Tombstone Exploration (TMBXF) 20-F 6 May 21 2020 FY Annual report (foreign) Financial data

Document and Entity Information

Document and Entity Information - $ / shares	12 Months Ended
	Dec. 31, 2020	May 07, 2020
Registrant CIK	0001072772
Fiscal Year End	--12-31
Document Type	20-F
Document Annual Report	true
Document Period End Date	Dec. 31, 2020
Document Transition Report	false
Document Shell Company Report	false
Entity File Number	000-29922
Entity Registrant Name	TOMBSTONE EXPLORATION CORP
Entity Incorporation, State or Country Code	Z4
Entity Address, Country	US
Entity Listing, Par Value Per Share	$ 0
Entity Common Stock, Shares Outstanding		10,980,746
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	Yes
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Principal Executive Offices
Entity Address, Address Line One	6529 E. Friess Drive
Entity Address, City or Town	Scottsdale
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85254
Entity Address, Address Description	Address of principal executive offices
Contact Person
Entity Address, Address Line One	Alan Brown
Entity Address, City or Town	Scottsdale
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85254
Entity Address, Address Description	Name, address and telephone of Company contact person
Entity Address, Address Line Two	6529 E. Friess Drive
Phone Fax Number Description	Name, address and telephone of Company contact person

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Current assets
Cash	$ 176,120	$ 466,377
Total current assets	176,120	466,377
Non-current assets
Investment in Bonanza project	2,874,972	810,000
Property and equipment	1,420	1,773
Total non-current assets	2,876,392	811,773
Total assets	3,052,512	1,278,150
Current liabilities
Accounts payable and accrued liabilities (Note 5)	40,099	84,677
Due to related parties	207,228	207,853
Notes payable, current	298,500	47,500
Total current liabilities	545,827	340,030
Notes payable, net of current portion (Note 5)	0	350,000
Total liabilities	545,827	690,030
Commitment (Note 9)	0	0
Stockholders' Equity
Common Stock, Value	27,638,254	25,026,940
Common stock issuable	160,000	27,500
Additional paid-in capital	5,339,652	4,795,431
Accumulated deficit	(30,631,221)	(29,261,751)
Total stockholders' equity	2,506,685	588,120
Total liabilities and stockholders' equity	$ 3,052,512	$ 1,278,150

Consolidated Balance Sheets - P

Consolidated Balance Sheets - Parenthetical - $ / shares	Dec. 31, 2020	Dec. 31, 2019
Details
Common Stock, Par or Stated Value Per Share	$ 0	$ 0
Common Stock, Shares, Issued	10,472,079	6,928,047
Common Stock, Shares, Outstanding	10,472,079	6,928,047

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Operating expenses
Consulting services	$ 556,760	$ 111,392	$ 137,074
General and administrative	17,239	29,665	24,918
Impairment of mineral property	0	350,000	0
Management and directors' fees	762,947	825,177	240,000
Mineral property costs	9,791	5,991	23,085
Professional fees	41,318	71,264	95,114
Total operating expenses	1,388,055	1,393,489	520,191
Loss before other income (expense)	(1,388,055)	(1,393,489)	(520,191)
Other income (expense)
Accretion and interest expense	(52,120)	(65,870)	(33,192)
Forgiveness of loans and subscriptions payable and accrued interest	198,801	0	0
Gain (loss) on settlement of debt	(43,068)	(243,065)	23,577
Loss on change in fair value of derivative liabilities	0	0	(29,168)
Proportionate loss on investment in associate	(85,028)	0	0
Total other income (expense)	18,585	(308,935)	(38,783)
Net loss	$ (1,369,470)	$ (1,702,424)	$ (558,974)
Net Loss Per Share - Basic and Diluted	$ (0.16)	$ (0.35)	$ (0.18)
Weighted average shares outstanding	8,784,726	4,849,806	3,095,546

