Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 01, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Entity Registrant Name | IDAHO STRATEGIC RESOURCES, INC. | ||
Entity Central Index Key | 0001030192 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Current Reporting Status | Yes | ||
Document Period End Date | Dec. 31, 2022 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Entity Common Stock Shares Outstanding | 12,256,523 | ||
Entity Public Float | $ 82,171,827 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 000-28837 | ||
Entity Incorporation State Country Code | ID | ||
Entity Tax Identification Number | 82-0490295 | ||
Entity Address Address Line 1 | 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 | ||
Security 12g Title | Common Stock, $0.00 par value | ||
Trading Symbol | IDR | ||
Security Exchange Name | NYSE | ||
Entity Interactive Data Current | Yes | ||
Auditor Location | Spokane, Washington | ||
Auditor Firm Id | 444 | ||
Auditor Name | Assure CPA, LLC |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,638,031 | $ 1,976,518 |
Gold sales receivable | 909,997 | 408,187 |
Inventories | 618,313 | 213,722 |
Joint venture receivable | 1,926 | 4,442 |
Other current assets | 192,025 | 334,443 |
Total current assets | 3,360,292 | 2,937,312 |
Property, plant and equipment, net of accumulated depreciation | 9,923,386 | 8,255,961 |
Mineral properties, net of accumulated amortization | 6,527,561 | 5,843,186 |
Investment in Buckskin Gold and Silver | 334,252 | 332,728 |
Investment in joint venture | 435,000 | 435,000 |
Reclamation bond | 327,020 | 103,320 |
Deposits | 76,110 | 11,694 |
Total assets | 20,983,621 | 17,919,201 |
Current liabilities: | ||
Accounts payable and accrued expenses | 579,541 | 647,218 |
Accrued payroll and related payroll expenses | 179,149 | 174,110 |
Notes payable related parties, current portion | 12,226 | 10,543 |
Notes payable, current portion | 859,393 | 666,622 |
Total current liabilities | 1,630,309 | 1,498,493 |
Asset retirement obligation | 262,217 | 172,348 |
Notes payable related parties, long term | 62,957 | 106,068 |
Convertible debt | 0 | 1,950,000 |
Notes payable, long term | 1,315,068 | 1,128,490 |
Total long-term liabilities | 1,640,242 | 3,356,906 |
Total liabilities | 3,270,551 | 4,855,399 |
Commitments and Contingencies | 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; 12,098,070 and 10,940,969 shares issued and outstanding, respectively | 33,245,622 | 26,004,756 |
Accumulated deficit | (18,368,384) | (15,832,955) |
Total Idaho Strategic Resources, Inc. stockholders' equity | 14,877,238 | 10,171,801 |
Non-controlling interest | 2,835,832 | 2,892,001 |
Total stockholders' equity | 17,713,070 | 13,063,802 |
Total liabilities and stockholders' equity | $ 20,983,621 | $ 17,919,201 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Consolidated Balance Sheets | ||
Preferred Stock, Par Value | $ 0 | $ 0 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares outstanding | 0 | 0 |
Common Stock, Par Value | $ 0 | $ 0 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares Issued | 12,098,070 | 10,940,969 |
Common Stock, Shares outstanding | 12,098,070 | 10,940,969 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated Balance Sheets | ||
Revenue-gold sales | $ 9,580,189 | $ 7,630,416 |
Cost of sales: | ||
Cost of sales and other direct production costs | 7,042,185 | 6,328,117 |
Depreciation and amortization | 984,083 | 814,422 |
Total cost of sales | 8,026,268 | 7,142,539 |
Gross profit | 1,553,921 | 487,877 |
Other operating expenses: | ||
Exploration | 2,110,137 | 1,417,605 |
Loss on write-off of equipment | 68,641 | 0 |
Management | 322,775 | 518,011 |
Professional services | 375,002 | 293,402 |
General and administrative | 1,229,603 | 1,319,145 |
Total other operating expenses | 4,106,158 | 3,548,163 |
Loss from operations | (2,552,237) | (3,060,286) |
Other (income) expense: | ||
Gain on forgiveness of SBA loan | (10,000) | 0 |
Equity income on investment in Buckskin | (1,524) | (3,782) |
Timber revenue | 0 | (4,338) |
Interest income | (12,453) | (146) |
Interest expense | 102,832 | 208,341 |
Total other expense | 78,855 | 200,075 |
Net loss | (2,631,092) | (3,260,361) |
Net loss attributable to non-controlling interest | (95,663) | (100,192) |
Net loss attributable to Idaho Strategic Resources, Inc. | $ (2,535,429) | $ (3,160,169) |
Net loss per common share-basic and diluted | $ (0.22) | $ (0.31) |
Weighted average common shares outstanding-basic and diluted | 11,783,258 | 10,192,465 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders Equity - USD ($) | Total | Common Stock | Accumulated Deficit Attributable to Idaho Strategic Resources, Inc. [Member] | Non-Controlling Interest [Member] |
Balance, shares at Dec. 31, 2020 | 9,826,665 | |||
Balance, amount at Dec. 31, 2020 | $ 11,264,164 | $ 20,986,062 | $ (12,672,786) | $ 2,950,888 |
Contribution from non-controlling interest in New Jersey Mill Joint Venture | 41,305 | $ 0 | 0 | 41,305 |
Issuance of common stock for cash and warrants, net of issuance costs, shares | 578,579 | |||
Issuance of common stock for cash and warrants, net of issuance costs, amount | 2,580,000 | $ 2,580,000 | 0 | 0 |
Issuance of common stock for services, shares | 10,726 | |||
Issuance of common stock for services, amount | 69,673 | $ 69,673 | 0 | 0 |
Issuance of common stock for warrants exercised, shares | 46,627 | |||
Issuance of common stock for warrants exercised, amount | 117,500 | $ 117,500 | 0 | 0 |
Issuance of common stock for investment in Buckskin, shares | 76,298 | |||
Issuance of common stock for investment in Buckskin, amount | 328,946 | $ 328,946 | 0 | 0 |
Issuance of common stock for cashless option exercise, shares | 70,725 | |||
Issuance of common stock for cashless option exercise, amount | 0 | $ 0 | 0 | 0 |
Issuance of options to management, directors, and employees | 1,087,575 | $ 1,087,575 | 0 | 0 |
Conversion of convertible debt to common stock, shares | 331,349 | |||
Conversion of convertible debt to common stock, amount | 835,000 | $ 835,000 | 0 | 0 |
Net loss | (3,260,361) | $ 0 | (3,160,169) | (100,192) |
Balance, shares at Dec. 31, 2021 | 10,940,969 | |||
Balance, amount at Dec. 31, 2021 | 13,063,802 | $ 26,004,756 | (15,832,955) | 2,892,001 |
Contribution from non-controlling interest in New Jersey Mill Joint Venture | 39,494 | $ 0 | 0 | 39,494 |
Issuance of common stock for cash and warrants, net of issuance costs, shares | 498,799 | |||
Issuance of common stock for cash and warrants, net of issuance costs, amount | 3,681,107 | $ 3,681,107 | 0 | 0 |
Issuance of common stock for services, shares | 3,572 | |||
Issuance of common stock for services, amount | 32,326 | $ 32,326 | 0 | 0 |
Issuance of common stock for warrants exercised, shares | 194,869 | |||
Issuance of common stock for warrants exercised, amount | 1,030,158 | $ 1,030,158 | 0 | 0 |
Issuance of common stock for cashless option exercise, shares | 66,995 | |||
Issuance of common stock for cashless option exercise, amount | 0 | $ 0 | 0 | 0 |
Issuance of options to management, directors, and employees | 547,275 | $ 547,275 | 0 | 0 |
Conversion of convertible debt to common stock, shares | 392,866 | |||
Conversion of convertible debt to common stock, amount | 1,950,000 | $ 1,950,000 | 0 | 0 |
Net loss | (2,631,092) | $ 0 | (2,535,429) | (95,663) |
Balance, shares at Dec. 31, 2022 | 12,098,070 | |||
Balance, amount at Dec. 31, 2022 | $ 17,713,070 | $ 33,245,622 | $ (18,368,384) | $ 2,835,832 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (2,631,092) | $ (3,260,361) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Depreciation and amortization | 984,083 | 814,422 |
Accretion of asset retirement obligation | 12,691 | 9,953 |
Stock based compensation | 547,275 | 1,087,575 |
Stock issued for services | 32,326 | 69,673 |
Loss on write-off of equipment | 68,641 | 0 |
Equity income on investment in Buckskin | (1,524) | (3,782) |
Gain on forgiveness of SBA loan | (10,000) | 0 |
Change in operating assets and liabilities: | ||
Gold sales receivable | (501,810) | (143,408) |
Inventories | (404,591) | 188,815 |
Joint venture receivable | 2,516 | (265) |
Other current assets | 142,418 | (110,380) |
Accounts payable and accrued expenses | (63,062) | (33,894) |
Accrued payroll and related payroll expenses | 5,039 | 30,625 |
Net cash used by operating activities | (1,817,090) | (1,351,027) |
Cash flows from investing activities: | ||
Purchases of property, plant, and equipment | (1,441,874) | (664,645) |
Additions to mineral properties | (626,541) | (2,414,607) |
Deposit on equipment | (76,110) | (11,694) |
Purchase of reclamation bonds | (223,700) | 0 |
Net cash used by investing activities | (2,368,225) | (3,090,946) |
Cash flows from financing activities: | ||
Sales of common stock and warrants, net of issuance costs | 3,681,107 | 2,580,000 |
Proceeds from exercise of warrants | 1,030,158 | 117,500 |
Principal payments on notes payable | (862,503) | (572,558) |
Principal payments on notes, related parties | (41,428) | (37,701) |
Issuance of convertible debt | 0 | 1,750,000 |
Contributions from non-controlling interest | 39,494 | 41,305 |
Net cash provided by financing activities | 3,846,828 | 3,878,546 |
Net change in cash and cash equivalents | (338,487) | (563,427) |
Cash and cash equivalents, beginning of year | 1,976,518 | 2,539,945 |
Cash and cash equivalents, end of year | 1,638,031 | 1,976,518 |
Supplemental disclosure of cash flow information: | ||
Interest paid in cash, net of amount capitalized | 98,218 | 202,122 |
Non-cash investing and financing activities: | ||
Cash and cash equivalents, end of year | 1,638,031 | 1,976,518 |
