 - Less accumulated amortization (45,658) (37,683) Total $ 3,242,823 $ 2,363,018 The Company received a non-refundable down payment of $50,000 toward the sale of the McKinley property in the third quarter of 2019 which was deducted from the carrying value of the mineral property. As of September 30, 2020, negotiations with the interested parties involving this sale continue. In December of 2019, the Company abandoned its Crown Point property and recognized a loss of $333,333. In February 2020, the Company purchased property located in Alder Gulch in Shoshone County, Idaho which consists of 368 acres of real property, including patented mining claims with both surface and mineral rights. |
10. Notes Payable
10. Notes Payable | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
10. Notes Payable | 10. Notes Payable At September 30, 2020 and December 31, 2019, notes payable are as follows: September 30, 2020 December 31, 2019 Paus 2 yrd. LHD, 48 month note payable, 3.45% interest rate payable through September 2024, monthly payments of $5,181 $ 230,197 $ 267,820 Paus 2 yrd. LHD, 60 month note payable, 4.78% interest rate payable through July 2024, monthly payments of $4,847 208,544 - Compressor, 48 month note payable, 5.25% interest rate payable monthly through November 2021, monthly payments of $813 12,268 19,018 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 Atlas Copco loader, 60 month note payable, 10.5% interest rate payable monthly through June 2023, monthly payments of $3,550 101,316 124,238 2018 pick-up, 72 month note payable, 9.0% interest rate payable monthly through June 2024, monthly payments of $701 - 30,863 Property with shop, 48 month note payable, 6.49% interest rate payable monthly through August 2023, monthly payments of $707 - 27,624 2008 pick-up, 60 month note payable, 9.0% interest rate payable monthly through June 2023, monthly payments of $562 - 20,088 Caterpillar 938 loader, 60 month note payable, 6.8% interest rate payable monthly through August 2023, monthly payments of $3,751 118,778 145,709 MultiQuip DCA70 Generator, 48 month note payable, 7.25% interest rate payable through August 2022, monthly payments of $635 - 18,433 CaterpillarAD22 underground truck, 48 month note payable, 6.45% interest rate payable through June 2023, monthly payments of $12,979 390,781 485,896 Total notes payable 1,061,884 1,205,524 Due within one year 319,294 303,987 Due after one year $ 742,590 $ 901,537 All notes are collateralized by the property or equipment purchased in connection with each note. Future principal payments of notes payable at September 30, 2020 are as follows: 12 months ended September 30, 2021 $ 319,294 2022 332,496 2023 296,891 2024 108,063 2025 5,140 Total $ 1,061,884 |
11. Small Business Administrati
11. Small Business Administration Loans and Grant | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
11. Small Business Administration Loans and Grant | 11. Small Business Administration Loans and Grant On April 10, 2020, the Company received a loan of $358,346 pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act, which was enacted March 27, 2020. The loan, which was in the form of a Note dated April 10, 2020 matures on April 9, 2022 and bears interest at a rate of 1% per annum, payable monthly commencing on October 9, 2020. The Note may be prepaid by the Company at any time prior to maturity with no prepayment penalties. This loan was forgiven after being used for qualifying expenses under the provisions of the CARES Act prior to the filing of this quarterly financial statement. Qualifying expenses included payroll costs, costs used to continue group health care benefits, rent, and utilities. The amount of the loan that was recognized as grant income in the Company’s consolidated income statement included the original $358,346 in principal and $1,708 in accrued interest. On May 19, 2020 the Company received a loan of $149,900 pursuant to the Small Business Act Section 7(b). The loan which was in the form of a Note dated May 16, 2020 matures May 16, 2050 and bears interest at a rate of 3.75% per annum. Payments of $731 are due monthly and will begin twelve months from the date of the Note. At September 30, 2020, total accrued interest on the remaining loan is $2,078 which is included in the Small Business Administration loan balance on the consolidated balance sheet. During the three months ended June 30, 2020, the Company received $10,000 under Division A, Title I, Section 1110 of the CARES Act. The Company is not required to pay this amount back and thus recognized $10,000 as government grant income during the period. |
