DynaResource (DYNR) 10-Q 12 Aug 21 2021 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2021	Jul. 31, 2021
Cover [Abstract]
Entity Registrant Name	DYNARESOURCE, INC
Entity Central Index Key	0001111741
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Jun. 30, 2021
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2021
Entity Common Stock Shares Outstanding		17,722,825
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Entity File Number	000-30371
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	94-1589426
Entity Address Address Line 1	222 W Las Colinas Blvd
Entity Address Address Line 2	Suite 1910 North Tower
Entity Address City Or Town	Irving
Entity Address State Or Province	TX
Entity Address Postal Zip Code	75039
City Area Code	972
Local Phone Number	868-9066

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Current Assets
Cash and Cash Equivalents	$ 9,364,960	$ 1,504,016
Accounts Receivable	3,828,995	840,743
Inventories	1,364,836	603,967
Foreign Tax Receivable	3,204,226	2,179,914
Appeal Bond	0	1,111,111
Other Current Assets	714,766	578,661
Total Current Assets	18,477,783	6,818,412
Mining Equipment and Fixtures (Net of Accumulated Depreciation of $114,801 and $113,176)	4,353	5,978
Operating Lease	692,889	735,220
Mining Concessions	4,132,678	4,132,678
Investment in Affiliate	70,000	70,000
Other Assets	95,267	95,380
TOTAL ASSETS	23,472,970	11,857,668
Current Liabilities:
Accounts Payable	1,363,617	2,274,011
Accrued Expenses	4,404,998	3,385,093
Customer Advances	9,250,000	2,500,000
Derivative Liabilities	2,556,676	2,371,560
Current Portion of Convertible Notes Payable - Series D	3,539,409	0
Current Portion of Convertible Notes Payable - Series I & II	543,279	0
Current Portion of Long-Term Debt	2,009,461	1,984,007
Current Portion of Operating Lease Payable	92,386	82,733
Total Current Liabilities	23,759,826	12,597,404
Convertible Notes Payable - Series D, (Net of Unamortized Discount of $480,591 and $755,214), Less Current Portion	0	3,264,786
Convertible Notes Payable - Series I & II, Less Current Portion	0	543,279
Long Term Debt, Less Current Portion	33,119	97,428
Operating Lease Payable, Less Current Portion	630,158	685,951
TOTAL LIABILITIES	24,423,103	17,188,848
COMMITMENTS AND CONTINGENCIES	0	0
STOCKHOLDERS' EQUITY (DEFICIT)
Common Stock, $0.01 par value, 40,000,000 shares authorized 17,722,825 and 17,722,825 issued and outstanding	177,228	177,228
Preferred Rights	40,000	40,000
Additional Paid In Capital	50,407,333	50,407,333
Treasury Stock, 516,480 and 516,480 shares	(1,474,486)	(1,474,486)
Accumulated Other Comprehensive income	66,685	438,092
Accumulated Deficit	(54,504,374)	(59,256,828)
TOTAL STOCKHOLDERS' DEFICIT	(5,287,613)	(9,668,660)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	23,472,970	11,857,668
Preferred Stock, Series C, $0.0001 par value, 1,734,992 shares Authorized, issued and outstanding	626,579	601,313
Preferred Series C Stock
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred Stock, Series C, $0.0001 par value, 1,734,992 shares Authorized, issued and outstanding	4,337,480	4,337,480
Preferred Stock Series A
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred Stock, Series C, $0.0001 par value, 1,734,992 shares Authorized, issued and outstanding	$ 1	$ 1

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Accumulated Depreciation, Mining Equipment and Fixtures	$ 114,801	$ 113,176
Amortized Discount	$ 480,591	$ 755,214
Series C, Par Value	$ 0.0001	$ 0.0001
Series C, Shares Authorized	1,734,992	1,734,992
Series C, Shares Issued	0	0
Series C, Shares Outstanding	0	0
Common Stock, Par Value	$ 0.01	$ 0.01
Common Stock, Shares Authorized	40,000,000	40,000,000
Common Stock, Shares Issued	17,722,825	17,722,825
Common Stock, Shares Outstanding	17,722,825	17,722,825
Treasury Stock	516,480	516,480
Preferred Stock, Par Value	$ 0.0001
Preferred Stock, Shares Authorized	20,001,000
Preferred Stock Series A
Preferred Stock, Par Value	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	1,000	1,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding		0

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (Unaudited)
REVENUES	$ 10,526,313	$ (3,409)	$ 15,439,025	$ 414,635
COSTS AND EXPENSES OF MINING OPERATIONS
Production Costs Applicable to Sales	778,885	0	1,160,151	211,575
Mine Production Costs	1,442,932	0	2,249,402	533,901
Mine Exploration Costs	1,273,241	0	2,285,989	40,825
Mine Expansion Costs	0	639,656	0	909,190
Camp, Warehouse and Facilities	723,527	421,282	1,258,722	873,324
Transportation	355,134	(446)	593,698	75,734
Property Holding Costs	36,903	31,306	79,650	68,129
General and Administrative	651,992	1,097,315	1,166,969	1,517,571
Depreciation and Amortization	813	812	1,625	1,625
Total Operating Expenses	5,263,427	2,189,925	8,796,206	4,231,874
NET OPERATING INCOME (LOSS)	5,262,886	(2,193,334)	6,642,819	(3,817,239)
OTHER INCOME (EXPENSE)
Foreign Currency Gains (Losses)	470,016	(230,310)	136,281	(339,685)
Interest Expense	(369,197)	(269,865)	(730,419)	(404,445)
Derivatives Adj. Mark-to-Market Gain (Loss)	210,151	(750,524)	(185,116)	(689,275)
Arbitration Award Expense	(1,111,111)	0	(1,111,111)	0
Other Income (Expense)	0	(4,427)	0	(4,427)
Total Other Income (Expense)	(800,141)	(1,255,126)	(1,890,365)	(1,437,832)
NET INCOME (LOSS) BEFORE TAXES	4,462,745	(3,448,460)	4,752,454	(5,255,071)
INCOME TAXES	0	0	0	0
NET INCOME (LOSS)	4,462,745	(3,448,460)	4,752,454	(5,255,071)
DEEMED DIVIDEND FOR SERIES C PREFERRED	(43,375)	(43,330)	(86,750)	(86,660)
LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	0	0	0	61,589
NET INCOME (LOSS)ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ 4,419,370	$ (3,491,790)	$ 4,665,704	$ (5,280,142)
EARNINGS (LOSS) PER SHARE DATA ATTRIBUTABLE TO THE EQUITY HOLDERS OF DYNARESOURCE, INC:
Basic Loss per Common Share	$ 0.25	$ (0.20)	$ 0.26	$ (0.30)
Diluted Loss per Common Share	$ 0.24	$ (0.19)	$ 0.25	$ (0.30)
Weighted Average Shares Outstanding, Basic	17,722,825	17,722,825	17,722,825	17,722,825
Weighted Average Shares Outstanding, Diluted	18,945,827	17,722,825	18,945,827	17,722,825
OTHER COMPREHENSIVE LOSS
Foreign Currency Exchange Gains (Losses)	$ (663,778)	$ 10,683	$ (371,407)	$ 1,144,987
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)	(663,778)	10,683	(371,407)	1,144,987
TOTAL COMPREHENSIVE INCOME (LOSS)	3,798,967	(3,437,777)	4,381,047	(4,110,084)
ATTRIBUTABLE TO:
EQUITY HOLDERS OF DYNARESOURCE, INC.	3,798,967	(3,437,777)	4,381,047	(4,036,826)
NON-CONTROLLING INTERESTS	0	0	0	(73,258)
TOTAL COMPREHENSIVE INCOME (LOSS)	$ 3,798,967	$ (3,437,777)	$ 4,381,047	$ (4,110,084)

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (Unaudited) - USD ($)	Total	Series A Preferred Stock	Common Stock	Preferred Stock	Treasury Stock	Additional Paid-In Capital	Accumulated other comprehensive loss	Accumulated Deficit	Noncontrolling Interest
Balance, shares at Dec. 31, 2019		1,000	17,722,825	1	778,980
Balance, amount at Dec. 31, 2019	$ (4,734,919)	$ 1	$ 177,228	$ 40,000	$ (2,223,891)	$ 56,622,159	$ 325,841	$ (53,952,594)	$ (5,723,663)
Treasury Stock Issued for Services, shares					(162,500)
Treasury Stock Issued for Services, amount	100,000				$ 463,917	(363,917)
Other Comprehensive Income (Loss)	1,144,987						1,156,656		(11,669)
Net Income (loss)	(5,255,071)							(5,193,482)	(61,589)
Elimination of Non-Controlling Interest	231,500					(5,565,421)			5,796,921
Balance, shares at Jun. 30, 2020		1,000	17,722,825	1	616,480
Balance, amount at Jun. 30, 2020	(8,513,503)	$ 1	$ 177,228	$ 40,000	$ (1,759,974)	50,692,821	1,482,497	(59,146,076)	0
Balance, shares at Mar. 31, 2020		1,000	17,722,825	1	778,980
Balance, amount at Mar. 31, 2020	(5,175,726)	$ 1	$ 177,228	$ 40,000	$ (2,223,891)	51,056,738	1,471,814	(55,697,616)	0
Treasury Stock Issued for Services, shares					(162,500)
Treasury Stock Issued for Services, amount	100,000				$ 463,917	(363,917)
Other Comprehensive Income (Loss)	10,683						10,683
Net Income (loss)	(3,448,460)							(3,448,460)
Balance, shares at Jun. 30, 2020		1,000	17,722,825	1	616,480
Balance, amount at Jun. 30, 2020	(8,513,503)	$ 1	$ 177,228	$ 40,000	$ (1,759,974)	50,692,821	1,482,497	(59,146,076)	0
Balance, shares at Dec. 31, 2020		1,000	17,722,825	1	516,480
Balance, amount at Dec. 31, 2020	(9,668,660)	$ 1	$ 177,228	$ 40,000	$ (1,474,486)	50,407,333	438,092	(59,256,828)	0
Other Comprehensive Income (Loss)	(371,407)						(371,407)
Net Income (loss)	$ 4,752,454							4,752,454
Balance, shares at Jun. 30, 2021	3,391,835	1,000	17,722,825	1	516,480
Balance, amount at Jun. 30, 2021	$ (5,287,613)	$ 1	$ 177,228	$ 40,000	$ (1,474,486)	50,407,333	66,685	(54,504,374)	0
Balance, shares at Mar. 31, 2021		1,000	17,722,825	1	516,480
Balance, amount at Mar. 31, 2021	(9,086,580)	$ 1	$ 177,228	$ 40,000	$ (1,474,486)	50,407,333	730,463	(58,967,119)	0
Other Comprehensive Income (Loss)	(663,778)
Net Income (loss)	$ 4,462,745							4,462,745
Balance, shares at Jun. 30, 2021	3,391,835	1,000	17,722,825	1	516,480
Balance, amount at Jun. 30, 2021	$ (5,287,613)	$ 1	$ 177,228	$ 40,000	$ (1,474,486)	$ 50,407,333	$ 66,685	$ (54,504,374)	$ 0

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITES:
Net income (Loss)	$ 4,752,454	$ (5,255,071)
Adjustments to reconcile net loss to cash used in operating activities
Change in Derivatives	185,116	689,275
Depreciation	1,625	1,625
Amortization of Loan Discount	274,623	68,656
Stock issued for Services	0	100,000
Non-Dilution Stock Issuance	0	4,427
Change in Operating Assets and Liabilities
Accounts Receivable	(2,988,252)	718,487
Inventories	(760,869)	523,089
Foreign Tax Receivable	(1,024,312)	139,260
Appeal Bond	1,111,111	0
Operating Lease Assets	42,331	37,887
Other Assets	(135,992)	(41,059)
Accounts Payable	(910,394)	(598,917)
Accrued Expenses	1,019,905	220,056
Customer Advances	6,750,000	0
Lease Liabilities	(46,140)	(37,659)
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES	8,271,206	(3,429,944)
CASH FLOWS FROM FINANCING ACTIVITIES:
Advances from Stockholders		45,000
Proceeds from Borrowing	0	3,275,000
Payments of Convertible Notes	0	(112,500)
Payments of Long-Term Debt	(36,460)	(29,315)
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES	(36,460)	3,178,185
Effects of Foreign Exchange	(373,802)	728,966
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVILANTS	7,860,944	477,207
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	1,504,016	354,572
CASH AND CASH EQUIVALENTS AT END OF PERIOD	9,364,960	831,779
SUPPLEMENTAL DISCLOSURES
Cash Paid for Interest	243,979	47,875
Cash Paid for Income Taxes	0	0
NON-CASH TRANSACTION Accrued Interest Rolled into Notes Payable	$ 0	$ 23,934