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Deficit - USD ($)	Common Stock	Additional Paid-in Capital	Common Stock Subscribed	Retained Earnings	Total
Equity Balance, Starting at Dec. 31, 2017	$ 21,593,370	$ 4,965,842	$ 120,000	$ (27,000,353)	$ (321,141)
Shares Outstanding, Starting at Dec. 31, 2017	2,639,700
Stock Issued During Period, Value, New Issues	$ 175,000	0	(120,000)	0	55,000
Stock Issued During Period, Shares, New Issues	291,667
Stock Issued During Period, Value, Conversion of Convertible Securities, Net of Adjustments	$ 95,182	0	0	0	95,182
Stock Issued During Period, Shares, Conversion of Convertible Securities	94,389
Stock Issued During Period, Value, Issued for Services	$ 254,410	0	0	0	254,410
Stock Issued During Period, Shares, Issued for Services	307,500
Net Income (Loss)	$ 0	0	0	(558,974)	(558,974)
Shares Outstanding, Ending at Dec. 31, 2018	3,333,256
Equity Balance, Ending at Dec. 31, 2018	$ 22,117,962	4,965,842	0	(27,559,327)	(475,523)
Stock Issued During Period, Value, New Issues	$ 1,561,000	0	10,000	0	1,571,000
Stock Issued During Period, Shares, New Issues	2,601,898
Stock Issued During Period, Value, Issued for Services	$ 303,750	0	0	0	303,750
Stock Issued During Period, Shares, Issued for Services	125,000
Issuance of common stock for services and settlement of related party debt and accounts payable, Value	$ 1,044,228	(170,411)	0	0	873,817
Issuance of common stock for services and settlement of related party debt and accounts payable, Shares	867,893
Shares issuable for interest, Value			17,500		17,500
Net Income (Loss)	$ 0	0	0	(1,702,424)	(1,702,424)
Shares Outstanding, Ending at Dec. 31, 2019	6,928,047
Equity Balance, Ending at Dec. 31, 2019	$ 25,026,940	4,795,431	27,500	(29,261,751)	588,120
Stock Issued During Period, Value, New Issues	$ 1,830,000	0	150,000	0	1,980,000
Stock Issued During Period, Shares, New Issues	2,896,677
Issuance of common shares for services and settlement of related party debt and accounts payable, Value	$ 781,314	544,221	(17,500)	0	1,308,035
Issuance of common shares for services and settlement of related party debt and accounts payable, Shares	647,355
Net Income (Loss)	$ 0	0	0	(1,369,470)	(1,369,470)
Shares Outstanding, Ending at Dec. 31, 2020	10,472,079
Equity Balance, Ending at Dec. 31, 2020	$ 27,638,254	$ 5,339,652	$ 160,000	$ (30,631,221)	$ 2,506,685

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Operating Activities
Net loss	$ (1,369,470)	$ (1,702,424)	$ (558,974)
Adjustments to reconcile net loss to net cash used in operating activities:
Accretion and interest expense	0	0	32,250
Common stock issued for services	997,158	698,766	254,410
Depreciation expense	353	61	0
Gain on forgiveness of loans payable	(198,801)	0	0
Impairment of mineral property	0	350,000	0
Loss (gain) on settlement of debt	43,068	243,065	(23,577)
Loss on change in fair value of derivative liabilities	0	0	29,168
Proportionate loss on investment in associate	85,028	0	0
Changes in operating assets and liabilities:
Accounts payable and accrued liabilities	72,032	65,106	(32,454)
Due to related parties	0	779	122,224
Investing Activities
Advance on investments	(2,150,000)	(810,000)	0
Acquisition of mineral property rights	0	(350,000)	0
Purchase of property and equipment	0	(1,834)	0
Net cash used in investing activities	(2,150,000)	(1,161,834)	0
Net cash used in operating activities	(370,632)	(344,647)	(176,953)
Financing Activities
Proceeds from issuance of common stock	1,980,000	1,571,000	55,000
Proceeds from issuance of notes payable	150,000	162,000	110,500
Advances from related parties	100,375	200,000	0
Net cash provided by financing activities	2,230,375	1,933,000	165,500
Change in cash	(290,257)	426,519	(11,453)
Cash and Cash Equivalents, at Carrying Value, Beginning Balance	466,377	39,858	51,311
Cash and Cash Equivalents, at Carrying Value, Ending Balance	176,120	466,377	39,858
Non-cash Investing and Financing Activities
Common stock issued to settle debt and accrued interest	0	0	95,182
Common stock issued to settle accounts payable	62,980	25,051	0
Common stock issued to settle CEO loan	0	150,000	0
Common stock issued to settle shareholder loan	0	303,750	0
Common stock issuable for interest expense	0	17,500	0
Non-recourse loans and interest applied as paid-in capital	255,397	0	0
Settlement of common stock issuable	10,000	0	120,000
Supplemental Disclosures
Interest paid	0	0	0
Income tax paid	$ 0	$ 0	$ 0