12. Stockholders' Equity
12. Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
12. Stockholders' Equity | 12. StockholdersÂ’ Equity The Company closed a private placement in April 2020. Under the private placement, the Company sold 1,481,481 units at $0.135 per unit for net proceeds of $200,000. Each unit consisted of one share of the CompanyÂ’s stock and one half of one stock purchase warrant with each whole warrant exercisable for one share of the CompanyÂ’s stock at $0.18 for 24 months. The Company closed a private placement in August 2020. Under the private placement, the Company sold 9,718,573 units at $0.28 per unit for net proceeds of $2,706,896. Each unit consisted of one share of the CompanyÂ’s stock and one half of one stock purchase warrant with each whole warrant exercisable for one share of the CompanyÂ’s stock at $0.40 for 24 months. In July 2020, a holder of convertible debt converted $50,000 of debt to 277,778 shares of common stock. In the third quarter of 2020 warrants were exercised whereby 1,041,667 shares of common stock were issued for net proceeds of $208,334. In the second quarter of 2019, 1,200,000 warrants were exercised in exchange for 398,575 shares of the CompanyÂ’s common stock in a cashless warrant exercise. Stock Purchase Warrants Outstanding The activity in stock purchase warrants is as follows: Number of Warrants Exercise Prices Balance December 31, 2018 14,100,123 0.10-0.20 Exercised (1,200,000) 0.10 Balance December 31, 2019 12,900,123 0.18-0.22 Issued 5,600,027 0.18-0.40 Expired (10,816,789) 0.20-0.22 Excised (1,041,667) 0.20 Balance September 30, 2020 6,641,694 $0.18-0.40 These warrants expire as follows: Shares Exercise Price Expiration Date 666,667 $0.20 November 3, 2020 375,000 $0.18 December 14, 2023 740,741 $0.18 April 21, 2022 4,859,286 $0.40 August 28, 2022 6,641,694 - - |
13. Stock Options
13. Stock Options | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
13. Stock Options | 13. Stock Options No options were granted in the first nine months of 2020. In June 2019, the board granted 2,100,000 stock options 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: volatility of 98.6%, risk-free interest rate of 1.81%, and an expected term of three years. Activity in the CompanyÂ’s stock options is as follows: Number of Options Exercise Prices 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 Expired (650,000) 0.15 Balance September 30, 2020 4,612,500 0.10-0.18 Exercisable at September 30, 2020 4,612,500 $ 0.10-0.18 At September 30, 2020, outstanding stock options have a weighted average remaining term of approximately 1.06 years and an intrinsic value of approximately $780,000. |
14. Asset Retirement Obligation
14. Asset Retirement Obligation | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
14. Asset Retirement Obligation | 14. Asset Retirement Obligation The Company has established asset retirement obligations associated with the ultimate closing of its mineral properties where there has been or currently are operations. Activity for the nine months ended September 30, 2020 and 2019 is as follows: Nine Months Ended September 30, 2020 2019 Balance at beginning of period $ 163,369 $ 154,292 Accretion expense 7,170 6,757 Balance at end of period $ 170,539 $ 161,049 |
15. Note Receivable
15. Note Receivable | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
15. Note Receivable | 15. 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 rights. |
16. Convertible Debt
16. Convertible Debt | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
16. Convertible Debt | 16. Convertible Debt In February 2020, the Company issued convertible promissory notes with an aggregate principal value of $885,000 from which funds were utilized for the purchase of the Alder Gulch property (Note 9). The notes are collateralized by the Alder Gulch property as well as other unencumbered real property that the Company currently owns. The outstanding principal amount of the notes bears interest at an annual rate of 8.0% with interest payments due monthly and the principal due in February 2023. The principal amount of the notes is convertible at the option of the note holders into shares of the CompanyÂ’s common stock at a price of $0.18 per share (4,916,667 shares) prior