DynaResource (DYNR) 10-Q 6 May 22 2022 Q1 Quarterly report Financial data

Cover

Cover	3 Months Ended
	Mar. 31, 2022shares
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	Mar. 31, 2022
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2022
Entity Common Stock Shares Outstanding	18,091,293
Document Quarterly Report	true
Document Transition Report	false
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
Entity Interactive Data Current	Yes

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Current Assets
Cash And Cash Equivalents	$ 15,541,509	$ 15,719,238
Accounts Receivable	1,278,392	577,118
Inventories	2,617,556	2,110,203
Foreign Tax Receivable	5,224,670	4,742,180
Other Current Assets	1,003,751	667,742
Total Current Assets	25,665,878	23,816,481
Mining Equipment And Fixtures (net Of Accumulated Depreciation Of $117,237 And $116,425)	1,917	2,729
Operating Lease	624,864	648,381
Mining Concessions	4,132,678	4,132,678
Other Assets	93,919	162,174
Total Assets	30,519,256	28,762,443
Current Liabilities:
Accounts Payable	1,270,094	1,275,679
Accrued Expenses	4,771,486	5,440,204
Customer Advances	7,875,000	9,250,000
Derivative Liabilities	2,960,208	3,898,914
Convertible Notes Payable - Series I & Ii	543,279	543,279
Installment Notes Payable	1,982,396	1,962,525
Current Portion Of Operating Lease Payable	91,098	98,169
Total Current Liabilities	19,493,561	22,468,770
Operating Lease Payable, Less Current Portion	558,914	587,782
Total Liabilities	20,052,475	23,056,552
Commitments And Contingencies	0	0
Stockholders' Equity (deficit)
Common Stock, $0.01 Par Value, 40,000,000 Shares Authorized 18,091,293 Issued And Outstanding	180,913	180,913
Preferred Rights	40,000	40,000
Additional Paid In Capital	50,632,400	50,632,400
Treasury Stock, 12,180 Shares	(34,773)	(34,773)
Accumulated Other Comprehensive Income	(549,577)	(247,665)
Accumulated Deficit	(45,659,663)	(50,722,465)
Total Stockholders' Equity (deficit)	4,609,301	(151,589)
Total Liabilities And Stockholders' Equity (deficit)	30,519,256	28,762,443
Series D Senior Preferred Stock
Stockholders' Equity (deficit)
Temporary Equity	1,520,000	1,520,000
Preferred Stock Series A
Stockholders' Equity (deficit)
Preferred Stock, Series A, $0.0001 Par Value, 1,000 Shares Authorized, Issued And Outstanding	1	1
Series C Senior Convertible Preferred Stock
Stockholders' Equity (deficit)
Temporary Equity	$ 4,337,480	$ 4,337,480

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Accumulated Depreciation, Mining Equipment And Fixtures	$ 117,237	$ 116,425
Common Stock, Par Value	$ 0.01	$ 0.01
Common Stock, Shares Authorized	40,000,000	40,000,000
Common Stock, Shares Issued	18,091,293	18,091,293
Common Stock, Shares Outstanding	18,091,293	18,091,293
Treasury Stock	12,180	12,180
Preferred Stock, Par Value	$ 0.0001
Series D Senior Preferred Stock
Preferred Stock, Par Value	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	3,000,000	3,000,000
Preferred Stock, Shares Issued	760,000	760,000
Preferred Stock, Shares Outstanding	760,000	760,000
Preferred Stock Series A
Preferred Stock, Par Value	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	1,000	1,000
Preferred Stock, Shares Issued	1,000	1,000
Preferred Stock, Shares Outstanding	1,000	1,000
Series C Senior Convertible Preferred Stock
Preferred Stock, Par Value	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	1,734,992	1,734,992
Preferred Stock, Shares Issued	1,734,992	1,734,992
Preferred Stock, Shares Outstanding	1,734,992	1,734,992

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (Unaudited)
Revenue	$ 10,492,503	$ 4,912,712
Costs And Expenses Of Mining Operation
Production Cost Applicable To Sales	765,495	381,266
Mine Production Costs	1,227,884	806,470
Mine Exploration Costs	878,188	1,012,748
Facilities Expansion Costs	608,603	0
Exploration Drilling	487,615	0
Camp, Warehouse And Facilities	825,203	535,195
Transportation	390,640	238,564
Property Holding Costs	35,967	42,747
General And Administrative	1,026,355	514,977
Depreciation And Amortization	812	812
Total Operating Expenses	6,246,762	3,532,779
Net Operating Income	4,245,741	1,379,933
Other Income (expense)
Foreign Currency Gains (losses)	(2,402)	(333,735)
Interest Expense	(119,769)	(361,222)
Derivatives Mark-to-market Gain	(938,706)	395,267
Other Income (expense)	(526)	0
Total Other Income (expenses)	817,061	(1,090,224)
Net Income Before Taxes	5,062,802	289,709
Provision For Income Taxes	0	0
Net Income	5,062,802	289,709
Deemed Dividend For Series C & D Preferred	(58,575)	(43,375)
Net Income Attributable To Common Stockholders	$ 5,004,227	$ 246,334
Earnings Per Share Attributable To The Equity Holders Of Dynaresource, Inc.
Basic Income Per Common Share	$ 0.28	$ 0.01
Weighted Average Shares Outstanding - Basic	18,091,293	17,722,825
Diluted Income Per Common Share	$ 0.27	$ 0.01
Weighted Average Shares Outstanding - Diluted	18,983,458	17,722,825
Other Comprehensive Income (loss)
Foreign Currency Translation Gain (loss)	$ (301,912)	$ 292,371
Total Other Comprehensive Income (loss)	(301,912)	292,371
Total Comprehensive Income	$ 4,760,890	$ 582,080