1. Nature of Operations and Con

1. Nature of Operations and Continuance of Business	12 Months Ended
	Dec. 31, 2020
Notes
1. Nature of Operations and Continuance of Business	1. Nature of Operations and Continuance of Business Tombstone Exploration Corporation (the “Company”) was incorporated under the Canada Business Corporations Act on October 30, 1997 as 3430502 Canada Ltd. On December 4, 1997, the Company changed its name to Four Crown Foods Inc. On June 5, 2000, the Company changed its name to Universal Domains Incorporated. In 2001, the Company withdrew from the domain registration business and acquired 100% of the issued and outstanding common shares of VCL Communications Corp. (“VCL”), a teleconferencing services company that targeted clients throughout North America. In November 2003, given the Company’s liabilities and the lack of profitability, the Company ceased all operations. On September 20, 2004, the Company changed its name to Pure Capital Inc., and focused its operations on the exploration and production of crude oil and natural gas properties. On November 1, 2006, the Company acquired 100% of the mineral claims located in Tombstone, Arizona in exchange for $100,000 and the issuance of 8,000,000 common shares of the Company. Effectively, on February 6, 2007, the Company changed its name to Tombstone Exploration Corporation. These consolidated financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has generated no revenues to date and has never paid any dividends and is unlikely to pay dividends or generate significant earnings in the immediate or foreseeable future. As at December 31, 2020, the Company did not record any revenues, and had an accumulated deficit of $30,631,221. During the year ended December 31, 2020, the Company incurred a net loss of $1,369,470. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability to raise equity or debt financing, and the attainment of profitable operations from the Company's future business. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company applies judgment in the application of the going concern assumption which requires management to take into account all available information about the future, which is at least, but not limited to, 12 months from the end of the reporting period. The Company’s plan of action over the next twelve months is to raise capital financing to conduct exploration and drilling on its mineral property claims held in Tombstone, Arizona as well as exploring for new mineral property claims in the United States. On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic. This contagious disease outbreak and any related adverse public health developments, has adversely affected workforces, economies, and financial markets globally, leading to an economic downturn. Although the impact of COVID-19 on the Company’s operations was not material, the Company continues to monitor the potential impacts of the pandemic on future operations and business opportunities.

2. Summary of Significant Accou

2. Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2020
Notes
2. Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies (a) These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in US dollars. The consolidated financial statements include the accounts of the Company and its subsidiary, Tombstone Exploration and Mining Corporation. All inter-company accounts and transactions have been eliminated. The Company’s fiscal year-end is December 31. (b) The preparation of these consolidated financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the useful life and recoverability of property and equipment, impairment of intangible assets, fair value of stock-based compensation, valuation of convertible debentures and derivative liabilities, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. (c) The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. As at December 31, 2020 and 2019, the Company had no cash equivalents. (d) Property and equipment are recorded at cost and are depreciated based on the following rates: Equipment 5 years straight-line (e) In accordance with ASC 360, Property Plant and Equipment (f) Mineral property acquisition and exploration costs are expensed as incurred. When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs incurred to develop such property are capitalized. Such costs will be amortized using the units-of-production method over the estimated life of the probable reserve. If mineral properties are subsequently abandoned or impaired, any capitalized costs will be charged to operations. (g) The Company records stock-based compensation in accordance with ASC 718, Share-Based Payments (i) Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted ASC 740, Accounting for Income Taxes, (j) An associate is an entity over which the Company has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. The considerations made in determining significant influence or joint control are similar to those necessary to determine control over subsidiaries. The Company’s investment in its associate is accounted for using the equity method. Under the equity method, the investment in an associate is initially recognized at cost. The carrying amount of the investment is adjusted to recognize changes in the Company’s share of net assets of the associate or joint venture since the acquisition date. Goodwill relating to the associate or joint venture is included in the carrying amount of the investment and is not tested for impairment separately. The consolidated statement of operations reflects the Company’s share of the results of operations of the associate. Any change in other comprehensive income (“OCI”) of those investees is presented as part of the Company’s OCI. In addition, when there has been a change recognized directly in the equity of the associate, the Company recognizes its share of any changes, when applicable, in the statement of changes in equity. Unrealized gains and losses resulting from transactions between the Company and the associate are eliminated to the extent of the interest in the associate. The aggregate of the Company’s share of operating results of an associate is shown on the face of the consolidated statement of operations and represents net income or loss after tax and non-controlling interests in the subsidiaries of the associate. The financial statements of the associate are prepared for the same reporting period as the Company. When necessary, adjustments are made to bring the accounting policies in line with those of the group. After application of the equity method, the Company determines whether it is necessary to recognize an impairment loss on its investment in its associate. At each reporting date, the Company determines whether there is objective evidence that the investment in the associate is impaired. If there is such evidence, the Company calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value, and then recognizes the loss within the consolidated statement of operations. Upon loss of significant influence over the associate, the group measures and recognizes any retained investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the retained investment and proceeds from disposal is recognized in the consolidated statement of operations. (k) ASC 220, Comprehensive Income, (l) From time to time, the Company may issue convertible notes that may contain an embedded beneficial conversion feature. A beneficial conversion feature exists on the date a convertible note is issued when the fair value of the underlying common stock to which the note is convertible into is in excess of the remaining unallocated proceeds of the note after first considering the allocation of a portion of the note proceeds to the fair value of the warrants, if related warrants have been granted. The intrinsic value of the beneficial conversion feature is recorded as a debt discount with a corresponding amount to additional paid in capital. The debt discount is amortized to interest expense over the life of the note using the effective interest method. (m) The Company computes net income (loss) per share in accordance with ASC 260, Earnings per Share (n) Pursuant to ASC 820, Fair Value Measurements and Disclosures and ASC 825, Financial Instruments, an entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 and 825 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 and 825 prioritizes the inputs into three levels that may be used to measure fair value: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The Company's financial instruments consist principally of cash, accounts payable and accrued liabilities, notes payable, and amounts due to related parties. Pursuant to ASC 820 and 825, the fair value of our cash is determined based on "Level 1" inputs, which consist of quoted prices in active markets for identical assets. We believe that the recorded values of all of our other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations. The Company's operations are in Canada, which results in exposure to market risks from changes in foreign currency rates. The financial risk is the risk to the Company's operations that arise from fluctuations in foreign exchange rates and the degree of volatility of these rates. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk. As at December 31, 2020 and 2019, the Company had no outstanding derivative liabilities. During the year ended December 31, 2018, the Company recorded a loss on the change in fair value of $29,168. (o) The Company’s functional and reporting currency is the United States dollar. Monetary assets and liabilities denominated in foreign currencies are translated in accordance with ASC 830 Foreign Currency Translation Matters, (p) The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