Deposit applied to purchase of equipment and mineral property | 11,694 | 12,863 |
Notes payable for equipment purchase | 1,247,237 | 1,149,683 |
Common stock issued for investment in Buckskin | 0 | 328,946 |
Conversion of convertible debt to common stock | $ 1,950,000 | $ 835,000 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2022 | |
Description of Business | |
Description of Business | 1. Description of Business Idaho Strategic Resources, Inc. (“the Company”) was incorporated as an Idaho corporation on July 18, 1996, as New Jersey Mining Company. On December 6, 2021, New Jersey Mining Company changed its name to Idaho Strategic Resources Inc. and also finalized a 1 for 14 reverse stock split of its common stock as previously approved by shareholders at a Special Meeting of the Shareholders held on October 6, 2021. On the date of the reverse stock split, every fourteen (14) shares of New Jersey Mining Company were automatically converted into one issued and outstanding share of Idaho Strategic Resources, Inc. common stock without any change in the par value per share. The Company's primary business is exploring for, developing, and extracting gold, and to a lesser extent, silver, and base metal mineral resources in the Greater Coeur d’Alene Mining District of North Idaho. From an operational perspective, the Company produces gold at the Golden Chest Mine located in the Murray Gold Belt (MGB) area of the world-class Coeur d’Alene Mining District, north of the prolific Silver Valley. With over 7,000 acres of patented and unpatented land, the Company has the largest private land position in the area following its consolidation of the Murray Gold Belt for the first time in over 100-years. The Company also has an expanded focus on identifying and exploring Critical Minerals (Rare Earth Minerals). Its business strategy is to grow its asset base and mineral production over time while advancing its Rare Earth Element projects. In addition to gold and gold production, the Company maintains an important strategic presence in the U.S. Critical Minerals sector, specifically focused on the more “at-risk” Rare Earth Elements (REE’s). The Company’s Diamond Creek and Roberts REE properties are included the U.S. national REE inventory as listed in USGS, IGS and DOE publications. Both projects are in central Idaho and participating in the USGS Earth MRI program, with the Diamond Creek Project also participating in the Idaho Department of Commerce’s IGEM program. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies | |
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 another investor is presented as non-controlling interest on the consolidated balance sheets, statements of operations, and statement of changes in stockholders’ equity. Accounting for Investments in Joint Ventures and Equity Method Investments Investment in Joint Ventures For joint ventures where the Company holds more than 50% of the voting interest and has significant influence, the joint venture is consolidated with the presentation of non-controlling interest. In determining whether significant influence exists, the Company considers its participation in policy-making decisions and its representation on the venture’s management committee. For joint ventures in which the Company does not have joint control or significant influence, the cost method is used. For those joint ventures in which there is joint control between the parties, the equity method is utilized whereby the Company’s share of the ventures’ earnings and losses is included in the statement of operations as earnings in joint ventures and its investments therein are adjusted by a similar amount. The Company periodically assesses its investments in joint ventures for impairment. If management determines that a decline in fair value is other than temporary it will write-down the investment and charge the impairment against operations. Equity Method Investments Investments in companies and joint ventures in which we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting. In determining whether significant influence exists, the Company considers its participation in policy-making decisions and representation on governing bodies. Under the equity method of accounting, our share of the net earnings or losses of the investee are included in net income (loss) in the consolidated statements of operations. Upon investment, the Company assesses whether a step up in basis of the investee’s net assets has occurred and, if so, adjust our share of net earnings or losses by related depreciation and amortization expense. We evaluate equity method investments whenever events or changes in circumstance indicate the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. As changes in ownership percentage of our investments occur, the Company assesses whether we can exercise significant influence and account for under the equity method. If our ownership percentage of the company or venture in which we have an investment changes, we recognize a gain or loss on the investment in the period of change. At December 31, 2022, the Company's 37% common stock holding of Buckskin Gold and Silver, Inc. is accounted for using the equity method (Note 9). At December 31, 2022 and 2021, the Company’s percentage ownership and method of accounting for each joint venture and equity method investment is as follows: December 31, 2022 December 31, 2021 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 Buckskin Gold and Silver 37% Yes Equity 37% Yes Equity Non-controlling Interest Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the Company’s stockholders’ equity and its net income (loss). Non-controlling interests represent non-controlling investor’s 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 mineral reserves, 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. Estimates are based on historical experience and various other assumptions that the Company believes to be reasonable. Actual results could differ from those estimates. 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 13 for more information on our sales of products. 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 first-in, first-out weighted average cost or estimated net realizable value. Income Taxes Income taxes are recognized in accordance with Accounting Standards Codification (“ASC”) 740 Income Taxes, whereby deferred income tax liabilities or assets at the end of each period are determined using the tax rate expected to be in effect when the taxes are actually paid or recovered. A valuation allowance is recognized on deferred tax assets when it is more likely than not that some or all of these deferred tax assets will not be realized. 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, 2022 and 2021, 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, notes payable to related parties, and notes payable approximate their fair values. The fair value of the convertible notes payable at December 31, 2021 was $2,922,923 based on the convertible rate and the trading price of the Company’s stock at December 31, 2021. No convertible debt was outstanding on December 31, 2022. Net Income (Loss) Per Share Net income (loss) per share is computed by dividing net income (loss) attributable to the Company 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 years ended December 31, 2022, and 2021, potentially dilutive common stock equivalents excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive are as follows: December 31, 2022 December 31, 2021 Stock options 535,953 507,175 Stock purchase warrants 289,294 669,467 Convertible debt - 392,866 Total 825,247 1,569,508 Reclassifications Certain prior period amounts have been reclassified to conform to the 2022 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. These deposit balances may at times exceed federally insured limits. No losses have been recognized because of these balances. 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 Company’s 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. Interest Capitalization When capital projects are funded within the reporting period for which cash is paid which could have been used for debt reduction an amount equal to a weighted average interest rate of qualifying outstanding debt of the capital project expenditure in interest expense is capitalized. Mine Exploration and Development Costs The Company expenses exploration costs as such in the period they occur. The mine development stage begins once the Company identifies ore reserves which is based on a determination whether an ore body can be economically developed. Expenditures incurred during the development stage are capitalized as deferred development costs and include such costs for drifts, ramps, and infrastructure. Costs to improve, alter, or rehabilitate primary development assets which appreciably extend the life, increase capacity, or improve the efficiency or safety of such assets are also capitalized. The development stage ends when the production stage of ore reserves begins. Amortization of deferred development costs is calculated using the units-of-production method over the expected life of the operation based on the estimated recoverable mineral ounces. Claim Fees 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 specific asset group. The Company’s estimates of future cash flows are subject to risks and uncertainties. It is reasonably possible that changes in estimates could occur which may affect the expected recoverability of the Company’s 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 recognized at the present value of estimated reclamation 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. 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, 2021 the Company had a $103,320 reclamation bond for the Golden Chest Mine. In 2022 the Company added additional bonds of $132,000 associated with milling operations, and an additional $91,700 in bonds for various exploration and drilling projects for a total reclamation bond balance at December 31, 2022 of $327,020. Stock Based Compensation All transactions in which goods or services are received for the issuance of shares of the Company’s common stock or options to purchase shares of common stock are measured at fair value of the equity interest issued. The fair value of common stock awards is determined based upon the closing price of the Company’s stock on the date of the award. The Company estimates the fair value of stock-based compensation of options 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 Company’s 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. Any forfeitures of stock options are recognized as they occur. 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. Recent Accounting Pronouncements Accounting Standards Updates Adopted In August 2020, No. 2020 06 470 20 815 40 December 15, 2023 for smaller reporting companies, Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventories | |
Inventories | 3. Inventories At December 31, 2022 and 2021, inventories consisted of the following: 2022 2021 Concentrate inventory In process $ 111,741 $ 41,082 Finished goods 111,574 97,074 Total concentrate inventory 223,315 138,156 Supplies inventory Mine parts and supplies 233,465 54,998 Mill parts and supplies 83,963 20,568 Core drilling supplies and materials 77,570 - Total supplies inventory 394,998 75,566 Total $ 618,313 $ 213,722 |
Property Plant and Equipment
Property Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property Plant and Equipment | |
Property, Plant and Equipment | 4. Property, Plant and Equipment Property, plant and equipment at December 31, 2022 and 2021 consisted of the following: 2022 2021 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 (1,249,445 ) (1,085,730 ) Total mill 3,704,977 3,868,692 Buildings and equipment Buildings 611,382 324,075 Equipment 6,927,474 5,042,915 7,538,856 5,366,990 Less accumulated depreciation (2,324,679 ) (1,847,191 ) Total building and equipment 5,214,177 3,519,799 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 Salmon property 136,762 - Total land 1,004,232 867,470 Total $ 9,923,386 $ 8,255,961 |
Mineral Properties
Mineral Properties | 12 Months Ended |
Dec. 31, 2022 | |
Mineral Properties | |
Mineral Properties | 5. Mineral Properties Mineral properties at December 31, 2022 and 2021 are as follows: 2022 2021 Golden Chest Mineral Property $ 4,088,462 $ 4,050,735 Infrastructure 1,722,028 1,056,037 Total Golden Chest 5,810,490 5,106,772 New Jersey 248,289 248,289 McKinley-Monarch 200,000 200,000 Butte Gulch 124,055 124,055 Potosi 150,385 150,385 Park Copper 78,000 78,000 Less accumulated amortization (83,658 ) (64,315 ) Total $ 6,527,561 $ 5,843,186 For the years ended December 31, 2022 and 2021, $48,281 and $49,273, respectively, of interest expense was capitalized in association with the ramp access project at the Golden Chest. Golden Chest The Golden Chest is an open pit and underground mine project currently producing for the Company located near Murray, Idaho consisting of 86 patented and 217 unpatented mining claims. A 2% Net Smelter Royalty is payable on production at certain portions of the Golden Chest to a former joint venture partner. Royalty expense of $181,300 and $151,763 was recognized as costs of sales and other direct production costs in the years ended December 31, 2022, and 2021, respectively. 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. McKinley-Monarch The McKinley-Monarch project is located near the town of Lucille, Idaho. The project consists of 28 unpatented claims totaling 560 acres. The Company started exploring the property in 2013. Butte Gulch In 2018, the Company purchased the Butte Gulch property near its Golden Chest mine. This property consists of 177 acres of patented mining claims some of which include both the surface and mineral rights and some of which include only the mineral rights. There is an underlying 2% net smelter return on all ores mined and shipped from any lode production from the patented claims on the Butte property. Potosi In 2018, the Company purchased the Potosi property near its Golden Chest mine. This property consists of 71 acres of patented mining claims. Park Copper In August 2021, the Company paid $78,000 in cash for 100 acres of patented mineral property in Shoshone County referred to as Park Copper. |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2022 | |
Notes Payable | |
Notes Payable | 6. Notes Payable At December 31, 2022 and 2021, notes payable are as follows: 2022 2021 Building in Salmon, Idaho, 60-month note payable, 7.00% interest rate payable monthly through June 2027, monthly payments of $2,500 with a balloon payment of $260,886 in July 2027 $ 306,084 $ - Resemin Muki Bolter, 36-month note payable, 7.00% interest rate payable monthly through January 2025, monthly payments of $14,821 345,268 - Paus 2 yrd. LHD, 60-month note payable, 4.78% interest rate payable through October 2024, monthly payments of $5,181 108,904 164,422 Paus 2 yrd. LHD, 60-month note payable, 3.45% interest rate payable through July 2024, monthly payments of $4,847 89,493 143,547 Compressor, 48-month note payable, 5.25% interest rate payable monthly through January 2022, monthly payments of $813 - 410 CarryAll transport, 36-month note payable, 4.5% interest rate payable monthly through June 2024, monthly payments of $627 10,891 17,752 CarryAll transport, 36-month note payable, 4.5% interest rate payable monthly through February 2024, monthly payments of $303 4,130 7,501 Two CarryAll transports, 36-month note payable, 6.3% interest rate payable monthly through May 2025, monthly payments of $1,515 40,687 - CarryAll transport, 36-month note payable, 6.3% interest rate payable monthly through June 2025, monthly payments of $866 23,987 - Atlas Copco loader, 60-month note payable, 10.5% interest rate payable monthly through June 2023, monthly payments of $3,550 20,660 58,866 Sandvik LH203 LHD, 36-month note payable, 4.5% interest rate payable monthly through May 2024, monthly payments of $10,352 170,182 283,955 Sandvik LH202 LHD, 36-month note payable, 6.9% interest rate payable monthly through August 2025, monthly payments of $4,933 143,812 - Doosan Compressor, 36-month note payable, 6.99% interest rate payable monthly through July 2024, monthly payments of $602 10,820 17,064 Caterpillar 306 excavator, 48-month note payable, 4.6% interest rate payable monthly through November 2024, monthly payments of $1,512 33,216 49,421 Caterpillar 938 loader, 60-month note payable, 6.8% interest rate payable monthly through August 2023, monthly payments of $3,751 29,256 70,734 Caterpillar R1600 LHD, 48-month note payable, 4.5% interest rate payable through January 2025, monthly payments of $17,125 407,909 590,535 Caterpillar AD22 haul truck, 48-month note payable, 6.45% interest rate payable monthly through June 2023, monthly payments of $12,979 76,287 221,694 Small Business Administration EIDL 30 year note payable, 3.75% interest payable monthly through December 2054, monthly payments of $731 163,287 169,211 2022 Dodge Ram, 75-month note payable, 5.99% interest rate payable monthly through June 2028, monthly payments of $1,152 64,648 - 2016 Dodge Ram, 75-month note payable, 5.99% interest rate payable monthly through June 2028, monthly payments of $1,190 66,758 - 2020 Ford Transit Van, 72-month note payable, 9.24% interest rate payable monthly through December 2028, monthly payments of $1,060 58,182 - Total notes payable 2,174,461 1,795,112 Due within one year 859,393 666,622 Due after one year $ 1,315,068 $ 1,128,490 All notes are collateralized by the property or equipment purchased in connection with each note. Future principal payments of debt at December 31, 2022 are as follows: 2023 $ 859,393 2024 654,190 2025 130,164 2026 48,879 2027 307,218 2028 29,163 thereafter 145,454 Total $ 2,174,461 In the second quarter of 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 began in November 2022. At December 31, 2022 and 2021 accrued interest on the loan was $13,925 and $9,311, respectively and is included in the Small Business Administration Loan balance on the previous page. In the second quarter of 2022, it was determined that an additional $10,000 also received in the second quarter of 2020 was a grant that was forgiven as part of the Covid-19 relief program. This $10,000 was recorded as a gain on forgiveness of the SBA loan in the statement of operations during the second quarter of 2022. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligations | |
Asset Retirement Obligations | 7. Asset Retirement Obligations 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. 2022 2021 Balance at January 1 $ 172,348 $ 173,001 Accretion expense 12,691 9,953 Change in asset retirement obligation estimate 77,178 (10,606 ) Balance at December 31 $ 262,217 $ 172,348 The change in the asset retirement obligation estimate during the year ended December 31, 2022 related to the addition of and asset retirement obligation with our New Jersey Mill Tailings expansion and a revision to the estimated start of the reclamation process to a later date at our Golden Chest properties. The change in the asset retirement obligation estimate during the year ended December 31, 2021 related to a revision to the estimated start of the reclamation process to a later date at our Golden Chest properties. |
Joint Venture Arrangements
Joint Venture Arrangements | 12 Months Ended |