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY (DEFICIT) (Unaudited) - USD ($)	Total	Series A Preferred Stocks	Common Stock	Preferred Stock	Treasury Stock	Paid In Capital	Other Comp Income	Accumulated Deficit
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)
Other Comprehensive Income (loss)	292,371						292,371
Net Income	289,709							289,709
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)
Balance, Shares at Dec. 31, 2021	3,060,998	1,000	18,091,293	1	12,180
Balance, Amount at Dec. 31, 2021	$ (151,589)	$ 1	$ 180,913	$ 40,000	$ (34,773)	50,632,400	(247,665)	(50,722,465)
Other Comprehensive Income (loss)	(301,912)						(301,912)
Net Income	$ 5,062,802							5,062,802
Balance, Shares at Mar. 31, 2022	3,060,998	1,000	18,091,293	1	12,180
Balance, Amount at Mar. 31, 2022	$ 4,609,301	$ 1	$ 180,913	$ 40,000	$ (34,773)	$ 50,632,400	$ (549,577)	$ (45,659,663)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash Flows From Operating Activites:
Net Income	$ 5,062,802	$ 289,709
Adjustments To Reconcile Net Income To Cash Used In Operating Activities
Change In Derivatives	(938,706)	395,267
Depreciation And Amortization	812	812
Amortization Of Loan Discount	0	137,312
Change In Operating Assets And Liabilities
Accounts Receivable	(701,274)	(477,044)
Inventories	(507,353)	(655,877)
Foreign Tax Receivable	(482,490)	(372,404)
Operating Lease Assets	23,517	20,904
Other Assets	(267,754)	(84,845)
Accounts Payable	(5,585)	(332,949)
Accrued Expenses	(668,718)	362,485
Customer Advances	(1,375,000)	3,750,000
Lease Liabilities	(35,939)	(29,045)
Cash Flows Provided By (used In) Operating Activities	104,312	3,004,325
Cash Flows From Financing Activities:
Payments Of Notes Payable	(36,165)	(17,291)
Cash Flows Provided By (used In) Financing Activities	(36,165)	(17,291)
Effects Of Foreign Exchange	(245,876)	238,203
Net Increase (decrease) In Cash And Cash Equivalents	(177,729)	3,225,460
Cash And Cash Equivalents At Beginning Of Period	15,719,238	1,504,016
Cash And Cash Equivalents At End Of Period	15,541,509	4,729,253
Supplemental Disclosures
Cash Paid For Interest	25,162	140,799
Cash Paid For Income Taxes	$ 0	$ 0

NATURE OF ACTIVITIES AND SIGNIF

NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2022
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES
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. 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 unaudited consolidated financial statements on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States. Principles of Consolidation The unaudited consolidated 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. 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 March 31, 2022, the Company had $14,140,366 of deposits in U.S. Banks in excess of the FDIC limit. Management does not believe that the Company is at risk of loss on cash. 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 March 31, 2022, and December 31, 2021, respectively, no allowance has been deemed necessary. 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 March 31, 2022, and December 31, 2021 are $5,224,670 and $4,742,180, 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 $2,617,556 and $2,110,203 as of March 31, 2022, and December 31, 2021, 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 of March 31, 2022, the Company’s properties do not contain resources that satisfy the definition of proven and probable reserves. Therefore 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 March 31, 2022, 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 March 31, 2022 and December 31, 2021, 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 unaudited 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 unaudited financial statements for the subsidiaries are as follows for the periods ended March 31, 2022, and December 31, 2021 (Mexican Pesos per one U.S. dollar): Mar 31, 2022 Dec 31, 2021 Exchange Rate at Period End Pesos 19.91 20.48 Relevant exchange rates used in the preparation of the income statement portion of unaudited financial statements for the subsidiaries are as follows for the periods ended March 31, 2022, and March 31, 2021 (Mexican Pesos per one U.S. dollar): Mar. 31, 2022 Mar. 31, 2021 Weighted Average Exchange Rate for the three Months Ended Pesos 20.50 20.45 The Company recorded currency transaction gains (losses) of $(2,402) and $(333,735) for the three months ended March 31, 2022 and 2021, 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 unaudited consolidated 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 unaudited consolidated financial statements and determines whether contingent assets and liabilities, if any, are disclosed in the unaudited consolidated 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 March 31, 2022, there are $7,875,000 in customer deposit liabilities for payments received in advance expected to be settled in 2022. During the quarter ended March 31, 2022, and the year ended December 31, 2021, there was $9,250,000 and $1,500,000 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 due to order cancellation. We have elected to account for shipping and handling costs as fulfillment costs after the customer obtains control of the goods. 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 3,060,998 warrants outstanding at March 31, 2022 which upon exercise, would result in the issuance of 3,060,998 shares of common stock. Of these warrants 2,168,833 were exercisable at $2.04 per share and 892,165 were exercisable at $.01 per share. The Company also had convertible debt instruments as of March 31, 2022 which, upon conversion at valuations of $2.50 per share, would result in the issuance of 217,312 shares of stock. The Company had 3,060,998 warrants outstanding at December 31, 2021 which upon exercise, would result in the issuance of 3,060,998 shares of common stock. Of these warrants 2,168,833 were exercisable at $2.04 per share and 892,615 were exercisable at $.01 per share. The Company also had convertible debt instruments as of December 31, 2021 which, upon conversion at valuations of $2.50 per share, would result in the issuance of 217,312 shares of stock. Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Net income (loss) attributable to common shareholders $ 5,004,227 $ 246,334 Weighted average number of common shares outstanding, Basic 18,091,293 17,722,825 Diluted weighted average number of common shares outstanding, 18,983,458 17,722,825 Basic earnings (loss) per share $ 0.28 $ 0.01 Diluted earnings (loss) per share $ 0.27 $ 0.01 At March 31, 2022, 2,168,833 shares of potentially dilutive common stock related to outstanding stock warrants and 217,312 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 March 31, 2021, 2,168,833 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. In addition, at March 31, 2021, 1,260,633 of potentially dilutive common stock related to outstanding stock warrants were excluded from the diluted earnings per share calculation because the ratio of expenses related to the shares to issuable shares exceeded the basic earnings per share 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	3 Months Ended
	Mar. 31, 2022
INVENTORIES
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 March 31, 2022, and December 31, 2021, respectively, were as follows: 2022 2021 Mined Tonnage $ 2,520,239 $ 2,042,633 Gold-Silver Concentrates 97,317 67,570 Total Inventories $ 2,617,556 $ 2,110,203

PROPERTY

PROPERTY	3 Months Ended
	Mar. 31, 2022
PROPERTY
Property	NOTE 3 – PROPERTY Property consists of the following at March 31, 2022 and December 31, 2021: 2022 2021 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 (117,237 ) (116,425 ) Total Property $ 1,917 $ 2,729 Depreciation and amortization has been provided over each asset’s estimated useful life. Depreciation and amortization expense was $812 and $812 for the three months ended March 31, 2022 and 2021 respectively.