NATURE OF ACTIVITIES AND SIGNIF

NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2021
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES
1. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – 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 Gracía Project (“SJG”) in northern Sinaloa State, México. The SJG District covers 9,920 hectares (24,513 acres) on the west side of the Sierra Madre mountain range. The Company currently owns 100% of the outstanding capital of DynaMéxico. A 20% minority interest in Dyna México was held by Goldgroup Resources Inc., a wholly owned subsidiary of Goldgroup Mining Inc. Vancouver BC (“Goldgroup”) until February 24, 2020. In 2005, the Company formed DynaResource Operaciones de San Jose De Gracía S.A. de C.V. (“DynaOperaciones”), and acquired control of Mineras de DynaResource, S.A. de C.V. (formerly Minera Finesterre S.A. de C.V., “DynaMineras”). The Company owns 100% of Dyna Mineras. 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. Reclassifications and Adjustments Certain financial statement reclassifications have been made to prior period balances to reflect the current period’s presentation format; such reclassifications had no impact on the Company’s consolidated statements of income or consolidated statements of cash flows and had no material impact on the Company’s consolidated balance sheets. 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 revenues and expenses. 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. (100% 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, was 20% owned by Goldgroup Resources, Inc. until February 24, 2020 when the Company recovered the shares as partial satisfaction of a legal judgement. See Note 10 for further details. The Company accounted for this outside interest as “non-controlling interest” through February 2020. A 20% share of operating income (loss) and comprehensive income (loss) was allocated to the non-controlling interest through the date of the recovery of the shares. Investments in Affiliates The Company owns a 19.95% 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. The Company has significant influence over DynaNevada, but not control, due to the lack of a majority voting interest in the entity. DynaNevada has been dormant for several years. DynaUSA has no plan or intention of future funding with DynaNevada nor are any other transactions with DynaNevada contemplated at this time. The Company therefore accounts for this investment using the cost basis. The investment was $70,000 and $70,000 at June 30, 2021 and December 31, 2020, respectively. Cash and Cash Equivalents The Company considers all highly liquid debt instruments with an original 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. As of June 30, 2021, the Company had $9,507,800 of deposits in U.S. Banks in excess of the FDIC limit. 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 June 30, 2021 and December 31, 2020, 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 June 30, 2021 and December 31, 2020 are $3,204,226 and $2,179,914, respectively. Inventory Inventories are carried at the lower of cost or net realizable value and consist of mined tonnage, and gravity and flotation concentrates, and gravity tailings or flotation feed material. The inventories are $1,364,836 and $603,967 as of June 30, 2021 and December 31, 2020, 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 (2) 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 June 30, 2021 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 Gracía Property, as exploration stage projects since no proven or probable reserves have been established under Industry Guide 7. Property Substantially all mine development costs, including design, engineering, mine 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 mining 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. Office furniture and equipment are being depreciated on a straight-line method 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. 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. Mineral 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 Gracía Property, capitalized costs and mineral property interests are amortized using the straight-line method once production begins. As of June 30, 2021, 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 9,920 hectares at the San Jose de Gracía 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 considering 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 June 30, 2021 and December 31, 2020, no indications of impairment existed. Asset Retirement Obligation As the Company is not obligated to remediate the mining properties, no Asset Retirement Obligation (“ARO”) has been established. Changes in regulations or laws, any instances of non-compliance with laws or regulations that result in fines, or any unforeseen environmental contamination could result in a material impact to the amounts charged to operations for reclamation and remediation. Significant judgments and estimates are made when estimating the fair value of AROs. Expected cash flows relating to AROs could occur over long periods of time and the assessment of the extent of environmental remediation work is highly subjective. Considering all of these factors that go into the determination of an ARO, the fair value of the AROs can materially change over time. 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. Transactions in and Translations of Foreign Currency The functional currency for the subsidiaries of the Company is the Mexican Peso. As a result, the financial statements of the subsidiaries have been translated from Mexican Pesos into U.S. dollars using (i) yearend exchange rates for balance sheet accounts, and (ii) the weighted average exchange rate of the reporting period for all income statement accounts. Foreign currency translation gains and losses are reported as a separate component of stockholders’ equity and 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 June 30, 2021 and December 31, 2020 (Mexican Pesos per one U.S. dollar): June 30, 2021 Dec 31, 2020 Exchange Rate at Period End Pesos 19.94 19.91 Relevant exchange rates used in the preparation of the income statement portion of financial statements for the subsidiaries are as follows for the periods ended June 30, 2021 and June 30, 2020 (Mexican Pesos per one U.S. dollar): June 30, 2021 June 30, 2020 Weighted Average Exchange Rate for the Six Months Ended Pesos 20.19 21.65 The Company recorded currency transaction gains (losses) of $136,281 and $(339,685) for the six months ended June 30, 2021 and 2020, respectively. 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 statements 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 follows ASC 606 “ Revenue from contracts with customers The amount of revenue recognized is initially recorded on a provisional basis based on the contract price and the estimated metal quantities based on assay data. The revenue is adjusted upon final settlement of the sale. The chief risk associated with the recognition of sales on a provisional basis is the fluctuations between the estimated quantities of precious metals base on the initial assay and the actual recovery from treatment and processing. As of June 30, 2021 there are $9,250,000 in customer deposit liabilities for payments received in advance expected to be settled in 2021. During the periods ended June 30, 2021 and 2020 there was $0 and $0 of revenue recognized during the period from customer deposit liabilities (deferred contract revenue) from prior periods, and $0 of customer deposits refunded to the customer on order cancellation. As of and for the periods ended June 30, 2021 and December 31, 2020, there are no contract costs or commissions deferred. We have elected to account for shipping and handling costs as fulfillment costs after the customer obtains control of the goods. 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. 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. Per Share Amounts Earnings per share are calculated in accordance with ASC 260 “ Earnings per Share The Company had 3,391,835 warrants outstanding at June 30, 2021 which upon exercise, would result in the issuance of 3,391,835 shares of common stock. Of these warrants 2,166,527 were exercisable at $2.05 per share and1,225,308 were exercisable at $.01 per share. The Company also had convertible debt instruments as of June 31, 2021 which, upon conversion at valuations from $2.00 to $2.50 per share, would result in the issuance of 2,227,312 shares of stock. The Company had 3,391,835 warrants outstanding at December 31, 2020 which upon exercise, would result in the issuance of 3,391,835 shares of common stock. Of these warrants 2,166,527 were exercisable at $2.05 per share and 1,225,308 were exercisable at $.01 per share. The Company also had convertible debt instruments as of December 31, 2020 which, upon conversion at valuations from $2.00 to $2.50 per share, would result in the issuance of 2,227,312 shares of stock. Three Month Ended June 30, 2021 Three Month Ended June 30, 2020 Six Month Ended June 30, 2021 Six Month Ended June 30, 2020 Net loss attributable to common shareholders $ 4,419,370 $ (3,491,790 ) $ 4,665,704 $ (5,280,142 ) Weighted average number of common shares outstanding, Basic 17,722,825 17,722,825 17,722,825 17,722,825 Diluted weighted average number of common shares outstanding, 18,945,827 17,722,825 18,945,827 17,722,825 Basic earnings (loss) per share $ 0.25 $ (0.20 ) $ 0.26 $ (0.30 ) Diluted earnings (loss) per share $ 0.24 $ (0.19 ) $ 0.25 $ (0.30 ) At June 30, 2021 2,166,527 shares of potentially dilutive common stock related to outstanding stock warrants and 2,227,312 shares of potentially dilutive common stock related to convertible debt were excluded from the diluted earnings per share calculation because the exercise and conversion prices exceeded the average stock price and therefore their effect would be anti-dilutive. At June 30, 2020 potentially dilutive common shares related to stock warrants and convertible debt were excluded from the diluted earning per share computation because the Company incurred a net loss and therefore their effect would be anti-dilutive. Related Party Transactions FASB ASC 850, "Related Party Disclosures" requires companies to include in their financial statements, disclosures of material related party transactions. The Company discloses all material related party transactions. A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party.

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2021
INVENTORIES
2. INVENTORIES	NOTE 2 – INVENTORIES 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 June 30, 2021 and December 31, 2020, respectively, were as follows: 2021 2020 Mined Tonnage $ 1,218,021 $ 555,608 Gold-Silver Concentrates 146,815 48,359 Total Inventories $ 1,364,836 $ 603,967

PROPERTY

PROPERTY	6 Months Ended
	Jun. 30, 2021
PROPERTY
3. PROPERTY	NOTE 3 – PROPERTY Property consists of the following at June 30, 2021 and December 31, 2020: 2021 2020 Leasehold improvements $ 9,340 $ 9,340 Office equipment 31,012 31,012 Office furniture and fixtures 78,802 78,802 Sub-total 119,154 119,154 Less: Accumulated depreciation (114,801 ) (113,176 ) Total Property $ 4,353 $ 5,978 Depreciation has been provided over each asset’s estimated useful life. Depreciation expense was $1,625 and $1,625 for the periods ended June 30, 2021 and 2020 respectively.

MINING CONCESSIONS

MINING CONCESSIONS	6 Months Ended
	Jun. 30, 2021
MINING CONCESSIONS
4. MINING CONCESSIONS	NOTE 4 – MINING CONCESSIONS Mining properties consist of the San Jose de Gracía (“SJG”) concessions. Mining Concessions were $4,132,678 and $4,132,678 at June 30, 2021 and December 31, 2020, respectively. Depletion expense was $0 and $0 for the periods ended June 20, 2021 and 2020, respectively.

INVESTMENT IN AFFILIATE RECEIVA

INVESTMENT IN AFFILIATE RECEIVABLES FROM AFFILIATEOTHER ASSETS	6 Months Ended
	Jun. 30, 2021
INVESTMENT IN AFFILIATE RECEIVABLES FROM AFFILIATEOTHER ASSETS
5. INVESTMENT IN AFFILIATE/RECEIVABLES FROM AFFILIATE/OTHER ASSETS	NOTE 5 – INVESTMENT IN AFFILIATE/RECEIVABLES FROM AFFILIATE/OTHER ASSETS The Company owns 19.95% 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”). 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 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 of cash and the remainder being unproven mining properties. Subsequent to the exchange management determined the investment to be impaired due to a lack of development of the properties and incurred a charge to the income statement. Management estimated the value of the Company’s DynaNevada shares as of June 30, 2021 and December 31, 2020 to be $70,000 and $70,000, respectively. At June 30, 2021 and December 31, 2020, the Company had a receivable from DynaNevada de México of $71,379 and $71,465, respectively for working capital advances. These amounts are included in Other Assets in the accompanying consolidated balance sheets.

CONVERTIBLE PROMISSORY NOTES

CONVERTIBLE PROMISSORY NOTES	6 Months Ended
	Jun. 30, 2021
CONVERTIBLE PROMISSORY NOTES
6. CONVERTIBLE PROMISSORY NOTES	NOTE 6 – 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”). 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, on the first fifty thousand tons processed through the mill facilities at San Jose de Gracía. Such net profits (if any) are to be calculated after deducting “all expenses related to the production”, and after a prior deduction of thirty-three percent (33%) from the net profits, to be deposited into a sinking fund cash reserve. To date, the Company has not produced any net profits as calculated in accordance with the Series I Notes. The Notes originally matured on December 31, 2015. As of December 31, 2018, seven of the Series I Notes totaling $646,875 had subsequently been extended to December 30, 2019. On December 31, 2019, the Company entered into agreements to extend seven outstanding notes totaling $646,875 plus accrued interest totaling $34,277 for new total notes of $681,152 until December 31, 2020. On March 31, 2020 the Company entered into agreements to extend the seven outstanding notes totaling $691,152 plus accrued interest totaling $21,286 for a new total of $702,438 until June 30, 2022. At December 31, 2020 one note for $246,533 was paid off leaving six Series I Notes remaining outstanding with a total balance of $455,905. At June 30, 2021 six Series I Notes remained outstanding with a total balance of $455,905. The Company has the right to prepay the Series I Notes with a ten percent (10%) penalty. 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 $2.50 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 one year from their conversion date. 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, on the second fifty thousand tons processed through the mill facilities at San Jose de Gracía. Such net profits (if any) are to be calculated after deducting “all expenses related to the production” and after a prior deduction of thirty-three percent (33%) from the net profits, to be deposited into a sinking fund cash reserve. To date, the Company has not produced any net profits as calculated in accordance with the Series II Notes. The Notes originally matured on December 31, 2015. On December 31, 2019 the Company entered into agreements to extend the two notes totaling $78,750 plus accrued interest of $5,977 for total new notes of $84,757 to December 31, 2020. One note for $112,500 was not extended and was past due as of December 31, 2019. At December 31, 2019 three Series II notes remained outstanding for $197,226. On March 31, 2020 the Company entered into agreements to extend the two notes totaling $84,726 plus accrued interest of $2,648 for total new notes of $87,374 to June 30, 2022. One note for $112,500 was not extended and was paid off in May 2020. At December 31, 2020 two Series II notes remained outstanding for $87,374. At June 30, 2021, two Series II notes remained outstanding for $87,374. The Company has the right to prepay the Series II Notes 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 $2.50 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 one year from their conversion date.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2021
INCOME TAXES
7. INCOME TAXES	NOTE 7 – INCOME TAXES The Company has adopted ASC 740-10, “ Income Taxes” The cumulative tax effect at the expected statutory tax rate of 21% of significant items comprising the Company’s net deferred tax amounts as of June 30, 2021 and December 31, 2020 are as follows: Deferred Tax Asset Related to: June 30, 2021 December 31, 2020 Prior Year $ 13,473,000 $ 13,780,490 Tax (Expense) Benefit for Current Year (1,421,781 ) 953,120 Expiration of NOL Carryforward Period - (1,260,610 ) Total Deferred Tax Asset 12,051,219 13,473,000 Less Valuation Allowance (12,051,219 ) (13,473,000 ) Net Deferred Tax Asset $ - $ - For Financial Reporting Purposes Income (Loss) Before Taxes for the Six Months ended June 30, 2021 and 2020 includes the Following Components: 2021 2020 United States $ (4,841,452 ) $ (1,862,612 ) Foreign 9,593,906 (3,392,459 ) $ 4,752,454 $ (5,255,071 ) The Expense (Benefit) for Taxes for the Six Months Ended June 30, 2021 and 2020 Consist of the Following: Current Federal $ - $ - State - - Foreign - - $ - $ - Deferred and Other Federal $ (920,960 ) $ (285,487 ) State - - Foreign 2,342,741 (848,115 ) 1,421,781 (1,133,602 ) Total Tax Expense (Benefit) 1,421,781 (1,133,602 ) Change in Valuation Allowance (1,421,781 ) 1,133,602 Net Tax Expense (Benefit) $ - $ - The Company's Income Tax Expense (Benefit)for the six months ending June 30, 2021 and 2020 differs from the Statutory Rate of 21% due to the following: 2021 2020 Tax Expense (Benefit) at Statutory Rate $ 998,015 $ (1,103,565 ) Foreign Tax Rate Differential 863,450 (210,203 ) Permanent Differences Stock Issued for Services - 21,000 Change in Derivative Liability 38,874 144,748 Amortization of Loan Discount 57,671 14,418 Timing Differences Depreciation & Capitalized Assets (15,283 ) Sales & Accounts Receivable (321,479 ) Inventory and COGS (198,667 ) Other (800 ) Change in Valuation Allowance (1,421,781 ) 1,133,602 Provision for Income Tax Expense (Benefit) $ - $ - 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 $49,800,000 at June 30, 2021 and will expire as follows: United States Expiring 2029 through $ 18,500,000 United States indefinite limited to 80% of NOL 11,300,000 Foreign expiring from 2021 to 2030 20,000,000 Total $ 49,800,000

