DynaResource (DYNR) 10-K 12 Apr 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Mar. 30, 2016	Jun. 30, 2015
Document And Entity Information
Entity Registrant Name	DYNARESOURCE INC
Entity Central Index Key	1,111,741
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 24,473,494
Entity Common Stock, Shares Outstanding		16,722,825
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015

Balance Sheets

Balance Sheets - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Current Assets:
Cash and Cash Equivalents	$ 1,922,599	$ 250,959
Accounts Receivable	145,650	19,496
Inventories	98,056	100,000
Foreign Tax Receivable and Other Current	603,076	209,061
Total Current Assets	2,769,381	579,516
Mining Equipment and Fixtures (Net of Accumulated Depreciation of $823,044 and $967,207)	635,950	205,374
Mining Concessions	4,132,678	4,194,439
Investments in Affiliate	70,000	70,000
Receivables from Affiliate	159,143	172,968
Other Assets	20,130	44,568
TOTAL ASSETS	7,787,282	5,266,865
Current Liabilities:
Accounts Payable	259,762	231,315
Convertible Notes Payable	956,250	203,500
Advances - Related Party	150,000	0
Due to Non-controlling Interest	231,500	231,500
Accrued Expenses	799,249	838,732
Derivative Liabilities	5,382,737	0
Total Current Liabilities	7,779,498	1,505,047
Notes Payable (Net of Current Portion of $956,250 and $0)	0	1,509,855
Note Payable-Related Party	0	250,000
TOTAL LIABILITIES	7,779,498	3,264,902
Preferred Stock, Series C, $.0001 par value, 1,733,221 shares Authorized, 1,733,221 and 0 shares issued and outstanding	4,333,053	0
Equity:
Preferred Stock, Series A, $0.0001 par value, 1,000 shares Authorized, 1,000 and 1,000 issued and outstanding	1	1
Common Stock, $0.01 par value, 25,000,000 shares authorized, 16,722,825 and 14,146,024 shares issued and outstanding	167,228	141,461
Preferred Rights	40,000	40,000
Additional Paid In Capital	55,083,783	50,042,582
Treasury Stock	(3,175,515)	(4,152,750)
Accumulated Other Comprehensive Income	4,822,094	2,495,629
Accumulated Deficit	(54,800,910)	(40,383,731)
Total DynaResource, Inc. Stockholders' Equity	2,136,681	8,183,192
Non-controlling Interest	(6,461,950)	(6,181,229)
TOTAL EQUITY (DEFICIT)	(4,325,269)	2,001,963
TOTAL LIABILITIES AND EQUITY	$ 7,782,282	$ 5,266,865

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Accumulated Depreciation, Mining Equipment and Fixtures	$ 823,044	$ 967,207
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	1,000	1,000
Series A, shares issued	1,000	1,000
Series A, shares outstanding	1,000	1,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	16,722,825	14,146,024
Common stock, shares outstanding	16,722,825	14,146,024

Statements of Operations

Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
REVENUES	$ 944,910	$ 1,476,188
COSTS AND EXPENSES OF MINING OPERATIONS
Production Costs Applicable to Sales	141,737	233,017
Mine Operating Costs	438,484	100,255
Pre-Pilot Production Costs	2,444,469	2,826,271
Property Holding Costs	394,535	555,468
General and Administrative	3,988,331	2,438,025
Depreciation and Amortization	128,513	56,468
Total Operating Expenses	7,536,069	6,209,504
NET OPERATING LOSS	(6,591,159)	(4,733,316)
OTHER INCOME (EXPENSE)
Foreign Currency Translation Gains/Losses	(2,479,449)	(1,585,392)
Interest Expense	(240,129)	(209,553)
Inducement Expense	(826,347)	0
Derivatives Adj. Mark-to-Market Gain (Loss)	(204,279)	0
Other Income (Expense)	720	203
Total Other Income (Expense)	(3,749,484)	(1,794,742)
NET LOSS BEFORE TAXES	(10,340,643)	(6,528,058)
TAXES	0	0
NET LOSS	(10,340,643)	(6,528,058)
Deemed Dividend for Series B Preferred	0	(668,952)
Cumulative Dividend for Series C Preferred	(87,374)	0
Accretion of Preferred Stock to Redemption	(4,637,179)	0
ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	560,643	536,357
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ (14,504,553)	$ (6,660,653)
EARNINGS PER SHARE DATA ATTRIBUTABLE TOTHE EQUITY HOLDERS OF DYNARESOURCE, INC.
Basic and Diluted Loss per Common Share	$ (.92)	$ (.55)
Weighted Average Shares Outstanding, Basic and Diluted	15,819,701	12,196,353
OTHER COMPREHENSIVE LOSS:
NET LOSS PER ABOVE	$ (10,340,643)	$ (6,528,058)
Foreign Currency Translation Gains/Losses	(2,326,465)	(1,408,613)
TOTAL OTHER COMPREHENSIVE LOSS	(2,326,465)	(1,408,613)
TOTAL COMPREHENSIVE LOSS	(12,667,108)	(7,936,671)
ATTRIBUTABLE TO:
EQUITY HOLDERS OF DYNARESOURCE, INC.	(12,947,030)	(7,435,549)
NON-CONTROLLING INTERESTS	279,922	(501,122)
Total	$ (12,667,108)	$ (7,936,671)

Shareholders Equity

Shareholders Equity - USD ($)	Preferred Stock - Series A	Preferred Stock - Series B	Common Stock	Preferred Rights	Additional Paid-In Capital	Treasury Stock	Other Comprehensive Income / Loss	Retained Earnings / Accumulated Deficit	Total
Shares, Beginning Balance at Dec. 31, 2013	1,000	460,446	11,052,008			291,505
Amount, Beginning Balance at Dec. 31, 2013	$ 1	$ 46	$ 110,520	$ 40,000	$ 43,848,644	$ (707,750)	$ 1,087,016	$ (34,392,030)	$ 9,986,447
Advances Converted to Common Shares			4,391
Advances Converted to Common Shares, Amount			$ 45		11,288				11,333
Beneficial Conversion					668,952				668,952
Sale of Common Shares, number of shares			303,000
Sale of Common Shares, value of shares			$ 3,030		754,470				757,500
Sale of Series B Preferred Stock		266,200
Sale of Series B Preferred Shares		$ 27			1,330,973				$ 1,331,000
Preferred B Converted to Common, Shares		(726,646)	1,453,292
Preferred B Converted to Common		$ (73)	$ 14,533		(14,460)
Common Stock Issued for Investment, Shares			1,333,333			1,333,333
Common Stock Issued for Investment, Value			$ 13,333		3,986,667	$ (4,000,000)
Treasury Stock Purchased, shares						3,175
Treasury Stock Purchased						$ (7,500)			$ (7,500)
Issuance of Treasury Shares for Services, shares						(250,000)
Issuance of Treasury Shares for Services					125,000	$ 562,500			687,500
Other Comprehensive Income							1,408,613		1,408,613
Net Income (Loss)								(6,528,058)	(6,528,058)
Non-Controlling Interest								536,357	536,357
Shares, Ending Balance at Dec. 31, 2014	1,000	0	14,146,024			1,378,013
Amount, Ending Balance at Dec. 31, 2014	$ 1	$ 0	$ 141,461	40,000	50,042,582	$ (4,152,750)	2,495,629	(40,383,731)	8,183,192
Advances Converted to Common Shares			70,000
Advances Converted to Common Shares, Amount			$ 700		174,300				175,000
Sale of Common Shares, number of shares			1,169,500
Sale of Common Shares, value of shares			$ 11,695		2,906,055				2,917,750
Issuance of Common Shares for Services, shares			250,000
Issuance of Common Shares for Services, value			$ 2,500		432,500				435,000
Notes Payable Converted To Common Shares			337,162
Notes Payable Converted to Common			$ 3,372		839,532				842,904
Treasury Stock Purchased, shares			750,000			750,000
Treasury Stock Purchased			$ 7,500		1,297,500	$ (1,305,000)			0
Issuance of Treasury Shares for Services, shares						(1,015,700)
Issuance of Treasury Shares for Services					(515,700)	$ 2,282,235			1,766,535
Inducement Expense					826,347				826,347
Issuance of Warrants - Golden Post					(3,025,758)				(3,025,758)
Derivatives from Golden Post Preferred Stock					2,106,425				2,106,425
Accretion Expense due to Golden Post Pref Stock								(4,637,179)	(4,637,179)
Fractional Shares			139
Other Comprehensive Income							2,326,465		2,326,465
Net Income (Loss)								(10,340,643)	(10,340,643)
Non-Controlling Interest								560,643	560,643
Shares, Ending Balance at Dec. 31, 2015	1,000	0	16,722,825			1,112,313
Amount, Ending Balance at Dec. 31, 2015	$ 1	$ 0	$ 167,228	$ 40,000	$ 55,083,783	$ (3,175,515)	$ 4,822,094	$ (54,800,910)	$ 2,136,681

Statements of Cash Flows

Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ (10,340,643)	$ (6,528,058)
Adjustments to reconcile net loss to cash (used in) operating activities:
Issuance of Common Stock for Services	435,000	687,500
Distribution of Treasury Shares	1,766,535	0
Derivatives Adj. Mark-to-Market Gain (Loss)	204,279	0
Inducement Expense	826,347	0
(Gain) Loss on Disposition of Assets	0	(5,930)
Depreciation and Amortization	125,164	56,468
Change in Operating Assets and Liabilities
Accounts Receivable	(141,109)	(21,652)
Receivables from Affiliate	(8,877)	(8,398)
Inventories	(14,642)	(111,058)
Foreign Tax Receivable	(463,499)	65,591
Other Assets	19,257	0
Accounts Payable	183,914	119,015
Accrued Liabilities	299,196	791,944
CASH FLOWS (USED IN) OPERATING ACTIVITIES	(7,109,078)	(4,954,578)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Property	(669,428)	(79,545)
Other Assets	0	1,102
CASH FLOWS (USED IN) INVESTING ACTIVITIES	(669,428)	(78,443)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from sale of Preferred Stock, Series B	0	1,331,000
Proceeds from Promissory Notes	0	203,500
Proceeds from Promissory Notes - Related Party	0	250,000
Proceeds from Advances - Related Party	325,000	0
Proceeds of Sale of Common Stock	2,917,750	757,500
Payments of Notes Payable	(228,570)	0
Proceeds from Sale of Preferred Stock Series C	3,955,000	0
Loan from Non-Controlling Interest	0	139,349
Purchase of Treasury Stock	0	(7,500)
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	6,969,180	2,673,849
Effect of Foreign Exchange	2,480,966	1,466,787
NET INCREASE (DECREASE) IN CASH	1,671,640	(892,385)
CASH AT BEGINNING OF PERIOD	250,959	1,143,344
CASH AT END OF PERIOD	1,922,599	250,959
SUPPLEMENTAL DISCLOSURES
Cash Paid for Interest	175,467	42,794
Cash Paid for Income Taxes	0	0
NON CASH TRANSACTIONS
Redemption of Preferred Stock, Series B for Common Stock	0	14,533
Accrued Interest Conversion to Common Stock	38,043	166,025
Note Conversion to Common Stock	842,904	11,333
Issuance of Preferred Stock C - Derivative Liabilities	5,178,458	0
Accretion of Preferred Series C to Redemption Value	4,637,179	0
Additional Issuance of Preferred Stock Series C	333,053	0
Issuance of Common Stock for Treasury Stock	$ 1,305,000	$ 4,000,000