Dec. 31, 2022 | |
Joint Venture Arrangements | |
Joint Venture Arrangements | 8. Joint Venture Arrangements New Jersey Mill Venture Agreement (“NJMJV”) In January 2011, the Company and United Mine Services, Inc. (“UMS”) now Crescent Silver, LLC (Crescent) 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 Crescent 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. No ore has been milled for Crescent in the last two years. As of December 31, 2022 and 2021, an account receivable existed with the Mill Joint Venture from Crescent for $1,926 and $4,442, respectively. 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 venture’s activities, it will account for its investment on a cost basis. |
Investment in Buckskin
Investment in Buckskin | 12 Months Ended |
Dec. 31, 2022 | |
Investment in Buckskin | |
Investment in Buckskin | 9. Investment in Buckskin In August 2021 the Company exchanged 45,940 shares of the Company’s common stock for 22% of Buckskin Gold and Silver Inc. (“Buckskin”). The Company’s closing share price on the date of the agreement (August 18, 2021) was recorded as the cost basis for the investment. In October 2021 the Company exchanged an additional 30,358 shares of the Company’s common stock for an additional 15% of Buckskin. The Company’s closing share price on the date of the exchange (October 15, 2021) was recorded as the cost basis for the investment addition. This investment in Buckskin is being accounted for using the equity method and resulted in recognition of equity income on the investment of $1,524 and $3,782 during the years ended December 31, 2022 and 2021, respectively. The Company makes an annual payment of $12,000 to Buckskin per a lease covering 218 acres of patented mining claims. As of December 31, 2022, the Company holds 37% of Buckskins outstanding shares. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes | |
Income Taxes | 10. Income Taxes The Company did not recognize a provision (benefit) for income taxes for the years ended December 31, 2022 and 2021. The significant components of net deferred tax assets at December 31, 2022 and 2021 were as follows: 2022 2021 Deferred tax assets Net operating loss carry forward $ 5,315,200 $ 4,796,000 Mineral properties 235,500 241,300 Asset retirement obligation - 4,600 Stock based compensation 629,000 503,400 Other 25,600 16,800 Total deferred tax assets 6,205,300 5,562,100 Valuation allowance (4,999,500 ) (4,017,800 ) 1,205,800 1,544,300 Deferred tax liabilities Property, plant, and equipment (1,204,300 ) (1,544,300 ) Asset retirement obligation (1,500 ) - Total deferred tax liabilities (1,205,800 ) (1,544,300 ) Net deferred tax assets $ - $ - At December 31, 2022 and 2021, the Company had net deferred tax assets principally arising from the net operating loss carryforward for income tax purposes. 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, 2022 and 2021. At December 31, 2022, the Company had net operating loss carry forwards of approximately $20,778,000 for both federal and state purposes, $11,100,000 of which expire between 2021 through 2037. The remaining balance of $9,678,000 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, 2022 and 2021 differ from the statutory rate of 21% as follows: 2022 2021 Provision (benefit) at statutory rate for the period $ (552,500 ) $ (683,600 ) State taxes, net of federal taxes (144,000 ) (178,200 ) Change in state tax rate 173,700 57,000 Adjustment of prior year tax estimates (458,900 ) 73,100 Increase (decrease) in valuation allowance 981,700 731,700 Total provision (benefit) $ - $ - The Company is open to examination of our income tax filings in the United States and state jurisdictions for the 2020 through 2022 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. The Company has reviewed its tax positions and believes it has not taken a position that would not be sustained under examination. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity | |
Equity | 11. Equity The Company has authorized 200,000,000 shares of no-par common stock at December 31, 2022 and 2021. In addition, the Company has authorized 1,000,000 shares of no-par preferred stock, none of which had been issued at December 31, 2022 or 2021. S tock Purchase Warrants Outstanding Transactions in common stock purchase warrants for the years ended December 31, 2022 and 2021 are as follows: Number of Warrants Exercise Prices Balance December 31, 2020 426,788 $2.52-5.60 Issued 289,294 $5.60-7.00 Exercised (46,615 ) $ 2.52 Balance December 31, 2021 669,467 $2.52-7.00 Expired (185,304 ) $2.52-5.60 Exercised (194,869 ) $2.52-5.60 Balance December 31, 2022 289,294 $5.60-7.00 These warrants expire as follows: Shares Exercise Price Expiration Date 235,722 $ 5.60 October 14, 2023 53,572 $ 7.00 November 12, 2023 289,294 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 in total as calculated at that time. In September 2022, the board granted 165,000 stock options to officers, board members and employees. These options vested immediately and are exercisable at $5.25 for 3 years. Total stock-based compensation recognized on these options was $505,476 and was recognized in management ($64,333), professional services ($27,571), and general and administrative ($413,572) expenses in the consolidated statement of operations. In September 2022, the board granted an additional 15,000 stock options, 7,500 each to our independent board members. These options vested immediately and are exercisable at $4.75 for 3 years. Total stock-based compensation recognized on these options was $41,799 and was recognized in management expenses in the consolidated statement of operations. In February 2021, the board granted 283,936 stock options to officers, board members, and employees. These options vested immediately and are exercisable at $5.60 for 3 years. Total stock-based compensation recognized on these options was $604,572 and was recognized in management ($147,457), professional services ($44,237), and general and administrative ($412,878) expenses in the consolidated statement of operations. In March 2021, the Company granted 3,572 stock options to an individual for services rendered to the Company. These options vested immediately and are exercisable at $5.60 for 3 years. Total stock-based compensation recognized on these options was $9,860. In October 2021 the Company granted 182,166 stock options to officers, board members, and employees. These options vested immediately and are exercisable at $5.60 for 3 years. Total stock-based compensation recognized on these options was $473,143 and was recognized in management ($92,772), professional services ($27,832), and general and administrative ($352,539) expenses in the consolidated statement of operations. An additional 32 options were recorded in 2021 representing fractional share issuances related to the 1-14 reverse stock split. The 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: February 11, 2021 March 15, 2021 October 20, 2021 September 6, 2022 September 28, 2022 Fair value $604,572 $9,860 $473,143 $505,476 $41,799 Options issued 283,936 3,572 182,166 165,000 15,000 Exercise price $5.60 $5.60 $5.60 $5.25 $4.75 Expected term (in years) 3.0 3.0 3.0 3.0 3.0 Risk-free rate 0.19% 0.33% 0.70% 3.55% 4.12% Volatility 97.9% 99.3% 96.6% 89.3% 89.2% Transactions in stock options for the years ended December 31, 2022, and 2021 are as follows: Number of Options Weighted Average Exercise Prices Balance December 31, 2020 150,000 $ 1.83 Granted 469,674 $ 5.53 Exercised (101,786 ) $ 1.87 Forfeited (10,713 ) $ 5.60 Balance December 31, 2021 507,175 $ 5.25 Granted 180,000 $ 5.21 Exercised (116,078 ) $ 4.31 Expired (7,143 ) $ 1.96 Forfeited (28,001 ) $ 5.56 Balance December 31, 2022 535,953 $ 5.47 Outstanding and exercisable at December 31, 2022 535,953 $ 5.47 At December 31, 2022 and 2021, the outstanding stock options have an intrinsic value of approximately $123,045 ($1,108,000 in 2021) and have a weighted average remaining term of 1.82 years (2.2 in 2021). Cashless options exercised in the year ended December 31, 2022 had an intrinsic value of $677,928 ($445,290 in 2021). |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions | |
Related Party Transactions | 12. Related Party Transactions At December 31, 2022 and 2021, the Company had a note payable to Ophir Holdings, LLC, a company owned by two officers and one former officer of the Company, at 6% interest, with monthly payments of $3,777 and a balloon payment of $60,871 in February 2024 The balance due on the note was $75,183 and $116,611 at December 31, 2022 and 2021, respectively. At December 31, 2022, $12,226 of related party debt is payable in 2023 and the remaining $62,957 is payable in 2024. Related party interest expense for the years ending December 31, 2022 and 2021 was $3,901 and $7,627, respectively. No interest was accrued at the end of either period. The Company leases office space from certain related parties on a month-to-month basis. Payments under these short-term lease arrangements totaled $24,868 and $25,008 for the years ended December 31, 2022 and 2021, respectively, and are included in general and administrative expenses on the consolidated statement of operations. |
Sales of Products
Sales of Products | 12 Months Ended |
Dec. 31, 2022 | |
Sales of Products | |