3. Investment in Bonanza Projec

3. Investment in Bonanza Project	12 Months Ended
	Dec. 31, 2020
Notes
3. Investment in Bonanza Project	3. Investment in Bonanza Project On April 1, 2019, the Company entered into an option agreement (the “Agreement”) with Goldrock Resources Inc. (“Goldrock”), a non-related party incorporated in the state of Nevada, for a 40% interest in the Bonanza Project. Under the terms of the Agreement, the Company would earn its 40% interest by: (i) paying Goldrock $310,000 for funding of the project on the closing date of the agreement (paid); (ii) paying $500,000 for additional funding within 3 months of the closing date of the agreement (paid); and (iii) paying $2,750,000 of additional funding within 6 months of the closing date of the agreement. As at December 31, 2020, the Company has invested $2,960,000 (2019 - $810,000) as part of the Agreement. Refer to Note 9. On December 10, 2020, the Company was issued 4,000 shares of Bonanza Mining Company ("Bonanza"), which entitled the Company to a 40% interest in the Bonanza Project and significant influence in Bonanza. The Company has recorded its investment in Bonanza in accordance with ASC 323-10, Investments – Equity Method and Joint Ventures $ Balance, December 31, 2017 and 2018 - Cash investment 810,000 Balance, December 31, 2019 810,000 Cash investments 2,150,000 Proportionate net loss from December 10, 2020 to December 31, 2020 (85,028) Balance, December 31, 2020 2,874,972

4. Mineral Property

4. Mineral Property	12 Months Ended
	Dec. 31, 2020
Notes
4. Mineral Property	4. Mineral Property In January 2019, the Company acquired royalty rights from Bahamas Aggregates Inc. (“BAI”), a non-related party, where the Company would earn a royalty fee of $0.50 per tonne of aggregate minerals owned by BAI in exchange for $500,000. During the year ended December 31, 2019, the Company made total payments of $350,000 and the royalty fee was amended from $0.50 per tonne to $0.35 per tonne. During the year ended December 31, 2019, the Company received $nil from BAI as production on the property was halted due to a natural disaster and the Company recorded an impairment loss of $350,000 during the year ended December 31, 2019. In 2020, the $350,000 of notes payable which were used to finance this investment was forgiven (refer to Notes 5(b) through (d)) in exchange for the royalty rights in BAI which resulted in a gain on forgiveness of debt of $198,801 and a capital contribution of $255,397 which was recorded as additional paid-in capital.

