Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 14, 2023 | |
Document Information Line Items | ||
Entity Registrant Name | Desert Hawk Gold Corp. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 26,831,603 | |
Amendment Flag | false | |
Entity Central Index Key | 0001168081 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 333-169701 | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 82-0230997 | |
Entity Address, Address Line One | 1290 Holcomb Ave | |
Entity Address, City or Town | Reno | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89502 | |
City Area Code | (775) | |
Local Phone Number | 337-8057 | |
Entity Interactive Data Current | Yes |
Condensed Interim Balance Sheet
Condensed Interim Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 307,842 | $ 581,022 |
Inventories (NOTE 4) | 1,971,001 | 3,544,071 |
Prepaid expenses and other current assets | 48,926 | 50,523 |
TOTAL CURRENT ASSETS | 2,327,769 | 4,175,616 |
PROPERTY AND EQUIPMENT, net (NOTE 5) | 4,031,593 | 4,368,398 |
MINERAL PROPERTIES AND INTERESTS, net (NOTE 6) | 3,632,912 | 3,616,493 |
RECLAMATION BONDS (NOTE 3) | 1,597,801 | 1,591,547 |
TOTAL ASSETS | 11,590,075 | 13,752,054 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued liabilities | 195,856 | 159,741 |
Royalties and upside participation payable (NOTE 7) | 3,483,522 | 2,843,091 |
Accrued interest, prepaid forward gold contract (NOTE 7) | 1,690,687 | 640,742 |
Accrued liabilities – officers and other wages (NOTES 11 and 12) | 185,695 | 137,159 |
Notes payable, current portion (NOTE 8) | 58,061 | |
Settlement of consulting contract payable (NOTE 10) | 200,000 | 200,000 |
Prepaid forward gold contract liability (NOTE 7) | 1,590,173 | 5,841,383 |
Due in lieu of gold deliveries (NOTE 7) | 20,772,500 | 13,419,500 |
TOTAL CURRENT LIABILITIES | 28,118,433 | 23,299,677 |
LONG-TERM LIABILITIES | ||
Asset retirement obligation (NOTE 9) | 1,631,019 | 1,496,434 |
TOTAL LIABILITIES | 29,749,452 | 24,796,111 |
COMMITMENTS AND CONTINGENCIES (NOTES 6, 7 AND 12) | ||
STOCKHOLDERS’ EQUITY (DEFICIT) | ||
Preferred Stock, $.001 par value; 10,000,000 shares authorized, none issued or outstanding | ||
Common Stock, $.001 par value; 100,000,000 shares authorized; 26,831,603 and 26,831,603 shares issued and outstanding, respectively | 26,833 | 26,833 |
Additional paid-in capital | 9,666,275 | 9,666,275 |
Accumulated deficit | (27,852,485) | (20,737,165) |
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) | (18,159,377) | (11,044,057) |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | $ 11,590,075 | $ 13,752,054 |
Condensed Interim Balance She_2
Condensed Interim Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 26,831,603 | 26,831,603 |
Common stock, shares outstanding | 26,831,603 | 26,831,603 |
Condensed Interim Statements of
Condensed Interim Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
REVENUE | ||||
Total revenue | $ 557,694 | $ 1,251,611 | $ 2,205,815 | $ 4,258,069 |
OPERATING EXPENSES | ||||
General production and project costs | 915,227 | 1,747,388 | 3,816,488 | 4,397,526 |
Contract processing costs | 32,411 | 103,625 | ||
Depreciation and amortization | 165,700 | 160,619 | 503,295 | 654,740 |
Other operating costs | 61,601 | 116,701 | 259,288 | 380,431 |
Legal and professional | 29,520 | 26,085 | 128,198 | 117,006 |
Officers and directors’ fees | 79,501 | 89,102 | 260,783 | 261,649 |
General and administrative | 62,381 | 63,773 | 198,894 | 244,674 |
Loss on disposal of equipment | 4,453 | 9,258 | 22,921 | |