Sales of Products | 13. Sales of Products Our products consist of both gold flotation concentrates which in 2021 and 2022 we sold to a broker (H&H Metals), 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 Metals based on contractual terms. Based on contractual terms, the Company has determined the performance obligation is met and title is transferred to H&H Metals 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 Metals, and H&H Metals has the significant risks and rewards of ownership to it, 4) it is very unlikely a concentrate will be rejected by H&H Metals 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 Metals 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 can 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, 2022, metals that had been sold but not final settled included 5,361 ounces of gold of which 2,500 ounces were sold at a predetermined price with the remaining 2,861 ounces exposed to future price changes. 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 Metals, 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, 2022 and 2021 were as follows: 2022 2021 Gold $ 10,173,034 $ 8,156,948 Silver 25,370 24,689 Less: Smelter and refining charges (618,215 ) (551,221 ) Total $ 9,580,189 $ 7,630,416 Sales by significant product type for the years ended December 31, 2022 and 2021 were as follows: 2022 2021 Concentrate sales to H&H Metals $ 9,276,573 $ 7,285,651 Dore’ sales to refineries 303,616 344,765 Total $ 9,580,189 $ 7,630,416 In 2022, floatation concentrates sold to H&H Metals accounted 97% of all gold sales. The remaining 3% in 2022 was doré sold to a third party. In 2021, floatation concentrates sold to H&H Metals accounted 95% of all gold sales. The remaining 5% in 2021was doré sold to a third party. At December 31, 2022 and 2021, our gold sales receivable balance related to contracts with customers of $909,997 and $408,187, respectively, consist only of amounts due from H&H Metals. 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. |
Convertible Debt
Convertible Debt | 12 Months Ended |
Dec. 31, 2022 | |
Convertible Debt | |
Convertible Debt | 14. Convertible Debt In July 2020, the Company issued a convertible promissory note for a principal balance of $200,000 which funds were utilized for the purchase of a new jumbo underground drill. The note was collateralized by the drill. The outstanding principal amount of the note bore 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 was convertible at the option of the note holder into shares of the Company’s common stock at a price of $5.60 per share (35,715 shares) prior to the maturity date of the note. Interest expense for this note was $4,000 and $12,000 for the years ended December 31, 2022 and 2021, respectively. This note was converted to Common shares as provided in the agreement in March 2022. In March 2021, the Company issued convertible promissory notes of $1,750,000 from which funds were utilized for the purchase of an addition to the Golden Chest property. The notes were collateralized by the property as well as other unencumbered real property that the Company currently owns. The outstanding principal amount of the notes bore interest at an annual rate of 8.0% with interest payments due monthly and the principal due in March 2024. The principal amount of the notes was convertible at the option of the note holders into shares of the Company’s common stock at a price of $4.90 per share (357,151 shares) prior to the maturity date of the notes. Interest expense for this note was $34,521 and $109,775 for the years ended December 31, 2022 and 2021, respectively. These notes were converted to Common shares as provided in the agreement in March 2022. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events | |
Subsequent Events | 15. Subsequent Events The Company closed a private placement in February 2023. Under the private placement, the Company sold 123,365 shares at $5.50 per share and 35,088 shares at $5.70 for net proceeds of $878,509. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
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 another investor is presented as non-controlling interest on the consolidated balance sheets, statements of operations, and statement of changes in stockholders’ equity. |
Accounting for Investments in Joint Ventures and Equity Method Investments | Investment in Joint Ventures For joint ventures where the Company holds more than 50% of the voting interest and has significant influence, the joint venture is consolidated with the presentation of non-controlling interest. In determining whether significant influence exists, the Company considers its participation in policy-making decisions and its representation on the venture’s management committee. For joint ventures in which the Company does not have joint control or significant influence, the cost method is used. For those joint ventures in which there is joint control between the parties, the equity method is utilized whereby the Company’s share of the ventures’ earnings and losses is included in the statement of operations as earnings in joint ventures and its investments therein are adjusted by a similar amount. The Company periodically assesses its investments in joint ventures for impairment. If management determines that a decline in fair value is other than temporary it will write-down the investment and charge the impairment against operations. Equity Method Investments Investments in companies and joint ventures in which we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting. In determining whether significant influence exists, the Company considers its participation in policy-making decisions and representation on governing bodies. Under the equity method of accounting, our share of the net earnings or losses of the investee are included in net income (loss) in the consolidated statements of operations. Upon investment, the Company assesses whether a step up in basis of the investee’s net assets has occurred and, if so, adjust our share of net earnings or losses by related depreciation and amortization expense. We evaluate equity method investments whenever events or changes in circumstance indicate the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. As changes in ownership percentage of our investments occur, the Company assesses whether we can exercise significant influence and account for under the equity method. If our ownership percentage of the company or venture in which we have an investment changes, we recognize a gain or loss on the investment in the period of change. At December 31, 2022, the Company's 37% common stock holding of Buckskin Gold and Silver, Inc. is accounted for using the equity method (Note 9). At December 31, 2022 and 2021, the Company’s percentage ownership and method of accounting for each joint venture and equity method investment is as follows: December 31, 2022 December 31, 2021 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 Buckskin Gold and Silver 37% Yes Equity 37% Yes Equity |
Non-controlling Interest | Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the Company’s stockholders’ equity and its net income (loss). Non-controlling interests represent non-controlling investor’s 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 mineral reserves, 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. Estimates are based on historical experience and various other assumptions that the Company believes to be reasonable. Actual results could differ from those estimates. |
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 13 for more information on our sales of products. 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 first-in, first-out weighted average cost or estimated net realizable value. |
Income Taxes | Income taxes are recognized in accordance with Accounting Standards Codification (“ASC”) 740 Income Taxes, whereby deferred income tax liabilities or assets at the end of each period are determined using the tax rate expected to be in effect when the taxes are actually paid or recovered. A valuation allowance is recognized on deferred tax assets when it is more likely than not that some or all of these deferred tax assets will not be realized. 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, 2022 and 2021, 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, notes payable to related parties, and notes payable approximate their fair values. The fair value of the convertible notes payable at December 31, 2021 was $2,922,923 based on the convertible rate and the trading price of the Company’s stock at December 31, 2021. No convertible debt was outstanding on December 31, 2022. |
Net Income (Loss) Per Share | Net income (loss) per share is computed by dividing net income (loss) attributable to the Company 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 years ended December 31, 2022, and 2021, potentially dilutive common stock equivalents excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive are as follows: December 31, 2022 December 31, 2021 Stock options 535,953 507,175 Stock purchase warrants 289,294 669,467 Convertible debt - 392,866 Total 825,247 1,569,508 |
Reclassifications | Certain prior period amounts have been reclassified to conform to the 2022 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. These deposit balances may at times exceed federally insured limits. No losses have been recognized because of these balances. |
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 Company’s 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. |
Interest Capitalization | When capital projects are funded within the reporting period for which cash is paid which could have been used for debt reduction an amount equal to a weighted average interest rate of qualifying outstanding debt of the capital project expenditure in interest expense is capitalized. |