MINING CONCESSIONS

MINING CONCESSIONS	3 Months Ended
	Mar. 31, 2022
MINING CONCESSIONS
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 March 31, 2022 and December 31, 2021, respectively. There was no depletion expense during the three months ended March 31, 2022 and 2021.

CONVERTIBLE PROMISSORY NOTES

CONVERTIBLE PROMISSORY NOTES	3 Months Ended
	Mar. 31, 2022
CONVERTIBLE PROMISSORY NOTES
Convertible Promissory Notes	NOTE 5 – 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 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 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. As of March 31, 2022 and December 31, 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 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. As of March 31, 2022 and December 31, 2021, two Series II notes remained outstanding with a balance of $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	3 Months Ended
	Mar. 31, 2022
INCOME TAXES
Income Taxes	NOTE 6 – INCOME TAXES The Company has adopted ASC 740-10, “ Income Taxes” The Company’s effective tax rate for the period ended March 31, 2022 and for the period ended March 31, 2021 varies from the statutory rate of 21% due to valuation allowance which creates a near zero effective tax rate. The Company intends to continue maintaining a full valuation allowance on our deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of the valuation allowance. However, given our current earnings and anticipated future earnings, it is reasonably possible that in the near future sufficient positive evidence may become available to support the conclusion that no valuation allowance is necessary.

STOCKHOLDERS EQUITY

STOCKHOLDERS EQUITY	3 Months Ended
	Mar. 31, 2022
STOCKHOLDERS EQUITY
Stockholders Equity	NOTE 7– 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 March 31, 2022 and December 31, 2021, there were 1,000 shares of Series A Preferred Stock outstanding. Series C Senior Convertible Preferred Stock At March 31, 2022 and December 31, 2021 there were 1,734,992 and 1,734,992 Series C Preferred shares outstanding. These Series C Preferred Shares are convertible to common shares at $2.04 per share, through June 30, 2022 and include anti-dilution protection. The Series C Preferred Shares may receive a 4% per annum dividend, payable if available, and in arrears. The Dividend is calculated at 4.0% of $4,337,480 payable annually on June 30. At March 31, 2022 dividends for the years 2016 to 2021 totaling $880,278 were in arrears. Due to the nature of this transaction as mandatorily redeemable, the Series C preferred shares are classified as “temporary equity” on the balance sheet. Series D Senior Convertible Preferred Stock 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 5. 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”). 7 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”). On October 11, 2021 the Company filed an amended designation of Series D Preferred Stock with the State of Delaware which removed the anti-dilution provisions of the original designation. Retirement of Series D Convertible Debt On October 7, 2021, the Company paid $2,500,000 to repurchase one note that was convertible into Series D Preferred Stock. The remaining ten noteholders of notes convertible into Series D Preferred Stock elected to convert their notes totaling $1,520,000 into Series D Preferred stock at $2.00 per share. On October 18, 2021 the Company issued 760,000 shares of Series D Preferred Stock for these notes. In addition the redemption of the Series D notes trigged an acceleration of the amortization of the original loan discount booked at the issuance of the Series D notes (see discussion below) and being amortized over the 24 month life of the notes of $287,508 in October 2021. As part of the transaction all Series D noteholders agreed to waive the non-dilution rights contained in the original note and an amendment of the Series D Preferred Stock designation was filed with the State of Delaware. At March 31, 2022 and December 31, 2021, there were 760,000 and 760,000 Series D Preferred shares outstanding, respectively. These Series D Preferred Shares are convertible to common shares at $2.00 per share, through October 18, 2026. The Series D Preferred Shares may receive a 4% per annum dividend, payable if available, and in arrears. The Dividend is calculated at 4.0% of $1,520,000 payable annually on October 18. At March 31, 2022, no dividends were in arrears. Due to the nature of this transaction as mandatorily redeemable by the Company at the election of the Series D preferred stock holder at maturity, the Series D preferred shares are classified as “temporary equity” on the balance sheet. 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 March 31, 2022, the total derivative liability was $2,960,208 which included $554,695 for the Series C Preferred Shares, and $714,706 in connection with the Golden Post Warrants and $1,690,807 in connection with the Series D Convertible Note Kicker Warrants. At December 31, 2021 the total derivative liability was $3,898,914 which included $1,019,431 for the Series C Preferred Shares, and $1,320,380 in connection with the Golden Post Warrants and $1,559,103 in connection with the Series D Convertible Note Kicker Warrants. The deemed dividend for the quarters ending March 31, 2022, and March 31, 2021 were $58,575 and $43,375, 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). 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 March 31, 2022 and December 31, 2021, 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 March 31, 2022 and December 31, 2021, there were 18,091,293 and 18,091,293 shares outstanding, respectively. No dividends were paid for the periods ended March 31, 2022 and 2021, 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 March 31, 2022, $744,500 had been repaid, leaving a current balance of $40,000 and $40,000 as of March 31, 2022 and December 31, 2021, respectively Stock Issuances There were no issuances of common stock during the period ended March 31, 2022. On October 18, 2021, the Company issued 368,468 shares of common stock upon the exercise of 368,468 warrants by five warrant holders for $.01 a share. Treasury Stock During the three months ended March 31, 2022 no treasury stock was issued. During the year ending December 31, 2021, 504,300 treasury shares were transferred for services provided to the Company Outstanding treasury shares total 12,180 and 12,180 at March 31, 2022 and December 31, 2021, respectively. Warrants 2022 activity The Company had 3,060,998 warrants outstanding at March 31, 2022. There were no warrants issued or exercised and no warrants expired during the three months ended March 31, 200 2021 activity The Company had 3,060,998 warrants outstanding at December 31, 2021. On October 18, 2021, five warrant holders exercised a total of 368,468 warrant to purchase 368,468 shares of common stock for $0.01 a share. 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, 2021 3,429,466 $ 1.30 4.40 Granted - $ - Exercised 368,468 $ 0.01 Forfeited - $ - Balance at December 31, 2021 3,060,998 $ 1.46 2.79 Granted - $ - - Exercised - $ - Forfeited - $ - - Balance at March 31, 2022 3,060,998 $ 1.46 2.55 Exercisable at March 31, 2022 3,060,998 $ 1.46 2.55 -