to the maturity date of the notes. In July 2020, one of the participants converted $50,000 in debt for 277,778 shares of the CompanyÂ’s common stock. The CompanyÂ’s corporate secretary, Monique Hayes, participated in the CompanyÂ’s convertible debt offering for $25,000. During the three and nine month periods ended September 30, 2020, interest expense on her note was $504 and $1,238, respectively. In July 2020, a current participant was issued a new promissory note for a principal balance of $200,000 which funds were utilized for the purchase of a new jumbo underground drill. The note is collateralized by the drill. The outstanding principal amount of the note bears interest at an annual rate of 6.0% with interest payments due monthly and the unpaid principal due in June 2023. The principal amount of the note is convertible at the option of the note holder into shares of the CompanyÂ’s common stock at a price of $0.40 per share (500,000 shares) prior to the maturity date of the note. |
17. Subsequent Events
17. Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
17. Subsequent Events | 17. Subsequent Events In October 2020, holders exercised 666,667 warrants at $0.20 per share of the CompanyÂ’s common with net proceeds of $133,333. In November 2020 the Company was notified that the PPP loan funded on April 10, 2020 for $358,346 had been forgiven for qualifying expenses under the provisions of the CARES Act. (Note 11) |
1. The Company and Significan_2
1. The Company and Significant Accounting Policies: Principles of Consolidation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
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 entities owned by other investors is presented as non-controlling interests on the consolidated balance sheets and statements of operations. |
1. The Company and Significan_3
1. The Company and Significant Accounting Policies: Revenue Recognition (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Policies | |
Revenue Recognition | Revenue Recognition Gold Revenue Recognition and Receivables- Sales and accounts receivable for concentrate shipments are recorded net of charges by the customer for treatment, refining, smelting losses, and other charges negotiated with the customers. Charges are estimated upon shipment of concentrates based on contractual terms, and actual charges typically do not vary materially from estimates. Costs charged by customers include fixed costs per ton of concentrate and price escalators. Refining, selling and shipping costs related to sales of doré and metals from doré are recorded to cost of sales as incurred. See Note 4 for more information on our sales of products. Other Revenue Recognition- |
1. The Company and Significan_4
1. The Company and Significant Accounting Policies: Inventories (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Policies | |
Inventories | Inventories Inventories are stated at the lower of full cost of production or estimated net realizable value based on current metal prices. Costs consist of mining, transportation, and milling costs including applicable overhead, depreciation, depletion and amortization relating to the operations. Costs are allocated based on the stage at which the ore is in the production process. Supplies inventory is stated at the lower of cost or estimated net realizable value. |
1. The Company and Significan_5
1. The Company and Significant Accounting Policies: Fair Value Measurements (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
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 that are included in earnings are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date. At September 30, 2020 and December 31, 2019, the Company determined they had no assets or liabilities that required measurement at fair value on a recurring basis. |
1. The Company and Significan_6
1. The Company and Significant Accounting Policies: Reclassifications (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Policies | |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the 2020 financial statement presentation. Reclassifications had no effect on net income (loss), stockholdersÂ’ equity, or cash flows as previously reported. |
1. The Company and Significan_7
1. The Company and Significant Accounting Policies: Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Policies | |