Mine Exploration and Development Costs | The Company expenses exploration costs as such in the period they occur. The mine development stage begins once the Company identifies ore reserves which is based on a determination whether an ore body can be economically developed. Expenditures incurred during the development stage are capitalized as deferred development costs and include such costs for drifts, ramps, and infrastructure. Costs to improve, alter, or rehabilitate primary development assets which appreciably extend the life, increase capacity, or improve the efficiency or safety of such assets are also capitalized. The development stage ends when the production stage of ore reserves begins. Amortization of deferred development costs is calculated using the units-of-production method over the expected life of the operation based on the estimated recoverable mineral ounces. |
Claim Fees | 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 specific asset group. The Company’s estimates of future cash flows are subject to risks and uncertainties. It is reasonably possible that changes in estimates could occur which may affect the expected recoverability of the Company’s 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 recognized at the present value of estimated reclamation 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. 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, 2021 the Company had a $103,320 reclamation bond for the Golden Chest Mine. In 2022 the Company added additional bonds of $132,000 associated with milling operations, and an additional $91,700 in bonds for various exploration and drilling projects for a total reclamation bond balance at December 31, 2022 of $327,020. |
Stock Based Compensation | All transactions in which goods or services are received for the issuance of shares of the Company’s common stock or options to purchase shares of common stock are measured at fair value of the equity interest issued. The fair value of common stock awards is determined based upon the closing price of the Company’s stock on the date of the award. The Company estimates the fair value of stock-based compensation of options 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 Company’s 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. Any forfeitures of stock options are recognized as they occur. |
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. |
Recent Accounting Pronouncements | Accounting Standards Updates Adopted In August 2020, No. 2020 06 470 20 815 40 December 15, 2023 for smaller reporting companies, Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies | |
Schedule of Company's ownership percentage | December 31, 2022 December 31, 2021 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 Buckskin Gold and Silver 37% Yes Equity 37% Yes Equity |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | December 31, 2022 December 31, 2021 Stock options 535,953 507,175 Stock purchase warrants 289,294 669,467 Convertible debt - 392,866 Total 825,247 1,569,508 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventories | |
Schedule of Inventory, Current | 2022 2021 Concentrate inventory In process $ 111,741 $ 41,082 Finished goods 111,574 97,074 Total concentrate inventory 223,315 138,156 Supplies inventory Mine parts and supplies 233,465 54,998 Mill parts and supplies 83,963 20,568 Core drilling supplies and materials 77,570 - Total supplies inventory 394,998 75,566 Total $ 618,313 $ 213,722 |
Property Plant and Equipment (T
Property Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property Plant and Equipment | |
Property, Plant and Equipment | 2022 2021 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 (1,249,445 ) (1,085,730 ) Total mill 3,704,977 3,868,692 Buildings and equipment Buildings 611,382 324,075 Equipment 6,927,474 5,042,915 7,538,856 5,366,990 Less accumulated depreciation (2,324,679 ) (1,847,191 ) Total building and equipment 5,214,177 3,519,799 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 Salmon property 136,762 - Total land 1,004,232 867,470 Total $ 9,923,386 $ 8,255,961 |
Mineral Properties (Tables)
Mineral Properties (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Mineral Properties | |
Schedule of mineral properties | 2022 2021 Golden Chest Mineral Property $ 4,088,462 $ 4,050,735 Infrastructure 1,722,028 1,056,037 Total Golden Chest 5,810,490 5,106,772 New Jersey 248,289 248,289 McKinley-Monarch 200,000 200,000 Butte Gulch 124,055 124,055 Potosi 150,385 150,385 Park Copper 78,000 78,000 Less accumulated amortization (83,658 ) (64,315 ) Total $ 6,527,561 $ 5,843,186 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Payable | |
Schedule of notes payable | 2022 2021 Building in Salmon, Idaho, 60-month note payable, 7.00% interest rate payable monthly through June 2027, monthly payments of $2,500 with a balloon payment of $260,886 in July 2027 $ 306,084 $ - Resemin Muki Bolter, 36-month note payable, 7.00% interest rate payable monthly through January 2025, monthly payments of $14,821 345,268 - Paus 2 yrd. LHD, 60-month note payable, 4.78% interest rate payable through October 2024, monthly payments of $5,181 108,904 164,422 Paus 2 yrd. LHD, 60-month note payable, 3.45% interest rate payable through July 2024, monthly payments of $4,847 89,493 143,547 Compressor, 48-month note payable, 5.25% interest rate payable monthly through January 2022, monthly payments of $813 - 410 CarryAll transport, 36-month note payable, 4.5% interest rate payable monthly through June 2024, monthly payments of $627 10,891 17,752 CarryAll transport, 36-month note payable, 4.5% interest rate payable monthly through February 2024, monthly payments of $303 4,130 7,501 Two CarryAll transports, 36-month note payable, 6.3% interest rate payable monthly through May 2025, monthly payments of $1,515 40,687 - CarryAll transport, 36-month note payable, 6.3% interest rate payable monthly through June 2025, monthly payments of $866 23,987 - Atlas Copco loader, 60-month note payable, 10.5% interest rate payable monthly through June 2023, monthly payments of $3,550 20,660 58,866 Sandvik LH203 LHD, 36-month note payable, 4.5% interest rate payable monthly through May 2024, monthly payments of $10,352 170,182 283,955 Sandvik LH202 LHD, 36-month note payable, 6.9% interest rate payable monthly through August 2025, monthly payments of $4,933 143,812 - Doosan Compressor, 36-month note payable, 6.99% interest rate payable monthly through July 2024, monthly payments of $602 10,820 17,064 Caterpillar 306 excavator, 48-month note payable, 4.6% interest rate payable monthly through November 2024, monthly payments of $1,512 33,216 49,421 Caterpillar 938 loader, 60-month note payable, 6.8% interest rate payable monthly through August 2023, monthly payments of $3,751 29,256 70,734 Caterpillar R1600 LHD, 48-month note payable, 4.5% interest rate payable through January 2025, monthly payments of $17,125 407,909 590,535 Caterpillar AD22 haul truck, 48-month note payable, 6.45% interest rate payable monthly through June 2023, monthly payments of $12,979 76,287 221,694 Small Business Administration EIDL 30 year note payable, 3.75% interest payable monthly through December 2054, monthly payments of $731 163,287 169,211 2022 Dodge Ram, 75-month note payable, 5.99% interest rate payable monthly through June 2028, monthly payments of $1,152 64,648 - 2016 Dodge Ram, 75-month note payable, 5.99% interest rate payable monthly through June 2028, monthly payments of $1,190 66,758 - 2020 Ford Transit Van, 72-month note payable, 9.24% interest rate payable monthly through December 2028, monthly payments of $1,060 58,182 - Total notes payable 2,174,461 1,795,112 Due within one year 859,393 666,622 Due after one year $ 1,315,068 $ 1,128,490 |
Schedule of future principal payment of debt | 2023 $ 859,393 2024 654,190 2025 130,164 2026 48,879 2027 307,218 2028 29,163 thereafter 145,454 Total $ 2,174,461 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligations | |
Schedule of Asset Retirement Obligations | 2022 2021 Balance at January 1 $ 172,348 $ 173,001 Accretion expense 12,691 9,953 Change in asset retirement obligation estimate 77,178 (10,606 ) Balance at December 31 $ 262,217 $ 172,348 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes | |
Schedule of Deferred Tax Assets and Liabilities | 2022 2021 Deferred tax assets Net operating loss carry forward $ 5,315,200 $ 4,796,000 Mineral properties 235,500 241,300 Asset retirement obligation - 4,600 Stock based compensation 629,000 503,400 Other 25,600 16,800 Total deferred tax assets 6,205,300 5,562,100 Valuation allowance (4,999,500 ) (4,017,800 ) 1,205,800 1,544,300 Deferred tax liabilities Property, plant, and equipment (1,204,300 ) (1,544,300 ) Asset retirement obligation (1,500 ) - Total deferred tax liabilities (1,205,800 ) (1,544,300 ) Net deferred tax assets $ - $ - |
Schedule of income tax provision | 2022 2021 Provision (benefit) at statutory rate for the period $ (552,500 ) $ (683,600 ) State taxes, net of federal taxes (144,000 ) (178,200 ) Change in state tax rate 173,700 57,000 Adjustment of prior year tax estimates (458,900 ) 73,100 Increase (decrease) in valuation allowance 981,700 731,700 Total provision (benefit) $ - $ - |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity | |
Common Stock Purchase Warrant Transactions | Number of Warrants Exercise Prices Balance December 31, 2020 426,788 $2.52-5.60 Issued 289,294 $5.60-7.00 Exercised (46,615 ) $ 2.52 Balance December 31, 2021 669,467 $2.52-7.00 Expired (185,304 ) $2.52-5.60 Exercised (194,869 ) $2.52-5.60 Balance December 31, 2022 289,294 $5.60-7.00 |
Warrant Expirations | Shares Exercise Price Expiration Date 235,722 $ 5.60 October 14, 2023 53,572 $ 7.00 November 12, 2023 289,294 |