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2022
RELATED PARTY TRANSACTIONS
Related Party Transactions	NOTE 8 – RELATED PARTY TRANSACTIONS Dynacap Group Ltd. The Company paid $43,750 and $33,750 to Dynacap Group, Ltd. (“Dynacap”, an entity controlled by the CEO of the Company) for consulting and other fees during the periods ended March 31, 2022, and 2021, respectively.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2022
COMMITMENTS AND CONTINGENCIES
Commitments And Contingencies	NOTE 9 – 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 January 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 1st of each month. 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 March 31, 2022, 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 March 31, 2022 Operating Lease – Office Lease $ 21,823 Operating Lease – Ground Lease 22,834 Short Term Lease Costs 4,381 Variable Lease Costs - TOTAL $ 49,038 Weighted average remaining lease term and weighted average discount rate are as follows: Weighted Average Remaining Lease Term (Years) – Operating Leases 10.12 Weighted Average Discount Rate – Operating Leases 12.50 % Estimated future minimum lease obligations are as follow for the years ending March 31: YEAR 2022 $ 164,979 2023 94,074 2024 96,896 2025 99,803 2026 102,797 Thereafter 684,885 Total $ 1,243,434 Less Imputed Interest (593,422 ) OPERATING LEASE PAYABLE $ 650,012

DERIVATIVE LIABILITIES

DERIVATIVE LIABILITIES	3 Months Ended
	Mar. 31, 2022
DERIVATIVE LIABILITIES
Derivative Liabilities	NOTE 10 – DERIVATIVE LIABILITIES Preferred Series C Stock As discussed in Note 7, 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: 2022 2021 Annual volatility rate 102 % 147 % Risk free rate 2.28 % 0.73 % Remaining Term 0.25 years 0.50 years Fair Value of common stock $ 1.90 $ 1.75 For the three and twelve months ended March 31, 2022 and December 31, 2021, 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 three and twelve months ended March 31, 2022 and December 31, 2021. Period Ended 2022 2021 Fair value of derivative (stock), beginning of period $ 1,019,431 $ 601,313 Change in fair value of derivative (464,736 ) 418,118 Fair value of derivative on the date of issuance - - Fair value of derivative (stock), end of period $ 554,695 $ 1,019,431 Preferred Series C Warrants As discussed in Note 7, the Company analyzed the embedded conversion features of the Series C Preferred Stock and determined that the Warrants qualified as a derivative liability and are 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: 2022 2021 Annual volatility rate 102 % 147 % Risk free rate 2.28 % 0.73 % Remaining Term 0.25 years 0.50 years Fair Value of common stock $ 1.90 $ 1.75 For the three and twelve months ended March 31, 2022, and December 31, 2021, 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 March 31, 2022, and December 31, 2021. Period Ended 2022 2021 Fair value of derivative (warrants), beginning of period $ 1,320,380 $ 817,613 Change in fair value of derivative (605,674 ) 502,767 Fair value of derivative on the date of issuance - - Fair value of derivative(warrants), end of period $ 714,706 $ 1,320,380 Series D Notes Kicker Warrants As discussed in Note 7, 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: 2022 2021 Annual volatility rate 118 % 147 % Risk free rate 2.28 % 0.73 % Remaining Term 8.13 years 8.37 years Fair Value of common stock $ 1.90 $ 1.75 For the three and twelve months ended March 31, 2022 and December 31, 2021, 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 three and twelve months ended March 31, 2022 and December 31, 2021. Period Ended 2022 2021 Fair value of derivative (warrants), beginning of period $ 1,559,103 $ 952,634 Fair value of derivative on the date of issuance - - Exercise of warrants - (659,558 ) Change in fair value of derivative 131,704 1,266,027 Fair value of derivative(warrants), end of period $ 1,690,807 $ 1,559,103

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	3 Months Ended
	Mar. 31, 2022
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair Value Of Financial Instruments	NOTE 11 – FAIR VALUE OF FINANCIAL INSTRUMENTS The ASC guidance for fair value measurements and disclosure establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 Inputs – Level 2 Inputs – Level 3 Inputs – As of March 31, 2022, and December 31, 2021, 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 10. Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Measurement at March 31, 2022 Using: Liabilities: Derivative Liabilities $ 2,960,208 $ - $ - $ 2,960,208 Totals $ 2,960,208 $ - $ - $ 2,960,208 Fair Value Measurement at December 31, 2021 Liabilities: Derivative Liabilities $ 3,898,914 $ - $ - $ 3,898,914 Totals $ 3,898,914 $ - $ - $ 3,898,914

REVENUE CONCENTRATION

REVENUE CONCENTRATION	3 Months Ended
	Mar. 31, 2022
REVENUE CONCENTRATION
Revenue Concentration	NOTE 12 – 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 three months ended March 31, 2022, and 2021, one and three customers accounted for 100% of revenue, respectively. At March 31, 2022 and December 31, 2021, one and one customer accounted for 100% of accounts receivable, respectively.

NOTES PAYABLE

NOTES PAYABLE	3 Months Ended
	Mar. 31, 2022
NOTES PAYABLE
Notes Payable	NOTE 13 – NOTES PAYABLE 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 22%. 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 March 31, 2022 $1,189,560 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 three and twelve months ended March 31, 2022 and December 31, 2021: Balance December 31, 2020 $ 2,081,435 Exchange Rate Adjustment (57,504 ) 2021 Principal Payments (61,406 ) Balance December 31, 2021 1,962,525 Exchange Rate Adjustment 56,036 2022 Principal Payments (36,165 ) Balance March 31, 2022 $ 1,982,396

REVOLVING CREDIT LINE FACILITY

REVOLVING CREDIT LINE FACILITY	3 Months Ended
	Mar. 31, 2022
CONVERTIBLE PROMISSORY NOTES
Revolving Credit Line Facility	NOTE 14 – 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; · On 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; The RCL is included under Customer Advances on the unaudited consolidated balance sheet. 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. Settled on August 5, 2021. (5) $8.25M advance on August 9, 2021. Settled on September 27, 2021. (6) $8.25M advance on September 29, 2021. Settled on November 17, 2021 (7) $8.25M advance on November 19, 2021. Settled on December 20, 2021 (8) $9.25M advance on December 30, 2021. Settled on February 25, 2022 (9) $8.175M advance on February 25, 2022. Settled on March 30, 2022 (10) $7.875M advance on March 30, 2022.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2022
SUBSEQUENT EVENTS
Subsequent Events	NOTE 16 – SUBSEQUENT EVENTS The Company has evaluated events from March 31, 2022, through the date whereupon the financial statements were issued, and has determined there were no items requiring disclosure.