5. Notes Payable

5. Notes Payable	12 Months Ended
	Dec. 31, 2020
Notes
5. Notes Payable	5. Notes Payable (a) (b) (c) (d) (e)

6. Common Stock

6. Common Stock	12 Months Ended
	Dec. 31, 2020
Notes
6. Common Stock	6. Common Stock The Company has authorized an unlimited number of common shares with no par value, and a 200-to-1 reverse split was authorized on July 24, 2019 and has been applied retroactively. All share amounts noted are reflective of the reverse stock split. Year Ended December 31, 2020 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) (o) (p) (q) (r) Year Ended December 31, 2019 (s) (t) (u) (v) (w) (x) (y) (z) (aa) (bb) (cc) (dd) (ee) Year Ended December 31, 2018 (ff) (gg) (hh) (ii) (jj) (kk) (ll) (mm) (nn)

7. Related Party Transactions

7. Related Party Transactions	12 Months Ended
	Dec. 31, 2020
Notes
7. Related Party Transactions	7. Related Party Transactions (a) (b) (c)

8. Income Taxes

8. Income Taxes	12 Months Ended
	Dec. 31, 2020
Notes
8. Income Taxes	8. Income Taxes The Company has $15,079,300 of net operating losses to carry forward to offset taxable income in future years which expire through fiscal 2040. The components of the net deferred tax asset at December 31, 2020 and 2019, the statutory tax rate, the effective tax rate and the amount of the valuation allowance for the years ended December 31, 2020, 2019, and 2018 are indicated below: 2020 2019 2018 $ $ $ Loss Before Taxes (1,369,470) (1,702,424) (558,974) Statutory rate 21% 21% 21% Computed expected tax recovery (287,589) (357,509) (117,384) Non-deductible expenses (32,631) 51,044 7,946 Change in tax rates - - 1,511,910 Change in valuation allowance 320,220 306,465 (1,402,472) Income tax expense - - - 2020 2019 $ $ Deferred tax asset Cumulative net operating losses 3,178,439 2,858,219 Less valuation allowance (3,178,439) (2,858,219) Net deferred tax asset - - The following table lists the fiscal year in which the loss was incurred and the expiration date of the operating: Net Loss Expiry Date of Period Incurred $ Operating Losses December 31, 2006 159,600 2026 December 31, 2007 2,310,000 2027 December 31, 2008 2,638,800 2028 December 31, 2009 1,665,000 2029 December 31, 2010 944,400 2030 December 31, 2011 631,600 2031 December 31, 2012 391,900 2032 December 31, 2013 252,000 2033 December 31, 2014 444,900 2034 December 31, 2015 365,600 2035 December 31, 2016 971,100 2036 December 31, 2017 799,000 2037 December 31, 2018 521,100 2038 December 31, 2019 1,459,400 2039 December 31, 2020 1,524,900 2040 15,079,300

9. Commitments and Contingencie

9. Commitments and Contingencies	12 Months Ended
	Dec. 31, 2020
Notes
9. Commitments and Contingencies	9. Commitments and Contingencies As at December 31, 2020, the Company entered into an amendment to the Bonanza investment agreement whereby Goldrock would guarantee up to $600,000 of any remaining needed investment contribution to the Bonanza project , for which the Company would be committed to repay to Goldrock as part of their 40% capital contribution to the project. Refer to Note 10.

10. Subsequent Events

10. Subsequent Events	12 Months Ended
	Dec. 31, 2020
Notes
10. Subsequent Events	10. Subsequent Events (a) (b) (c) (d) (e) (f)

2. Summary of Significant Acc_2

2. Summary of Significant Accounting Policies: (a) Basis of Presentation and Principles of Consolidation (Policies)	12 Months Ended
	Dec. 31, 2020
Policies
(a) Basis of Presentation and Principles of Consolidation	(a) These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in US dollars. The consolidated financial statements include the accounts of the Company and its subsidiary, Tombstone Exploration and Mining Corporation. All inter-company accounts and transactions have been eliminated. The Company’s fiscal year-end is December 31.

2. Summary of Significant Acc_3

2. Summary of Significant Accounting Policies: (b) Use of Estimates (Policies)	12 Months Ended
	Dec. 31, 2020
Policies
(b) Use of Estimates	(b) The preparation of these consolidated financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the useful life and recoverability of property and equipment, impairment of intangible assets, fair value of stock-based compensation, valuation of convertible debentures and derivative liabilities, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

2. Summary of Significant Acc_4

2. Summary of Significant Accounting Policies: (c) Cash and Cash Equivalents (Policies)	12 Months Ended
	Dec. 31, 2020
Policies
(c) Cash and Cash Equivalents	(c) The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. As at December 31, 2020 and 2019, the Company had no cash equivalents.