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2021
STOCKHOLDERS' EQUITY
8. STOCKHOLDERS' EQUITY	NOTE 8 – STOCKHOLDERS’ EQUITY Authorized Capital 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. The Company issued 1,000 shares of Series A Preferred Stock to its CEO. At June 30, 2021 and December 31, 2020, there were 1,000 shares of Series A Preferred Stock 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 convertible to common shares at $2.50 per share, through June 30, 2020. 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. The Dividend is calculated at 4.0% of $4,337,480 payable annually on June 30. At June 30, 2021 dividends for the years 2017 to 2021 totaling $866,940 were in arrears. Financing Agreement with Golden Post Rail, LLC, a Texas Limited Liability Company 1. 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 is convertible into Common Stock of the Company at the price of $2.41 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”). 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, 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. The expiration of the Golden Post Warrant was extended on May 14, 2020, pursuant to an additional financing agreement with Golden Post. 2. 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. Additional Financing Agreement with Golden Post Rail, LLC, a Texas Limited Liability Company, and with Shareholders of DynaResource, Inc. On May 14, 2020, the Company closed an additional financing agreement with Golden Post, and with certain individual shareholders of DynaUSA (“DynaUSA Shareholders”), and related agreements. A summary of the transactions and related agreements are set forth below: 1. Pursuant to the May 14, 2020 Note Purchase Agreement (the “NPA”) among the Company, Golden Post Rail, LLC (the “Lead Purchaser”), and the other parties listed on Exhibit A thereto (the “Remaining Purchasers”): · Golden Post acquired the following securities (a) A convertible promissory note (the “Golden Post Note”) payable to Golden Post in the principal amount of $2,500,000, bearing interest at 10%, and maturing two years from the date of execution. One half of the principal amount of the Golden Post Note, or $1,250,000, has been fully funded in accordance with an agreed-upon draw summary and budget. The balance of the principal amount will also be funded in accordance with agreed-upon draw summaries and the budget. The Golden Post Note is convertible, at the option of Golden Post, into shares of Series D Senior Convertible Preferred Stock (the “Series D Preferred”) at a conversion price of $2.00 per share; and (b) A common stock purchase warrant (the “2020 Warrant”) for the purchase of 783,976 shares of the Company’s common stock, at an exercise price of $0.01 per share, and maturing on the 10-year anniversary of the date of issuance. The 2020 Warrant contains anti-dilution provisions; and · The Remaining Purchasers acquired the following securities (a) Convertible promissory notes (the “Remaining Notes”) in the aggregate principal amount of $1,400,000, bearing interest at 10%, and maturing two years from the date of issuance. The Remaining Notes have been fully funded. The Remaining Notes are convertible, at the option of each individual Remaining Purchaser, into shares of Series D Preferred at a conversion price of $2.00 per share; and (b) Common stock purchase warrants (the “Remaining Purchasers Warrants”) for the purchase of an aggregate of 439,026 shares of the Company’s common stock, at an exercise price of $0.01 per share, and maturing on the 10-year anniversary of the date of issuance. The Remaining Purchasers Warrants contain anti-dilution provisions. 2. Also pursuant to the NPA, the Company and the Lead Purchaser have agreed to amend the common stock purchase warrant dated June 30, 2015 (the “2015 Warrant”), issued to the Lead Purchaser in connection with that certain Securities Purchase Agreement dated as of May 6, 2015. The 2015 Warrant contemplates the purchase, upon exercise, of 2,166,527 shares (subject to adjustment) of the Company’s common stock and matured June 30, 2020 (the “Termination Date”). The amendment to the 2015 Warrant provides that, following the expiration of the 2015 Warrant pursuant to its terms, the Company will issue to the Lead Purchaser a new warrant (the “New Warrant”), substantially in the same form of the 2015 Warrant, for the number of shares of the Company’s common stock that went unexercised on the Termination Date, if any. The New Warrant has a maturity date of June 30, 2022. 3. As part of the transaction contemplated by the NPA, the Company executed an Amended and Restated Registration Rights Agreement pursuant to which Golden Post may require the Company to register the shares of common stock which may be issued upon (i) the conversion of the Series C Senior Convertible Preferred Stock (“Series C Preferred”), (ii) the conversion of the Series D Preferred, and (iii) the shares of common stock issuable upon the exercise of the 2015 Warrant, the 2020 Warrant, and a compensatory warrant issued to the Lead Purchaser on May 13, 2020 (described below under the heading “Compensatory Issuances”), including any additional shares of common stock issuable pursuant to anti-dilution provisions of such securities. 4. Pursuant to the transaction contemplated by the NPA, the Company agreed to call a special meeting of Company stockholders, to be held not later than July 14, 2020, to solicit stockholder approval of (a) an amendment of the Company’s certificate of incorporation to increase the number of authorized shares of common stock from 25,000,000 shares to 40,000,000 shares, and (b) an amendment of the Certificate of Designations of the Series C Preferred, in order to (a) extend the maturity date of the Series C Preferred by an additional two (2) years, (ii) add an equity cap in respect of the conversion of Series C Preferred into common stock of the Company, and (iii) add certain restrictions on the ability of the Company to issue Series C Preferred. The special meeting was properly called and held on July 13, 2020, whereby Company stockholders confirmed approval for each item referenced in item 4 above. 4. Compensatory Issuances 6. In order to accommodate the issuance of the additional 1,771 shares of Series C Preferred, on May 13, 2020 the Company filed with the Secretary of State of Delaware a Certificate of Increase of Series C Senior Convertible Preferred Stock, to increase the number of shares of preferred stock designated as Series C Preferred from 1,733,221 shares to 1,734,992 shares (“Certificate of Increase”). (1) Also, on May 13, 2020, the Company filed with the Secretary of State of Delaware a Certificate of Designations of the Powers, Preferences and Relative, Participating, Optional and Other Special Rights of Preferred Stock and Qualifications, Limitations and Restrictions thereof of Series D Senior Convertible Preferred Stock, contemplating the authorization of 3,000,000 shares of Series D Preferred (“Certificate of Designation”). The sale of the Golden Post Note, the Remaining Notes, the 2020 Warrant, the Remaining Purchasers Warrants, the Compensatory Warrant, and the Series C Preferred was made pursuant to a privately negotiated transaction that did not involve a public offering of securities and, accordingly, the Company believes that the transaction was exempt from the registration requirements of the Securities Act pursuant to Section 4(a)(2) thereof. Each investor represented that it (A) is an “accredited investor” and (B) has such knowledge and experience in financial and business matters that the investor is capable of evaluating the merits and risks of acquiring the securities acquired by such investor. All of the foregoing securities are deemed restricted securities for purposes of the Securities Act. Due to underlying anti-dilutive provisions contained in the Series C Preferred Shares and the Golden Post Warrant, the Company incurred derivative liabilities. On May 14, 2020 in connection with the Series D Convertible Note financing, the expiration date for the Series C Preferred Shares and the Golden Post warrants were extended to June 30, 2022. In addition, a new derivative liability was incurred due to the issuance of warrants for kicker shares. At June 30, 2021 the total derivative liability was $2,556,676 which included $626,579 for the Series C Preferred Shares, and $830,432 in connection with the Golden Post Warrants and $1,099,665 in connection with the Series D Convertible Note Kicker Warrants. At December 31, 2020 the total derivative liability was $2,371,560 which included $601,313 for the Series C Preferred Shares, and $817,613 in connection with the Golden Post Warrants and $952,634 in connection with the Series D Convertible Note Kicker Warrants. The deemed dividend for the periods ending June 30, 2021 and June 30, 2020 were $86,750 and $86,660. respectively. As the Company has not declared these dividends, it is required only as an item “below” the net income (loss) amount on the accompanying consolidated statements of income (loss). Due to the nature of this transaction as mandatorily redeemable, the Series C preferred shares are classified as “temporary equity” on the balance sheet. Preferred Series C Carrying Value, December 31, 2019 $ 4,333,053 Issuances at Fair Value, Net of Issuance Costs - Bifurcation of Derivative Liability - Relative Fair Value of Warrants – Preferred Stock Discount 4,427 Accretion of Preferred Stock to Redemption Value - Carrying Value, December 31, 2020 4,337,480 Issuances at Fair Value, Net of Issuance Costs - Bifurcation of Derivative Liability - Relative Fair Value of Warrants – Preferred Stock Discount - Accretion of Preferred Stock to Redemption Value - Carrying Value, June 30, 2021 $ 4,337,480 Preferred Stock (Undesignated) In addition to the 1,000 shares designated as Series A Preferred Stock and the 1,734,992 shares designated as Series C Preferred Shares and the 3,000,000 shares designated as Series D Preferred Stock, the Company is authorized to issue an additional 15,265,008 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 June 30, 2021 and December 31, 2020, 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 40,000,000 common shares at a par value of $0.01 per share. These shares have full voting rights. At June 30, 2021 and December 31, 2020, there were 17,722,825 and 17,722,825 shares outstanding, respectively. No dividends were paid for the periods ended June 30, 2021 and 2020, respectively. Preferred Rights The Company issued “Preferred Rights” for the rights to percentages of revenues generated from the San Jose de Gracía Pilot Production Plant and received $784,500 for these rights. This has been reflected as “Preferred Rights” in stockholders’ equity. As of June 30, 2021, $744,500 had been repaid, leaving a current balance of $40,000 and $40,000 as of June 30, 2021 and December 31, 2020, respectively Stock Issuances There were no issuances of common stock during the periods ending June 30, 2021 and December 31, 2020. Treasury Stock During the year ending December 31, 2020, 262,500 treasury shares were transferred for services provided to the Company. No treasury stock was issued during the period ended June 30, 2021 Outstanding treasury shares total 516,980 at both June 30, 2021 and December 31, 2020. Warrants 2021 activity The Company had 3,391,835 warrants outstanding at June 30, 2021. There were no warrants issued or exercised in 2021 and no warrants expired in 2021. 2020 Activity On May 13, 2020, the Company issued 2,306 warrants to purchase shares of common stock with an exercise price of $.01per share related to anti-dilution provisions of the Series C preferred stock. These warrants expire on May 13, 2027. On May 14, 2020, the Company issued 1,223,002 warrants to purchase shares of common stock with an exercise price of $.01 per share as kicker shares as part of the Series D note agreements. These warrants expire on May 14, 2030. On June 30, 2020, as part of the Series D note agreement the Company issued 2,166,527 warrants to purchase shares of common stock with an exercise price of $2.05 per share to replace the 2,166,527 warrants previously outstanding which expired on that date. These warrants expire on June 30, 2022. At December 2020, the Company had a total of 3,391,835 warrants outstanding. 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, 2019 2,166,527 $ 2.45 0.51 $ - Granted 3,391,815 $ 1.31 4.89 $ - Exercised - $ - $ - Forfeited 2,166,527 $ - $ - Balance at December 31, 2020 3,391,815 $ 1.31 4.34 $ - Granted - $ - $ - Exercised - $ - $ - Forfeited - $ - $ - Balance at June 30, 2021 3,391,815 $ 1.31 3.84 $ - Exercisable at June 30, 2021 3,391,815 $ 1.31 3.84 $ -