NATURE OF ACTIVITIES AND SIGN_2

NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2022
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.
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 unaudited consolidated financial statements on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States.
Principles Of Consolidation	The unaudited consolidated 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.
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 March 31, 2022, the Company had $14,140,366 of deposits in U.S. Banks in excess of the FDIC limit. Management does not believe that the Company is at risk of loss on cash.
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 March 31, 2022, and December 31, 2021, respectively, no allowance has been deemed necessary.
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 March 31, 2022, and December 31, 2021 are $5,224,670 and $4,742,180, 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 $2,617,556 and $2,110,203 as of March 31, 2022, and December 31, 2021, 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 of March 31, 2022, the Company’s properties do not contain resources that satisfy the definition of proven and probable reserves. Therefore 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 March 31, 2022, 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 March 31, 2022 and December 31, 2021, 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 unaudited 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 unaudited financial statements for the subsidiaries are as follows for the periods ended March 31, 2022, and December 31, 2021 (Mexican Pesos per one U.S. dollar): Mar 31, 2022 Dec 31, 2021 Exchange Rate at Period End Pesos 19.91 20.48 Relevant exchange rates used in the preparation of the income statement portion of unaudited financial statements for the subsidiaries are as follows for the periods ended March 31, 2022, and March 31, 2021 (Mexican Pesos per one U.S. dollar): Mar. 31, 2022 Mar. 31, 2021 Weighted Average Exchange Rate for the three Months Ended Pesos 20.50 20.45 The Company recorded currency transaction gains (losses) of $(2,402) and $(333,735) for the three months ended March 31, 2022 and 2021, 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 unaudited consolidated 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 unaudited consolidated financial statements and determines whether contingent assets and liabilities, if any, are disclosed in the unaudited consolidated 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 March 31, 2022, there are $7,875,000 in customer deposit liabilities for payments received in advance expected to be settled in 2022. During the quarter ended March 31, 2022, and the year ended December 31, 2021, there was $9,250,000 and $1,500,000 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 due to order cancellation. We have elected to account for shipping and handling costs as fulfillment costs after the customer obtains control of the goods.
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 3,060,998 warrants outstanding at March 31, 2022 which upon exercise, would result in the issuance of 3,060,998 shares of common stock. Of these warrants 2,168,833 were exercisable at $2.04 per share and 892,165 were exercisable at $.01 per share. The Company also had convertible debt instruments as of March 31, 2022 which, upon conversion at valuations of $2.50 per share, would result in the issuance of 217,312 shares of stock. The Company had 3,060,998 warrants outstanding at December 31, 2021 which upon exercise, would result in the issuance of 3,060,998 shares of common stock. Of these warrants 2,168,833 were exercisable at $2.04 per share and 892,615 were exercisable at $.01 per share. The Company also had convertible debt instruments as of December 31, 2021 which, upon conversion at valuations of $2.50 per share, would result in the issuance of 217,312 shares of stock. Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Net income (loss) attributable to common shareholders $ 5,004,227 $ 246,334 Weighted average number of common shares outstanding, Basic 18,091,293 17,722,825 Diluted weighted average number of common shares outstanding, 18,983,458 17,722,825 Basic earnings (loss) per share $ 0.28 $ 0.01 Diluted earnings (loss) per share $ 0.27 $ 0.01 At March 31, 2022, 2,168,833 shares of potentially dilutive common stock related to outstanding stock warrants and 217,312 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 March 31, 2021, 2,168,833 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. In addition, at March 31, 2021, 1,260,633 of potentially dilutive common stock related to outstanding stock warrants were excluded from the diluted earnings per share calculation because the ratio of expenses related to the shares to issuable shares exceeded the basic earnings per share 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)	3 Months Ended
	Mar. 31, 2022
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES
Exchange Rates	Mar 31, 2022 Dec 31, 2021 Exchange Rate at Period End Pesos 19.91 20.48 Mar. 31, 2022 Mar. 31, 2021 Weighted Average Exchange Rate for the three Months Ended Pesos 20.50 20.45
Schedule Of Earning Per Share Amounts	Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Net income (loss) attributable to common shareholders $ 5,004,227 $ 246,334 Weighted average number of common shares outstanding, Basic 18,091,293 17,722,825 Diluted weighted average number of common shares outstanding, 18,983,458 17,722,825 Basic earnings (loss) per share $ 0.28 $ 0.01 Diluted earnings (loss) per share $ 0.27 $ 0.01

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2022
INVENTORIES
Inventories	2022 2021 Mined Tonnage $ 2,520,239 $ 2,042,633 Gold-Silver Concentrates 97,317 67,570 Total Inventories $ 2,617,556 $ 2,110,203

PROPERTY (Tables)

PROPERTY (Tables)	3 Months Ended
	Mar. 31, 2022
PROPERTY
Property	2022 2021 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 (117,237 ) (116,425 ) Total Property $ 1,917 $ 2,729

STOCKHOLDERS EQUITY (Tables)

STOCKHOLDERS EQUITY (Tables)	3 Months Ended
	Mar. 31, 2022
STOCKHOLDERS EQUITY
Warrant Activity	Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Intrinsic Value Balance at December 31, 2021 3,429,466 $ 1.30 4.40 Granted - $ - Exercised 368,468 $ 0.01 Forfeited - $ - Balance at December 31, 2021 3,060,998 $ 1.46 2.79 Granted - $ - - Exercised - $ - Forfeited - $ - - Balance at March 31, 2022 3,060,998 $ 1.46 2.55 Exercisable at March 31, 2022 3,060,998 $ 1.46 2.55 -