1. Nature of Activities and Sig

1. Nature of Activities and Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Nature of Activities and Significant Accounting Policies	Nature of Activities, History and Organization DynaResource, Inc. (The “Company”, “DynaResource”, or “DynaUSA”) was organized September 28, 1937, as a California corporation under the name of West Coast Mines, Inc. In 1998, the Company re-domiciled to Delaware and changed its name to DynaResource, Inc. The Company is in the business of acquiring, investing in, and developing precious metal properties, and the production of precious metals. In 2000, the Company formed a wholly owned subsidiary, DynaResource de México S.A. de C.V., chartered in México (“DynaMéxico”). This Company was formed to acquire, invest in and develop resource properties in México. DynaMéxico owns a portfolio of mining concessions that currently includes its interests in the San José de Gracia Project (“SJG”) in northern Sinaloa State, México. The SJG District covers 69,121 hectares (170,802 acres) on the west side of the Sierra Madre mountain range. The Company currently owns 80% of the outstanding capital of DynaMéxico. In 2005, the Company formed DynaResource Operaciones de San Jose De Gracia S.A. de C.V. (“DynaOperaciones”), and acquired effective control of Mineras de DynaResource, S.A. de C.V. (formerly Minera Finesterre S.A. de C.V., “DynaMineras”). The Company owned 25% of DynaMineras and acquired effective control of DynaMineras by acquiring the option to purchase the remaining 75% of the Shares of DynaMineras. The Company finalized the option and acquisition of DynaMineras in January 2010, and now owns 100% of DynaMineras. The results of these subsidiaries are consolidated with those of the Company. From January 2008 through March 2011, DynaMéxico issued 100 Variable Capital Series “B” shares to Goldgroup Resources, Inc., a wholly owned subsidiary of Goldgroup Mining Inc. Vancouver BC (“Goldgroup”), in exchange for Goldgroup’s contribution of $18,000,000 to DynaMéxico. At March 14, 2011, Goldgroup owned 50% of the outstanding capital shares of DynaMéxico. On June 21, 2013, DynaResource acquired a Certificate for 300 Series “B” Variable Capital Shares of DynaMéxico, in exchange for the settlement of accounts receivable from DynaMéxico in the amount of $31,090,710 Mexican Pesos (approximately $2.4 million USD). After the issuance and receipt of the 300 Series B Shares, DynaUSA holds 80% of the total outstanding Capital of DynaMéxico. The Company elected to become a voluntary reporting issuer in Canada in order to avail itself of Canadian regulations regarding reporting for mining properties and, more specifically, National Instrument 43-101 (“NI 43-101”). This regulation sets forth standards for reporting resources in a mineral property and is a standard recognized in the mining industry. Significant Accounting Policies The Company’s management selects accounting principles generally accepted in the United States of America and adopts methods for their application. The application of accounting principles requires the estimating, matching and timing of revenue and expense. The accounting policies used conform to generally accepted accounting principles which have been consistently applied in the preparation of these financial statements. The financial statements and notes are representations of the Company’s management which is responsible for their integrity and objectivity. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company's system of internal accounting control is designed to assure, among other items that: 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods presented. Basis of Presentation The Company prepares its financial statements on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States. Principles of Consolidation The financial statements include the accounts of DynaResource, Inc., as well as DynaResource de México, S.A. de C.V. (80% ownership), DynaResource Operaciones S.A. de C.V. (100% ownership) and Mineras de DynaResource S.A. de C.V. (100% ownership). All significant inter-company transactions have been eliminated. All amounts are presented in U.S. Dollars unless otherwise stated. Non-Controlling Interest The Company’s subsidiary, DynaResource de México S.A. de C.V, is 20% owned by Goldgroup Mining, Inc. On May 17, 2013, the ownership changed from 50% to 20%. The Company accounts for this outside interest as “non-controlling interest”. Investments in Affiliates The Company owns a 19.92% interest in DynaResource Nevada, Inc., a Nevada Corporation (“DynaNevada”), with one operating subsidiary in México, DynaNevada de México, S.A. de C.V. (“DynaNevada de México”), together “DynaNevada”. The Company accounts for this investment using the cost basis. Cash and Cash Equivalents The Company considers all highly liquid debt instruments with a maturity of three months or less to be cash equivalents. At times, cash balances may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. At December 31, 2014, the Company had no balances that were in excess of the FDIC insurance limit of $250,000. The carrying amount approximates fair market value. Accounts Receivable and Allowances for Doubtful Accounts The allowance for accounts receivable is recorded when receivables are considered to be doubtful of collection. As of December 31, 2015 and 2014, respectively, no allowance has been made. Foreign Tax Receivable Foreign Tax Receivable is comprised of recoverable value-added taxes (“IVA”) charged by the Mexican government on goods and services rendered. Under certain circumstances, these taxes are recoverable by filing a tax return. Amounts paid for IVA are tracked and held as receivables until the funds are remitted. The total amounts of the IVA receivable as of December 31, 2015 and December 31, 2014 are $597,012 and $209,061, respectively. Inventory The Company commenced test mining and milling (pilot production) activities in the 2 nd Proven and Probable Reserves (No Known Reserves) The definition of proven and probable reserves is set forth in SEC Industry Guide 7 (“Industry Guide 7”). Proven reserves for which (1) quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes, grade and/or quality are computed from the results of detailed sampling and (b) the sites for inspection, sampling and measurement are spaced so closely and the geological character is so well defined that size, shape, depth and mineral content of the reserves are well-established. Probable reserves are reserves for which quantity and grade and/or quality are computed from information similar to that used for proven (measured) reserves, but the sites for inspection, sampling, and measurement are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven (measured) reserves, is high enough to assume continuity between points of observations. As of December 31, 2015, none of the Company's properties contain resources that satisfy the definition of proven and probable reserves. The Company classifies the development of its properties, including the San Jose de Gracia Property, as exploration stage projects since no proven or probable reserves have been established under Industry Guide 7. Property Substantially all costs, including design, engineering, construction, and installation of equipment are expensed as incurred as the Company has not established proven and probable reserves on any of its properties. Only certain types of equipment which has alternative uses or significant salvage value, may be capitalized without proven and probable reserves. Depreciation is computed using the straight-line method with the exception of mining equipment. Mining equipment is depreciated using the units-of-production method based on tonnes processed over the estimated total mine life. Office furniture, equipment and light vehicles are being depreciated over estimated economic lives ranging from 3 to 5 years. Leasehold improvements, which relate to the Company's corporate office, are being amortized over the term of the lease of 10 years. Trailers, heavy vehicles and other site equipment are being depreciated over estimated economic lives from 5 to 15 years. Buildings are being depreciated over an estimated economic life of 20 years. Design, Construction, and Development Costs: When proven and probable reserves as defined by Industry Guide 7 exist, development costs are capitalized and the property is a commercially minable property. Mine development costs incurred either to develop new ore deposits, expand the capacity of operating mines, or to develop mine areas substantially in advance of current production would be capitalized. Costs of start-up activities and costs incurred to maintain current production or to maintain assets on a standby basis are charged to operations as incurred. Costs of abandoned projects are charged to operations upon abandonment. All capitalized costs would be amortized using the units of production method over the estimated life of the ore body based on recoverable ounces to be mined from proven and probable reserves. Certain costs to design and construct mining and processing facilities may be incurred prior to establishing proven and probable reserves. As no proven and probable reserves have been established on any of the Company's properties, design, construction and development costs are not capitalized at any of the Company's properties, and accordingly, substantially all costs are expensed as incurred, resulting in the Company reporting larger losses than if such expenditures had been capitalized. Additionally, the Company does not have a corresponding depreciation or amortization of these costs going forward since these expenditures were expensed as incurred as opposed to being capitalized. As a result of these and other differences, the Company's financial statements may not be comparable to the financial statements of mining companies that have established reserves. Mining Properties Interests Mineral property interests include acquired interests in development and exploration stage properties, which are considered tangible assets. The amount capitalized relating to a mineral property interest represents its fair value at the time of acquisition. When a property does not contain mineralized material that satisfies the definition of proven and probable reserves, such as with the San Jose de Gracia Property, capitalized costs and mineral property interests are amortized using the straight line method once production begins. As of December 31, 2015, the mining interests have been in the pilot production stage and therefore, no amortization has been expensed. Mining properties consist of 33 mining concessions covering approximately 69,121 hectares at the San Jose de Gracia property (“SJG”), the basis of which are amortized on the unit of production method based on estimated recoverable resources. If it is determined that the deferred costs related to a property are not recoverable over its productive life, those costs will be written down to fair value as a charge to operations in the period in which the determination is made. The amounts at which mineral properties and the related costs are recorded do not necessarily reflect present or future values. Impairment of Assets: For operating mines, recoverability is measured by comparing the undiscounted future net cash flows to the net book value. When the net book value exceeds future net undiscounted cash flows, an impairment loss is measured and recorded based on the excess of the net book value over fair value. Fair value for operating mines is determined using a combined approach, which uses a discounted cash flow model for the existing operations and a market approach for the fair value assessment of exploration land claims. Future cash flows are estimated based on quantities of recoverable mineralized material, expected gold and silver prices (considering current and historical prices, trends and related factors), production levels, operating costs, capital requirements and reclamation costs, all based on life-of-mine plans. The term "recoverable mineralized material" refers to the estimated amount of gold or other commodities that will be obtained after taking into account losses during processing and treatment of mineralized material. In estimating future cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of future cash flows from other asset groups. The Company's estimates of future cash flows are based on numerous assumptions and it is possible that actual future cash flows will be significantly different than the estimates, as actual future quantities of recoverable minerals, gold, silver and other commodity prices, production levels and costs and capital are each subject to significant risks and uncertainties. The recoverability of the book value of each property will be assessed annually for indicators of impairment such as adverse changes to any of the following: • estimated recoverable ounces of gold, silver or other precious minerals; • estimated future commodity prices; • estimated expected future operating costs, capital expenditures and reclamation expenditures. A write-down to fair value will be recorded when the expected future cash flow is less than the net book value of the property or when events or changes in the property indicate that carrying amounts are not recoverable. This analysis will be completed as needed, and at least annually. As of the date of this filing, no events have occurred that would require write-down of any assets. As of December 31, 2015 and 2014, no indications of impairment existed. Asset Retirement Obligation: Pre Pilot-Production Costs During 2015, the Company has conducted rehabilitation activity at the San Pablo mine, and has refurbished the Pilot Mill Facility at San Jose de Gracia and, in general is preparing for test mining and pilot milling (“Pilot Production”) Operations. The costs associated with the rehabilitation, preparation, clean up and facilitation of this process are expensed as pre pilot-production costs. Property Holding Costs Holding costs to maintain a property on a care and maintenance basis are expensed in the period they are incurred. These costs include security and maintenance expenses, lease and claim fees and payments, and environmental monitoring and reporting costs. Exploration Costs Exploration costs are charged to operations and expenses as incurred. Exploration, development, direct field costs and administrative costs are expensed in the period incurred. Foreign Currency Translation The functional currency for the subsidiaries of the Company is the Mexican Peso. As a result, the financial statements of the subsidiaries have been re-measured from Mexican Pesos into U.S. dollars using (i) current exchange rates for monetary asset and liability accounts, (ii) historical exchange rates for nonmonetary asset and liability accounts, (iii) historical exchange rates for revenues and expenses associated with nonmonetary assets and liabilities and (iv) the weighted average exchange rate of the reporting period for all other revenues and expenses. In addition, foreign currency translation gains and losses are reported as a separate component of stockholders’ equity (comprehensive income (loss). The financial statements of the subsidiaries should not be construed as representations that Mexican Pesos have been, could have been or may in the future be converted into U.S. dollars at such rates or any other rates. Relevant exchange rates used in the preparation of the financial statements for the subsidiaries are as follows for the periods ended December 31, 2015 and December 31, 2014 (Mexican Pesos per one U.S. dollar): Dec 31, 2015 Dec 31, 2014 Current exchange rate Pesos 17.34 14.76 Weighted average exchange rate for the period ended Pesos 15.87 13.29 The Company recorded currency transaction losses of $(2,479,449) for the year ended December 31, 2015 and $(1,585,392) in 2014. Income Taxes The Company accounts for income taxes under ASC 740 “Income Taxes” Income from the Company’s subsidiaries in México are taxed at applicable Mexican tax law. Use of Estimates In order to prepare financial statement in conformity with accounting principles generally accepted in the United States, management must make estimates, judgments and assumptions that affect the amounts reported in the financial statements and determines whether contingent assets and liabilities, if any, are disclosed in the financial statements. The ultimate resolution of issues requiring these estimates and assumptions could differ significantly from resolution currently anticipated by management and on which the financial statements are based. Comprehensive Income (Loss) ASC 220 “Comprehensive Income” Revenue Recognition The Company recognizes revenue in accordance with ASC 605-10, " Revenue Recognition in Financial Statements Stock-Based Compensation The Company accounts for stock options at fair value as prescribed in ASC 718. The Company estimates the fair value of each stock option at the grant date by using the Black-Scholes option-pricing model and provides for expense recognition over the service period, if any, of the stock option. Per Share Amounts Earnings per share are calculated in accordance with ASC 260 “ Earnings per Share The Company had 4,161,189 warrants outstanding at December 31, 2015, which upon exercise, would result in the issuance of 4,161,189 shares of common stock. As the Company incurred a net loss during the period ended December 31, 2015, the basic and diluted loss per common share is the same amount, as any common stock equivalents would be considered anti-dilutive and, therefore, have been excluded from the computation. Fair value of financial instruments The Company’s financial instruments consist of cash, receivables, payables and long-term debt. The carrying amount of cash, receivable and payables approximates fair value because of the short-term nature of these items. The carrying amount of long-term debt approximates fair value due to the relationship between the interest rate on long-term debt and the Company’s incremental risk adjusted borrowing rate. Recently Issued Accounting Pronouncements Presentation of an Unrecognized Tax Benefit: Foreign Currency Matters: Presentation of Financial Statements—Going Concern—Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern: Presentation of Financial Statements and Property, Plant and Equipment—Reporting Discontinued Operations and Disclosures of Components of an Entity: Revenue from Contracts with Customers:

2. Inventories

2. Inventories	12 Months Ended
	Dec. 31, 2015
Inventory Disclosure [Abstract]
Inventories	The Company commenced underground test mining and pilot milling activities (“pilot production”) in the 2nd quarter of 2014. Rehabilitation of the San Pablo Mine and refurbishing of the Pilot Mill Facility and construction of the adjacent tailings pond continued through 2015. Inventories are carried at the lower of cost or fair value and consist of mined tonnage, gravity-flotation concentrates, and gravity tailings (or, flotation feed material). Inventory balances of December 31, 2015 and December 31, 2014, respectively, were as follows: 2015 2014 Gravity Tailings (Flotation Feed Material) $ 98,056 $ 100,000 Total Inventories $ 98,056 $ 100,000

3. Property

3. Property	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Property	Property consists of the following at December 31, 2015 and December 31, 2014: 2015 2014 Mining camp equipment $ 402,212 $ 702,543 Transportation equipment 301,074 222,988 Machinery and equipment 509,298 106,189 Office furniture and fixtures 75,829 75,829 Office equipment 170,581 65,032 Sub-total 1,458,994 1,172,581 Less: Accumulated depreciation (823,044 ) (967,207 ) Total Property $ 635,950 $ 205,374 Depreciation has been provided over each asset’s estimated useful life. Depreciation expense was $128,513 and $56,468for the years ended December 31, 2015 and 2014, respectively.

4. Mining Concessions

4. Mining Concessions	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Mining Concessions	Mining properties consist of the following at December 31, 2015 and December 31, 2014: 2015 2014 San Jose de Gracia (“SJG”): Total Mining Concessions $ 4,132,678 $ 4,194,439 Amortization expense was $nil and $nil for the years ended December 31, 2015 and 2014, respectively.

5. Investment in Affiliate _ Re

5. Investment in Affiliate / Receivables from Affilate	12 Months Ended
	Dec. 31, 2015
Investments in and Advances to Affiliates, Schedule of Investments [Abstract]
Investment in Affiliate / Receivables from Affilate	Through December 31, 2015, the Company loaned a total of $805,760 to DynaResource Nevada, Inc. (“DynaNevada”), a Nevada Corporation, which owns 100% of one operating subsidiary in México, DynaNevada de México, S.A. de C.V. (“DynaNevada de México”). The terms of the Note Receivable provided for a “Convertible Loan”, repayable at 5% interest over a 3-year period, and convertible at the Company’s option into common stock of DynaNevada at $.25 / Share. DynaNevada is a related entity (affiliate), and through its subsidiary, DynaNevada de México has entered into an Option agreement with Grupo México (IMMSA) in México, for the exploration and development of approximately 3,000 hectares in the State of San Luis Potosi (“The Santa Gertrudis Property”). DynaNevada de México exercised the Option with IMMSA in March 2010, so that DynaNevada de México now owns 100% of the Santa Gertrudis Property. In June 2010, DynaNevada de México acquired an additional 6,000 hectares in the State of Sinaloa (the “San Juan Property”). On December 31, 2010, the Company exercised its option to convert the note receivable and other receivable from DynaNevada into shares of common stock at a rate of $.25 / Share. The Company received 3,223,040 shares, which represents approximately 19.95% of the outstanding shares of DynaNevada. At the time of the exchange, DynaNevada’s net book value was approximately $695,000, consisting of $30,000 cash and the remainder unproven mining properties. Based upon the above, Management estimated the value of the Company’s DynaNevada shares as of December 31, 2015 and December 31, 2014 to be $70,000 and $70,000, respectively. The loss was taken to “other income (loss)” on the income statement in previous years. The Company has advanced funds to DynaNevada on a regular basis in order for DynaNevada to meets its basis filing and reporting obligations with the Mexican authorities relating to tax returns and paying taxes on its mining concessions. As of December 31, 2015 and December 31, 2014, the advances totaled $159,143 and $172,968, respectively.