2. Summary of Significant Acc_5

2. Summary of Significant Accounting Policies: (d) Property and Equipment (Policies)	12 Months Ended
	Dec. 31, 2020
Policies
(d) Property and Equipment	(d) Property and equipment are recorded at cost and are depreciated based on the following rates: Equipment 5 years straight-line

2. Summary of Significant Acc_6

2. Summary of Significant Accounting Policies: (e) Impairment of Long-Lived Assets (Policies)	12 Months Ended
	Dec. 31, 2020
Policies
(e) Impairment of Long-Lived Assets	(e) In accordance with ASC 360, Property Plant and Equipment

2. Summary of Significant Acc_7

2. Summary of Significant Accounting Policies: (f) Mineral Properties (Policies)	12 Months Ended
	Dec. 31, 2020
Policies
(f) Mineral Properties	(f) Mineral property acquisition and exploration costs are expensed as incurred. When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs incurred to develop such property are capitalized. Such costs will be amortized using the units-of-production method over the estimated life of the probable reserve. If mineral properties are subsequently abandoned or impaired, any capitalized costs will be charged to operations.

2. Summary of Significant Acc_8

2. Summary of Significant Accounting Policies: (g) Stock-Based Compensation (Policies)	12 Months Ended
	Dec. 31, 2020
Policies
(g) Stock-Based Compensation	(g) The Company records stock-based compensation in accordance with ASC 718, Share-Based Payments

2. Summary of Significant Acc_9

2. Summary of Significant Accounting Policies: (i) Income Taxes (Policies)	12 Months Ended
	Dec. 31, 2020
Policies
(i) Income Taxes	(i) Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted ASC 740, Accounting for Income Taxes,

2. Summary of Significant Ac_10

2. Summary of Significant Accounting Policies: (j) Investment in Associates (Policies)	12 Months Ended
	Dec. 31, 2020
Policies
(j) Investment in Associates	(j) An associate is an entity over which the Company has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. The considerations made in determining significant influence or joint control are similar to those necessary to determine control over subsidiaries. The Company’s investment in its associate is accounted for using the equity method. Under the equity method, the investment in an associate is initially recognized at cost. The carrying amount of the investment is adjusted to recognize changes in the Company’s share of net assets of the associate or joint venture since the acquisition date. Goodwill relating to the associate or joint venture is included in the carrying amount of the investment and is not tested for impairment separately. The consolidated statement of operations reflects the Company’s share of the results of operations of the associate. Any change in other comprehensive income (“OCI”) of those investees is presented as part of the Company’s OCI. In addition, when there has been a change recognized directly in the equity of the associate, the Company recognizes its share of any changes, when applicable, in the statement of changes in equity. Unrealized gains and losses resulting from transactions between the Company and the associate are eliminated to the extent of the interest in the associate. The aggregate of the Company’s share of operating results of an associate is shown on the face of the consolidated statement of operations and represents net income or loss after tax and non-controlling interests in the subsidiaries of the associate. The financial statements of the associate are prepared for the same reporting period as the Company. When necessary, adjustments are made to bring the accounting policies in line with those of the group. After application of the equity method, the Company determines whether it is necessary to recognize an impairment loss on its investment in its associate. At each reporting date, the Company determines whether there is objective evidence that the investment in the associate is impaired. If there is such evidence, the Company calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value, and then recognizes the loss within the consolidated statement of operations. Upon loss of significant influence over the associate, the group measures and recognizes any retained investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the retained investment and proceeds from disposal is recognized in the consolidated statement of operations.

2. Summary of Significant Ac_11

2. Summary of Significant Accounting Policies: (k) Comprehensive Loss (Policies)	12 Months Ended
	Dec. 31, 2020
Policies
(k) Comprehensive Loss	(k) ASC 220, Comprehensive Income,

2. Summary of Significant Ac_12

2. Summary of Significant Accounting Policies: (l) Beneficial Conversion Features (Policies)	12 Months Ended
	Dec. 31, 2020
Policies
(l) Beneficial Conversion Features	(l) From time to time, the Company may issue convertible notes that may contain an embedded beneficial conversion feature. A beneficial conversion feature exists on the date a convertible note is issued when the fair value of the underlying common stock to which the note is convertible into is in excess of the remaining unallocated proceeds of the note after first considering the allocation of a portion of the note proceeds to the fair value of the warrants, if related warrants have been granted. The intrinsic value of the beneficial conversion feature is recorded as a debt discount with a corresponding amount to additional paid in capital. The debt discount is amortized to interest expense over the life of the note using the effective interest method.