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2021
RELATED PARTY TRANSACTIONS
9. RELATED PARTY TRANSACTIONS	NOTE 9 – RELATED PARTY TRANSACTIONS Dynacap Group Ltd. The Company paid $87,500 and $37,500 to Dynacap Group, Ltd. (“Dynacap”, an entity controlled by the CEO of the Company) for consulting and other fees during the periods ended June 30, 2021 and 2020, respectively.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2021
COMMITMENTS AND CONTINGENCIES
10. COMMITMENTS AND CONTINGENCIES	NOTE 10 – COMMITMENTS AND CONTINGENCIES Concession Taxes 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 recent business activities and current and forward plans and considering expenditures on mining concessions since 2002-2017 and continuing expenditures in current and forward activities, the Company does not anticipate that DynaMéxico will have any difficulties meeting the minimum annual expenditures for the concessions ($388 – $2,400 Mexican Pesos per hectare). DynaMéxico retains sufficient carry-forward amounts to cover over 10 years of the minimum expenditure (as calculated at the 2017 minimum, adjusted for annual inflation of 4%). Leases In addition to the surface rights held by DynaMéxico pursuant to the Mining Act Ley Minera y su Reglamento st The Company leases office space for its corporate headquarters in Irving, Texas. In September 2017, the Company entered into a sixty-six-month extension of the lease through 2023. As part of the agreement the Company received six months free rent as a finish out allowance. The Company capitalized the leasehold improvement costs and amortized them over the rent abatement period as rent expense. The Company makes tiered lease payments on the 1 st Effective January 1, 2019, the Company adopted ASC 842, which requires recognition of a right-of-use asset and lease liability for all leases at the commencement date based on the present value of lease payments over the lease term. Additional qualitative and quantitative disclosures regarding the Company's leasing arrangements are also required. The Company adopted ASC 842 prospectively and elected the package of transition practical expedients that does not require reassessment of (1) whether any existing or expired contracts are or contain leases, (2) lease classification and (3) initial direct costs. In addition, the Company has elected other available practical expedients to not separate lease and non-lease components, which consist principally of common area maintenance charges, for all classes of underlying assets and to exclude leases with an initial term of 12 months or less. The Company determines if a contract is or contains a lease at inception. As of June 30, 2021, the Company has two operating leases - a six and one-half year lease for office space with a remaining term of eighteen months and a twenty-year ground lease in association with its México mining operations with a remaining term of thirteen years. Variable lease costs consist primarily of variable common area maintenance, storage parking and utilities. The Company’s leases do not have any residual value guarantees or restrictive covenants. As the implicit rate is not readily determinable for most of the Company’s lease agreements, the Company uses an estimated incremental borrowing rate to determine the initial present value of lease payments. These discount rates for leases are calculated using the Company's interest rate of promissory notes. The Company’s components of lease cost are as follows: Period Ended June 30, 2021 Operating Lease – Office Lease $ 42,742 Operating Lease – Ground Lease 44,337 Short Term Lease Costs 6,279 Variable Lease Costs - TOTAL $ 93,358 Weighted average remaining lease term and weighted average discount rate are as follows: Weighted Average Remaining Lease Term (Years) – Operating Leases 11.00 Weighted Average Discount Rate – Operating Leases 12.50 % Estimated future minimum lease obligations are as follow for the years ending June 30: YEAR 2022 $ 179,474 2023 145,896 2024 96,896 2025 99,803 2026 102,797 Thereafter 684,885 Total $ 1,308,751 Less Imputed Interest (586,207 ) OPERATING LEASE PAYABLE $ 722,544 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. Arbitration filed by Goldgroup / DynaMéxico Complaint against Goldgroup On March 14, 2014, Goldgroup filed for arbitration in the United States with the American Arbitration Association ("AAA"), citing the Earn In Agreement dated September 1, 2006 as the basis for the arbitration filing. The Company filed an answer on April 10, 2014, disputing that any issues exist which provide for arbitration. DynaResource de Mexico filed Civil Claims again Goldgroup Mining Inc., and Goldgroup Resources Inc. requesting Damages of $50M USD On December 9, 2014, DynaMéxico filed an Ordinary commercial lawsuit (Civil Claims) against Goldgroup Mining Inc., its parent company Goldgroup Resources Inc., and the AAA, in the Thirty Sixth Civil Court in the Federal District of México, under file 1120 number / 2014 ("the DynaMéxico Trial"). The DynaMéxico Trial sought to terminate the U.S.-based arbitration proceedings, as DynaMéxico believes there is no legal basis for arbitration, and to nullify the arbitration proceedings since Goldgroup previously sought recourse in Mexican courts. In the DynaMéxico Trial, DynaMéxico also requests that substantial damages (in the amount of US $50 million) be awarded to DynaMéxico against Goldgroup for: a) Wrongfully using and disseminating confidential information and data belonging to DynaMéxico; b) Asserting that Goldgroup owns any interest in the San Jose de Gracía Project in northern Sinaloa, México, rather than accurately disclosing that Goldgroup owns a common shares equity interest (shareholder’s interest) in DynaMéxico; c) Improperly disclosing the percentage of common shares equity interest (shareholder’s interest) owned by Goldgroup in DynaMéxico; d) Improperly disclosing or implying that Goldgroup is the operator of the San Jose de Gracía Project; e) Attempting to delay, stop, or otherwise impair the financing of, and further development of, the SJG Project; f) Making numerous threats against DynaMéxico management and officers; g) Failing to properly disclose that broad powers of attorney for acting on behalf of DynaMéxico are held by an individual not affiliated with Goldgroup. On October 5, 2015, 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 declared, among other resolutions, that: a) The AAA must “cease and desist” from the arbitration proceeding; b) The AAA does not have jurisdiction to hear any conflict and/or interpretation arising from the Earn In/Option Agreement, dated September 1, 2006; and c) The AAA does not have jurisdiction to hear disputes arising between shareholders of DynaMexico, which disputes do not arise directly and immediately from the Earn In/Option Agreement, dated September 1, 2006. $48M Damages Awarded to DynaMéxico Also on October 5, 2015, DynaMéxico was awarded in excess of US $48 million in damages from Goldgroup Resources, Inc. 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 damages award and the additional Resolutions are referred to as, the “Oct. 5, 2015 Resolution”). A concise translation to English of the Oct. 5, 2015 Resolution (the resolution portion of the Definitive Sentence) is set forth below: FIRST: The action and litigation based on commercial law filed by DynaMéxico is valid and enforceable, and where Goldgroup and the American Arbitration Association were found to be in default, was proper. SECOND Goldgroup is declared in breach of its corporate duties, for failure to refrain from claiming direct ownership of 50% of the San José de Gracía Mining Project. THIRD: Goldgroup is condemned and ordered to pay to DynaMéxico the amount of USD $20,000,000 (Twenty Million Dollars) in damages caused by Goldgroup to DynaMéxico, deriving from its breach of obligations in refraining from claiming direct ownership of 50% of the San Jose de Gracía Mining Project; which amount should be paid within five days upon execution of this order and resolution. FOURTH: Goldgroup is condemned and ordered to pay to DynaMéxico the amount of USD $28,280,808.34 (Twenty Eight Million Two Hundred and Eighty Thousand Eight Hundred and Eight and 34/100 Dollars), for breach of its corporate duty and covenants with regards to the San Jose de Gracía mining project, as a result of depriving profits from DynaMéxico which DynaMéxico could have earned for the sale of gold produced and extracted during the years 2013 and 2014; amounts that should be paid within five days upon execution of this order and resolution. FIFTH: Goldgroup is condemned and ordered to pay losses and damages to DynaMéxico, which Goldgroup continues to cause, until full payment of the above-mentioned amounts has been made, which damages, and losses shall be calculated by an expert opinion in a corresponding legal procedure related to this litigation. SIXTH: Pursuant to Article 1424 of the Commercial Code of México, the arbitration provision established under clause 8.16 of the Earn In/Option Agreement, dated as of September 1, 2006, is ineffective and impossible to execute. SEVENTH This court declares that any controversy arising from the Ear In/Option Agreement must be brought and resolved under Mexican Law and by competent Mexican Courts with proper jurisdiction, in recognition of the waiver and exclusion of the arbitration clause (contained in the Earn In/Option Agreement) by both parties. EIGHTH: This Court declares that the American Arbitration Association must abstain from hearing arbitration procedure number 50 501 T 00226 14, or any other ongoing and/or future arbitration proceeding already filed or that may be filed by the co-defendant Goldgroup against DynaResource. NINTH: This Court declares that the American Arbitration Association does not have jurisdiction to hear any conflict and/or interpretation arising from the Earn In/Option Agreement, dated September 1, 2006. TENTH This Court declares that the American Arbitration Association does not have jurisdiction to hear disputes arising between shareholders of DynaMéxico, which disputes do not arise directly and immediately from the Earn In/Option Agreement, dated September 1, 2006. ELEVENTH This Court declares that the American Arbitration Association does not have jurisdiction to hear any matters where Koy Wilber Diepholz, who is the President of the Board of Directors of DynaMéxico and has been personally sued in relation to the arbitration clause established under clause 8.16 of the Earn In/Option Agreement, dated September 1, 2006, since he signed the mentioned instrument in representation of the Company and not in his personal capacity. TWELFTH The expenses and costs associated with these proceedings are hereby waived. THIRTEENTH: LET IT SO BE PUBLISHED. A Copy of this order and Sentence shall be found in the corresponding records. ORDERED JULIO GABRIEL IGLESIAS GOMEZ. The October 5, 2015 Resolution constitutes a public record which may be viewed through the Courts in México City. México City Court Approves Lien on Shares of DynaMéxico owned by Minority Interest Holder On October 5, 2016, the Thirty-Sixth Civil Court of the Superior Court of Justice of the Federal District of México (Tribunal Superior de Justicia del Distrito Federal) approved a Lien (referred to by the court as an “Embargo”), in favor of DynaMéxico, upon Stock Certificates in the name of Goldgroup Resources Inc. (“Goldgroup”). The Stock Certificates subject to the Lien (“Embargo”) constitute Shares of DynaMéxico (“the Goldgroup DynaMéxico Shares”). The Goldgroup DynaMéxico Shares were seized as a partial recovery of assets by DynaMéxico after DynaMéxico was awarded more than $48M USD (Forty-Eight Million Dollars) in damages against Goldgroup (the “Damages against Goldgroup”) on October 05, 2015, as described in a Sentencia Definitiva (the “Definitive Sentence”) issued by the same court, the Thirty Sixth Civil Court of the Superior Court of Justice of the Federal District of México, File number 1120/2014. Excerpts from the Definitive Sentence appear below. In addition to the Damages against Goldgroup, the Definitive Sentence also included additional Resolutions ordered in favor of DynaMéxico (the Damages against Goldgroup and the additional Resolutions are together referred to as the “Oct. 5, 2015 Resolution”). Denial of Amparo Appeal On August 24, 2017 a Federal Amparo Judge (“Juzgado de Distrito”) in the State of Vera Cruz, México, dismissed Goldgroup Resources Inc’s Amparo Trial Challenge to the $48 M USD damages award previously granted in favor of DynaMéxico. Pursuant to the dismissal ruling, the $48M USD damages award, previously granted to DynaMéxico by the Thirty-Sixth Civil Court of the Superior Court of Justice of the Federal District of México on October 5, 2015, was effectively confirmed. México Circuit Court of Appeals – Notice of Intent for Final Ruling in Favor of DynaResource de México On May 27, 2019, The Eleventh Collegiate Court in Civil Matters of the First Circuit (“México Circuit Court”, and the Court of Final Appeal for Goldgroup Resources Inc.) issued a written notice confirming it was ruling against the Amparo Appeal filed by Goldgroup Resources Inc. and in Favor of DynaResource de México, S.A. de C.V. Rejection of Goldgroup Resources Inc. request to the Supreme Court of México On July 3, 2019 an Official Ruling from The Supreme Court of México was issued to Reject the Request of Goldgroup Resources Inc. (the “México Supreme Court Rejection to Goldgroup”). Final Legal Ruling in México (DynaMéxico Final Legal Ruling) On December 6, 2019 the 11 th The DynaMéxico Final Legal Ruling is Favorable to DynaMéxico, and denies the Amparo challenge of Goldgroup Resources Inc., the subsidiary of Goldgroup Mining Inc. (“GGA.TO”). The DynaMéxico Final Legal Ruling constitutes the Final Appeal of Goldgroup Resources Inc.; and is Not subject to further appeal or protest. The DynaMéxico Final Legal Ruling is the result and culmination of 7 years of legal action performed by DynaMéxico and is the Final Ruling of the 11 th Legal Summary - Consequence of the México Final Legal Ruling: 1. The $48,280,808.34 USD damages award (dated October 05, 2015) in favor of DynaMéxico and against Goldgroup Resources Inc. is now Final. Goldgroup Resources’ challenge(s) to that award have been fully denied and the damages award is Final. 2. The Lien against the Shares of DynaMéxico owned by Goldgroup Resources Inc. (established October 5, 2016, the “Lien against Goldgroup Shares”) is now fully confirmed, Final, and enforceable. 3. Ownership of the shares of DynaMéxico currently held by Goldgroup Resources (currently representing 20% of the outstanding shares of DynaMéxico) are subject to the Lien against Goldgroup Shares. DynaMéxico Recovery of 100% of Goldgroup Shares On February 20, 2020 the “DynaMéxico Foreclosure Judgment”). The DynaMéxico Foreclosure Judgment awarded to DynaMéxico 100% of the Shares of DynaMéxico previously owned by Goldgroup Resources Inc. (a Subsidiary Company in México owned 100% by Goldgroup Mining Inc., Vancouver, BC., “GGA.TO”). Prior to the DynaMéxico Foreclosure Judgment, Goldgroup Resources Inc. owned shares of DynaMéxico constituting 20% of the total outstanding shares of DynaMéxico (the “Goldgroup Shares of DynaMéxico”). The Goldgroup Shares of DynaMéxico were held under Lien by DynaMéxico since October 2016. DynaUSA previously owned 80% of the outstanding shares of DynaMéxico. DynaUSA and DynaMéxico filed an Original Petition for Recognition of the $48M USD Foreign Judgment in US. District Court, 134 th · On December 5, 2020, DynaUSA and DynaMéxico filed an Original Petition for Recognition of the $48M USD Foreign Judgment in US. District Court in Dallas County Texas. · On February 4, 2021, DynaUSA and DynaMéxico filed a First Amended Petition for Recognition of the $48M USD Foreign Judgment in US. District Court, 134 th · On May 12, 2021, The US District Court for Dallas County issued a ruling stating the Court was not obligated to recognize the $48M Judgment in the US.; but found the $48M Judgment to be final, conclusive and enforceable under Mexican Law. DynaUSA and DynaMéxico Appeal of the US. District Court Ruling On May 14, 2021, DynaUSA and DynaMéxico filed a Notice of Appeal of the US District Court Ruling. Arbitration Ruling In direct contradiction to the October 5, 2015, Definitive Sentence issued by court in México, on August 25, 2016, the American Arbitration Association - International Centre for Dispute Resolution, Denver office (the “AAA”) issued an Arbitration Ruling (the “Arbitration Ruling”) in favor of Goldgroup Resources Inc. against DynaMéxico and DynaResource, Inc. The Arbitration Ruling was the result of a proceeding in which neither DynaMéxico nor DynaResource participated, since the Definitive Sentence issued by the court in México effectively prohibited their participation in the Arbitration proceeding and should have prohibited Goldgroup Resources Inc. participation. The Arbitration Ruling provides the following: (i) the Earn In/Option Agreement is still in force, and consequently Goldgroup may appoint two directors to the DynaMéxico board, and may participate in the appointment of a fifth director; (ii) the DynaMéxico Management Committee is reinstated, and must approve all budgets and expenditures; (iii) amounts expended by DynaMéxico that were not approved by the Management Committee are subject to repayment by DynaResource; (iv) the issuance of additional shares by DynaMéxico (and consequent dilution of Goldgroup’s equity interest) was in violation of the Earn In/Option Agreement; and (v) DynaResource and DynaMéxico are responsible for Goldgroup’s costs and professional fees associated with the Arbitration Ruling. Unlike most arbitration proceedings in the U.S., the Arbitration Ruling is not final. Since the Arbitration Ruling is subject to international rules, the ruling may be vacated by U.S. courts, or simply not recognized by U.S. courts, on several grounds. Accordingly, both DynaMéxico and DynaResource have timely requested relief from the United States Federal District Court in Colorado, via the filing of a Petition for Nonrecognition of Foreign Arbitral Award and/or Motion to Vacate Arbitration Award (the “Petition for Nonrecognition”), and a supporting brief. The Petition for Nonrecognition relies heavily upon the Mexican court’s Definitive Sentence, key excerpts of which appear immediately below. The Mexican court has already ruled that “any controversy arising from the Earn In/Option Agreement must be brought and resolved under Mexican Law and by competent Mexican Courts with proper jurisdiction.” Consequently, the monetary awards against DynaResource – which are based upon a finding that the Earn In/Option Agreement is still in force – will not be enforceable if the Mexican court rules that the Earn In/Option Agreement is terminated. The Company believes that the potential for the assessment of a material monetary judgment against DynaResource is remote. (a) The Arbitration Ruling contains an acknowledgement by the AAA that the AAA was named as a defendant in the legal demand filed by DynaMéxico in the Thirty Sixth Civil Court of the Superior Court of Justice of the Federal District of México (the “DynaMéxico Legal Demand”). The Arbitration Ruling also contains a statement that the AAA was not properly served notice of the DynaMéxico Legal Demand; (b) DynaMéxico obeyed the October 5, 2015 Court Order and did not attend the Arbitration hearing; (c) DynaMéxico will pursue all legal remedies in order to obtain a full dismissal of the Arbitration Ruling; (d) The Arbitration Ruling contains an acknowledgement by the AAA that the AAA was named as a defendant in the legal demand filed by DynaMéxico in the Thirty Sixth Civil Court of the Superior Court of Justice of the Federal District of México (the “DynaMéxico Legal Demand”). The Arbitration Ruling also contains a statement that the AAA was not properly served notice of the DynaMéxico Legal Demand; DynaUSA and DynaMéxico filed Motion to Vacate Arbitration Ruling On November 17, 2016, DynaUSA and DynaMéxico filed a Motion to Vacate the Arbitration Ruling in United States District Court, District of Colorado. Recommendation to Vacate Arbitration Ruling issued by United States Magistrate Judge On February 13, 2018 a Recommendation to Vacate the Arbitration Ruling was issued by a United States Magistrate Judge of the United States District Court, District of Colorado. Arbitration Award against DynaResource, Inc. and DynaResource de México, S.A. de C.V. On May 9, 2019, the United States District Court for the District of Colorado confirmed the August 2016 Arbitration award against DynaResource, Inc. and DynaResource de México, S.A. de C.V. The district court’s decision overruled the recommendation previously issued by the magistrate judge to sustain the DynaResource entities’ motion to vacate the arbitration award. Each of DynaResource, Inc. and DynaResource de México, S.A. de C.V. intends to exercise all its rights, as appropriate, including an appeal. DynaResource Entities Filings in US District Court in Response to Arbitration Ruling · DynaUSA and DynaMéxico filed Motion to Alter Judgment On June 6, 2019, DynaUSA and DynaMéxico file a Motion to Alter Judgment. · DynaUSA and DynaMéxico filed Motion for Stay of Judgment Pending Appeal and to Waive Bond On June 7, 2019, DynaUSA and DynaMéxico filed A Motion for Stay of Judgment Pending Appeal and to Waive Bond . · DynaUSA and DynaMéxico filed Motion for Leave to Supplement the Record On July 13, 2019, DynaUSA and DynaMéxico filed A Motion for Leave to Supplement the Record with the following information: · “ Rejection of Goldgroup Resources Inc. request to the Supreme Court of México” On July 3, 2019, an Official Ruling from The Supreme Court of México was issued to Reject the Request of Goldgroup Resources Inc. (the “México Supreme Court Rejection to Goldgroup”). The Justices of the First Chamber of the Supreme Court of Justice of México issued a Rejection Notice to Goldgroup Resources Inc., “due to the lack of legitimacy presented by Goldgroup”; and in issuing the Rejection Notice to Goldgroup, the Supreme court thereby reverted the Amparo Appeal back to the México Circuit Court where the Official and Final Ruling from the México Circuit Court is expected to be issued. · DynaUSA and DynaMéxico filed Reply in Support of Motion to Alter Judgment. On July 23, 2019, DynaUSA and DynaMéxico filed a Reply in Support of Motion to Alter Judgment. Goldgroup Resources was confirmed to be misleading the US District Court with inaccurate reports of the ruling of the México Supreme Court Rejection. · Final Legal Ruling in México (DynaMéxico Final México Legal Ruling) On December 6, 2019, the 11 th The DynaMéxico Final México Legal Ruling is Favorable to DynaMéxico, and denies the Amparo challenge of Goldgroup Resources Inc., the subsidiary of Goldgroup Mining Inc. (“GGA.TO”). The DynaMéxico Final México Legal Ruling constitutes the Final Appeal of Goldgroup Resources Inc.; and is Not subject to further appeal or protest. The DynaMéxico Final Legal Ruling is the result and culmination of 7 years of legal action performed by DynaMéxico and is the Final Ruling of the 11 th · Legal Summary - Consequence of the México Final Legal Ruling: o The $48,280,808.34 USD damages award (dated October 05, 2015) in favor of DynaMéxico and against Goldgroup Resources Inc. is now Final. Goldgroup Resources’ challenge(s) to that award have been fully denied and the damages award is Final. o The Lien against the Shares of DynaMéxico owned by Goldgroup Resources Inc. (established October 5, 2016, the “Lien against Goldgroup Shares”) is now fully confirmed, Final, and enforceable. o Ownership of the shares of DynaMéxico currently held by Goldgroup Resources (currently representing 20% of the outstanding shares of DynaMéxico) are subject to the Lien against Goldgroup Shares.” · DynaMéxico Recovery of 100% of Goldgroup Shares On February 20, 2020 the “DynaMéxico Foreclosure Judgment”). The DynaMéxico Foreclosure Judgment awarded to DynaMéxico 100% of the Shares of DynaMéxico previously owned by Goldgroup Resources Inc. (a Subsidiary Company in México owned 100% by Goldgroup Mining Inc., Vancouver, BC., “GGA.TO”). Prior to the DynaMéxico Foreclosure Judgment, Goldgroup Resources Inc. owned shares of DynaMéxico constituting 20% of the total outstanding shares of DynaMéxico (the “Goldgroup Shares of DynaMéxico”). The Goldgroup Shares of DynaMéxico were held under Lien by DynaMéxico since October 2016. DynaUSA previously owned 80% of the outstanding shares of DynaMéxico. Confirmation of Arbitration Award in U.S. District Court – District of Colorado On March 25, 2020 The U.S. District Court, District of Colorado affirmed the August 24, 2016 Arbitration Award in favor of Goldgroup Resources Inc. DynaUSA and DynaMéxico filed Appeal of Arbitration Affirmation to U.S. District Court - 10 th · On July 17, 2020, DynaUSA and DynaMéxico filed an Appeal of the Affirmation of the Arbitration Award to the U.S. District Court – 10 th · On July 17, 2020, DynaUSA and DynaMéxico posted supersedeas bond with the U.S. District Court, District of Colorado, in the amount of $1.111M USD.; and DynaUSA and DynaMéxico filed a motion for Stay of Judgment pending Appeal. U.S. Court of Appeals - 10 th On April 16, 2021, the U.S. Court of Appeals for the 10 th · On July 17, 2020, DynaUSA and DynaMéxico posted supersedeas bond with the U.S. District Court, District of Colorado, in the Amount of $1.111M USD, in order to fully bond the Monetary portion of the Arbitration Award. · On August 24, 2020, DynaMéxico conducted an Extraordinary Shareholder’s Meeting of DynaMéxico, wherein all Non-Monetary portions of the Arbitration Award were fully performed and executed. Full Performance of Arbitration Award by DynaUSA and DynaMéxico / Closure of the Arbitration Case by US. District Court · On August 24, 2020, DynaMéxico conducted an Extraordinary Shareholder’s Meeting of DynaMéxico, wherein all Non-Monetary portions of the Arbitration Award were fully performed and executed. · On May 20, 2021, DynaUSA and DynaMéxico agreed to release the $1.111 M USD supersedeas bond and paid an addition amount of $4,054.59 in interest calculated to June 2, 2021; in full performance and satisfaction of the monetary portion of the Arbitration Award. Goldgroup Resources Inc. Filed Motion for Contempt of Court Sanctions against DynaUSA and DynaMéxico On June 11, 2021, Goldgroup Resources Inc. filed a Motion for Civil Contempt Sanctions against DynaUSA and DynaMéxico. The Motion for Contempt Sanctions is pending. DynaUSA and DynaMéxico file Motion for Relief of Judgment Pursuant to Federal Rule of Civil Procedure 60(b) On July 1, 2021, DynaUSA and DynaMéxico filed a Motion for Relief of Judgment Pursuant to Federal Rule of Civil Procedure 60(b). The Motion for Relief of Judgment is pending. Complaint filed by Goldgroup against the May 17, 2013, Shareholders’ Meeting of DynaMéxico On February 2nd, 2014, Goldgroup Resources Inc. filed a petition with the Judge of the Tenth District Mazatlán, according to record 08/2014, in the ordinary commercial action, against DynaResource Inc., and DynaResource de México, S.A. de CV. (“DynaMéxico”). In the Petition, Goldgroup complains against the results of the shareholders meeting of DynaMéxico of May 17, 2013, and petitions for the nullification of the meeting itself and for the nullification of the additional shares of the outstanding capital of DynaMéxico issued to DynaResource, Inc. in satisfaction of debts owed to DynaResource. DynaResource and DynaMéxico filed a response on January 9, 2016. DynaMéxico will vigorously defend against all such complaints by Goldgroup, as there exists no legal basis for the complaint by Goldgroup against the May 17, 2013 shareholders meeting of DynaMéxico. On October 31, 2018, the Judge of the Tenth District declared the Expiration of the Trial, due to inactivity of Goldgroup in the process, and the Judge decreed the Trial as a concluded and filed trial. As a result, the shareholders' meeting of May 17, 2013 remains valid. On November 16, 2018, Goldgroup appealed the declaration of Expiration of the Trial. On February 12, 2019, the Court of Appeals (Segundo Tribunal Unitario de Circuito in Mazatlán) confirmed the resolution issued October 31, 2018 by the Judge of Tenth District and declared and confirmed the Expiration of the Trial, due to the inactivity of Goldgroup to the process, and therefore the Court of Appeals decreed the matter as a concluded and filed trial. As a result, the shareholders' meeting of May 17, 2013 remains valid. Goldgroup has filed a writ of amparo against the resolution of the Court of Appeals that confirmed the declaration of expiration of the trial. This Amparo Trial is pending resolution. Litigation(s) in México – Company as Plaintiff The Company, and DynaMéxico have filed several legal actions in México against Goldgroup Mining Inc. and Goldgroup Resources Inc., and certain individuals retained as agents of Goldgroup Mining Inc., or Goldgroup Resources. The Company and DynaMéxico are plaintiffs in the actions filed in México and the outcomes are pending. The Company believes that no material adverse change will occur as a result of the 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. For purposes of confidentiality, the Company does not provide more specific disclosure in this Form 10-Q. 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 an adverse 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. Coronavirus Pandemic In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (COVID-19) as a pandemic, which continues to spread throughout the United States of America. Efforts implemented by local and national governments, as well as businesses, including temporary closures, are expected to have adverse impacts on local, national and the global economies. Although the disruption is currently expected to be temporary, there is uncertainty around the duration and the related economic impact. Therefore, while we expect this matter to have an impact our business, the impact to our results of operations and financial position cannot be reasonably estimated at this time.