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Mar. 31, 2022
COMMITMENTS AND CONTINGENCIES
Lease Cost	Period Ended March 31, 2022 Operating Lease – Office Lease $ 21,823 Operating Lease – Ground Lease 22,834 Short Term Lease Costs 4,381 Variable Lease Costs - TOTAL $ 49,038 Weighted average remaining lease term and weighted average discount rate are as follows: Weighted Average Remaining Lease Term (Years) – Operating Leases 10.12 Weighted Average Discount Rate – Operating Leases 12.50 % Estimated future minimum lease obligations are as follow for the years ending March 31: YEAR 2022 $ 164,979 2023 94,074 2024 96,896 2025 99,803 2026 102,797 Thereafter 684,885 Total $ 1,243,434 Less Imputed Interest (593,422 ) OPERATING LEASE PAYABLE $ 650,012

DERIVATIVE LIABILITIES (Tables)

DERIVATIVE LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2022
DERIVATIVE LIABILITIES
Change In The Fair Value Of The Derivative Liability	2022 2021 Annual volatility rate 102 % 147 % Risk free rate 2.28 % 0.73 % Remaining Term 0.25 years 0.50 years Fair Value of common stock $ 1.90 $ 1.75 Period Ended 2022 2021 Fair value of derivative (stock), beginning of period $ 1,019,431 $ 601,313 Change in fair value of derivative (464,736 ) 418,118 Fair value of derivative on the date of issuance - - Fair value of derivative (stock), end of period $ 554,695 $ 1,019,431 2022 2021 Annual volatility rate 102 % 147 % Risk free rate 2.28 % 0.73 % Remaining Term 0.25 years 0.50 years Fair Value of common stock $ 1.90 $ 1.75 Period Ended 2022 2021 Fair value of derivative (warrants), beginning of period $ 1,320,380 $ 817,613 Change in fair value of derivative (605,674 ) 502,767 Fair value of derivative on the date of issuance - - Fair value of derivative(warrants), end of period $ 714,706 $ 1,320,380 2022 2021 Annual volatility rate 118 % 147 % Risk free rate 2.28 % 0.73 % Remaining Term 8.13 years 8.37 years Fair Value of common stock $ 1.90 $ 1.75 Period Ended 2022 2021 Fair value of derivative (warrants), beginning of period $ 1,559,103 $ 952,634 Fair value of derivative on the date of issuance - - Exercise of warrants - (659,558 ) Change in fair value of derivative 131,704 1,266,027 Fair value of derivative(warrants), end of period $ 1,690,807 $ 1,559,103

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2022
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair Value Measurement	Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Measurement at March 31, 2022 Using: Liabilities: Derivative Liabilities $ 2,960,208 $ - $ - $ 2,960,208 Totals $ 2,960,208 $ - $ - $ 2,960,208 Fair Value Measurement at December 31, 2021 Liabilities: Derivative Liabilities $ 3,898,914 $ - $ - $ 3,898,914 Totals $ 3,898,914 $ - $ - $ 3,898,914

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	3 Months Ended
	Mar. 31, 2022
NOTES PAYABLE
Notes Payable	The following is a summary of the transaction during the three and twelve months ended March 31, 2022 and December 31, 2021: Balance December 31, 2020 $ 2,081,435 Exchange Rate Adjustment (57,504 ) 2021 Principal Payments (61,406 ) Balance December 31, 2021 1,962,525 Exchange Rate Adjustment 56,036 2022 Principal Payments (36,165 ) Balance March 31, 2022 $ 1,982,396

NATURE OF ACTIVITIES AND SIGN_4

NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details)	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES
Current Exchange Rate	19.91	20.48
Weighted Average Exhange Rate For The Period	20.50		20.45

NATURE OF ACTIVITIES AND SIGN_5

NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES
Net Income (loss) Attributable To Common Shareholders	$ 5,004,227	$ 246,334
Shares:
Weighted Average Number Of Common Shares Outstanding, Basic	18,091,293	17,722,825
Diluted Weighted Average Number Of Common Shares Outstanding,	18,983,458	17,722,825
Basic Earnings (loss) Per Share	$ 0.28	$ 0.01
Diluted Earnings (loss) Per Share	$ 0.27	$ 0.01

NATURE OF ACTIVITIES AND SIGN_6

NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Amortized Of Lease Term	10 years
Bank Deposite Excess Of Fdic Limit	$ 14,140,366
Ownership Percentage	100.00%
Iva Receivable	$ 5,224,670		$ 4,742,180
Inventories	2,617,556		$ 2,110,203
Currency Transaction Gains (losses)	(2,402)	$ (333,735)
Customer Deposit Liabilities For Payment Received In Advance	$ 7,875,000
Warrants Outstanding	3,060,998		3,060,998
Deferred Contract Revenue	$ 9,250,000		$ 1,500,000
Exercisable	$ 2		$ 2.04
Common Stock Issued	3,060,998		3,060,998
Warrant Exercisable	2,168,833		2,168,833
Potentially Dilutive Common Stock	2,168,833
Goldgroup Resources [Member]
Minority Interest	20.00%
Minimum | Leasehold improvements [Member]
Property Estimate Useful Life	3 years
Maximum
Conversion At Valuations	$ 2.50		$ 2.50
Maximum | Leasehold improvements [Member]
Property Estimate Useful Life	5 years
Warrants
Warrants Outstanding	217,312		2,227,312
Common Stock Issued	217,312		217,312
Warrant Exercisable	1,260,633		2,168,833

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Total Inventories	$ 2,617,556	$ 2,110,203
Mined Tonnage [Member]
Total Inventories	97,317	2,042,633
Gold-Silver Concentrates [Member]
Total Inventories	$ 2,520,239	$ 67,570

PROPERTY (Details)

PROPERTY (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
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	(117,237)	(116,425)
Total Property	$ 1,917	$ 2,729

PROPERTY (Details Narrative)

PROPERTY (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
PROPERTY
Depreciation Expense	$ 812	$ 812

MINING CONCESSIONS (Details Nar

MINING CONCESSIONS (Details Narrative) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
MINING CONCESSIONS
Total Mining Concessions	$ 4,132,678	$ 4,132,678