6. Convertible Promissory Notes

6. Convertible Promissory Notes	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Convertible Promissory Notes	Notes Payable – Series I In April and May, 2013, the Company entered into note agreements with shareholders in the principal amount of $1,495,000, of which $340,000 was then converted to preferred shares within the same year, netting to proceeds of $1,155,000 (the “Series I Notes” Series I). The Series I Notes bear simple interest at twelve and a half percent (12.5%), accrued for twelve months, and with the accrued interest to be added to the principal, and then interest will be paid by the Company, quarterly in arrears. The holders of the Series I Notes (in aggregate) are also entitled to receive ten percent (10%) of the net profits received by the Company, and generated from the bulk sampling material (if any, and up to fifty thousand tonnes) processed through the existing, or improved mill facilities at San Jose de Gracia. Such net profits (if any) are to be calculated after deducting all expenses related to the processing of the bulk sample material, and after a prior deduction of thirty-three percent (33%) from the profits, to be deposited in a sinking fund cash reserve. This net profit percentage (if any) would be paid quarterly in arrears based on the profits generated (if any) for the prior quarter. At the time of the Series I Notes, there were no proven or probable reserves and the Company had not produced any net profits. Consequently, the fair value of the net profits interest on the date of the Series I Note was deemed to be zero. Further, no payments have been made under the terms of this codicil. The Notes originally matured on December 31, 2015. In April, 2015, the notes were extended to December 31, 2016. The Company has the right to prepay the Series I Notes with a ten percent (10%) penalty. The notes are secured by the Company’s stock at $5 per share. The Series I Note holder retains the option, at any time prior to maturity or prepayment, to convert any unpaid principal and accrued interest into Common Stock at $5.00 per share. If the Series I Note is converted into Common Stock, at the time of conversion, the holder would also receive warrants, in the same number as the number of common shares received upon conversion, to purchase additional common shares of the Company for $7.50 per share, with such warrants expiring on December 31, 2015. In 2013, the Company offered an inducement to all Series I Note holders to convert their Series I Notes and accrued interest into Series B Preferred Stock (“Series B”), $5/Share, which Series B was convertible into common stock on a 2 for 1 basis (i.e., $2.50 stock). This conversion into Series B created $197,771 in inducement expense, with an offset to additional paid in capital. In 2013, $340,000 principal and $22,734 of capitalized accrued interest of the Series I Notes were converted into Preferred Stock, Series B and 72,546 shares were issued. At June 30, 2014, these 72,546 Series B shares were converted into 145,092 common shares. In April, 2015, the Company received note extensions (allonges) from all Series I note holders to ensure that all Series I Notes were in good standing and also extended the maturity date of the Series I Notes to December 31, 2016. Notes Payable – Series II In 2013 and 2014, the Company entered into additional note agreements of $199,808 and $250,000, respectively (the “Series II Notes”) with similar terms as the Series I notes. The Series II Notes bear simple interest at twelve and a half percent (12.5%), accrued for twelve months, and with the accrued interest to be added to the principal, and then interest will be paid by the Company, quarterly in arrears. The holders of the Series II Notes (in aggregate) are also entitled to receive ten percent (10%) of the net profits received by the Company, and generated from the bulk sampling material (if any, on the second fifty thousand tonnes) processed through the existing, or improved mill facilities at San Jose de Gracia. Such net profits (if any) are to be calculated after deducting all expenses related to the processing of the bulk sample material, and after a prior deduction of thirty-three percent (33%) from the profits, to be deposited in a sinking fund cash reserve. This net profit percentage (if any) would be paid quarterly in arrears based on the profits generated (if any) for the prior quarter. At the time of the Series II notes, there were no proven or probable reserves and the Company had not produced any net profits. Consequently, the fair value of the net profits interest on the date of the Series II note was deemed to be zero. Further, no payments have been made under the terms of this codicil. The Notes mature on December 31, 2016. The Company has the right to prepay the Notes with a ten percent (10%) penalty. The notes are secured by the Company’s stock at $5 per share. The Note holder may, at any time prior to maturity or prepayment, convert any unpaid principal and accrued interest into common stock of the Company at $5.00 per share. At the time of conversion, the holder would receive a warrant to purchase additional common shares of the Company for $7.50 per share, such warrant expiring on December 31, 2016. In April, 2015, the Company received allonges (note extensions) from all noteholders to ensure that all notes were in good standing and also confirmed the maturity of the Series II notes to be December 31, 2016. On June 30, 2015, the Company entered into conversion agreements with six (6) note holders. Principal and interest in the amount of $809,784 plus $33,120 of accrued interest (total of $842,904) was contracted to convert into 337,162 common shares. In addition, 337,162 warrants are to be issued which provide the option to purchase common shares at $2.50, with all warrants expiring December 31, 2017. The Company recorded $826,347 inducement expense related to these conversion transactions. On August 17, 2015, these common shares and warrants were issued. The company evaluated the application of ASC 470-50 and ASC 470-60 and determined that the Notes were not substantially different. As a result, it was concluded that the revised terms constituted a debt modification rather than a debt extinguishment. At December 31, 2015, the principal and capitalized interest balance on the remaining Series I Notes was $793,125, and the principal and capitalized interest on the Series II Notes was $191,250, for a total Note balance of $956,250. The principal balance on the Note—Related Party was $0 and $250,000 for the years ended December 31, 2015 and 2014, respectively. The accrued interest for these notes was $29,883 and $109,292 as of December 31, 2015 and 2014, respectively. Other Notes Payable The Company received proceeds from a short term convertible note in the amount of $203,500 on September 5, 2014. Interest is accrued at 8% annually and interest payments are deferred until conversion or payoff of note. The note provisions allow payoff in the first 180 days subsequent to funding, with additional premium of 10% of the note amount in the 1 st This Note was retired in full in February, 2015. Because the note was repaid within the 180 days, the option to convert was never available. Consequently, the embedded conversion feature was not bifurcated and no derivative was recorded.

7. Income Taxes

7. Income Taxes	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income Taxes	The Company has adopted ASC 740-10, “ Income Taxes” The cumulative tax effect at the expected tax rate of 34% (blended for U.S. and México) of significant items comprising the Company’s net deferred tax amounts as of December 31, 2015 and December 31, 2014 are as follows: Deferred Tax Asset Related to: 2015 2014 Prior Year $ 13,652,086 $ 11,626,008 Tax Benefit for Current Year 3,883,714 2,026,078 Total Deferred Tax Asset 17,535,800 13,652,086 Less: Valuation Allowance (17,535,800 ) (13,652,086 ) Net Deferred Tax Asset $ — $ — The net deferred tax asset and benefit for the current year is generated primarily from the cumulative net operating loss carry-forward which is approximately $50,159,000 at December 31, 2015, and will expire in the years 2025 through 2031. The realization of deferred tax benefits is contingent upon future earnings and is fully reserved at December 31, 2015. On December 11, 2013, the Mexican government enacted a tax reform that increased the effective tax rate applicable to the Company's Mexican operations. The law, effective January 1, 2014, increased the future corporate income tax rate to 30%, created a 10% withholding tax on dividends paid to non-resident shareholders and created a new Extraordinary Mining duty which is equal to 0.5% of gross revenues from the sale of gold, silver and platinum. Furthermore, the reform introduced a Special Mining Duty of 7.5%. The Special Mining Duty is deductible for income tax purposes. The Special Mining Duty is generally applicable to earnings before income tax, depreciation, depletion, amortization and interest. There will be no deductions related to development type costs but exploration and prospecting costs are deductible when incurred. Certain non-deducted exploration expenditures incurred prior to January 1, 2014 are also deductible in the calculation of the Special Mining Duty. For the year ended December 31, 2014, the Company had no taxes payable under the 7.5% Special Mining Duty. The Company or its subsidiaries file income tax returns in the United States and México. These tax returns are subject to examination by local taxation authorities provided the tax years remain open to audit under the relevant statute of limitations. The following summarizes the open tax years by major jurisdiction: United States: 2012 to 2015 México: 2011 to 2015 The Company does not have any other material items of temporary or permanent differences, which give rise to deferred tax assets or liabilities.