DERIVATIVE LIABILITIES

DERIVATIVE LIABILITIES	6 Months Ended
	Jun. 30, 2021
DERIVATIVE LIABILITIES
11. DERIVATIVE LIABILITIES	NOTE 11 – 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: 2021 2020 Annual volatility rate 167 % 156 % Risk free rate 0.25 % 0.13 % Remaining Term 1.00 years 1.50 years Fair Value of common stock $ 0.90 $ 0.78 For the periods ended June 30, 2021 and December 31, 2020, 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 periods ended June 30, 2021 and December 31, 2020. Period Ended 2021 2020 Fair value of derivative (stock), beginning of period $ 601,313 $ 37,038 Change in fair value of derivative 25,266 276,547 Fair value of derivative on the date of issuance - 287,728 Fair value of derivative (stock), end of period $ 626,579 $ 601,313 Preferred Series C Warrants 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: 28 Table of Contents 2021 2020 Annual volatility rate 167 % 156 % Risk free rate 0.25 % 0.13 % Remaining Term 1.00 years 1.5 years Fair Value of common stock $ 0.90 $ 0.78 For the periods ended June 30, 2021 and December 31, 2020, 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 periods ended June 30, 2021 and December 31, 2020. Period Ended 2021 2020 Fair value of derivative (warrants), beginning of period $ 817,613 $ 49,066 Change in fair value of derivative 12,819 367,781 Fair value of derivative on the date of issuance - 400,766 Fair value of derivative(warrants), end of period $ 830,432 $ 817,613 Series D Notes Kicker Warrants As discussed in Note 8, the Company analyzed the conversion features of the Series D Notes and determined that the Warrants qualified as a derivative liability. The fair value was required to be allocated among the notes, conversion features, and the warrants, and then remeasured at each reporting date. 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 D Warrants based on the assumptions below: 2021 2020 Annual volatility rate 167 % 156 % Risk free rate 0.25 % 0.13 % Remaining Term 8.88 years 10 years Fair Value of common stock $ 0.90 $ 0.78 For the periods ended June 30, 2021 and December 31, 2020, 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 periods ended June 30, 2021 and December 31, 2020. Period Ended 2021 2020 Fair value of derivative (warrants), beginning of period $ 952,634 $ - Fair value of derivative on the date of issuance - 409,998 Change in fair value of derivative 147,032 542,636 Fair value of derivative(warrants), end of period $ 1,099,665 $ 952,634

NON-CONTROLLING INTEREST

NON-CONTROLLING INTEREST	6 Months Ended
	Jun. 30, 2021
NON-CONTROLLING INTEREST
12. NON-CONTROLLING INTEREST	NOTE 12 – 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% until February 24, 2020 when the minority interest was eliminated. Changes in Non-Controlling Interest for the year ended December 31, 2020 was as follows: 2020 Beginning balance $ (5,723,663 ) Operating income (loss) (61,589 ) Share of Other Comprehensive Income (loss) (11,669 ) Elimination of Non-Controlling Interest 5,796,921 Ending balance $ -

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	6 Months Ended
	Jun. 30, 2021
FAIR VALUE OF FINANCIAL INSTRUMENTS
13. FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 13 – 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 – Quoted prices for identical instruments in active markets. Level 2 Inputs – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 Inputs – Instruments with primarily unobservable value drivers. As of June 30, 2021, and December 31, 2020, 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 11. Fair Value Measurement at June 30, 2021 Using: Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Derivative Liabilities $ 2,556,676 - - 2,556,676 Totals $ 2,556,676 $ - $ - $ 2,556,676 Fair Value Measurement at December 31, 2020 Liabilities: Derivative Liabilities $ 2,371,560 - - 2,371,560 Totals $ 2,371,560 $ - $ - $ 2,371,560

REVENUE CONCENTRATION

REVENUE CONCENTRATION	6 Months Ended
	Jun. 30, 2021
REVENUE CONCENTRATION
14. REVENUE CONCENTRATION	NOTE 14 – REVENUE CONCENTRATION The Company had certain customers whose revenue individually represented 10% or more of the Company’s total revenue, or whose accounts receivable balances individually represented 10% or more of the Company’s total accounts receivable, as follows: For each of the six months ended June 30, 2021 and 2020, three and two customers accounted for 100% of revenue, respectively. At June 30, 2021 and December 31, 2020, three and four customer accounted for 100% of accounts receivable, respectively.

NOTES PAYABLE

NOTES PAYABLE	6 Months Ended
	Jun. 30, 2021
NOTES PAYABLE
15. NOTES PAYABLE	NOTE 15 – NOTES PAYABLE In June 2017, the Company entered into financing agreements for unpaid mining concession taxes on the Francisco Arturo mining concession for the period July 1, 2014 to December 31, 2015 in the amount of $533,580. The Company paid an initial 20% payment in the amount of $106,716 and financed the balance over 36 months at 18% interest. In February 2018, the Company entered into a financing agreement for unpaid mining concessions taxes on the Francisco Arturo mining concession for the year ended December 31, 2016 in the amount of $552,990. The Company paid an initial payment of $110,598 and financed the balance over 36 months at 18%. In June 2018, the Company entered into financing agreements for the unpaid mining concession taxes on the Francisco Arturo mining concession for the year ended December 31, 2017 and the period ending June 30, 2018 in the amount of $1,739,392. The Company paid an initial 20% payment of $347,826 and financed the balance over 36 months at 21.84% In February 2019, the Company entered into a financing agreement for unpaid mining concession taxes on the Francisco Arturo mining concession for the year ended December 31, 2018 in the amount of $335,350. The Company paid an initial 20% payment of $67,070 and financed the balance over 36 months at an interest rate of 21%. In June 2018, the Company applied for a reduction of the Francisco Arturo mining concession, from 69,121 hectares to 3,280 hectares. On July 31, 2018, the application for reduction was approved and the Company paid an initial amount of 985,116 MNP (Pesos), for the second semester 2018 mining concessions taxes on the reduced Francisco Arturo mining concession. The Company continues to accrue an amount of $22,500 (USD) per semester on the reduced Francisco Arturo mining concession. As of June 2019, the Company ceased making monthly payments on the above noted Francisco Arturo concession notes and has petitioned the Hacienda for a reduction in the liability equal to the reduction in the Francisco Arturo concession above. For financial reporting purposes the Company continues to carry all notes at unpaid principal amount and accrues interest on a monthly basis. At June 30, 2021 $879,240 of accrued interest on the notes was included in accrued liabilities on the consolidated balance sheet. In October 2019, the Company entered into a financing agreement for unpaid mining concession taxes on the core mining concessions in the amount of $299,474. The Company paid an initial 20% payment of $59,895 and financed the balance over 36 months at an interest rate of 22%. The following is a summary of the transaction during the periods ended June 30, 2021 and December 31, 2020: Balance December 31, 2019 2,272,431 Exchange Rate Adjustment (124,352 ) 2020 Principal Payments (66,644 ) Balance December 31, 2020 2,081,435 Exchange Rate Adjustment (2,395 ) 2021 Principal Payments (36,460 ) Balance June 30, 2021 $ 2,042,580 At June 30, 2021 future maturities of notes payable are as follows: Year Ending June 30: 2022 $ 2,009,461 2023 33,119 $ 2,042,580