CONVERTIBLE PROMISSORY NOTES (D

CONVERTIBLE PROMISSORY NOTES (Details Narrative) - USD ($)	1 Months Ended				3 Months Ended	12 Months Ended
	Mar. 31, 2020	Oct. 31, 2019	Feb. 28, 2019	Jun. 30, 2018	Mar. 31, 2022	Dec. 31, 2020	Dec. 30, 2019	Dec. 31, 2021	Dec. 31, 2019
Principal Amount		$ 59,895	$ 67,070	$ 347,826
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		$ 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
2013 and 2014 [Member] | Notes Payable - Series II [Member] | Additional Note Agreements [Member]
Notes Payable	84,726				$ 199,808	$ 250,000
Simple Interest Rate					12.50%	12.50%
Maturity Date					Dec. 31, 2015
Accrued Interest	2,648						$ 5,977
Notes Payable Outstanding Amount					$ 87,374	$ 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
Two Notes Totalling	$ 84,757								$ 78,750

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
INCOME TAXES
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate, Percent	21.00%	21.00%

STOCKHOLDERS EQUITY (Details)

STOCKHOLDERS EQUITY (Details) - Warrants - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Beginning Balance	3,060,998	3,429,466
Granted	0	0
Exercised	0	368,468
Forfeited	0	0
Ending Balance	3,060,998	3,060,998
Exercisable	3,060,998
Weighted Average Exercise Price, Beginning Balance	$ 1.46	$ 1.30
Weighted Average Exercise Price, Granted	0	0
Weighted Average Exercise Price, Exercised	0	0.01
Weighted Average Exercise Price, Forfeited	0	0
Weighted Average Exercise Price, Ending Balance	1.46	$ 1.46
Weighted Average Exercise Price, Exercisable	$ 1.46
Weighted Average Remaining Contractual Life (years), Beginning Balance	2 years 9 months 15 days	4 years 4 months 24 days
Weighted Average Remaining Contractual Life (years), Ending Balance	2 years 6 months 18 days	2 years 9 months 14 days
Weighted Average Remaining Contractual Life (years), Exercisable	2 years 6 months 18 days
Intrinsic Value, Beginning Balance	$ 0
Intrinsic Value, Granted	0
Intrinsic Value, Forfeited	0
Intrinsic Value, Ending Balance	0	$ 0
Intrinsic Value, Exercisable	$ 0

STOCKHOLDERS EQUITY (Details Na

STOCKHOLDERS EQUITY (Details Narrative) - USD ($)	Oct. 07, 2021	Jul. 14, 2020	May 14, 2020	May 13, 2020	May 06, 2015	Oct. 31, 2021	Oct. 31, 2019	Feb. 28, 2019	Jun. 30, 2018	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020	Oct. 18, 2021
Capital Stock Authorized Issue										60,001,000
Additional Preferred Stock Shares Issued										15,265,008
Preferred Stock Par Value										$ 0.0001
Derivative Liabilities										$ 2,960,208		$ 3,898,914
Deemed Dividend										58,575	$ 43,375
Amount Recieved From Preferred Right										784,500
Current Balance, Preferred Right										40,000		$ 40,000
Repaid Amount Under Preferred Right										$ 744,500
Exercise Of Warrants														368,468
Common Stock, Shares Issued										18,091,293		18,091,293		368,468
Treasury Shares For Services												504,300
Outstanding Treasury Shares										12,180		12,180
Warrants Outstanding										3,060,998		3,060,998
Common Stock, Par Value										$ 0.01		$ 0.01
Common Stock, Shares Authorized										40,000,000		40,000,000
Common Stock, Shares Outstanding										18,091,293		18,091,293
Principal Amount							$ 59,895	$ 67,070	$ 347,826
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
DynaResource, Inc [Member] | Additional Financing Agreement [Member] | Golden Post Rail, LLC, Texas Limited Company [Member]
Common Stock Purchase										439,026			783,976
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.						These Series D Preferred Shares are convertible to common shares at $2.00 per share, through October 18, 2026. The Series D Preferred Shares may receive a 4% per annum dividend, payable if available, and in arrears. The Dividend is calculated at 4.0% of $1,520,000 payable annually on October 18. At March 31, 2022
Issuance Accommodate, Description				contemplating the authorization of 3,000,000 shares
Golden Post Warrants
Derivative Liabilities										$ 714,706		$ 1,320,380
Preferred Stock Series A
Preferred Stock Par Value										$ 0.0001		$ 0.0001
Preferred Stock, Shares Designated										1,000
Preferred Stock Shares Outstanding										1,000		1,000
Preferred Stock, Shares Issued										1,000		1,000
Additional Preferred Stock, Shares Designated										1,000
Preferred Stock Series A | CEO
Preferred Stock, Shares Issued										1,000		1,000
Series D Preferred Stock [Member]
Derivative Liabilities										$ 1,690,807		$ 1,559,103
Preferred Stock, Shares Designated										3,000,000
Preferred Stock Shares Outstanding										760,000		760,000
Preferred Stock, Shares Issued														760,000
Convertible Note Repurchase Amount	$ 2,500,000
Fair Value Of Derivative On The Date Of Issuance Notes						$ 287,508
Series D Preferred Stock [Member] | Ten Noteholders [Member]
Convertible Note Into Preferred Stock	$ 1,520,000
Convertible Note Into Preferred Stock Price Per Share	$ 2
Preferred Stock Series C
Derivative Liabilities										$ 554,695		$ 1,019,431
Preferred Stock, Shares Designated				1,734,992						1,734,992
Preferred Stock Shares Outstanding										1,734,992		1,734,992
Fair Value Of Derivative On The Date Of Issuance Notes										$ 0		$ 0
Conversion Price Per Shares										$ 2.04
Shares Dividend Receive Per Annum										4.00%
Dividend Payable										$ 4,337,480
Additional Shares				1,771
Total Arrears On Dividend										$ 880,278
Common Stock [Member]
Common Stock, Par Value										$ 0.01
Common Stock, Shares Authorized										40,000,000
Common Stock, Shares Outstanding										18,091,293		18,091,293
2022 Activity [Member]
Warrants Outstanding										3,060,998
2021 Activity [Member]
Capital Stock Authorized Issue														368,468
Warrants Outstanding												3,060,998		368,468
Exercise Price														$ 0.01