8. Stockholders' Equity

8. Stockholders' Equity	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Stockholders' Equity	Authorized Capital Preferred Stock Common Stock Series A Preferred Stock The Company has designated 1,000 shares of its Preferred Stock as Series A, having a par value of $0.0001 per share. Holders of the Series A Preferred Stock have the right to elect a majority of the Board of Directors of the Company. In October 2007, the Company issued 1,000 shares of Series A Preferred Stock to its CEO. At December 31, 2015 and December 31, 2014, there were 1,000 and 1,000 shares of Series A Preferred Stock outstanding, respectively. The par value changed from $1.00 to $0.0001 in 2012. Series B Preferred Stock The Company designated 1,000,000 shares of its Preferred Stock as Series B, having a par value of $0.0001 per share. Holders of the Series B Preferred Shares held the right to convert into Common Stock of the Company on the following schedule: Date of Conversion # of Common Shares Received on Conversion For Each Preferred Share # of Common Stock Warrants Received On Conversion for Each Preferred Share Company Can Force the Option? April 1 to December 31, 2014 2 0 N July 1 to Dec 31, 2014 1.5 .75 N January 1 to June 30, 2015 1 1 N July 1 to December 31, 2015 1 0 Y The holders of Series B Preferred Shares did not have voting rights and were not entitled to receive a dividend. During the years ended December 31, 2015 and 2014, the Company issued 0 and 266,200 shares, respectively of Series B preferred shares for $1,331,000 cash. In the year 2014, each share is convertible into 2 common shares at the option of the holder. The Company evaluated the convertible preferred stock under FASB ASC 470-20-30 and determined it contained a beneficial conversion feature. The intrinsic value of the beneficial conversion feature was determined to be $668,952. The beneficial conversion feature was fully amortized and recorded as a deemed dividend in 2014. At June 30, 2014, all Series B Preferred Shares were converted to common shares: 726,646 shares of Preferred B converted to 1,453,292 common shares. On May 4, 2015, the Company filed a certificate of elimination of the Series B convertible preferred shares, and thereby eliminating the Series B preferred shares. Therefore, as of December 31, 2015, no Series B Preferred Shares were outstanding. Series C Senior Convertible Preferred Shares On June 30, 2015, the Company issued 1,600,000 Series C Senior Convertible Preferred Shares (the “Series C Preferred Shares”) at $2.50 per share for gross proceeds of $ 4,000,000, as well as issuing 133,221 additional Series C Preferred Shares due to anti-dilution provisions (with no cash remuneration). Legal fees of $45,000 were deducted from the proceeds of this transaction at closing. These Series C Preferred Shares were originally convertible to common shares at $2.50 per share, through February 20, 2020. As of December 31, 2015, the share exercise price was reset to $2.41 per share due to anti-dilution provisions. The Series C Preferred Shares may receive a 4% per annum dividend, payable if available, and in arrears. A description of the transaction which included the issuance of the Series C Preferred Shares is included below. Financing Agreement with Golden Post Rail, LLC, a Texas Limited Liability Company · On May 6, 2015, the Company, Golden Post Rail, LLC, a Texas limited liability company (“Golden Post”), and Mr. Koy W. (“K.D.”) Diepholz, Chairman-CEO of the Company entered into a Securities Purchase Agreement (the “SPA”). Pursuant to the SPA, Golden Post acquired the following securities: a) 1,600,000 shares of Series C Senior Convertible Preferred Stock (the “Series C Preferred”) at a purchase price of $2.50 per share ($4M USD), plus an additional 133,221 shares of Series C Preferred pursuant to anti-dilution provisions. The Series C Preferred is entitled to receive dividends at the per share rate of four percent (4%) per annum, ranks senior (in priority) to the Common Stock, the Series A Preferred Stock, and each other class or series of equity security of the Company. The Series C Preferred was originally convertible into Common Stock of the Company at the price of $2.50 per share, and is entitled to anti-dilution protection for (i) subsequent equity issuances by the Company and (ii) changes in the Company’s ownership of DynaResource de México SA de CV (“DynaMéxico”). Due to reset provisions at December 31, 2015, the price has been adjusted to $2.41 per share. The Series C Preferred is also entitled to preemptive rights, and the holder has the right to designate one person to the Company’s Board of Directors as a Class III director. b) A Common Stock Purchase Warrant (the “Golden Post Warrant”) for the purchase of 2,166,527 shares of the Company’s Common Stock, originally at an exercise price of $2.50 per share, and expiring June 30, 2020. The anti-dilution protections contained in the terms of the Series C Preferred are essentially replicated in the Golden Post Warrant. As of December 31, 2015, the pricing of the warrants was reset to $2.41 per share due to anti-dilution provisions. 2. On May 6, 2015, the Company executed a Promissory Note (the “Golden Post Note”) payable to Golden Post in the principal amount of $500,000, and bearing interest at 8%. The principal amount of the Golden Post Note and accrued interest to June 30, 2015 of $6,000 were credited against amounts payable to the Company pursuant to the Securities Purchase Agreement described above. 3. Pursuant to the SPA, the Company executed a Registration Rights Agreement pursuant to which Golden Post may require the Company to register the shares of Common Stock which may be issued upon the conversion of the Series C Preferred and the shares of Common Stock issuable upon the exercise of the Warrant, including any additional shares of Common Stock issuable pursuant to anti-dilution provisions. Due to underlying anti-dilutive provisions contained in the Series C Preferred Shares and the Golden Post Warrant, the Company incurred derivative liabilities of $2,419,359 in connection with the Series C Preferred Shares, and $2,963,378 in connection with the Golden Post warrants. Additionally, the Company fully accreted the discount related to the Series C Preferred Shares and the Golden Post warrants in the amount of $4,637,179, which is reflected “below” the net income (loss) amount. Also in the current year, the Company reported $87,374 for redemption of dividend for Golden Post Rail related to its 4% dividend terms. As the Company has not declared these dividends, it is required only as an item “below” the net income (loss) amount. Due to the nature of this transaction as mandatorily redeemable, the preferred shares are classified as “temporary equity” on the balance sheet. Cumulative dividends on the Preferred C shares amounted to $87,374 in 2015. Preferred Series C Carrying Value, December 31, 2014 $ – Issuances at Fair Value, net of issuance costs 3,955,000 Bifurcation of Derivative Liability 2,152,704 Relative Fair Value of Warrants-Preferred Stock Discount (2,106,422 ) Accretion of Preferred Stock to Redemption Value (4,637,179 ) Carrying Value, December 31, 2015 4,333,053 Preferred Stock (Undesignated) In addition to the 1,000 shares designated as Series A Preferred Stock and the 1,733,221 shares designated as Series C Preferred Shares, the Company is authorized to issue an additional 16,266,779 shares of Preferred Stock, having a par value of $0.0001 per share. The Board of Directors of the Company has authority to issue the Preferred Stock from time to time in one or more series, and with respect to each series of the Preferred Stock, to fix and state by the resolution the terms attached to the Preferred Stock. At December 31, 2015 and December 31, 2014, there were no other shares of Preferred Stock outstanding. Separate Series; Increase or Decrease in Authorized Shares Common Stock The Company is authorized to issue 25,000,000 common shares at a par value of $0.01 per share. These shares have full voting rights. At December 31, 2015 and December 31, 2014, there were 16,722,825 and 14,146,024 shares outstanding, respectively. No dividends were paid for the years ended December 31, 2015 and 2014, respectively. Preferred Rights The Company issued “Preferred Rights” for the rights to percentages of revenues generated from the San Jose de Gracia Pilot Production Plant, and received $158,500 in 2003 and $626,000 in 2002. This has been reflected as “Preferred Rights” in stockholders’ equity. As of December 31, 2004, $558,312 was repaid and as of December 31, 2005, an additional $186,188 was repaid, leaving a current balance of $40,000 and $40,000 as of December 31, 2015 and December 31, 2014, respectively. Stock Issuances 2015 Activity During the year ended December 31, 2015, the Company issued 407,162 common shares for the conversion of notes, accrued interest and advances at $2.50 per share. These stock issuances also included the issuance of 407,162 warrants exercisable at $2.50 per share, expiring December 31, 2017. The Company issued 1,169,500 common shares for cash at $2.50 per share, and the Company also issued 1,319,000 Warrants, with 1,020,000 of these warrants exercisable at $2.50 per share expiring December 31, 2017 and 149,500 warrants exercisable at $5 per share through December 31, 2015 and 149,500 warrants exercisable at $7.50 per share, expiring December 31, 2016. The Company issued 2,166,527 warrants related to the Series C Convertible Preferred shares in the current year. These warrants were exercisable at $2.50 per share, and expire June 30, 2020. The exercise price has been reset to $2.41 per share due to anti-dilution provisions. During 2015, the Company issued 750,000 common shares to Mineras de DynaResource S.A. de C.V. (“DynaMineras”, a wholly owned subsidiary) in exchange for services at a fair value of $1.74 per share. These shares are carried as Treasury Shares for consolidation purposes. During 2015, the Company issued 250,000 shares to Dynacap Group Ltd., a related party, for services rendered at a fair value of $1.74 per share and recognized $435,000 in expense. Treasury Stock During the year ended December 31, 2015, the Company distributed 395,700 treasury shares to stockholders and recognized $1,187,100 expense related to same. The Company distributed 600,000 treasury shares for services rendered and recognized $1,044,000 expense for such distribution. Company recognized $51,135 in expense for the distribution of 20,000 treasury shares. Note Conversions As described in Note 6, Six (6) Noteholders converted principal and interest in the amount of $809,784 plus $33,120 of accrued interest (total of $842,904) into 337,162 shares of common stock ($2.50 per share). In addition, 337,162 warrants were issued, exercisable at $2.50 per share, expiring December 31, 2017. Conversion of Advances—Related Party The Company converted $175,000 of advances from its CEO for the issuance of 70,000 shares of common (at $2.50 per share) as well as issuing 70,000 warrants, exercisable at $2.50 per share, expiring December 31, 2017. 2014 Activity During the year ended December 31, 2014, the Company issued 266,200 Series B preferred shares for cash at $5.00 per share. During the year ended December 31, 2014, the Company issued 1,453,292 common shares for the conversion of 726,646 Series B Preferred Shares, at a conversion ratio of 2 common shares issued for 1 preferred series B share redeemed. The Company also issued 4,391 common shares for the conversion of an advance to the Company at $2.50 per share. During the year ended December 31, 2014, the Company issued 1,333,333 shares to Mineras de DynaResource (wholly owned subsidiary) in exchange for the receivable it held from DynaResource de México of $4,000,000 at a fair value cost of $2.50 per share. The shares are carried in Treasury for consolidation purposes. During 2014, $757,500 was received for the issuance of 303,000 shares at $2.50 per share. During 2014, 250,000 shares were issued for services rendered at a cost basis of $2.75 per share. Treasury Stock In 2014, the Company issued 1,333,333 shares to Mineras de DynaResource SA de CV (“DynaMineras”) in exchange for $4,000,000 in receivables owed by DynaMéxico to DynaMineras and these shares are held in treasury. Also in 2014, Mineras redistributed 250,000 shares of common for services and the Company recognized $687,500 in expense related to this transaction. In 2014, the Company repurchased 3,000 Common Shares for $7,500. In 2014, The Company redistributed 20,454 shares of treasury stock. In August, 2014, the Company distributed 20,000 treasury shares. Treasury stock is accounted for by the cost method. Warrants 2015 Activity The Company had 4,161,189 warrants outstanding at December 31, 2015. During 2015, the Company issued 149,500 warrants at $5/share, expiring December 31, 2016 and 149,500 warrants at $7.50/share expiring December 31, 2017. The Company also issued 1,001,150 warrants at $2.50/share, expiring December 31, 2017. The Company also issued 2,166,527 warrants with anti-dilution provisions originally priced at $2.50/share and expiring June 30, 2020. These warrants have been reset to $2.41 per share pricing due to anti-dilution provisions. The Company also issued 407,162 warrants at $2.50/share, expiring December 31, 2017. Expiration of 991,150 warrants occurred during the year. 2014 Activity During 2014, the Company issued 790,000 Warrants to purchasers of 395,000 common shares at $2.50 per share: (a) 395,000 warrants, exercisable at $5 per share, and expiring December 31, 2015, and (b) 395,000 warrants, exercisable at $7.50 per share, and expiring December 31, 2016. Also during the year ended December 31, 2014, 212,500 warrants expired on January 1, 2014, and 469,650 warrants expired at June 30, 2014. During the years ended December 31, 2015 and 2014, no warrants were exercised. The Company recorded no expense related to the issuance of these warrants since these warrants were issued in common stock for cash sales and note conversions. Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Intrinsic Value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2013 1,151,800 $ 5.83 .90 $ - Granted 790,000 $ 6.25 $ Exercised - $ 0.00 $ - Forfeited (682,150) $ 4.69 $ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2014 1,259,650 $ 5.80 .96 $ - Granted 3,892,689 $ 6.25 $ - Exercised - $ - $ - Forfeited (991,150) $ 4.69 $ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2015 4,161,189 $ 5.80 .96 $ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at December 31, 2015 4,161,189 5.80 .96 $ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

9. Related Party Transactions

9. Related Party Transactions	12 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
Related Party Transactions	Dynacap Group Ltd. The Company paid $81,500 and $86,250 to Dynacap Group, Ltd. (an entity controlled by an officer of the Company) for consulting and other fees during the years ended December 31, 2015 and 2014, respectively. The Company also issued 250,000 shares of common stock in February, 2015 to Dynacap for services performed at $1.74 per share and recognized expense $435,000. Cash Advances by Management Company Chairman/CEO contributed $175,000 and Company CFO contributed $150,000 as advances to the Company in 2015. The Company converted $175,000 of advances from the CEO for the issuance of 70,000 shares of common (at $2.50 per share) as well as 70,000 warrants, exercisable at $2.50 per share, expiring December 31, 2017 during 2015. These shares were issued in August, 2015. Note Agreement with Management The Company entered into a note agreement with its CFO for the receipt of $250,000 on April 24, 2014. The agreement calls for simple interest at an annual rate of 12.5%. Interest for the first year is to be capitalized and added to the note. After one year, the Company is to make quarterly payments in arrears. The Note matures on December 31, 2016. The Company has the right to prepay the Note with a ten percent (10%) penalty. The Note holder may, at any time prior to maturity or prepayment, convert any unpaid principal and accrued interest into common stock of the Company at $3.75 until December 31, 2015, and at 5.00 per share after December 31, 2015, but prior to December 31, 2016. At the time of conversion, the holder would receive a warrant to purchase additional common shares of the Company for $7.50 per share, such warrant expiring 2 years from the date of issue. On April 24, 2015 the CFO agreed to convert $250,000 principal plus $30,555 accrued interest into 115,222 common shares at $2.50/Share, with 115,222 warrants, exercisable at $2.50 per share, expiring December 31, 2017. These shares and warrants were issued on August 24, 2015. Stock Purchases by Management The Company issued shares at $2.50/Share for the receipt of $425,000 by the Company Chairman/CEO in 2014. The Company CEO also received 20,000 treasury shares during the year. DynaResource Nevada, Inc. and DynaNevada de México S.A. de C.V. (together “DynaNevada”) The Company advanced DynaNevada $0 and $0 in the years ended December 31, 2015 and 2014, respectively, for maintenance of its corporate obligations and mining concessions. The balance for the years ended December 31, 2015 and 2014 are $159,143 and $172,968, respectively.