fair value of stock option awards granted | February 11, 2021 March 15, 2021 October 20, 2021 September 6, 2022 September 28, 2022 Fair value $604,572 $9,860 $473,143 $505,476 $41,799 Options issued 283,936 3,572 182,166 165,000 15,000 Exercise price $5.60 $5.60 $5.60 $5.25 $4.75 Expected term (in years) 3.0 3.0 3.0 3.0 3.0 Risk-free rate 0.19% 0.33% 0.70% 3.55% 4.12% Volatility 97.9% 99.3% 96.6% 89.3% 89.2% |
Share-based Compensation, Stock Options, Activity | Number of Options Weighted Average Exercise Prices Balance December 31, 2020 150,000 $ 1.83 Granted 469,674 $ 5.53 Exercised (101,786 ) $ 1.87 Forfeited (10,713 ) $ 5.60 Balance December 31, 2021 507,175 $ 5.25 Granted 180,000 $ 5.21 Exercised (116,078 ) $ 4.31 Expired (7,143 ) $ 1.96 Forfeited (28,001 ) $ 5.56 Balance December 31, 2022 535,953 $ 5.47 Outstanding and exercisable at December 31, 2022 535,953 $ 5.47 |
Sales of Products (Tables)
Sales of Products (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Sales of Products | |
Schedule of sales of products by metal | 2022 2021 Gold $ 10,173,034 $ 8,156,948 Silver 25,370 24,689 Less: Smelter and refining charges (618,215 ) (551,221 ) Total $ 9,580,189 $ 7,630,416 |
Schedule of sales by significant product type | 2022 2021 Concentrate sales to H&H Metals $ 9,276,573 $ 7,285,651 Dore’ sales to refineries 303,616 344,765 Total $ 9,580,189 $ 7,630,416 |
Description of Business (Detail
Description of Business (Details Narrative) | 12 Months Ended |
Dec. 31, 2022 | |
Description of Business | |
Entity Incorporation, Date | July 18, 1996 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Summary of Significant Accounting Policies | ||
Investment Owned, Percent of Net Assets | 65% | 65% |
Investment owned percentage of net assets 2 | 50% | 50% |
Investment owned percentage of net assets 3 | 37% | 37% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Summary of Significant Accounting Policies | ||
Stock options | 535,953 | 507,175 |
Stock purchase warrants | 289,294 | 669,467 |
Convertible debt | 0 | 392,866 |
Total | 825,247 | 1,569,508 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Summary of Significant Accounting Policies | ||
Reclamation bond | $ 132,000 | $ 103,320 |
Total Reclamation bond | $ 327,020 | |
Significant Accounting Policies description | 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 | |
Plant and Equipment description | buildings are up to 50 years and equipment life expectancy ranges between 2 and 10 years | |
Convertible notes payable | $ 2,922,923 |
Inventories (Details)
Inventories (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Total concentrate inventory | $ 223,315 | $ 138,156 |
Total supplies inventory | 394,998 | 75,566 |
Total | 618,313 | 213,722 |
Concentrate Inventory | ||
In process | 111,741 | 41,082 |
Finished Goods | ||
Finished goods | 111,574 | 97,074 |
Mine Parts And Supplies | ||
Mine parts and supplies | 233,465 | 54,998 |
Mill Parts And Supplies | ||
Mine parts and supplies | 83,963 | 20,568 |
Core drilling supplies and materials | ||
Mine parts and supplies | $ 77,570 | $ 0 |
Property Plant and Equipment (D
Property Plant and Equipment (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Property Plant and Equipment | ||
Mill land | $ 225,289 | $ 225,289 |
Mill building | 536,193 | 536,193 |
Milling equipment | 4,192,940 | 4,192,940 |
Mill property and equipment gross | 4,954,422 | 4,954,422 |
Mill less accumulated depreciation | (1,249,445) | (1,085,730) |
Total mill | 3,704,977 | 3,868,692 |
Buildings and equipment, buildings | 611,382 | 324,075 |
Buildings and equipment, equipment | 6,927,474 | 5,042,915 |
Buildings and equipment, Gross | 7,538,856 | 5,366,990 |
Buildings and equipment, accumulated depreciation | (2,324,679) | (1,847,191) |
Total building and equipment | 5,214,177 | 3,519,799 |
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 |
Salmon Building Land | 136,762 | 0 |
Total Land | 1,004,232 | 867,470 |
Total | $ 9,923,386 | $ 8,255,961 |
Mineral Properties (Details)
Mineral Properties (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Mineral Properties | ||
Golden Chest Mineral Property | $ 4,088,462 | $ 4,050,735 |
Infrastructure | 1,722,028 | 1,056,037 |
Total Golden Chest | 5,810,490 | 5,106,772 |
Mineral Properties 1 | 248,289 | 248,289 |
Mineral Properties 2 | 200,000 | 200,000 |
Mineral Properties 3 | 124,055 | 124,055 |
Mineral Properties 4 | 150,385 | 150,385 |
Mineral Properties 5 | 78,000 | 78,000 |
Mineral properties amortization | (83,658) | (64,315) |
Total | $ 6,527,561 | $ 5,843,186 |
Mineral Properties (Details Nar
Mineral Properties (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Interest expense | $ 48,281 | $ 49,273 |
Mckinley | ||
Mineral property description | The McKinley-Monarch project is located near the town of Lucille, Idaho. The project consists of 28 unpatented claims totaling 560 acres. The Company started exploring the property in 2013 | |
Park Copper | ||
Mineral property description | In August 2021, the Company paid $78,000 in cash for 100 acres of patented mineral property in Shoshone County referred to as Park Copper | |
Golden Chest | ||
Mineral property description | The Golden Chest is an open pit and underground mine project currently producing for the Company located near Murray, Idaho consisting of 86 patented and 217 unpatented mining claims. A 2% Net Smelter Royalty is payable on production at certain portions of the Golden Chest to a former joint venture partner. Royalty expense of $181,300 and $151,763 was recognized as costs of sales and other direct production costs in the years ended December 31, 2022, and 2021, respectively. | |
Butte Gulch | ||
Mineral property description | In 2018, the Company purchased the Butte Gulch property near its Golden Chest mine. This property consists of 177 acres of patented mining claims some of which include both the surface and mineral rights and some of which include only the mineral rights. There is an underlying 2% net smelter return on all ores mined and shipped from any lode production from the patented claims on the Butte property | |
Potosi | ||
Mineral property description | In 2018, the Company purchased the Potosi property near its Golden Chest mine. This property consists of 71 acres of patented mining claims | |
New Jersey | ||
Mineral property description | The Coleman property is located at the New Jersey Mine area of interest and consists of 62 acres of patented mining claims, mineral rights to 108 acres of fee land, 80 acres of land for which the Company owns the surface but not the mineral rights, and approximately 130 acres of unpatented mining claims |
Notes Payable (Details)
Notes Payable (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Total notes payable | $ 2,174,461 | $ 1,795,112 |
Due within one year | 859,393 | 666,622 |
Due after one year | 1,315,068 | 1,128,490 |
Note Payable through June 2027 [Member] | ||
Total notes payable | 306,084 | 0 |
Monthly payment | 2,500 | |
Ballon payment | $ 260,886 | |
Interest rate | 7% | |
Note Payable through January 2025 [Member] | ||
Total notes payable | $ 345,268 | 0 |
Monthly payment | $ 14,821 | |
Interest rate | 7% | |
Note Payable through October 2024 [Member] | ||
Total notes payable | $ 108,904 | 164,422 |
Monthly payment | $ 5,181 | |
Interest rate | 4.78% | |
Note Payable through July 2024 [Member] | ||
Total notes payable | $ 89,493 | 143,547 |
Monthly payment | $ 4,847 | |
Interest rate | 3.45% | |
Note Payable through January 2022 [Member] | ||
Total notes payable | $ 0 | 410 |
Monthly payment | $ 813 | |
Interest rate | 5.25% | |
Note Payable through June 2024 [Member] | ||
Total notes payable | $ 10,891 | 17,752 |
Monthly payment | $ 627 | |
Interest rate | 4.50% | |
Note Payable through February 2024 [Member] | ||
Total notes payable | $ 4,130 | 7,501 |
Monthly payment | $ 303 | |
Interest rate | 4.50% | |
Note Payable through May 2025 [Member] | ||
Total notes payable | $ 40,687 | 0 |
Monthly payment | $ 1,515 | |
Interest rate | 6.30% | |
Note Payable through June 2023 [Member] | ||
Total notes payable | $ 20,660 | 58,866 |
Monthly payment | $ 3,550 | |
Interest rate | 10.50% | |
Note Payable through June 2025 [Member] | ||
Total notes payable | $ 23,987 | 0 |
Monthly payment | $ 866 | |
Interest rate | 6.30% | |
Note Payable through May 2024 [Member] | ||
Total notes payable | $ 170,182 | 283,955 |
Monthly payment | $ 10,352 | |
Interest rate | 4.50% | |
Note Payable through August 2025 [Member] | ||
Total notes payable | $ 143,812 | 0 |
Monthly payment | $ 4,933 | |
Interest rate | 6.90% | |
Two Note Payable through July 2024 [Member] | ||
Total notes payable | $ 10,820 | 17,064 |
Monthly payment | $ 602 | |
Interest rate | 6.99% | |
Note Payable through November 2024 [Member] | ||
Total notes payable | $ 33,216 | 49,421 |
Monthly payment | $ 1,512 | |
Interest rate | 4.60% | |
Note Payable through August 2023 [Member] | ||
Total notes payable | $ 29,256 | 70,734 |
Monthly payment | $ 3,751 | |
Interest rate | 6.80% | |
Two Note Payable through January 2025 [Member] | ||
Total notes payable | $ 407,909 | 590,535 |
Monthly payment | $ 17,125 | |
Interest rate | 4.50% | |
Two Note Payable through June 2023 [Member] | ||
Total notes payable | $ 76,287 | 221,694 |
Monthly payment | $ 12,979 | |
Interest rate | 6.45% | |
Note Payable through December 2054 [Member] | ||
Total notes payable | $ 163,287 | 169,211 |
Monthly payment | $ 731 | |
Interest rate | 3.75% | |
Note Payable through June 2028 [Member] | ||
Total notes payable | $ 64,648 | 0 |
Monthly payment | $ 1,152 | |
Interest rate | 5.99% | |
Two Note Payable through June 2028 [Member] | ||
Total notes payable | $ 66,758 | 0 |
Monthly payment | $ 1,190 | |
Interest rate | 5.99% | |
Note Payable through December 2028 [Member] | ||
Total notes payable | $ 58,182 | $ 0 |