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
RELATED PARTY TRANSACTIONS
Related Party Consulting And Other Fees	$ 43,750	$ 33,750

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details)	3 Months Ended
	Mar. 31, 2022USD ($)
Short Term Lease Costs	$ 4,381
Variable Lease Costs	0
Total	49,038
Office Lease
Operating Lease	21,823
Ground Lease
Operating Lease	$ 22,834

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES (Details 1)	3 Months Ended
	Mar. 31, 2022
COMMITMENTS AND CONTINGENCIES
Weighted Average Discount Rate - Operating Leases	12.50%
Weighted Average Remaining Lease Term (years) - Operating Leases	10 years 1 month 13 days

COMMITMENTS AND CONTINGENCIES_4

COMMITMENTS AND CONTINGENCIES (Details 2)	Mar. 31, 2022USD ($)
COMMITMENTS AND CONTINGENCIES
2022	$ 164,979
2023	94,074
2024	96,896
2025	99,803
2026	102,797
Thereafter	684,885
Total	1,243,434
Less Imputed Interest	(593,422)
Operating Lease Payable	$ 650,012

COMMITMENTS AND CONTINGENCIES_5

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	Jan. 06, 2014	Mar. 31, 2022	Dec. 31, 2021
Concession Expenditure		$ 388	$ 2,400
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%
DynaMineras [Member]
Lease Payment Anually		$ 1,359,443
Rent Expense		3,015,112
Land Lease Agreement [Member]
Land Area	4,399 hectares
Lease Agreement Term	20 years
Lease Payment Anually		$ 149,000

DERIVATIVE LIABILITIES (Details

DERIVATIVE LIABILITIES (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Preferred Stock Series C
Annual Volatility Rate	102.00%	147.00%
Risk Free Rate	2.28%	0.73%
Remaining Term	3 months	6 months
Fair Value Of Common Stock	$ 1.90	$ 1.75
Preferred Series C Warrant
Annual Volatility Rate	102.00%	147.00%
Risk Free Rate	2.28%	0.73%
Remaining Term	3 months	6 months
Fair Value Of Common Stock	$ 1.90	$ 1.75
Preferred Series D Warrant
Annual Volatility Rate	118.00%	147.00%
Risk Free Rate	2.28%	0.73%
Remaining Term	8 years 1 month 17 days	8 years 4 months 13 days
Fair Value Of Common Stock	$ 1.90	$ 1.75

DERIVATIVE LIABILITIES (Detai_2

DERIVATIVE LIABILITIES (Details 1) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Preferred Stock Series C
Fair Value Of Derivative, Beginning Balance	$ 1,019,431	$ 601,313
Change In Fair Value Of Derivative	(464,736)	418,118
Fair Value Of Derivative On The Date Of Issuance	0	0
Fair Value Of Derivative, Ending Balance	554,695	1,019,431
Preferred Series C Warrant
Fair Value Of Derivative, Beginning Balance	1,320,380	817,613
Change In Fair Value Of Derivative	(605,674)	502,767
Fair Value Of Derivative On The Date Of Issuance	0	0
Fair Value Of Derivative, Ending Balance	714,706	1,320,380
Preferred Series D Warrant
Fair Value Of Derivative, Beginning Balance	1,559,103	952,634
Change In Fair Value Of Derivative	131,704	1,266,027
Fair Value Of Derivative On The Date Of Issuance	0	0
Fair Value Of Derivative, Ending Balance	1,690,807	1,559,103
Exercise Of Warrants	$ 0	$ 659,558

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Liabilities:
Derivative Liabilities	$ 2,960,208	$ 3,898,914
Total Liabilities	2,960,208	3,898,914
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	2,960,208	3,898,914
Total Liabilities	$ 2,960,208	$ 3,898,914

REVENUE CONCENTRATION (Details

REVENUE CONCENTRATION (Details Narrative)	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Revenue Individually	10.00%
Receivable Balances Individually	10.00%
Three and Three Customers [Member]
Concentration Of Risk	100.00%	100.00%
One and four Customer [Member]
Concentration Of Risk	100.00%	100.00%

NOTES PAYABLE (Details)

NOTES PAYABLE (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
NOTES PAYABLE
Property Holding Taxes, Beginning Balance	$ 1,962,525	$ 2,081,435
Exchange Rate Adjustment	56,036	(57,504)
Principal Payments	(36,165)	(61,406)
Property Holding Taxes, Beginning Balance	$ 1,982,396	$ 1,962,525

NOTES PAYABLE (Details Narrativ

NOTES PAYABLE (Details Narrative) - USD ($)	1 Months Ended
	Oct. 31, 2019	Feb. 28, 2019	Jul. 31, 2018	Jun. 30, 2018	Mar. 31, 2022
NOTES PAYABLE
Unpaid Mining Concession Taxes On The Francisco Arturo Mining Concession	$ 299,474	$ 335,350		$ 1,739,392
Initial Payment Amount	$ 59,895	$ 67,070		$ 347,826
Initial Payment Percentage Rate	20.00%	20.00%		20.00%
Remaining Finance Balance Term Over The Period	36 years	36 years		36 years
Remaining Finance Balance Term Over The Period Percentage Rate	22.00%	22.00%		21.84%
Accrued Interest Included In Accrued Liabilities					$ 1,189,560
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 ($) $ in Thousands

Aug. 09, 2021

May 12, 2021

Feb. 04, 2021

Feb. 25, 2022

Dec. 30, 2021

Nov. 19, 2021

Sep. 29, 2021

Jun. 18, 2021

Mar. 30, 2021

Mar. 31, 2022

Mar. 30, 2022

May 01, 2021

CONVERTIBLE PROMISSORY NOTES

Revolving Credit Line Facility Amount

$ 3,750

Revolving Credit Line Facility Maximum Amount

$ 3,750

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

$ 8,250

$ 3,750

$ 2,500

$ 8,175

$ 9,250

$ 8,250

$ 8,250

$ 6,750

$ 3,750

$ 7,875

Advances Settlement Date From Buyers

Sep. 27, 2021

Jun. 16, 2021

Mar. 26, 2021

Mar. 30, 2022

Feb. 25, 2022

Dec. 20, 2021

Nov. 17, 2021

Aug. 5, 2021

May 12, 2021