Recent Accounting Pronouncements | New Accounting Pronouncement Accounting Standards Updates Adopted In August 2018, the Financial Accounting Standards Board (“FASB”) issued Auditing Standards Update (“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 was adopted as of January 1, 2020, and its adoption did not have a material impact on the Company’s consolidated financial statements. Accounting Standards Updates to Become Effective in Future Periods In December 2019, the FASB issued ASU No. 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The update contains a number of provisions intended to simplify the accounting for income taxes. The update is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. Management is evaluating the impact of this update on the Company’s consolidated financial statements. In August 2020, the FASB issued ASU No. 2020-06 Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The update is to address issues identified as a result of the complexity associated with applying generally accepted accounting principles for certain financial instruments with characteristics of liabilities and equity. The update is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years and with early adoption permitted. Management is evaluating the impact of this update on the Company’s consolidated financial statements. |
3. Inventories_ Schedule of Inv
3. Inventories: Schedule of Inventory, Current (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Schedule of Inventory, Current | September 30, 2020 December 31, 2019 Gold concentrate $ 164,455 $ 197,862 Materials and supplies 55,612 27,284 Total $ 220,067 $ 225,146 |
4. Sales of Products_ Schedule
4. Sales of Products: Schedule of sales of products by metal (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Schedule of sales of products by metal | September 30, 2020 September 30, 2019 Three Months Nine Months Three Months Nine Months Gold $ 1,654,334 $ 4,629,816 $ 1,979,595 $ 4,870,402 Silver 2,593 6,881 6,899 14,556 Less: Smelter and refining charges (100,857) (355,296) (133,858) (339,994) Total $ 1,556,070 $ 4,281,401 1,852,636 $ 4,544,964 |
4. Sales of Products_ Schedul_2
4. Sales of Products: Schedule of sales by significant product type (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Schedule of sales by significant product type | September 30, 2020 September 30, 2019 Three Months Nine Months Three Months Nine Months Concentrate sales to H&H Metal $ 1,476,395 $ 4,144,583 $ 1,788,031 $ 4,390,686 Dore sales to refinery 79,675 136,818 64,605 154,278 Total $ 1,556,070 $ 4,281,401 $ 1,852,636 $ 4,544,964 |
5. Related Party Transactions_
5. Related Party Transactions: Related Party Notes and Interest Payable (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Related Party Notes and Interest Payable | September 30, 2020 December 31, 2019 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 $110,835 in February 2022 $ 163,240 $ 189,236 H&H Metals, shareholder and concentrate broker, 8% interest, balance due April 2021 - 27,438 Total 163,240 216,674 Current portion (36,528) (34,924) Long term portion $ 126,712 $ 181,750 |
5. Related Party Transactions_2
5. Related Party Transactions: Related Party interest expense (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Related Party interest expense | 2020 2019 Three Months Nine Months Three Months Nine Months $ 2,537 $ 8,588 $ 4,068 $ 11,497 |
5. Related Party Transactions_3
5. Related Party Transactions: Related Party Lease Expense (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Related Party Lease Expense | 2020 2019 Three Months Nine Months Three Months Nine Months $ 6,210 $ 18,630 $ 6,151 $ 18,395 |
7. Earnings per Share_ Schedule
7. Earnings per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | September 30, 2020 September 30, 2019 Three Months Nine Months Three Months Nine Months Incremental shares included in diluted net income (loss) per share Stock options 2,669,034 - 974,484 - Stock purchase warrants 1,029,486 - - - 3,698,520 - 974,484 - Excluded in diluted net income (loss) per share as inclusion would have an antidilutive effect: Convertible debt 5,138,889 5,138,889 - - Stock options - 4,612,500 262,500 8,404,500 Stock purchase warrants 4,859,286 6,641,694 12,900,123 12,900,123 9,998,175 16,393,083 13,162,623 21,304,623 |
8. Property, Plant and Equipm_2