2. Summary of Significant Ac_13

2. Summary of Significant Accounting Policies: (m) Basic and Diluted Net Income (Loss) Per Share (Policies)	12 Months Ended
	Dec. 31, 2020
Policies
(m) Basic and Diluted Net Income (Loss) Per Share	(m) The Company computes net income (loss) per share in accordance with ASC 260, Earnings per Share

2. Summary of Significant Ac_14

2. Summary of Significant Accounting Policies: (n) Financial Instruments (Policies)	12 Months Ended
	Dec. 31, 2020
Policies
(n) Financial Instruments	(n) Pursuant to ASC 820, Fair Value Measurements and Disclosures and ASC 825, Financial Instruments, an entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 and 825 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 and 825 prioritizes the inputs into three levels that may be used to measure fair value: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The Company's financial instruments consist principally of cash, accounts payable and accrued liabilities, notes payable, and amounts due to related parties. Pursuant to ASC 820 and 825, the fair value of our cash is determined based on "Level 1" inputs, which consist of quoted prices in active markets for identical assets. We believe that the recorded values of all of our other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations. The Company's operations are in Canada, which results in exposure to market risks from changes in foreign currency rates. The financial risk is the risk to the Company's operations that arise from fluctuations in foreign exchange rates and the degree of volatility of these rates. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk. As at December 31, 2020 and 2019, the Company had no outstanding derivative liabilities. During the year ended December 31, 2018, the Company recorded a loss on the change in fair value of $29,168.

2. Summary of Significant Ac_15

2. Summary of Significant Accounting Policies: (o) Foreign Currency Translation (Policies)	12 Months Ended
	Dec. 31, 2020
Policies
(o) Foreign Currency Translation	(o) The Company’s functional and reporting currency is the United States dollar. Monetary assets and liabilities denominated in foreign currencies are translated in accordance with ASC 830 Foreign Currency Translation Matters,

2. Summary of Significant Ac_16

2. Summary of Significant Accounting Policies: (p) Recent Accounting Pronouncements (Policies)	12 Months Ended
	Dec. 31, 2020
Policies
(p) Recent Accounting Pronouncements	(p) The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

8. Income Taxes_ Schedule of Co

8. Income Taxes: Schedule of Components of the net deferred tax asset (Tables)	12 Months Ended
	Dec. 31, 2020
Tables/Schedules
Schedule of Components of the net deferred tax asset	2020 2019 2018 $ $ $ Loss Before Taxes (1,369,470) (1,702,424) (558,974) Statutory rate 21% 21% 21% Computed expected tax recovery (287,589) (357,509) (117,384) Non-deductible expenses (32,631) 51,044 7,946 Change in tax rates - - 1,511,910 Change in valuation allowance 320,220 306,465 (1,402,472) Income tax expense - - -

8. Income Taxes_ Schedule of De

8. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables)	12 Months Ended
	Dec. 31, 2020
Tables/Schedules
Schedule of Deferred Tax Assets and Liabilities	2020 2019 $ $ Deferred tax asset Cumulative net operating losses 3,178,439 2,858,219 Less valuation allowance (3,178,439) (2,858,219) Net deferred tax asset - -

8. Income Taxes_ Schedule of fi

8. Income Taxes: Schedule of fiscal year in which the loss was incurred and the expiration date (Tables)	12 Months Ended
	Dec. 31, 2020
Tables/Schedules
Schedule of fiscal year in which the loss was incurred and the expiration date	Net Loss Expiry Date of Period Incurred $ Operating Losses December 31, 2006 159,600 2026 December 31, 2007 2,310,000 2027 December 31, 2008 2,638,800 2028 December 31, 2009 1,665,000 2029 December 31, 2010 944,400 2030 December 31, 2011 631,600 2031 December 31, 2012 391,900 2032 December 31, 2013 252,000 2033 December 31, 2014 444,900 2034 December 31, 2015 365,600 2035 December 31, 2016 971,100 2036 December 31, 2017 799,000 2037 December 31, 2018 521,100 2038 December 31, 2019 1,459,400 2039 December 31, 2020 1,524,900 2040 15,079,300

1. Nature of Operations and C_2

1. Nature of Operations and Continuance of Business (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Details
Entity Incorporation, Date of Incorporation	Oct. 30, 1997
Revenues	$ 0
Accumulated deficit	(30,631,221)	$ (29,261,751)
Net loss	$ (1,369,470)	$ (1,702,424)	$ (558,974)

2. Summary of Significant Ac_17

2. Summary of Significant Accounting Policies: (m) Basic and Diluted Net Income (Loss) Per Share (Details)	12 Months Ended
	Dec. 31, 2020shares
Details
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0