REVOLVING CREDIT LINE FACILITY

REVOLVING CREDIT LINE FACILITY	6 Months Ended
	Jun. 30, 2021
CONVERTIBLE PROMISSORY NOTES
16. REVOLVING CREDIT LINE FACILITY	NOTE 16 – REVOLVING CREDIT LINE FACILITY On February 4, 2021 Mineras de DynaResource SA de CV (“Seller”) entered into a Revolving Credit Line Facility and Commercial Offtake Agreement (the “RCL"), with a commercial buyer. Under the terms of the RCL: · The Company will deliver 100% of its produced concentrates to the buyer and provider of the RCL, through December 31, 2022; unless extended by the Company; · An initial RCL was established by buyer in the amount of $3.75M USD; · At May 1, 2021, the RCL increased to an amount equal to 80% of prior 3 month’s revenue; · Each successive month, the RCL shall be adjusted according to the company’s prior 3 month’s revenue; · The RCL shall never be less than $3.75M USD; · The RCL will be interest free for 45 days; · The RCL is to be repaid through deliveries of Concentrates or Cash within 120 days; Deposits under Revolving Credit Line Facility Under the terms of the RCL, Mineras de DynaResource received the following advances from the buyer: (1) $2.5M advance on February 4, 2021. Settled on March 26, 2021. (2) $3.75M advance on March 30, 2021. Settled on May 12, 2021. (3) $3.75M advance on May 12, 2021. Settled on June 16, 2021. (4) $6.75M advance on June 18, 2021.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2021
SUBSEQUENT EVENTS
17. SUBSEQUENT EVENTS	NOTE 17 – SUBSEQUENT EVENTS The Company has evaluated events from June 30, 2021, through the date whereupon the financial statements were issued, and has determined the below described events subsequent to the end of the period. Revolving credit line activity: At August 1, 2021, the amount of the RCL was increased to $8.89M USD. On August 4, 2021, Mineras de Dyna Resource S.A. de C.V. completed settlement of an advance in the amount of $6.75M USD from the Buyer of Concentrate products through a combination of product delivery and cash payment. On August 9, 2021, Mineras de DynaResource S.A. de C.V. received an advance from the Buyer of Concentrate Products produced from San Jose de Gracía in the amount of $8.25M USD.

NATURE OF ACTIVITIES AND SIGN_2

NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2021
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 Gracía Project (“SJG”) in northern Sinaloa State, México. The SJG District covers 9,920 hectares (24,513 acres) on the west side of the Sierra Madre mountain range. The Company currently owns 100% of the outstanding capital of DynaMéxico. A 20% minority interest in Dyna México was held by Goldgroup Resources Inc., a wholly owned subsidiary of Goldgroup Mining Inc. Vancouver BC (“Goldgroup”) until February 24, 2020. In 2005, the Company formed DynaResource Operaciones de San Jose De Gracía S.A. de C.V. (“DynaOperaciones”), and acquired control of Mineras de DynaResource, S.A. de C.V. (formerly Minera Finesterre S.A. de C.V., “DynaMineras”). The Company owns 100% of Dyna Mineras. 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.
Reclassifications and Adjustments	Certain financial statement reclassifications have been made to prior period balances to reflect the current period’s presentation format; such reclassifications had no impact on the Company’s consolidated statements of income or consolidated statements of cash flows and had no material impact on the Company’s consolidated balance sheets.
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 revenues and expenses. 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. (100% 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, was 20% owned by Goldgroup Resources, Inc. until February 24, 2020 when the Company recovered the shares as partial satisfaction of a legal judgement. See Note 10 for further details. The Company accounted for this outside interest as “non-controlling interest” through February 2020. A 20% share of operating income (loss) and comprehensive income (loss) was allocated to the non-controlling interest through the date of the recovery of the shares.
Investments in Affiliates	The Company owns a 19.95% 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. The Company has significant influence over DynaNevada, but not control, due to the lack of a majority voting interest in the entity. DynaNevada has been dormant for several years. DynaUSA has no plan or intention of future funding with DynaNevada nor are any other transactions with DynaNevada contemplated at this time. The Company therefore accounts for this investment using the cost basis. The investment was $70,000 and $70,000 at June 30, 2021 and December 31, 2020, respectively.
Cash and Cash Equivalents	The Company considers all highly liquid debt instruments with an original 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. As of June 30, 2021, the Company had $9,507,800 of deposits in U.S. Banks in excess of the FDIC limit.
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 June 30, 2021 and December 31, 2020, 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 June 30, 2021 and December 31, 2020 are $3,204,226 and $2,179,914, respectively.
Inventory	Inventories are carried at the lower of cost or net realizable value and consist of mined tonnage, and gravity and flotation concentrates, and gravity tailings or flotation feed material. The inventories are $1,364,836 and $603,967 as of June 30, 2021 and December 31, 2020, 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 (2) 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 June 30, 2021 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 Gracía Property, as exploration stage projects since no proven or probable reserves have been established under Industry Guide 7.
Property	Substantially all mine development costs, including design, engineering, mine 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 mining 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. Office furniture and equipment are being depreciated on a straight-line method 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. 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.
Mineral 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 Gracía Property, capitalized costs and mineral property interests are amortized using the straight-line method once production begins. As of June 30, 2021, 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 9,920 hectares at the San Jose de Gracía 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 considering 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 June 30, 2021 and December 31, 2020, no indications of impairment existed.
Asset Retirement Obligation	As the Company is not obligated to remediate the mining properties, no Asset Retirement Obligation (“ARO”) has been established. Changes in regulations or laws, any instances of non-compliance with laws or regulations that result in fines, or any unforeseen environmental contamination could result in a material impact to the amounts charged to operations for reclamation and remediation. Significant judgments and estimates are made when estimating the fair value of AROs. Expected cash flows relating to AROs could occur over long periods of time and the assessment of the extent of environmental remediation work is highly subjective. Considering all of these factors that go into the determination of an ARO, the fair value of the AROs can materially change over time.
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.
Transactions in and Translations of Foreign Currency	The functional currency for the subsidiaries of the Company is the Mexican Peso. As a result, the financial statements of the subsidiaries have been translated from Mexican Pesos into U.S. dollars using (i) yearend exchange rates for balance sheet accounts, and (ii) the weighted average exchange rate of the reporting period for all income statement accounts. Foreign currency translation gains and losses are reported as a separate component of stockholders’ equity and 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 June 30, 2021 and December 31, 2020 (Mexican Pesos per one U.S. dollar): June 30, 2021 Dec 31, 2020 Exchange Rate at Period End Pesos 19.94 19.91 Relevant exchange rates used in the preparation of the income statement portion of financial statements for the subsidiaries are as follows for the periods ended June 30, 2021 and June 30, 2020 (Mexican Pesos per one U.S. dollar): June 30, 2021 June 30, 2020 Weighted Average Exchange Rate for the Six Months Ended Pesos 20.19 21.65 The Company recorded currency transaction gains (losses) of $136,281 and $(339,685) for the six months ended June 30, 2021 and 2020, respectively.
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 statements 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 follows ASC 606 “ Revenue from contracts with customers The amount of revenue recognized is initially recorded on a provisional basis based on the contract price and the estimated metal quantities based on assay data. The revenue is adjusted upon final settlement of the sale. The chief risk associated with the recognition of sales on a provisional basis is the fluctuations between the estimated quantities of precious metals base on the initial assay and the actual recovery from treatment and processing. As of June 30, 2021 there are $9,250,000 in customer deposit liabilities for payments received in advance expected to be settled in 2021. During the periods ended June 30, 2021 and 2020 there was $0 and $0 of revenue recognized during the period from customer deposit liabilities (deferred contract revenue) from prior periods, and $0 of customer deposits refunded to the customer on order cancellation. As of and for the periods ended June 30, 2021 and December 31, 2020, there are no contract costs or commissions deferred. We have elected to account for shipping and handling costs as fulfillment costs after the customer obtains control of the goods.
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.
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.
Per Share Amounts	Earnings per share are calculated in accordance with ASC 260 “ Earnings per Share The Company had 3,391,835 warrants outstanding at June 30, 2021 which upon exercise, would result in the issuance of 3,391,835 shares of common stock. Of these warrants 2,166,527 were exercisable at $2.05 per share and1,225,308 were exercisable at $.01 per share. The Company also had convertible debt instruments as of June 31, 2021 which, upon conversion at valuations from $2.00 to $2.50 per share, would result in the issuance of 2,227,312 shares of stock. The Company had 3,391,835 warrants outstanding at December 31, 2020 which upon exercise, would result in the issuance of 3,391,835 shares of common stock. Of these warrants 2,166,527 were exercisable at $2.05 per share and 1,225,308 were exercisable at $.01 per share. The Company also had convertible debt instruments as of December 31, 2020 which, upon conversion at valuations from $2.00 to $2.50 per share, would result in the issuance of 2,227,312 shares of stock. Three Month Ended June 30, 2021 Three Month Ended June 30, 2020 Six Month Ended June 30, 2021 Six Month Ended June 30, 2020 Net loss attributable to common shareholders $ 4,419,370 $ (3,491,790 ) $ 4,665,704 $ (5,280,142 ) Weighted average number of common shares outstanding, Basic 17,722,825 17,722,825 17,722,825 17,722,825 Diluted weighted average number of common shares outstanding, 18,945,827 17,722,825 18,945,827 17,722,825 Basic earnings (loss) per share $ 0.25 $ (0.20 ) $ 0.26 $ (0.30 ) Diluted earnings (loss) per share $ 0.24 $ (0.19 ) $ 0.25 $ (0.30 ) At June 30, 2021 2,166,527 shares of potentially dilutive common stock related to outstanding stock warrants and 2,227,312 shares of potentially dilutive common stock related to convertible debt were excluded from the diluted earnings per share calculation because the exercise and conversion prices exceeded the average stock price and therefore their effect would be anti-dilutive. At June 30, 2020 potentially dilutive common shares related to stock warrants and convertible debt were excluded from the diluted earning per share computation because the Company incurred a net loss and therefore their effect would be anti-dilutive.
Related Party Transactions	FASB ASC 850, "Related Party Disclosures" requires companies to include in their financial statements, disclosures of material related party transactions. The Company discloses all material related party transactions. A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party.

NATURE OF ACTIVITIES AND SIGN_3

NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2021
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES
Exchange Rates	June 30, 2021 Dec 31, 2020 Exchange Rate at Period End Pesos 19.94 19.91 Relevant exchange rates used in the preparation of the income statement portion of financial statements for the subsidiaries are as follows for the periods ended June 30, 2021 and June 30, 2020 (Mexican Pesos per one U.S. dollar): June 30, 2021 June 30, 2020 Weighted Average Exchange Rate for the Six Months Ended Pesos 20.19 21.65
Computation of Earnings (Loss) Per Share	Three Month Ended June 30, 2021 Three Month Ended June 30, 2020 Six Month Ended June 30, 2021 Six Month Ended June 30, 2020 Net loss attributable to common shareholders $ 4,419,370 $ (3,491,790 ) $ 4,665,704 $ (5,280,142 ) Weighted average number of common shares outstanding, Basic 17,722,825 17,722,825 17,722,825 17,722,825 Diluted weighted average number of common shares outstanding, 18,945,827 17,722,825 18,945,827 17,722,825 Basic earnings (loss) per share $ 0.25 $ (0.20 ) $ 0.26 $ (0.30 ) Diluted earnings (loss) per share $ 0.24 $ (0.19 ) $ 0.25 $ (0.30 )

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2021
INVENTORIES
Inventories	2021 2020 Mined Tonnage $ 1,218,021 $ 555,608 Gold-Silver Concentrates 146,815 48,359 Total Inventories $ 1,364,836 $ 603,967

PROPERTY (Tables)

PROPERTY (Tables)	6 Months Ended
	Jun. 30, 2021
PROPERTY
Property	2021 2020 Leasehold improvements $ 9,340 $ 9,340 Office equipment 31,012 31,012 Office furniture and fixtures 78,802 78,802 Sub-total 119,154 119,154 Less: Accumulated depreciation (114,801 ) (113,176 ) Total Property $ 4,353 $ 5,978

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Jun. 30, 2021
INCOME TAXES
Deferred Tax Assets	June 30, 2021 December 31, 2020 Prior Year $ 13,473,000 $ 13,780,490 Tax (Expense) Benefit for Current Year (1,421,781 ) 953,120 Expiration of NOL Carryforward Period - (1,260,610 ) Total Deferred Tax Asset 12,051,219 13,473,000 Less Valuation Allowance (12,051,219 ) (13,473,000 ) Net Deferred Tax Asset $ - $ -
Income (Loss) Before Taxes	2021 2020 United States $ (4,841,452 ) $ (1,862,612 ) Foreign 9,593,906 (3,392,459 ) $ 4,752,454 $ (5,255,071 )
Income Tax Provision	Current Federal $ - $ - State - - Foreign - - $ - $ - Deferred and Other Federal $ (920,960 ) $ (285,487 ) State - - Foreign 2,342,741 (848,115 ) 1,421,781 (1,133,602 ) Total Tax Expense (Benefit) 1,421,781 (1,133,602 ) Change in Valuation Allowance (1,421,781 ) 1,133,602 Net Tax Expense (Benefit) $ - $ -
Income Tax Reconciliation	2021 2020 Tax Expense (Benefit) at Statutory Rate $ 998,015 $ (1,103,565 ) Foreign Tax Rate Differential 863,450 (210,203 ) Permanent Differences Stock Issued for Services - 21,000 Change in Derivative Liability 38,874 144,748 Amortization of Loan Discount 57,671 14,418 Timing Differences Depreciation & Capitalized Assets (15,283 ) Sales & Accounts Receivable (321,479 ) Inventory and COGS (198,667 ) Other (800 ) Change in Valuation Allowance (1,421,781 ) 1,133,602 Provision for Income Tax Expense (Benefit) $ - $ -
Operating loss carry-forward	United States Expiring 2029 through $ 18,500,000 United States indefinite limited to 80% of NOL 11,300,000 Foreign expiring from 2021 to 2030 20,000,000 Total $ 49,800,000