8. Property, Plant and Equipment: Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Property, Plant and Equipment | September 30, 2020 December 31, 2019 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 (880,175) (759,617) Total mill 4,074,247 4,194,805 Building and equipment Buildings 153,265 143,725 Equipment 3,113,073 2,628,261 3,266,338 2,771,986 Less accumulated depreciation (1,115,637) (818,527) Total building and equipment 2,150,701 1,953,459 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 $ 7,092,418 $ 7,015,734 |
9. Mineral Properties_ Schedule
9. Mineral Properties: Schedule of mineral properties (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Schedule of mineral properties | September 30, 2020 December 31, 2019 Golden Chest Mineral Property $ 1,539,002 $ 1,524,002 Infrastructure 253,649 153,970 Total Golden Chest 1,792,651 1,677,972 New Jersey 248,289 248,289 McKinley 200,000 200,000 Butte Potosi 274,440 274,440 Alder Gulch 773,101 - Less accumulated amortization (45,658) (37,683) Total $ 3,242,823 $ 2,363,018 |
10. Notes Payable_ Schedule of
10. Notes Payable: Schedule of Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Schedule of Debt | September 30, 2020 December 31, 2019 Paus 2 yrd. LHD, 48 month note payable, 3.45% interest rate payable through September 2024, monthly payments of $5,181 $ 230,197 $ 267,820 Paus 2 yrd. LHD, 60 month note payable, 4.78% interest rate payable through July 2024, monthly payments of $4,847 208,544 - Compressor, 48 month note payable, 5.25% interest rate payable monthly through November 2021, monthly payments of $813 12,268 19,018 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 Atlas Copco loader, 60 month note payable, 10.5% interest rate payable monthly through June 2023, monthly payments of $3,550 101,316 124,238 2018 pick-up, 72 month note payable, 9.0% interest rate payable monthly through June 2024, monthly payments of $701 - 30,863 Property with shop, 48 month note payable, 6.49% interest rate payable monthly through August 2023, monthly payments of $707 - 27,624 2008 pick-up, 60 month note payable, 9.0% interest rate payable monthly through June 2023, monthly payments of $562 - 20,088 Caterpillar 938 loader, 60 month note payable, 6.8% interest rate payable monthly through August 2023, monthly payments of $3,751 118,778 145,709 MultiQuip DCA70 Generator, 48 month note payable, 7.25% interest rate payable through August 2022, monthly payments of $635 - 18,433 CaterpillarAD22 underground truck, 48 month note payable, 6.45% interest rate payable through June 2023, monthly payments of $12,979 390,781 485,896 Total notes payable 1,061,884 1,205,524 Due within one year 319,294 303,987 Due after one year $ 742,590 $ 901,537 |
10. Notes Payable_ Schedule o_2
10. Notes Payable: Schedule of Maturities of Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Schedule of Maturities of Long-term Debt | 12 months ended September 30, 2021 $ 319,294 2022 332,496 2023 296,891 2024 108,063 2025 5,140 Total $ 1,061,884 |
12. Stockholders' Equity_ Commo
12. Stockholders' Equity: Common Stock Purchase Warrant Transactions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Common Stock Purchase Warrant Transactions | Number of Warrants Exercise Prices Balance December 31, 2018 14,100,123 0.10-0.20 Exercised (1,200,000) 0.10 Balance December 31, 2019 12,900,123 0.18-0.22 Issued 5,600,027 0.18-0.40 Expired (10,816,789) 0.20-0.22 Excised (1,041,667) 0.20 Balance September 30, 2020 6,641,694 $0.18-0.40 |
12. Stockholders' Equity_ Com_2
12. Stockholders' Equity: Common Stock Purchase Warrant Expirations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Common Stock Purchase Warrant Expirations | Shares Exercise Price Expiration Date 666,667 $0.20 November 3, 2020 375,000 $0.18 December 14, 2023 740,741 $0.18 April 21, 2022 4,859,286 $0.40 August 28, 2022 6,641,694 - - |
13. Stock Options_ Share-based
13. Stock Options: Share-based Compensation, Stock Options, Activity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Share-based Compensation, Stock Options, Activity | Number of Options Exercise Prices 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 Expired (650,000) 0.15 Balance September 30, 2020 4,612,500 0.10-0.18 Exercisable at September 30, 2020 4,612,500 $ 0.10-0.18 |
14. Asset Retirement Obligati_2
14. Asset Retirement Obligation: Schedule of Asset Retirement Obligations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Schedule of Asset Retirement Obligations | Nine Months Ended September 30, 2020 2019 Balance at beginning of period $ 163,369 $ 154,292 Accretion expense 7,170 6,757 Balance at end of period $ 170,539 $ 161,049 |