5. Notes Payable (Details)

5. Notes Payable (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Note Payable #1
Long-term Debt	$ 147,500	$ 47,500
Note Payable #2
Long-term Debt	0	150,000
Note Payable #3
Long-term Debt	0	150,000
Note Payable #4
Long-term Debt	0	50,000
Note Payable #5
Long-term Debt	$ 150,000	$ 0

7. Related Party Transactions (

7. Related Party Transactions (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Due to related parties	$ 207,228	$ 207,853
Related Party Transaction #1
Due to related parties	207,228	207,853
Costs and Expenses, Related Party	144,000	156,000	$ 180,000
Related Party Transaction #2
Share-based Payment Arrangement, Noncash Expense	$ 618,947	$ 669,176	$ 60,000

8. Income Taxes (Details)

8. Income Taxes (Details)	12 Months Ended
	Dec. 31, 2020USD ($)
Details
Net operating losses to carry forward to offset taxable income in future years	$ 15,079,300

8. Income Taxes_ Schedule of _2

8. Income Taxes: Schedule of Components of the net deferred tax asset (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Details
Net loss	$ (1,369,470)	$ (1,702,424)	$ (558,974)
Federal Statutory Rate	21.00%	21.00%	21.00%
Computed expected tax recovery	$ (287,589)	$ (357,509)	$ (117,384)
Non-deductible expenses	(32,631)	51,044	7,946
Change in tax rates	0	0	1,511,910
Change in valuation allowance	320,220	306,465	(1,402,472)
Income tax expense	$ 0	$ 0	$ 0

8. Income Taxes_ Schedule of _3

8. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Deferred tax asset
Cumulative net operating losses	$ 3,178,439	$ 2,858,219
Less valuation allowance	(3,178,439)	(2,858,219)
Net deferred tax asset	$ 0	$ 0

8. Income Taxes_ Schedule of _4

8. Income Taxes: Schedule of fiscal year in which the loss was incurred and the expiration date (Details)	12 Months Ended
	Dec. 31, 2020USD ($)
Net Loss incurred	$ 15,079,300
December 31, 2006
Net Loss incurred	$ 159,600
Expiration Year of Operating Losses	2,026
December 31, 2007
Net Loss incurred	$ 2,310,000
Expiration Year of Operating Losses	2,027
December 31, 2008
Net Loss incurred	$ 2,638,800
Expiration Year of Operating Losses	2,028
December 31, 2009
Net Loss incurred	$ 1,665,000
Expiration Year of Operating Losses	2,029
December 31, 2010
Net Loss incurred	$ 944,400
Expiration Year of Operating Losses	2,030
December 31, 2011
Net Loss incurred	$ 631,600
Expiration Year of Operating Losses	2,031
December 31, 2012
Net Loss incurred	$ 391,900
Expiration Year of Operating Losses	2,032
December 31, 2013
Net Loss incurred	$ 252,000
Expiration Year of Operating Losses	2,033
December 31, 2014
Net Loss incurred	$ 444,900
Expiration Year of Operating Losses	2,034
December 31, 2015
Net Loss incurred	$ 365,600
Expiration Year of Operating Losses	2,035
December 31, 2016
Net Loss incurred	$ 971,100
Expiration Year of Operating Losses	2,036
December 31, 2017
Net Loss incurred	$ 799,000
Expiration Year of Operating Losses	2,037
December 31, 2018
Net Loss incurred	$ 521,100
Expiration Year of Operating Losses	2,038
December 31, 2019
Net Loss incurred	$ 1,459,400
Expiration Year of Operating Losses	2,039
December 31, 2020
Net Loss incurred	$ 1,524,900
Expiration Year of Operating Losses	2,040

10. Subsequent Events (Details)

10. Subsequent Events (Details)	12 Months Ended
	Dec. 31, 2020
Event #1
Subsequent Event, Description	Company contributed an additional $300,000 investment into the Bonanza Project
Event #2
Subsequent Event, Description	Company issued 213,333 common shares
Subsequent Event, Date	Jan. 7, 2021
Event #3
Subsequent Event, Description	Company issued 227,000 common shares
Subsequent Event, Date	Jan. 21, 2021
Event #4
Subsequent Event, Description	Company issued 5,000 common shares
Subsequent Event, Date	Jan. 21, 2021
Event #5
Subsequent Event, Description	Company contributed an additional $180,000 to the Bonanza Project
Event #6
Subsequent Event, Description	Company issued 63,334 common shares