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	6 Months Ended
	Jun. 30, 2021
STOCKHOLDERS' EQUITY
Series C Preferred Stock	Preferred Series C Carrying Value, December 31, 2019 $ 4,333,053 Issuances at Fair Value, Net of Issuance Costs - Bifurcation of Derivative Liability - Relative Fair Value of Warrants – Preferred Stock Discount 4,427 Accretion of Preferred Stock to Redemption Value - Carrying Value, December 31, 2020 4,337,480 Issuances at Fair Value, Net of Issuance Costs - Bifurcation of Derivative Liability - Relative Fair Value of Warrants – Preferred Stock Discount - Accretion of Preferred Stock to Redemption Value - Carrying Value, June 30, 2021 $ 4,337,480
Warrant Activity	Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Intrinsic Value Balance at December 31, 2019 2,166,527 $ 2.45 0.51 $ - Granted 3,391,815 $ 1.31 4.89 $ - Exercised - $ - $ - Forfeited 2,166,527 $ - $ - Balance at December 31, 2020 3,391,815 $ 1.31 4.34 $ - Granted - $ - $ - Exercised - $ - $ - Forfeited - $ - $ - Balance at June 30, 2021 3,391,815 $ 1.31 3.84 $ - Exercisable at June 30, 2021 3,391,815 $ 1.31 3.84 $ -

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2021
COMMITMENTS AND CONTINGENCIES
Lease Cost	Period Ended June 30, 2021 Operating Lease – Office Lease $ 42,742 Operating Lease – Ground Lease 44,337 Short Term Lease Costs 6,279 Variable Lease Costs - TOTAL $ 93,358
Weighted Average Remaining Lease Term and Weighted Average Discount Rate	Weighted Average Remaining Lease Term (Years) – Operating Leases 11.00 Weighted Average Discount Rate – Operating Leases 12.50 %
Future Minimum Lease Obligations	YEAR 2022 $ 179,474 2023 145,896 2024 96,896 2025 99,803 2026 102,797 Thereafter 684,885 Total $ 1,308,751 Less Imputed Interest (586,207 ) OPERATING LEASE PAYABLE $ 722,544

DERIVATIVE LIABILITIES (Tables)

DERIVATIVE LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2021
Preferred Series C Stock
Change in the Fair Value of the Derivative Liability	2021 2020 Annual volatility rate 167 % 156 % Risk free rate 0.25 % 0.13 % Remaining Term 1.00 years 1.50 years Fair Value of common stock $ 0.90 $ 0.78 Period Ended 2021 2020 Fair value of derivative (stock), beginning of period $ 601,313 $ 37,038 Change in fair value of derivative 25,266 276,547 Fair value of derivative on the date of issuance - 287,728 Fair value of derivative (stock), end of period $ 626,579 $ 601,313
Preferred Series C Warrant
Change in the Fair Value of the Derivative Liability	Period Ended 2021 2020 Fair value of derivative (warrants), beginning of period $ 817,613 $ 49,066 Change in fair value of derivative 12,819 367,781 Fair value of derivative on the date of issuance - 400,766 Fair value of derivative(warrants), end of period $ 830,432 $ 817,613
Valuation Assumption	2021 2020 Annual volatility rate 167 % 156 % Risk free rate 0.25 % 0.13 % Remaining Term 1.00 years 1.5 years Fair Value of common stock $ 0.90 $ 0.78
Preferred Series D Warrant
Change in the Fair Value of the Derivative Liability	Period Ended 2021 2020 Fair value of derivative (warrants), beginning of period $ 952,634 $ - Fair value of derivative on the date of issuance - 409,998 Change in fair value of derivative 147,032 542,636 Fair value of derivative(warrants), end of period $ 1,099,665 $ 952,634
Valuation Assumption	2021 2020 Annual volatility rate 167 % 156 % Risk free rate 0.25 % 0.13 % Remaining Term 8.88 years 10 years Fair Value of common stock $ 0.90 $ 0.78

NON-CONTROLLING INTEREST (Table

NON-CONTROLLING INTEREST (Tables)	6 Months Ended
	Jun. 30, 2021
NON-CONTROLLING INTEREST
Changes in Non-Controlling Interest	2020 Beginning balance $ (5,723,663 ) Operating income (loss) (61,589 ) Share of Other Comprehensive Income (loss) (11,669 ) Elimination of Non-Controlling Interest 5,796,921 Ending balance $ -

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2021
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair Value Measurement	Fair Value Measurement at June 30, 2021 Using: Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Derivative Liabilities $ 2,556,676 - - 2,556,676 Totals $ 2,556,676 $ - $ - $ 2,556,676 Fair Value Measurement at December 31, 2020 Liabilities: Derivative Liabilities $ 2,371,560 - - 2,371,560 Totals $ 2,371,560 $ - $ - $ 2,371,560

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	6 Months Ended
	Jun. 30, 2021
NOTES PAYABLE
Notes Payable	The following is a summary of the transaction during the periods ended June 30, 2021 and December 31, 2020: Balance December 31, 2019 2,272,431 Exchange Rate Adjustment (124,352 ) 2020 Principal Payments (66,644 ) Balance December 31, 2020 2,081,435 Exchange Rate Adjustment (2,395 ) 2021 Principal Payments (36,460 ) Balance June 30, 2021 $ 2,042,580 At June 30, 2021 future maturities of notes payable are as follows: Year Ending June 30: 2022 $ 2,009,461 2023 33,119 $ 2,042,580

NATURE OF ACTIVITIES AND SIGN_4

NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details)	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES
Current Exchange Rate	19.94	19.91
Weighted Average Exhange Rate for the Period	20.19		21.65

NATURE OF ACTIVITIES AND SIGN_5

NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ 4,419,370	$ (3,491,790)	$ 4,665,704	$ (5,280,142)
Shares:
Weighted Average Number of Common Shares Outstanding, Basic	17,722,825	17,722,825	17,722,825	17,722,825
Diluted Weighted Average Number of Common Shares Outstanding, Diluted	18,945,827	17,722,825	18,945,827	17,722,825
Basic Earnings (Loss) Per Share	$ 0.25	$ (0.20)	$ 0.26	$ (0.30)
Diluted Earnings (Loss) Per Share	$ 0.24	$ (0.19)	$ 0.25	$ (0.30)

NATURE OF ACTIVITIES AND SIGN_6

NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Investments in Affiliate	$ 70,000		$ 70,000		$ 70,000
Bank deposite excess of FDIC limit	9,507,800		$ 9,507,800
Ownership percentage			100.00%
IVA Receivable	3,204,226		$ 3,204,226		2,179,914
Inventories	1,364,836		1,364,836		$ 603,967
Currency Transaction Gains (Losses)	470,016	$ (230,310)	136,281	$ (339,685)
Customer deposit liabilities for payment received in advance	$ 9,250,000		$ 9,250,000
Warrants outstanding	3,391,835		3,391,835
Deferred contract revenue			$ 0	$ 0
Common stock issued	3,391,835		3,391,835
Warrant exercisable			2,166,527
Exercise price	$ 2.05		$ 2.05
Potentially dilutive common stock			2,166,527
Maximum
Conversion at valuations	2.50		$ 2.50
Minimum
Conversion at valuations	$ 2		$ 2
Warrant
Warrants outstanding	2,227,312		2,227,312
Common stock issued	2,227,312		2,227,312
Warrant exercisable			1,225,308
Exercise price	$ 0.01		$ 0.01
Goldgroup Resources [Member]
Minority interest	20.00%		20.00%

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
INVENTORIES
Mined Tonnage	$ 1,218,021	$ 555,608
Gold-Silver Concentrates	146,815	48,359
Total Inventories	$ 1,364,836	$ 603,967

PROPERTY (Details)

PROPERTY (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
PROPERTY
Leasehold Improvements	$ 9,340	$ 9,340
Office Equipment	31,012	31,012
Office Furniture and Fixtures	78,802	78,802
Sub-total	119,154	119,154
Less: Accumulated Depreciation	(114,801)	(113,176)
Total Property	$ 4,353	$ 5,978

PROPERTY (Details Narrative)

PROPERTY (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
PROPERTY
Depreciation Expense	$ 1,625	$ 1,625

MINING CONCESSIONS (Details Nar

MINING CONCESSIONS (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
MINING CONCESSIONS
Total Mining Concessions	$ 4,132,678		$ 4,132,678
Depletion Expense	$ 0	$ 0

INVESTMENT IN AFFILIATERECEIVAB

INVESTMENT IN AFFILIATERECEIVABLES FROM AFFILIATEOTHER ASSETS (Details Narrative)	1 Months Ended
	Dec. 31, 2010USD ($)shares	Jun. 30, 2021USD ($)ashares	Dec. 31, 2020USD ($)shares
Receivable from DynaNevada de Mexico		$ 71,379	$ 71,465
Investments in Affiliate		$ 70,000	$ 70,000
Common stock outstanding | shares		17,722,825	17,722,825
DynaNevada
Ownership percentage	19.95%	19.95%
Investments in Affiliate		$ 70,000	$ 70,000
Common stock outstanding | shares	3,223,040
Net book value of outstanding stock	$ 695,000
Cash received	$ 30,000
Area of land acquired | a		6,000

CONVERTIBLE PROMISSORY NOTES (D

CONVERTIBLE PROMISSORY NOTES (Details Narrative) - USD ($)	1 Months Ended						6 Months Ended		12 Months Ended
	Mar. 31, 2020	Oct. 31, 2019	Feb. 28, 2019	Jun. 30, 2018	Feb. 28, 2018	Jun. 30, 2017	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 30, 2019	Dec. 31, 2019
Principal amount		$ 59,895	$ 67,070	$ 347,826	$ 110,598	$ 106,716
2013 and 2014 [Member] | Notes Payable - Series II [Member] | Additional Note Agreements [Member]
Notes payable							$ 199,808	$ 250,000	$ 84,757
Simple interest rate							12.50%
Maturity date							Dec. 31, 2015
Two notes totalling	$ 84,726										$ 78,750
Accrued interest	2,648									$ 5,977
Notes payable outstanding amount							$ 87,374		87,374		197,226
One note paid off amount											$ 112,500
Common shares received upon conversion, to purchase additional common shares							$ 7.50
April and May 2013 [Member] | Notes Payable - Series II [Member]
Notes payable	702,438								681,152	$ 646,875
Simple interest rate							12.50%
Maturity date							Dec. 31, 2015
Accrued interest	21,286								34,277
Notes payable outstanding amount	$ 691,152						$ 455,905		455,905
One note paid off amount									$ 246,533
Common shares received upon conversion, to purchase additional common shares							$ 7.50
Preferred shares converted amount							$ 340,000
Proceed from debt instrument							1,155,000
Principal amount							$ 1,495,000

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
INCOME TAXES
Prior Year	$ 13,473,000	$ 13,780,490
Tax (Expense) Benefit for Current Year	(1,421,781)	953,120
Expiration of NOL Carryforward Period	0	(1,260,610)
Total Deferred Tax Asset	12,051,219	13,473,000
Less: Valuation Allowance	(12,051,219)	(13,473,000)
Net Deferred Tax Asset	$ 0	$ 0

INCOME TAXES (Details 1)

INCOME TAXES (Details 1) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
INCOME TAXES
United States	$ (4,841,452)	$ (1,862,612)
Foreign	9,593,906	(3,392,459)
Income (loss) before taxes	$ 4,752,454	$ (5,255,071)

INCOME TAXES (Details 2)

INCOME TAXES (Details 2) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Current
Federal	$ 0	$ 0
State	0	0
Foreign	0	0
Total	0	0
Deferred and Other
Federal	(920,960)	(285,487)
State	0	0
Foreign	2,342,741	(848,115)
Total	1,421,781	(1,133,602)
Total tax expense (benefit)	1,421,781	(1,133,602)
Change in valuation allowance	(1,421,781)	1,133,602
Provision for Income Tax Expense (Benefit)	$ 0	$ 0

INCOME TAXES (Details 3)

INCOME TAXES (Details 3) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
INCOME TAXES
Tax expense (benefit) at statutory rate	$ 998,015	$ (1,103,565)
Foreign tax rate differential	863,450	(210,203)
Stock issued for services	0	21,000
Change in derivative liability	38,874	144,748
Amortization of loan discount	57,671	14,418
Depreciation & capitalized assets	(15,283)
Sales & accounts receivable	(321,479)
Inventory and COGS	(198,667)
Other	(800)
Change in valuation allowance	(1,421,781)	1,133,602
Provision for income tax expense (benefit)	$ 0	$ 0

INCOME TAXES (Details 4)

INCOME TAXES (Details 4)	Jun. 30, 2021USD ($)
Net operating loss carry-forward	$ 49,800,000
United States Indefinite Limited to 80% of NOL
Net operating loss carry-forward	11,300,000
United States Expiring 2029
Net operating loss carry-forward	18,500,000
Foreign Expiring from 2021 to 2030
Net operating loss carry-forward	$ 20,000,000

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative)	6 Months Ended
	Jun. 30, 2021USD ($)
INCOME TAXES
Net Operating Loss Carry-Forward	$ 49,800,000
Statutory tax rate	21.00%

STOCKHOLDERS EQUITY (Details)

STOCKHOLDERS EQUITY (Details) - Preferred Series C Stock - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Carrying Value, Beginning Balance	$ 4,337,480	$ 4,333,053
Issuances at Fair Value, Net of Issuance Costs	0	0
Bifurcation of Derivative Liability	0	0
Relative Fair Value of Warrants - Preferred Stock Discount	0	4,427
Accretion of Preferred Stock to Redemption Value	0	0
Carrying Value, Ending Balance	$ 4,337,480	$ 4,337,480

STOCKHOLDERS EQUITY (Details 1)

STOCKHOLDERS EQUITY (Details 1) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
STOCKHOLDERS' EQUITY
Warrants, Outstanding, Beginning Balance	3,391,815	2,166,527
Warrants, Granted	0	3,391,815
Warrants, Exercised	0
Warrants, Forfeited	0	2,166,527
Warrants, Outstanding, Ending Balance	3,391,815	3,391,815
Warrants, Outstanding, Exercisable	3,391,815
Weighted Average Exercise Price, Outstanding, Beginning Balance	$ 1.31	$ 2.45
Weighted Average Exercise Price, Granted	0	1.31
Weighted Average Exercise Price, Exercised	0	0
Weighted Average Exercise Price, Forfeited	0	0
Weighted Average Exercise Price, Outstanding, Ending Balance	1.31	$ 1.31
Weighted Average Exercise Price, Outstanding, Exercisable	$ 1.31
Weighted Average Remaining Contractual Life, Outstanding, Beginning Balance	4 years 4 months 2 days	6 months 3 days
Weighted Average Remaining Contractual Life, Granted		4 years 10 months 20 days
Weighted Average Remaining Contractual Life, Outstanding, Ending Balance	3 years 10 months 2 days	4 years 4 months 2 days
Weighted Average Remaining Contractual Life, Outstanding, Exercisable	3 years 10 months 2 days
Intrinsic Value, Outstanding, Beginning Balance	$ 0	$ 0
Intrinsic Value, Granted	0	0
Intrinsic Value, Exercised	0	0
Intrinsic Value, Forfeited	0	0
Intrinsic Value, Ending Balance	0	$ 0
Intrinsic Value, Outstanding, Exercisable	$ 0