10. Commitments and Contingenci

10. Commitments and Contingencies	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	The Company is required to pay taxes in México in order to maintain mining concessions owned by DynaMéxico. Additionally, the Company is required to incur a minimum amount of expenditures each year for all concessions held. The minimum expenditures are calculated based upon the land area, as well as the age of the concessions. Amounts spent in excess of the minimum may be carried forward indefinitely over the life of the concessions, and are adjusted annually for inflation. Based on Management’s business plans, the Company does not anticipate that DynaMéxico will have any issues in meeting the minimum annual expenditures for the concessions, and DynaMéxico retains sufficient carry-forward amounts to cover over 20 years of the minimum expenditure (as calculated at the 2012 minimum, adjusted for annual inflation of 4%). In addition to the surface rights held by DynaMéxico pursuant to the Mining Act Ley Minera y su Reglamento The 20 Year Land Lease Agreement with the Santa Maria Ejido Community surrounding San Jose de Gracia was dated January 6, 2014 and continues through 2033. It covers an area of 4,399 hectares surrounding the main mineral resource areas of SJG, and provides for annual lease payments by DynaMineras of $1,359,443 Pesos (approx. $104,250 USD), commencing in 2014. In September 2008, the Company entered into a 37-month lease agreement for its corporate office. In August, 2011 and then in August 2012, the Company entered into a one-year extension of the lease through August 31, 2016. The Company paid rent expense of $55,764 and $49,600 related to this lease for the years ended December 31, 2015 and 2014, respectively. Other Contingencies The Company's mining and exploration activities are subject to various laws and regulations governing the protection of the environment. These laws and regulations are continually changing and generally becoming more restrictive. The Company conducts its operations so as to protect public health and the environment, and believes its operations are materially in compliance with all applicable laws and regulations. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations. Damages Awarded to DynaMéxico in México Litigation On October 5, 2015, DynaResource de México SA de C.V. (“DynaMéxico”), was awarded in excess of $48 M USD (Forty-Eight Million Dollars) in damages from Goldgroup Resources, Inc. (the “Goldgroup Damages”) by virtue of a Sentencia Definitiva (the “Definitive Sentence”) issued by the Thirty Sixth Civil Court of the Superior Court of Justice of the Federal District of México (Tribunal Superior de Justicia del Distrito Federal), File number 1120/2014. The Definitive Sentence included the considerations and resolutions by the Court, and additional Resolutions were also ordered in favor of DynaMéxico (together the Goldgroup Damages and the additional Resolutions are referred to as, the “Oct. 5, 2015 Resolution”). The October 5, 2015 Resolution is described below; See Part II, Item 1., Legal Proceedings. Litigation The Company believes that no material adverse change will occur as a result of the legal actions taken, and the Company further believes that there is little to no potential for the assessment of a material monetary judgment against the Company for legal actions it has filed in México. Further, the Company believes there is no legal basis for which to conduct arbitration proceedings. (See Item 3. Legal Proceedings. And, see Item 7. Management’s Discussion and Analysis of Financial Conditions and Results of Operations).

11. Derivative liabilities

11. Derivative liabilities	12 Months Ended
	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative liabilities	Preferred Series C Stock As discussed in Note 8, the Company analyzed the embedded conversion features of the Series C Preferred Stock and determined that the stock qualified as a derivative liability and is required to be bifurcated and accounted for as such since the host and the embedded instrument are not clearly and closely related. The Company performed a valuation of the conversion feature. In performing the valuation, the Company applied the guidance in ASC 820, “Fair Value Measurements”, In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The Company considered the inputs in this valuation to be level 3 in the fair value hierarchy under ASC 820 and used an equity simulation model to determine the value of conversion feature of the Series C Preferred Stock based on the assumptions below: Annual volatility rate 134 % Risk free rate 1.76 % Holding Period 5 years Fair Value of common stock $ 1.65 For the year ended December 31, 2015, an active market for the Company’s common stock did not exist. Accordingly, the fair value of the Company’s common stock was estimated using a valuation model with level 3 inputs. The below table represents the change in the fair value of the derivative liability during the years ended December 31, 2015 and 2014: Year Ended 2015 2014 Fair value of derivative (stock), beginning of year $ — $ — Gain on change in fair value of derivative 266,659 — Fair value of derivative on the date of issuance 2,152,700 — Fair value of derivative, December 31, 2015 $ 2,419,359 $ — Preferred Series C Warrants In addition, as discussed in Note 8, the Company analyzed the embedded conversion features of the Series C Preferred Stock and determined that the Warrants qualified as a derivative liability and is required to be bifurcated and accounted for as such since the host and the embedded instrument are not clearly and closely related. The Company performed a valuation of the conversion feature. In performing the valuation, the Company applied the guidance in ASC 820, “Fair Value Measurements”, In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The Company considered the inputs in this valuation to be level 3 in the fair value hierarchy under ASC 820 and used an equity simulation model to determine the value of conversion feature of the Warrants based on the assumptions below: Annual volatility rate 134 % Risk free rate 1.76 % Holding Period 5 years Fair Value of common stock $ 1.65 For the year ended December 31, 2015, an active market for the Company’s common stock did not exist. Accordingly, the fair value of the Company’s common stock was estimated using a valuation model with level 3 inputs. The below table represents the change in the fair value of the derivative liability during the years ended December 31, 2015 and 2014: Year Ended 2015 2014 Fair value of derivative (warrants), beginning of the year $ — $ — Gain on change in fair value of derivative (62,380 ) — Fair value of derivative on the date of issuance 3,025,758 — Fair value of derivative, December 31, 2015 $ 2,963,378 —

12. Non-Controlling Interest

12. Non-Controlling Interest	12 Months Ended
	Dec. 31, 2015
Noncontrolling Interest [Abstract]
Non-Controlling Interest	The Company’s Non-Controlling Interest recorded in the consolidated financial statements relates to an interest in DynaResource de México, S.A. de C.V. of 50% through May 13, 2013, and 20% thereafter. Changes in Non-Controlling Interest for the years ended December 31, 2015 and 2014, respectively were as follows: Year Ended December 31, 2015 Year Ended December 31, 2014 Beginning balance $ (6,181,229 ) $ (5,680,107 ) Operating income (loss) (560,643 ) (536,357 ) Share of Other Comprehensive Income (loss) 279,922 35,235 Ending balance $ (6,461,950 ) $ (6,181,229 ) The Company began allocating a portion of other comprehensive income (loss) to the non-controlling interest with the adoption of ASC 160 as of January 1, 2009. However, this amount is only reflected in the income statement.

13. Fair Value of Financial Ins

13. Fair Value of Financial Instruments	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	The ASC guidance for fair value measurements and disclosure establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 Inputs Level 2 Inputs Level 3 Inputs As of December 31, 2014 and December 31, 2013, the Company’s financial assets were measured at fair value using Level 3 inputs, with the exception of cash, which was valued using Level 1 inputs. A description of the valuation of the Level 3 inputs is discussed in Note 4. Fair Value Measurement at December 31, 2015 Using: December 31, 2015 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: None — — — — Totals $ — $ — $ — $ — Liabilities: Derivative Liabilities $ 5,382,737 — — 5,382,737 Totals $ 5,382,737 $ — $ — $ 5,382,737 Fair Value Measurement at December 31, 2014 Using: Assets: None — — — — Totals $ — $ — $ — $ — Liabilities: None — — — $ — Totals — — — $ —

14. Subsequent Events

14. Subsequent Events	12 Months Ended
	Dec. 31, 2015
Subsequent Events [Abstract]
Subsequent Events	Revenues from Previous Delivery and Sale of Gold Concentrates (2015) On January 11 and January 13, 2016, DynaMineras reported the receipt of a total of $141,106 USD as payment for the sale of gold concentrates delivered December 31, 2015. This amount was recorded as accounts receivable at December 31, 2015. Gold Concentrate Deliveries for Sale (2016) On January 28, 2016, DynaMineras reported the delivery for sale of 300 gross Oz gold concentrates (exact weights in gold and silver oz. to be determined at final settlement); On February 5, 2016, DynaMineras reported the delivery for sale of 440 gross Oz gold concentrates (exact weights in gold and silver oz. to be determined at final settlement); On February 19, 2016, DynaMineras reported the delivery for sale of 600 gross Oz gold concentrates (exact weights in gold and silver oz. to be determined at final settlement); On March 4, 2016, DynaMineras reported the delivery for sale of 625 gross Oz gold concentrates (exact weights in gold and silver oz. to be determined at final settlement); On March 21, 2016, DynaMineras reported the delivery for sale of 350 gross Oz gold concentrates (exact weights in gold and silver Oz to be determined at final settlement); Revenues from the Delivery and Sale of Gold Concentrates (2016) DynaMineras reports receipts in the total amount of $1,650,831 USD as payment for the delivery and sale of gold concentrates in 2016, through April 2, 2016.