3. Inventories_ Schedule of I_2
3. Inventories: Schedule of Inventory, Current (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Details | ||
Gold concentrate | $ 164,455 | $ 197,862 |
Materials and supplies | 55,612 | 27,284 |
Total | $ 220,067 | $ 225,146 |
4. Sales of Products_ Schedul_3
4. Sales of Products: Schedule of sales of products by metal (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Details | ||||
Gold sales | $ 1,654,334 | $ 1,979,595 | $ 4,629,816 | $ 4,870,402 |
Silver sales | 2,593 | 6,899 | 6,881 | 14,556 |
Smelter and refining charges | (100,857) | (133,858) | (355,296) | (339,994) |
Total | $ 1,556,070 | $ 1,852,636 | $ 4,281,401 | $ 4,544,964 |
4. Sales of Products_ Schedul_4
4. Sales of Products: Schedule of sales by significant product type (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Details | ||||
Concentrate sales | $ 1,476,395 | $ 1,788,031 | $ 4,144,583 | $ 4,390,686 |
Dore sales | 79,675 | 64,605 | 136,818 | 154,278 |
Total | $ 1,556,070 | $ 1,852,636 | $ 4,281,401 | $ 4,544,964 |
4. Sales of Products (Details)
4. Sales of Products (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Details | ||
Gold sales receivable | $ 292,162 | $ 305,924 |
5. Related Party Transactions_4
5. Related Party Transactions: Related Party Notes and Interest Payable (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Notes payable related parties, long term | $ 126,712 | $ 181,750 |
Total | 163,240 | 216,674 |
Current portion | (36,528) | (34,924) |
Notes payable related parties, long term | 126,712 | 181,750 |
Ophir Holdings LLC | ||
Notes payable related parties, long term | 163,240 | 189,236 |
Notes payable related parties, long term | 163,240 | 189,236 |
H&H Metals | ||
Notes payable related parties, long term | 0 | 27,438 |
Notes payable related parties, long term | $ 0 | $ 27,438 |
5. Related Party Transactions_5
5. Related Party Transactions: Related Party Lease Expense (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Details | ||||
Operating Leases, Rent Expense | $ 6,210 | $ 6,151 | $ 18,630 | $ 18,395 |
6. Joint Ventures (Details)
6. Joint Ventures (Details) | Jan. 29, 2016 | Sep. 30, 2020 |
New Jersey Mill | ||
Equity Method Investment, Additional Information | The Company owns 65% of the New Jersey Mill Joint Venture and has significant influence in its operations. Thus the venture is included in the consolidated financial statements along with presentation of the non-controlling interest. | |
Butte Highlands JV, LLC | ||
Equity Method Investment, Additional Information | On January 29, 2016, the Company purchased a 50% interest in Butte Highlands JV, LLC (“BHJV”) from Timberline Resources Corporation for $225,000 in cash and 3,000,000 restricted shares of the Company’s common stock valued at $210,000 for a total consideration of $435,000. |
7. Earnings per Share_ Schedu_2
7. Earnings per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Details | ||||
Stock options | 2,669,034 | 974,484 | 0 | 0 |
Stock purchase warrants | 1,029,486 | 0 | 0 | 0 |
Incremental shares included in diluted net income | 3,698,520 | 974,484 | 0 | 0 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 9,998,175 | 13,162,623 | 16,393,083 | 21,304,623 |
8. Property, Plant and Equipm_3
8. Property, Plant and Equipment: Property, Plant and Equipment (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Details | ||
Mill land | $ 225,289 | $ 225,289 |
Building | 536,193 | 536,193 |
Equipment | 4,192,940 | 4,192,940 |
Less accumulated depreciation | (880,175) | (759,617) |
Mill Buildings and Improvements, Net | 4,074,247 | 4,194,805 |
Buildings and Improvements, Gross | 153,265 | 143,725 |
Equipment | 3,113,073 | 2,628,261 |
Less accumulated depreciation | (1,115,637) | (818,527) |
Total building and equipment | 2,150,701 | 1,953,459 |
Bear Creek Land | 266,934 | 266,934 |
BOW | 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 |
Total | $ 7,092,418 | $ 7,015,734 |
9. Mineral Properties_ Schedu_2
9. Mineral Properties: Schedule of mineral properties (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Details | ||
Mineral Properties 3 | $ 1,792,651 | $ 1,677,972 |
Mineral Properties 1 | 248,289 | 248,289 |
Mineral Properties 2 | 200,000 | 200,000 |
Mineral Properties 6 | 274,440 | 274,440 |
Mineral Properties 7 | 773,101 | 0 |
Accumulated Amortization of Other Deferred Costs | (45,658) | (37,683) |
Mineral properties net | $ 3,242,823 | $ 2,363,018 |