Monthly payment | $ 1,060 | |
Interest rate | 9.24% |
Notes Payable (Details 1)
Notes Payable (Details 1) | Dec. 31, 2022 USD ($) |
Notes Payable | |
2023 | $ 859,393 |
2024 | 654,190 |
2025 | 130,164 |
2026 | 48,879 |
2027 | 307,218 |
2028 | 29,163 |
Thereafter | 145,454 |
Total | $ 2,174,461 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - SBA loan - USD ($) | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2022 | May 16, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Additional grant on Forgiveness | $ 10,000 | |||
Proceeds from Loans | $ 149,900 | |||
Gain on forgiveness | 10,000 | |||
Payments | $ 731 | |||
Accrued interest | $ 13,925 | $ 9,311 | ||
Interest rate | 3.75% |
Asset Retirement Obligation Sch
Asset Retirement Obligation Schedule of Asset Retirement Obligations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated Balance Sheets | ||
Beginning balance | $ 172,348 | $ 173,001 |
Accretion Expense | 12,691 | 9,953 |
Change in asset retirement obligation estimate | 77,178 | (10,606) |
Ending balance | $ 262,217 | $ 172,348 |
Joint Ventures (Details Narrati
Joint Ventures (Details Narrative) - USD ($) | 1 Months Ended | |||
Jan. 29, 2016 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 31, 2011 | |
Joint venture receivable | $ 7,000 | $ 3,000 | ||
New Jersey Mill | ||||
Ownership rate | 35% | |||
Funding provide to expand | $ 320,000 | |||
Joint venture receivable | $ 1,926 | $ 4,442 | ||
Fess receive per tonne | $ 2.50 | |||
Butte Highlands JV, LLC | ||||
Ownership rate | 50% | |||
Total coonsideration | $ 435,000 | |||
Development costs | $ 2,000,000 |
Investment in Buckskin (Details
Investment in Buckskin (Details Narrative) - Buckskin - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Oct. 31, 2021 | Aug. 31, 2021 | |
Additional Paid in Capital, Common Stock | $ 30,358 | |||
Investment Income | $ 1,524 | $ 3,782 | ||
Annual payment | $ 12,000 | |||
Percent of common stock | 37% | |||
Additional common stock percentage | 15% | |||
Exchanged common stock | 45,940 | |||
Ownership interest | 22% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets | ||
Net operating loss carryforward | $ 5,315,200 | $ 4,796,000 |
Mineral Properties | 235,500 | 241,300 |
Asset retirement obligation | 0 | 4,600 |
Stock based compensation | 629,000 | 503,400 |
Other | 25,600 | 16,800 |
Total deferred tax assets | 6,205,300 | 5,562,100 |
Valuation allowance | (4,999,500) | (4,017,800) |
Deferred tax assets net | 1,205,800 | 1,544,300 |
Deferred tax liabilities | ||
Property, plant, and equipment | (1,204,300) | (1,544,300) |
Asset retirement obligation | 1,500 | 0 |
Total deferred tax liabilities | (1,205,800) | (1,544,300) |
Net deferred tax assets | $ 0 | $ 0 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes | ||
Provision (benefit) at statutory rate for the period | $ (552,500) | $ (683,600) |
State taxes, net of federal taxes | (144,000) | (178,200) |
Change in rate reconciliation | 173,700 | 57,000 |
Adjustment of prior year tax estimates | (458,900) | 73,100 |
Increase (decrease) in valuation allowance | 981,700 | 731,700 |
Total provision (benefit) | $ 0 | $ 0 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes | ||
Operating Loss Carryforwards expirable | $ 11,100,000 | |
Operating Loss Carryforwards | 20,778,000 | |
Operating loss carryforwards never expire | $ 9,678,000 | |
Percent of taxable income | 80% | |
Statutory rate | 21% | 21% |
Percent of deferred tax asset | 100% |
Equity (Details)
Equity (Details) - Warrant [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Beginning balance | 669,467 | 426,788 |
Warrants issued | 289,294 | |
Warrants Expired | (185,304) | |
Warrants Exercised | (194,869) | (46,615) |
Ending balance | 289,294 | 669,467 |
Maximum [Member] | ||
Beginning balance | $ 7 | $ 5.60 |
Warrants issued | 7 | |
Warrants expired | 5.60 | |
Warrants Exercised | 5.60 | 2.52 |
Ending balance | 7 | 7 |
Minimum [Member] | ||
Beginning balance | 2.52 | 2.52 |
Warrants issued | 5.60 | |
Warrants expired | 2.52 | |
Warrants Exercised | 2.52 | 0 |
Ending balance | $ 5.60 | $ 2.52 |
Equity (Details 1)
Equity (Details 1) - Warrant [Member] - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Number of shares | 289,294 | 669,467 | 426,788 |
Exercise Price 7.00 [Member] | |||
Number of shares | 53,572 | ||
Exercise price | $ 7 | ||
Warrant expiration date | Nov. 12, 2023 | ||
Exercise Price 5.60 [Member] | |||
Number of shares | 235,722 | ||
Exercise price | $ 5.60 | ||
Warrant expiration date | Oct. 14, 2023 |
Equity (Details 2)
Equity (Details 2) - USD ($) | 1 Months Ended | ||||
Sep. 06, 2022 | Mar. 15, 2021 | Feb. 11, 2021 | Sep. 28, 2022 | Oct. 20, 2021 | |
Equity | |||||
Fair value options | $ 505,476 | $ 9,860 | $ 604,572 | $ 41,799 | $ 473,143 |
Options issued | 165,000 | 3,572 | 283,936 | 15,000 | 182,166 |
Exercise price | $ 5.25 | $ 5.60 | $ 5.60 | $ 4.75 | $ 5.60 |
Expected term (in years) | 3.0 | 3.0 | 3.0 | 3.0 | 3.0 |
Risk-free rate | 3.55% | 0.33% | 0.19% | 4.12% | 0.70% |
Expected volatility | 89.30% | 99.30% | 97.90% | 89.20% | 96.60% |
Equity (Details 3)
Equity (Details 3) - $ / shares | 1 Months Ended | 12 Months Ended | |||||
Sep. 06, 2022 | Mar. 15, 2021 | Feb. 11, 2021 | Sep. 28, 2022 | Oct. 20, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock Options Granted | 165,000 | 3,572 | 283,936 | 15,000 | 182,166 | ||
Equity Option [Member] | |||||||
Beginning balance | 507,175 | 150,000 | |||||
Stock Options Granted | 180,000 | 469,674 | |||||
Warrants Exercised | (116,078) | (101,786) | |||||
Warrants Expired | (7,143) | ||||||
Stock Options Forfeited | (28,001) | (10,713) | |||||
Ending balance | 535,953 | 507,175 | |||||
Outstanding and exercisable | 535,953 | ||||||
Weighted Average Exercise Prices [Member] | |||||||
Beginning balance | $ 5.25 | $ 1.83 | |||||
Exercise price Granted | 5.21 | 5.53 | |||||
Exercise price exercised | 4.31 | 1.87 | |||||
ExerdisePriceExpired | 1.96 | ||||||
Exercise price forfeited | 5.56 | 5.60 | |||||
Ending balance | 5.47 | $ 5.25 | |||||
Excercise price exercisable | $ 5.47 |
Equity (Details Narrative)
Equity (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Sep. 06, 2022 | Mar. 15, 2021 | Feb. 11, 2021 | Sep. 28, 2022 | Oct. 20, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Professional services | $ 375,002 | $ 293,402 | |||||
Common Shares Authorized | 200,000,000 | 200,000,000 | |||||
General and administrative | $ 1,229,603 | $ 1,319,145 | |||||
Management | 322,775 | 518,011 | |||||
Stock-based compensation recognized | 547,275 | 1,087,575 | |||||
Intrinsic value | $ 677,928 | $ 445,290 | |||||
Preferred Shares Authorized | 1,000,000 | 1,000,000 | |||||
Options issued | 165,000 | 3,572 | 283,936 | 15,000 | 182,166 | ||
Exercise price | $ 5.25 | $ 5.60 | $ 5.60 | $ 4.75 | $ 5.60 | ||
Expected term (in years) | 3.0 | 3.0 | 3.0 | 3.0 | 3.0 | ||
Intrinsic Value Outstanding | $ 123,045 | $ 1,108,000 | |||||
Weighted average remaining term | 1 year 9 months 25 days | 2 years 2 months 12 days | |||||
Stock Options [Member] | |||||||
Professional services | $ 27,571 | ||||||
General and administrative | 413,572 | ||||||
Management | $ 64,333 | ||||||
Stock-based compensation recognized | $ 505,476 | $ 9,860 | $ 604,572 | $ 41,799 | $ 473,143 | ||
Options issued | 165,000 | 3,572 | 283,936 | 15,000 | 182,166 | ||
Exercise price | $ 5.25 | $ 5.60 | $ 5.60 | $ 4.75 | $ 5.60 | ||
Expected term (in years) | 3 | 3 | 3 | 3 | 3 |
Related Party Transactions Rela
Related Party Transactions Related Party expense (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Convertible debt offering related party | $ 25,000 | ||
Short-term lease arrangements | 24,868 | $ 25,008 | |
Notes payable related parties, long term | 62,957 | 106,068 | $ 117,234 |
Ophir Holdings LLC | |||
Interest Expense Related Party | $ 3,901 | 7,627 | |
Officer Interest | 6% | ||
Notes payable related parties, long term | $ 75,183 | $ 116,611 | $ 154,312 |
Monthly Payments | 3,777 | ||
Balloon Payment | 60,871 | ||
Related party debt payable | 12,226 | ||
Related party debt remaining | $ 62,957 |
Sales of Products (Details)
Sales of Products (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Sales of Products | ||
Gold sales | $ 10,173,034 | $ 8,156,948 |
Silver sales | 25,370 | 24,689 |
Smelter and refining charges | 618,215 | (551,221) |
Total | $ 9,580,189 | $ 7,630,416 |
Sales of Products (Details1)
Sales of Products (Details1) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Sales of Products | ||
Concentrate sales | $ 9,276,573 | $ 7,285,651 |
Dore sales | 303,616 | 344,765 |
Total | $ 9,580,189 | $ 7,630,416 |
Sales of Products (Details Narr
Sales of Products (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Sales of Products | ||
Gold sales receivable | $ 909,997 | $ 408,187 |
Concentrates sold to H&H Metals Corp | 95% | 3% |
Concentrates sold to third party | 97% | 5% |
Convertible Debt (Details Narra
Convertible Debt (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Notes Payble | $ 2,174,461 | $ 1,795,112 |
Interest expense | $ 48,281 | 49,273 |
Promissory note 2 | ||
Notes Payble | 1,750,000 | |
Shares contingently issuable | 357,151 | |
Interest expense | $ 34,521 | 109,775 |
Common stock at a price | $ 4.90 | |
Promissory note 1 | ||
Notes Payble | $ 200,000 | |
Shares contingently issuable | 35,715 | |
Interest expense | $ 4,000 | $ 12,000 |
Common stock at a price | $ 5.60 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] | 1 Months Ended |
Feb. 28, 2023 USD ($) $ / shares shares | |
Common stock shares sold | shares | 123,365 |
Common stock per shares | $ / shares | $ 5.50 |
Net proceeds | $ | $ 878,509 |
Shares | shares | 35,088 |
Stock per price | $ / shares | $ 5.70 |