STOCKHOLDERS EQUITY (Details Na

STOCKHOLDERS EQUITY (Details Narrative) - USD ($)	Jul. 14, 2020	May 14, 2020	May 13, 2020	May 06, 2015	Oct. 31, 2019	Feb. 28, 2019	Jun. 30, 2018	Feb. 28, 2018	Jun. 30, 2017	Jun. 30, 2015	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Warrants outstanding											3,391,835
Series C, Shares designated											1,734,992
Total derivative liability											$ 2,556,676		$ 2,371,560
Series C, preferred stock value											626,579		601,313
Golden post warrants											$ 830,432		$ 817,613
Series C, Par Value											$ 0.0001		$ 0.0001
Series D, Shares designated											3,000,000
Series D Convertible Note Kicker Warrants											$ 1,099,665		$ 952,634
Deemed dividend											86,750	$ 86,660
Amount recieved from preferred right											784,500
Current balance, preferred right											$ 40,000		$ 40,000
Series C, Shares Authorized											1,734,992		1,734,992
Repaid amount under preferred right											$ 744,500
Series C, Shares Outstanding											0		0
Common Stock, Par Value											$ 0.01		$ 0.01
Common Stock, Shares Authorized											40,000,000		40,000,000
Common Stock, Shares Issued											17,722,825		17,722,825
Common Stock, Shares Outstanding											17,722,825		17,722,825
Series C, Shares Issued											0		0
Preferred Stock, Shares Authorized											(20,001,000)
Preferred Stock, Par Value											$ 0.0001
Preferred Stock, Shares undesignated											$ 15,265,008
Preferred Stock, Shares designated											(1,000)
Treasury Stock											516,480		516,480
Outstanding treasury shares											516,980		516,980
Exercise price											$ 2.05
Principal amount					$ 59,895	$ 67,070	$ 347,826	$ 110,598	$ 106,716
Securities Purchase Agreement [Member]
Warrant contemplates the purchase, upon exercise				2,166,527
Maturity date				Jun. 30, 2022
Common stock, description	the Company’s certificate of incorporation to increase the number of authorized shares of common stock from 25,000,000 shares to 40,000,000 shares
Golden Post Rail, LLC, Texas Limited Company [Member] | Financing Agreement [Member]
Series C, Shares Issued				1,600,000
Common Stock Purchase											2,166,527
Exercise price											$ 2.50
Series C additional preferred shares				133,221
Series C Preferred Shares were convertible to common shares				$ 2.41						$ 2.50
Golden Post Rail, LLC, Texas Limited Company [Member] | Additional Financing Agreement [Member] | DynaResource, Inc [Member]
Common Stock Purchase			2,306								439,026		783,976
Exercise price											$ 0.01
Principal amount		$ 2,500,000									$ 1,400,000
Fully funded amount		$ 1,250,000
Conversion price		$ 2									$ 2
Compensatory Issuances, description			a common stock purchase warrant for 2,306 shares, at an exercise price of $0.01 per share, and maturing on the 7-year anniversary of the date of issuance (the “Compensatory Warrant”); and (ii) 1,771 shares of Series C Preferred Shares. These issuances were occasioned by the Company’s obligations under the Securities Purchase Agreement dated as of May 6, 2015
Issuance accommodate, description			3000000
Preferred Series C Stock
Series C, preferred stock value											$ 4,337,480		$ 4,337,480
Series C, Shares Issued				1,600,000						1,600,000
Preferred Stock, Par Value										$ 2.50
Proceeds from preferred shares										$ 4,000,000
Series C additional preferred shares				133,221						133,221
Legal fees										$ 45,000
Series C Preferred Shares were convertible to common shares				$ 2.41						$ 2.50
Preferred shares, description										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. The Dividend is calculated at 4.0% of $4,337,480 payable annually on June 30. At June 30, 2021 dividends for the years 2017 to 2021 totaling $866,940 were in arrears.
Preferred Stock Series A
Series C, preferred stock value											$ 1		$ 1
Preferred Stock, Shares Authorized											(1,000)		(1,000)
Preferred Stock, Par Value											$ 0.0001		$ 0.0001
Preferred Stock, Shares Issued											0		0
Preferred Stock, Shares Outstanding													0
Preferred Stock Series A | CEO [Member]
Preferred Stock, Par Value											$ 0.0001
Preferred Stock, Shares designated											1,000
Preferred Stock, Shares Issued											1,000
Preferred Stock, Shares Outstanding											1,000		1,000
Common Stock [Member]
Common Stock, Par Value											$ 0.01		$ 0.01
Common Stock, Shares Authorized											40,000,000		40,000,000
Common Stock, Shares Outstanding											17,722,825		17,722,825
Preferred Stock Undesignated
Series C, Shares designated											1,734,992		1,734,992
Series D, Shares designated											3,000,000		3,000,000
Preferred Stock, Par Value											$ 0.0001		$ 0.0001
Preferred Stock, Shares designated											1,000		1,000
2020 Activity [Member]
Warrants outstanding													3,391,835
Common Stock Purchase		1,223,002	2,306								439,026	2,166,527
Exercise price		$ 0.01

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
RELATED PARTY TRANSACTIONS
Related party consulting and other fees	$ 87,500	$ 37,500

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details)	6 Months Ended
	Jun. 30, 2021USD ($)
Short Term Lease Costs	$ 6,279
Variable Lease Costs	0
Total	93,358
Ground Lease
Operating Lease	44,337
Office Lease
Operating Lease	$ 42,742

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES (Details 1)	6 Months Ended
	Jun. 30, 2021
COMMITMENTS AND CONTINGENCIES
Weighted Average Remaining Lease Term (Years) - Operating Leases	11 years
Weighted Average Discount Rate - Operating Leases	12.50%

COMMITMENTS AND CONTINGENCIES_4

COMMITMENTS AND CONTINGENCIES (Details 2)	Jun. 30, 2021USD ($)
COMMITMENTS AND CONTINGENCIES
2022	$ 179,474
2023	145,896
2024	96,896
2025	99,803
2026	102,797
Thereafter	684,885
Total	1,308,751
Less Imputed Interest	(586,207)
OPERATING LEASE PAYABLE	$ 722,544

COMMITMENTS AND CONTINGENCIES_5

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)

Dec. 06, 2019

Oct. 05, 2015

Jan. 06, 2014

Jun. 30, 2021

May 20, 2021

May 12, 2021

Apr. 16, 2021

Feb. 04, 2021

Dec. 31, 2020

Dec. 05, 2020

Jul. 17, 2020

Aug. 24, 2017

Dec. 09, 2014

Legal summary, description

The $48,280,808.34 USD damages award (dated October 05, 2015) in favor of DynaMéxico and against Goldgroup Resources Inc. is now Final. Goldgroup Resources’ challenge(s) to that award have been fully denied and the damages award is Final

Legal action term

7 years

Original petition filed

$ 48,000,000

Second petition filed

$ 48,000,000

Final judgement amount

$ 48,000,000

Concession expenditure

$ 388

$ 2,400

Damage amount

$ 50,000,000

Concession Taxes, description

the Company does not anticipate that DynaMéxico will have any difficulties meeting the minimum annual expenditures for the concessions ($388 – $2,400 Mexican Pesos per hectare). DynaMéxico retains sufficient carry-forward amounts to cover over 10 years of the minimum expenditure (as calculated at the 2017 minimum, adjusted for annual inflation of 4%)

Land Lease Agreement [Member]

Land area

4,399 hectares

Lease agreement term

20 years

Lease payment anually

$ 72,000

Goldgroup Resources [Member]

Damage amount

$ 48,000,000

$ 48,000,000

Concise translation third, description

Goldgroup is condemned and ordered to pay to DynaMéxico the amount of USD $20,000,000 (Twenty Million Dollars) in damages caused by Goldgroup to DynaMéxico, deriving from its breach of obligations in refraining from claiming direct ownership of 50% of the San Jose de Gracía Mining Project

Concise translation fourth, description

Goldgroup is condemned and ordered to pay to DynaMéxico the amount of USD $28,280,808.34 (Twenty Eight Million Two Hundred and Eighty Thousand Eight Hundred and Eight and 34/100 Dollars)

Dynausa and Dyna mexico [Member]

Bond amount

$ 1,111,000

Arbitration award amount

$ 1,111,000

Intrest in additional amount

$ 4,055

Realase amount of bond

$ 1,111,000

DynaMexico [Member]

Partial recovery of assets

$ 48,000,000

DERIVATIVE LIABILITIES (Details

DERIVATIVE LIABILITIES (Details) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Preferred Series C Stock
Annual Volatility Rate	167.00%	156.00%
Risk Free Rate	0.25%	0.13%
Remaining Term	1 year	1 year 6 months
Fair Value of Common Stock	$ 0.90	$ 0.78
Preferred Series C Warrant
Annual Volatility Rate	167.00%	156.00%
Risk Free Rate	0.25%	0.13%
Remaining Term	1 year	1 year 6 months
Fair Value of Common Stock	$ 0.90	$ 0.78
Preferred Series D Warrant
Annual Volatility Rate	167.00%	156.00%
Risk Free Rate	0.25%	0.13%
Remaining Term	8 years 10 months 17 days	10 years
Fair Value of Common Stock	$ 0.90	$ 0.78

DERIVATIVE LIABILITIES (Detai_2

DERIVATIVE LIABILITIES (Details 1) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Preferred Series C Stock
Fair Value of Derivative, Beginning Balance	$ 601,313	$ 37,038
Change in Fair Value of Derivative	25,266	276,547
Fair Value of Derivative on the Date of Issuance	0	287,728
Fair Value of Derivative, Ending Balance	626,579	601,313
Preferred Series C Warrant
Fair Value of Derivative, Beginning Balance	817,613	49,066
Change in Fair Value of Derivative	12,819	367,781
Fair Value of Derivative on the Date of Issuance	0	400,766
Fair Value of Derivative, Ending Balance	830,432	817,613
Preferred Series D Warrant
Fair Value of Derivative, Beginning Balance	952,634	0
Change in Fair Value of Derivative	147,032	542,636
Fair Value of Derivative on the Date of Issuance	0	409,998
Fair Value of Derivative, Ending Balance	$ 1,099,665	$ 952,634

NONCONTROLLING INTEREST (Detail

NONCONTROLLING INTEREST (Details)	12 Months Ended
	Dec. 31, 2020USD ($)
NON-CONTROLLING INTEREST
Non-Controlling Interest, Beginning Balance	$ (5,723,663)
Operating Income (Loss)	(61,589)
Share of Other Comprehensive Income (Loss)	(11,669)
Elimination of Non-Controlling Interest	(5,796,921)
Non-Controlling Interest, Ending Balance	$ 0

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Liabilities:
Derivative Liabilities	$ 2,371,560	$ 2,556,676
Total Liabilities	2,556,676	2,371,560
Level 1
Liabilities:
Derivative Liabilities	0	0
Total Liabilities	0	0
Level 2
Liabilities:
Derivative Liabilities	0	0
Total Liabilities	0	0
Level 3
Liabilities:
Derivative Liabilities	2,371,560	2,556,676
Total Liabilities	$ 2,371,560	$ 2,556,676

REVENUE CONCENTRATION (Details

REVENUE CONCENTRATION (Details Narrative)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Three and Two Customers [Member]
Concentration of risk	100.00%	100.00%
Three and four Customer [Member]
Concentration of risk	100.00%	100.00%

NOTES PAYABLE (Details)

NOTES PAYABLE (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
NOTES PAYABLE
Property Holding Taxes, Beginning Balance	$ 2,081,435	$ 2,272,431
Exchange Rate Adjustment	(2,395)	(124,352)
Principal Payments	(36,460)	(66,644)
Property Holding Taxes, Ending Balance	$ 2,042,580	$ 2,081,435

NOTES PAYABLE (Details 1)

NOTES PAYABLE (Details 1)	Jun. 30, 2021USD ($)
NOTES PAYABLE
2022	$ 2,009,461
2023	33,119
Total	$ 2,042,580

NOTES PAYABLE (Details Narrativ

NOTES PAYABLE (Details Narrative) - USD ($)	1 Months Ended
	Oct. 31, 2019	Feb. 28, 2019	Jul. 31, 2018	Jun. 30, 2018	Feb. 28, 2018	Jun. 30, 2017	Jun. 30, 2021
NOTES PAYABLE
Unpaid mining concession taxes on the Francisco Arturo mining concession	$ 299,474	$ 335,350		$ 1,739,392	$ 552,990	$ 533,580
Unpaid mining concession taxes on the Francisco Arturo mining concession description of period						concession for the period July 1, 2014 to December 31, 2015
Initial payment amount	$ 59,895	$ 67,070		$ 347,826	$ 110,598	$ 106,716
Initial payment percentage rate	20.00%	20.00%		20.00%		20.00%
Remaining finance balance term over the period	36 years	36 years		36 years	36 years	36 years
Remaining finance balance term over the period percentage rate	22.00%	21.00%		21.84%	18.00%	18.00%
Accrued interest included in accrued liabilities							$ 879,240
Reduction in the volume of mining concession				In June 2018, the Company applied for a reduction of the Francisco Arturo mining concession, from 69,121 hectares to 3,280 hectares
Reduction in the value of initial payment amount			$ 22,500
Reduction in the value of initial payment amount in pesos			$ 985,116

REVOLVING CREDIT LINE FACILITY

REVOLVING CREDIT LINE FACILITY (Details Narrative) - USD ($)	May 12, 2021	Feb. 04, 2021	Mar. 30, 2021	Jun. 30, 2021	Jun. 18, 2021	May 01, 2021
CONVERTIBLE PROMISSORY NOTES
Revolving credit line facility amount		$ 3,750,000
Revolving credit line facility maximum amount		$ 3,750,000
Concentrates on delivery percentage rate		100.00%
Revolving credit line facility interest free term				45 years
Revolving credit line facility deliveries of concentrates or Cash free term				120 years
Revolving credit line facility increased percentage rate						80.00%
Proceeds advances from buyers	$ 3,750,000	$ 2,500,000	$ 3,750,000		$ 6,750,000
Advances settlement date from buyers	Jun. 16, 2021	Mar. 26, 2021	May 12, 2021

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)	Aug. 09, 2021	Aug. 04, 2021	Aug. 01, 2021	Jul. 01, 2021	Feb. 04, 2021
Revolving credit line increased amount					$ 3,750,000
Subsequent Event
Revolving credit line increased amount			$ 8,890,000	$ 8,750,000
Proceeds from settlement amount	$ 8,250,000	$ 6,750,000