1. NATURE OF ACTIVITIES AND S21

1. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2015
Nature Of Activities And Significant Accounting Policies Policies
Basis of Presentation	The Company prepares its financial statements on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States.
Principles of Consolidation	The financial statements include the accounts of DynaResource, Inc., as well as DynaResource de México, S.A. de C.V. (80% ownership), DynaResource Operaciones S.A. de C.V. (100% ownership) and Mineras de DynaResource S.A. de C.V. (100% ownership). All significant inter-company transactions have been eliminated. All amounts are presented in U.S. Dollars unless otherwise stated.
Non-Controlling Interest	The Company’s subsidiary, DynaResource de México S.A. de C.V, is 20% owned by Goldgroup Mining, Inc. On May 17, 2013, the ownership changed from 50% to 20%. The Company accounts for this outside interest as “non-controlling interest”.
Investments in Affiliates	The Company owns a 19.92% interest in DynaResource Nevada, Inc., a Nevada Corporation (“DynaNevada”), with one operating subsidiary in México, DynaNevada de México, S.A. de C.V. (“DynaNevada de México”), together “DynaNevada”. The Company accounts for this investment using the cost basis.
Cash and Cash Equivalents	The Company considers all highly liquid debt instruments with a maturity of three months or less to be cash equivalents. At times, cash balances may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. At December 31, 2014, the Company had no balances that were in excess of the FDIC insurance limit of $250,000. The carrying amount approximates fair market value.
Accounts Receivable and Allowances for Doubtful Accounts	The allowance for accounts receivable is recorded when receivables are considered to be doubtful of collection. As of December 31, 2015 and 2014, respectively, no allowance has been made.
Foreign Tax Receivable	Foreign Tax Receivable is comprised of recoverable value-added taxes (“IVA”) charged by the Mexican government on goods and services rendered. Under certain circumstances, these taxes are recoverable by filing a tax return. Amounts paid for IVA are tracked and held as receivables until the funds are remitted. The total amounts of the IVA receivable as of December 31, 2015 and December 31, 2014 are $597,012 and $209,061, respectively.
Inventory	The Company commenced test mining and milling (pilot production) activities in the 2nd quarter, 2014. Inventories are carried at the lower of cost or fair value and consist of mined tonnage, and gravity concentrates, and gravity tailings or flotation feed material. The inventories are $98,056 and $100,000 as of December 31, 2015 and December 31, 2014, respectively.
Proven and Probable Reserves (No Known Reserves)	The definition of proven and probable reserves is set forth in SEC Industry Guide 7 (“Industry Guide 7”). Proven reserves for which (1) quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes, grade and/or quality are computed from the results of detailed sampling and (b) the sites for inspection, sampling and measurement are spaced so closely and the geological character is so well defined that size, shape, depth and mineral content of the reserves are well-established. Probable reserves are reserves for which quantity and grade and/or quality are computed from information similar to that used for proven (measured) reserves, but the sites for inspection, sampling, and measurement are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven (measured) reserves, is high enough to assume continuity between points of observations. As of December 31, 2015, none of the Company's properties contain resources that satisfy the definition of proven and probable reserves. The Company classifies the development of its properties, including the San Jose de Gracia Property, as exploration stage projects since no proven or probable reserves have been established under Industry Guide 7.
Property	Substantially all costs, including design, engineering, construction, and installation of equipment are expensed as incurred as the Company has not established proven and probable reserves on any of its properties. Only certain types of equipment which has alternative uses or significant salvage value, may be capitalized without proven and probable reserves. Depreciation is computed using the straight-line method with the exception of mining equipment. Mining equipment is depreciated using the units-of-production method based on tonnes processed over the estimated total mine life. Office furniture, equipment and light vehicles are being depreciated over estimated economic lives ranging from 3 to 5 years. Leasehold improvements, which relate to the Company's corporate office, are being amortized over the term of the lease of 10 years. Trailers, heavy vehicles and other site equipment are being depreciated over estimated economic lives from 5 to 15 years. Buildings are being depreciated over an estimated economic life of 20 years. Design, Construction, and Development Costs: When proven and probable reserves as defined by Industry Guide 7 exist, development costs are capitalized and the property is a commercially minable property. Mine development costs incurred either to develop new ore deposits, expand the capacity of operating mines, or to develop mine areas substantially in advance of current production would be capitalized. Costs of start-up activities and costs incurred to maintain current production or to maintain assets on a standby basis are charged to operations as incurred. Costs of abandoned projects are charged to operations upon abandonment. All capitalized costs would be amortized using the units of production method over the estimated life of the ore body based on recoverable ounces to be mined from proven and probable reserves. Certain costs to design and construct mining and processing facilities may be incurred prior to establishing proven and probable reserves. As no proven and probable reserves have been established on any of the Company's properties, design, construction and development costs are not capitalized at any of the Company's properties, and accordingly, substantially all costs are expensed as incurred, resulting in the Company reporting larger losses than if such expenditures had been capitalized. Additionally, the Company does not have a corresponding depreciation or amortization of these costs going forward since these expenditures were expensed as incurred as opposed to being capitalized. As a result of these and other differences, the Company's financial statements may not be comparable to the financial statements of mining companies that have established reserves.
Mining Properties Interests	Mineral property interests include acquired interests in development and exploration stage properties, which are considered tangible assets. The amount capitalized relating to a mineral property interest represents its fair value at the time of acquisition. When a property does not contain mineralized material that satisfies the definition of proven and probable reserves, such as with the San Jose de Gracia Property, capitalized costs and mineral property interests are amortized using the straight line method once production begins. As of December 31, 2015, the mining interests have been in the pilot production stage and therefore, no amortization has been expensed. Mining properties consist of 33 mining concessions covering approximately 69,121 hectares at the San Jose de Gracia property (“SJG”), the basis of which are amortized on the unit of production method based on estimated recoverable resources. If it is determined that the deferred costs related to a property are not recoverable over its productive life, those costs will be written down to fair value as a charge to operations in the period in which the determination is made. The amounts at which mineral properties and the related costs are recorded do not necessarily reflect present or future values. Impairment of Assets: For operating mines, recoverability is measured by comparing the undiscounted future net cash flows to the net book value. When the net book value exceeds future net undiscounted cash flows, an impairment loss is measured and recorded based on the excess of the net book value over fair value. Fair value for operating mines is determined using a combined approach, which uses a discounted cash flow model for the existing operations and a market approach for the fair value assessment of exploration land claims. Future cash flows are estimated based on quantities of recoverable mineralized material, expected gold and silver prices (considering current and historical prices, trends and related factors), production levels, operating costs, capital requirements and reclamation costs, all based on life-of-mine plans. The term "recoverable mineralized material" refers to the estimated amount of gold or other commodities that will be obtained after taking into account losses during processing and treatment of mineralized material. In estimating future cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of future cash flows from other asset groups. The Company's estimates of future cash flows are based on numerous assumptions and it is possible that actual future cash flows will be significantly different than the estimates, as actual future quantities of recoverable minerals, gold, silver and other commodity prices, production levels and costs and capital are each subject to significant risks and uncertainties. The recoverability of the book value of each property will be assessed annually for indicators of impairment such as adverse changes to any of the following: • estimated recoverable ounces of gold, silver or other precious minerals; • estimated future commodity prices; • estimated expected future operating costs, capital expenditures and reclamation expenditures. A write-down to fair value will be recorded when the expected future cash flow is less than the net book value of the property or when events or changes in the property indicate that carrying amounts are not recoverable. This analysis will be completed as needed, and at least annually. As of the date of this filing, no events have occurred that would require write-down of any assets. As of December 31, 2015 and 2014, no indications of impairment existed. Asset Retirement Obligation:
Pre Pilot-Production Costs	During 2015, the Company has conducted rehabilitation activity at the San Pablo mine, and has refurbished the Pilot Mill Facility at San Jose de Gracia and, in general is preparing for test mining and pilot milling (“Pilot Production”) Operations. The costs associated with the rehabilitation, preparation, clean up and facilitation of this process are expensed as pre pilot-production costs.
Property Holding Costs	Holding costs to maintain a property on a care and maintenance basis are expensed in the period they are incurred. These costs include security and maintenance expenses, lease and claim fees and payments, and environmental monitoring and reporting costs.
Exploration Costs	Exploration costs are charged to operations and expenses as incurred. Exploration, development, direct field costs and administrative costs are expensed in the period incurred.
Foreign Currency Translation	The functional currency for the subsidiaries of the Company is the Mexican Peso. As a result, the financial statements of the subsidiaries have been re-measured from Mexican Pesos into U.S. dollars using (i) current exchange rates for monetary asset and liability accounts, (ii) historical exchange rates for nonmonetary asset and liability accounts, (iii) historical exchange rates for revenues and expenses associated with nonmonetary assets and liabilities and (iv) the weighted average exchange rate of the reporting period for all other revenues and expenses. In addition, foreign currency translation gains and losses are reported as a separate component of stockholders’ equity (comprehensive income (loss). The financial statements of the subsidiaries should not be construed as representations that Mexican Pesos have been, could have been or may in the future be converted into U.S. dollars at such rates or any other rates. Relevant exchange rates used in the preparation of the financial statements for the subsidiaries are as follows for the periods ended December 31, 2015 and December 31, 2014 (Mexican Pesos per one U.S. dollar): Dec 31, 2015 Dec 31, 2014 Current exchange rate Pesos 17.34 14.76 Weighted average exchange rate for the period ended Pesos 15.87 13.29 The Company recorded currency transaction losses of $(2,479,449) for the year ended December 31, 2015 and $(1,585,392) in 2014.
Income Taxes	The Company accounts for income taxes under ASC 740 “Income Taxes” Income from the Company’s subsidiaries in México are taxed at applicable Mexican tax law.
Use of Estimates	In order to prepare financial statement in conformity with accounting principles generally accepted in the United States, management must make estimates, judgments and assumptions that affect the amounts reported in the financial statements and determines whether contingent assets and liabilities, if any, are disclosed in the financial statements. The ultimate resolution of issues requiring these estimates and assumptions could differ significantly from resolution currently anticipated by management and on which the financial statements are based.
Comprehensive Income (Loss)	ASC 220 “Comprehensive Income”
Revenue Recognition	The Company recognizes revenue in accordance with ASC 605-10, " Revenue Recognition in Financial Statements
Stock-Based Compensation	The Company accounts for stock options at fair value as prescribed in ASC 718. The Company estimates the fair value of each stock option at the grant date by using the Black-Scholes option-pricing model and provides for expense recognition over the service period, if any, of the stock option.
Per Share Amounts	Earnings per share are calculated in accordance with ASC 260 “ Earnings per Share The Company had 4,161,189 warrants outstanding at December 31, 2015, which upon exercise, would result in the issuance of 4,161,189 shares of common stock. As the Company incurred a net loss during the period ended December 31, 2015, the basic and diluted loss per common share is the same amount, as any common stock equivalents would be considered anti-dilutive and, therefore, have been excluded from the computation.
Fair value of financial instruments	The Company’s financial instruments consist of cash, receivables, payables and long-term debt. The carrying amount of cash, receivable and payables approximates fair value because of the short-term nature of these items. The carrying amount of long-term debt approximates fair value due to the relationship between the interest rate on long-term debt and the Company’s incremental risk adjusted borrowing rate.
Recently Issued Accounting Pronouncements	Presentation of an Unrecognized Tax Benefit: Foreign Currency Matters: Presentation of Financial Statements—Going Concern—Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern: Presentation of Financial Statements and Property, Plant and Equipment—Reporting Discontinued Operations and Disclosures of Components of an Entity: Revenue from Contracts with Customers:

2. INVENTORIES (Tables)

2. INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2015
Inventories Tables
Inventory	2015 2014 Gravity Tailings (Flotation Feed Material) $ 98,056 $ 100,000 Total Inventories $ 98,056 $ 100,000

3. PROPERTY (Tables)

3. PROPERTY (Tables)	12 Months Ended
	Dec. 31, 2015
Property Tables
Property	2015 2014 Mining camp equipment $ 402,212 $ 702,543 Transportation equipment 301,074 222,988 Machinery and equipment 509,298 106,189 Office furniture and fixtures 75,829 75,829 Office equipment 170,581 65,032 Sub-total 1,458,994 1,172,581 Less: Accumulated depreciation (823,044 ) (967,207 ) Total Property $ 635,950 $ 205,374