9. Mineral Properties (Details)
9. Mineral Properties (Details) - USD ($) | Feb. 29, 2020 | Sep. 30, 2020 |
McKinley | ||
Non-refundable down payment | $ 50,000 | |
Crown Point | ||
Exploration Abandonment and Impairment Expense | $ 333,333 | |
Alder Gulch | ||
Equity Method Investment, Additional Information | In February 2020, the Company purchased property located in Alder Gulch in Shoshone County, Idaho which consists of 368 acres of real property, including patented mining claims with both surface and mineral rights. |
10. Notes Payable_ Schedule o_3
10. Notes Payable: Schedule of Debt (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Details | ||
Notes Payable Current and Noncurrent | $ 1,061,884 | $ 1,205,524 |
Due within one year | 319,294 | 303,987 |
Due after one year | $ 742,590 | $ 901,537 |
10. Notes Payable_ Schedule o_4
10. Notes Payable: Schedule of Maturities of Long-term Debt (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Details | ||
Notes Payable Current and Noncurrent | $ 1,061,884 | $ 1,205,524 |
11. Small Business Administra_2
11. Small Business Administration Loans and Grant (Details) | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Grant income | $ 10,000 |
PPP loan | |
Proceeds from Loans | 358,346 |
Proceeds from Loans | 358,346 |
Debt Instrument, Increase, Accrued Interest | 1,708 |
SBA loan | |
Proceeds from Loans | 149,900 |
Proceeds from Loans | 149,900 |
Debt Instrument, Increase, Accrued Interest | $ 2,078 |
12. Stockholders' Equity (Detai
12. Stockholders' Equity (Details) | 9 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | |
Private placement 1 | |
Private Placement Units Sold | shares | 1,481,481 |
Private Placement Units Sold Price Per Unit | $ / shares | $ 0.135 |
Private Placement Units Sold Value | $ | $ 200,000 |
Private placement 2 | |
Private Placement Units Sold | shares | 9,718,573 |
Private Placement Units Sold Price Per Unit | $ / shares | $ 0.28 |
Private Placement Units Sold Value | $ | $ 2,706,896 |
12. Stockholders' Equity_ Com_3
12. Stockholders' Equity: Common Stock Purchase Warrant Transactions (Details) - shares | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Details | |||
Class of Warrant or Right, Outstanding | 6,641,694 | 12,900,123 | 14,100,123 |
Warrants Exercised | (1,200,000) | ||
Warrants issued | 5,600,027 | ||
Warrants Expired | (10,816,789) | ||
Warrants excised | (1,041,667) |
12. Stockholders' Equity_ Com_4
12. Stockholders' Equity: Common Stock Purchase Warrant Expirations (Details) - shares | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Details | |||
Class of Warrant or Right, Outstanding | 6,641,694 | 12,900,123 | 14,100,123 |
13. Stock Options_ Share-base_2
13. Stock Options: Share-based Compensation, Stock Options, Activity (Details) - shares | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Details | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 4,612,500 | 5,262,500 | 7,054,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 2,100,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | (650,000) | (3,892,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 4,612,500 |
14. Asset Retirement Obligati_3
14. Asset Retirement Obligation: Schedule of Asset Retirement Obligations (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Details | ||
Balance at beginning of period | $ 163,369 | $ 154,292 |
Asset Retirement Obligation, Period Increase (Decrease) | 7,170 | 6,757 |
Asset Retirement Obligation | $ 170,539 | $ 161,049 |
15. Note Receivable (Details)
15. Note Receivable (Details) | Sep. 30, 2020USD ($) |
West | |
Other Notes Payable, Current | $ 250,000 |
16. Convertible Debt (Details)
16. Convertible Debt (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Issuance of convertible debt | $ 1,085,000 | $ 0 |
Conversion of convertible debt to common stock | 50,000 | $ 0 |
Alder Gulch | ||
Issuance of convertible debt | 885,000 | |
Conversion of convertible debt to common stock | $ 277,778 |
17. Subsequent Events (Details)
17. Subsequent Events (Details) | Nov. 01, 2020 | Oct. 01, 2020 |
Details | ||
Subsequent Event, Description | In November 2020 the Company was notified that the PPP loan funded on April 10, 2020 for $358,346 had been forgiven for qualifying expenses under the provisions of the CARES Act. (Note 11) | In October 2020, holders exercised 666,667 warrants at $0.20 per share of the Company’s common with net proceeds of $133,333 |