4. MINING CONCESSIONS (Tables)

4. MINING CONCESSIONS (Tables)	12 Months Ended
	Dec. 31, 2015
Mining Concessions Tables
Mining properties	2015 2014 San Jose de Gracia (“SJG”): Total Mining Concessions $ 4,132,678 $ 4,194,439

7. INCOME TAXES (Tables)

7. INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2015
Income Taxes Tables
Deferred Tax Asset	2015 2014 Prior Year $ 13,652,086 $ 11,626,008 Tax Benefit for Current Year 3,883,714 2,026,078 Total Deferred Tax Asset 17,535,800 13,652,086 Less: Valuation Allowance (17,535,800 ) (13,652,086 ) Net Deferred Tax Asset $ — $ —

8. STOCKHOLDERS' EQUITY (Tables

8. STOCKHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2015
Stockholders Equity Tables
Series B Preferred Stock	Date of Conversion # of Common Shares Received on Conversion For Each Preferred Share # of Common Stock Warrants Received On Conversion for Each Preferred Share Company Can Force the Option? April 1 to December 31, 2014 2 0 N July 1 to Dec 31, 2014 1.5 .75 N January 1 to June 30, 2015 1 1 N July 1 to December 31, 2015 1 0 Y
Cumulative dividends on the Preferred C shares	Preferred Series C Carrying Value, December 31, 2014 $ – Issuances at Fair Value, net of issuance costs 3,955,000 Bifurcation of Derivative Liability 2,152,704 Relative Fair Value of Warrants-Preferred Stock Discount (2,106,422 ) Accretion of Preferred Stock to Redemption Value (4,637,179 ) Carrying Value, December 31, 2015 4,333,053
Warrants	Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Intrinsic Value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2013 1,151,800 $ 5.83 .90 $ - Granted 790,000 $ 6.25 $ Exercised - $ 0.00 $ - Forfeited (682,150) $ 4.69 $ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2014 1,259,650 $ 5.80 .96 $ - Granted 3,892,689 $ 6.25 $ - Exercised - $ - $ - Forfeited (991,150) $ 4.69 $ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2015 4,161,189 $ 5.80 .96 $ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at December 31, 2015 4,161,189 5.80 .96 $ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

11. DERIVATIVE LIABILITIES (Tab

11. DERIVATIVE LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2015
Preferred Series C Stock
Valuation assumption	Annual volatility rate 134 % Risk free rate 1.76 % Holding Period 5 years Fair Value of common stock $ 1.65
Change in the fair value of the derivative liability	Year Ended 2015 2014 Fair value of derivative (stock), beginning of year $ — $ — Gain on change in fair value of derivative 266,659 — Fair value of derivative on the date of issuance 2,152,700 — Fair value of derivative, December 31, 2015 $ 2,419,359 $ —
Preferred Series C Warrants
Valuation assumption	Annual volatility rate 134 % Risk free rate 1.76 % Holding Period 5 years Fair Value of common stock $ 1.65
Change in the fair value of the derivative liability	Year Ended 2015 2014 Fair value of derivative (warrants), beginning of the year $ — $ — Gain on change in fair value of derivative (62,380 ) — Fair value of derivative on the date of issuance 3,025,758 — Fair value of derivative, December 31, 2015 $ 2,963,378 —

12. NON-CONTROLLING INTEREST (T

12. NON-CONTROLLING INTEREST (Tables)	12 Months Ended
	Dec. 31, 2015
Non-controlling Interest Tables
Changes in Non-controlling Interest	Year Ended December 31, 2015 Year Ended December 31, 2014 Beginning balance $ (6,181,229 ) $ (5,680,107 ) Operating income (loss) (560,643 ) (536,357 ) Share of Other Comprehensive Income (loss) 279,922 35,235 Ending balance $ (6,461,950 ) $ (6,181,229 )

13. FAIR VALUE OF FINANCIAL I29

13. FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2015
Fair Value Of Financial Instruments Tables
Fair Value Measurement	Fair Value Measurement at December 31, 2015 Using: December 31, 2015 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: None — — — — Totals $ — $ — $ — $ — Liabilities: Derivative Liabilities $ 5,382,737 — — 5,382,737 Totals $ 5,382,737 $ — $ — $ 5,382,737 Fair Value Measurement at December 31, 2014 Using: Assets: None — — — — Totals $ — $ — $ — $ — Liabilities: None — — — $ — Totals — — — $ —

2. INVENTORIES (Details)

2. INVENTORIES (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Inventories Details
Gravity Tailings (Flotation Feed Material)	$ 98,056	$ 100,000
Inventory	$ 98,056	$ 100,000

3. PROPERTY (Details)

3. PROPERTY (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Property Details
Mining camp equipment	$ 402,212	$ 702,543
Transportation equipment	301,074	222,988
Machinery and equipment	509,298	106,189
Office furniture and fixtures	75,829	75,829
Office equipment	170,581	65,032
Sub-total	1,458,994	1,172,581
Less: Accumulated depreciation	(823,044)	(967,207)
Total Property	$ 635,950	$ 205,374

3. PROPERTY (Details Narrative)

3. PROPERTY (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Property Details Narrative
Depreciation expense	$ 128,513	$ 56,468

4. MINING CONCESSIONS (Details)

4. MINING CONCESSIONS (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Mining Concessions Details
San Jose de Gracia ("SJG"): Total Mining Concessions	$ 4,132,678	$ 4,194,439

7. INCOME TAXES (Details)

7. INCOME TAXES (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Income Taxes Details
Prior Year	$ 13,652,086	$ 11,626,008
Tax Benefit for Current Year	3,883,714	2,026,078
Total Deferred Tax Asset	17,535,800	13,652,086
Less: Valuation Allowance	(17,535,800)	(13,652,086)
Net Deferred Tax Asset	$ 0	$ 0

8. STOCKHOLDERS' EQUITY (Detail

8. STOCKHOLDERS' EQUITY (Details)	12 Months Ended
	Dec. 31, 2015
April 1 to December 31, 2014
Common Shares Received on Conversion For Each Preferred Share	2
Common Stock Warrants Received On Conversion for Each Preferred Share	0
Company Can Force the Option	N
July 1 to Dec 31, 2014
Common Shares Received on Conversion For Each Preferred Share	1.5
Common Stock Warrants Received On Conversion for Each Preferred Share	0.75
Company Can Force the Option	N
January 1 to June 30, 2015
Common Shares Received on Conversion For Each Preferred Share	1
Common Stock Warrants Received On Conversion for Each Preferred Share	1
Company Can Force the Option	N
July 1 to December 31, 2015
Common Shares Received on Conversion For Each Preferred Share	1
Common Stock Warrants Received On Conversion for Each Preferred Share	0
Company Can Force the Option	Y

8. STOCKHOLDERS' EQUITY (Deta36

8. STOCKHOLDERS' EQUITY (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Carrying Value, December 31, 2014	$ 0
Accretion of Preferred Stock to Redemption Value	(4,637,179)	$ 0
Carrying Value, December 31, 2015	4,333,053	0
Preferred Series C Stock
Carrying Value, December 31, 2014	0
Issuances at Fair Value, net of issuance costs	3,955,000
Bifurcation of Derivative Liability	2,152,704
Relative Fair Value of Warrants-Preferred Stock Discount	(2,106,422)
Accretion of Preferred Stock to Redemption Value	(4,637,179)
Carrying Value, December 31, 2015	$ 4,333,053	$ 0

8. STOCKHOLDERS' EQUITY (Deta37

8. STOCKHOLDERS' EQUITY (Details 2) - Warrant - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Number of options
Outstanding, beginning of year	1,259,650	1,151,800
Granted	3,892,689	790,000
Exercised	0	0
Forfeited	(991,150)	(682,150)
Outstanding, end of year	4,161,189	1,259,650
Exercisable, end of year	4,161,189
Weighted average exercise price
Warrants Outstanding, Beginning	$ 5.80	$ 5.83
Warrants Granted	6.25	6.25
Warrants Exercised	0	0
Warrants forfeited	4.69	4.69
Warrants Outstanding, Ending	5.80	$ 5.80
Warrants Exercisable, Ending	$ 5.80
Weighted Average Remaining Contractual Life (Years)	11 months 16 days	11 months 16 days
Exercisable: Weighted Average Remaining Contractual Life (Years)	11 months 16 days
Intrinsic value	$ 0	$ 0

11. DERIVATIVE LIABILITIES (Det

11. DERIVATIVE LIABILITIES (Details) - Preferred Series C Stock	12 Months Ended
	Dec. 31, 2015$ / shares
Annual volatility rate	134.00%
Risk free rate	1.76%
Holding Period	5 years
Fair Value of common stock	$ 1.65

11. DERIVATIVE LIABILITIES (D39

11. DERIVATIVE LIABILITIES (Details 1) - Preferred Series C Stock - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Fair value of derivative, beginning of year	$ 0	$ 0
Gain on change in fair value of derivative	266,659	0
Fair value of derivative on the date of issuance	2,152,700	0
Fair value of derivative, December 31, 2015	$ 2,419,359	$ 0

11. DERIVATIVE LIABILITIES (D40

11. DERIVATIVE LIABILITIES (Details 2) - Preferred Series C Warrants	12 Months Ended
	Dec. 31, 2015$ / shares
Annual volatility rate	134.00%
Risk free rate	1.76%
Holding Period	5 years
Fair Value of common stock	$ 1.65

11. DERIVATIVE LIABILITIES (D41

11. DERIVATIVE LIABILITIES (Details 3) - Preferred Series C Warrants - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Fair value of derivative, beginning of year	$ 0	$ 0
Gain on change in fair value of derivative	(62,380)	0
Fair value of derivative on the date of issuance	3,025,758	0
Fair value of derivative, December 31, 2015	$ 2,963,378	$ 0

12. NON-CONTROLLING INTEREST (D

12. NON-CONTROLLING INTEREST (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Non-controlling Interest Details
Noncontrolling interest	$ (6,181,229)	$ (5,680,107)
Operating income (loss)	(560,643)	(536,357)
Share of Other Comprehensive Income (loss)	279,922	35,235
Ending balance	$ (6,461,950)	$ (6,181,229)

13. FAIR VALUE OF FINANCIAL I43

13. FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Assets:
Total Asset	$ 0	$ 0
Liabilities:
Derivative Liabilities	5,382,737	0
Total Liabilities	5,382,737	0
Fair value Level 1
Assets:
Total Asset	0	0
Liabilities:
Derivative Liabilities	0	0
Total Liabilities	0	0
Fair value Level 2
Assets:
Total Asset	0	0
Liabilities:
Derivative Liabilities	0	0
Total Liabilities	0	0
Fair value Level 3
Assets:
Total Asset	0	0
Liabilities:
Derivative Liabilities	5,382,737	0
Total Liabilities	$ 5,382,737	$ 0