Forward gold contract expense (NOTE 7) | 1,109,228 | 883,334 | 3,101,790 | 2,343,111 |
TOTAL OPERATING EXPENSES | 2,423,158 | 3,123,866 | 8,277,994 | 8,525,683 |
LOSS FROM OPERATIONS | (1,865,464) | (1,872,255) | (6,072,179) | (4,267,614) |
OTHER INCOME (EXPENSE) | ||||
Interest and other income | 6,083 | 2,823 | 9,742 | 2,879 |
Interest expense – equipment financing | (1,773) | (1,399) | (13,288) | |
Interest expense - other | (413,973) | (74,332) | (1,051,484) | (307,306) |
TOTAL OTHER INCOME (EXPENSE) | (407,890) | (73,282) | (1,043,141) | (317,715) |
NET LOSS BEFORE INCOME TAX | (2,273,354) | (1,945,537) | (7,115,320) | (4,585,329) |
Provision (benefit) for income tax | ||||
NET LOSS | $ (2,273,354) | $ (1,945,537) | $ (7,115,320) | $ (4,585,329) |
Basic and diluted loss per share (in Dollars per share) | $ (0.09) | $ (0.07) | $ (0.27) | $ (0.17) |
Basic and diluted weighted average number of shares outstanding (in Shares) | 26,831,603 | 26,831,603 | 26,831,603 | 26,831,603 |
Concentrate Sales | ||||
REVENUE | ||||
Total revenue | $ 557,694 | $ 1,092,854 | $ 2,205,815 | $ 3,127,883 |
Contract Processing Income | ||||
REVENUE | ||||
Total revenue | $ 158,757 | $ 1,130,186 |
Condensed Interim Statements _2
Condensed Interim Statements of Operations (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Basic and diluted loss per share (in Dollars per share) | $ (0.09) | $ (0.07) | $ (0.27) | $ (0.17) |
Basic and diluted weighted average number of shares outstanding (in Shares) | 26,831,603 | 26,831,603 | 26,831,603 | 26,831,603 |
Condensed Interim Statement of
Condensed Interim Statement of Changes in Stockholders’ Equity (Deficit) (Unaudited) - USD ($) | Common Stock | Additional Paid in Capital | Accumulated Deficit | Total |
BALANCE at Dec. 31, 2021 | $ 26,833 | $ 9,666,275 | $ (14,247,760) | $ (4,554,652) |
BALANCE (in Shares) at Dec. 31, 2021 | 26,831,603 | |||
Net loss | (1,337,227) | (1,337,227) | ||
BALANCE at Mar. 31, 2022 | $ 26,833 | 9,666,275 | (15,584,987) | (5,891,879) |
BALANCE (in Shares) at Mar. 31, 2022 | 26,831,603 | |||
BALANCE at Dec. 31, 2021 | $ 26,833 | 9,666,275 | (14,247,760) | (4,554,652) |
BALANCE (in Shares) at Dec. 31, 2021 | 26,831,603 | |||
Net loss | (4,585,329) | |||
BALANCE at Sep. 30, 2022 | $ 26,833 | 9,666,275 | (18,833,089) | (9,139,981) |
BALANCE (in Shares) at Sep. 30, 2022 | 26,831,603 | |||
BALANCE at Mar. 31, 2022 | $ 26,833 | 9,666,275 | (15,584,987) | (5,891,879) |
BALANCE (in Shares) at Mar. 31, 2022 | 26,831,603 | |||
Net loss | (1,302,565) | (1,302,565) | ||
BALANCE at Jun. 30, 2022 | $ 26,833 | 9,666,275 | (16,887,552) | (7,194,444) |
BALANCE (in Shares) at Jun. 30, 2022 | 26,831,603 | |||
Net loss | (1,945,537) | (1,945,537) | ||
BALANCE at Sep. 30, 2022 | $ 26,833 | 9,666,275 | (18,833,089) | (9,139,981) |
BALANCE (in Shares) at Sep. 30, 2022 | 26,831,603 | |||
BALANCE at Dec. 31, 2022 | $ 26,833 | 9,666,275 | (20,737,165) | (11,044,057) |
BALANCE (in Shares) at Dec. 31, 2022 | 26,831,603 | |||
Net loss | (2,263,429) | (2,263,429) | ||
BALANCE at Mar. 31, 2023 | $ 26,833 | 9,666,275 | (23,000,594) | (13,307,486) |
BALANCE (in Shares) at Mar. 31, 2023 | 26,831,603 | |||
BALANCE at Dec. 31, 2022 | $ 26,833 | 9,666,275 | (20,737,165) | (11,044,057) |
BALANCE (in Shares) at Dec. 31, 2022 | 26,831,603 | |||
Net loss | (7,115,320) | |||
BALANCE at Sep. 30, 2023 | $ 26,833 | 9,666,275 | (27,852,485) | (18,159,377) |
BALANCE (in Shares) at Sep. 30, 2023 | 26,831,603 | |||
BALANCE at Mar. 31, 2023 | $ 26,833 | 9,666,275 | (23,000,594) | (13,307,486) |
BALANCE (in Shares) at Mar. 31, 2023 | 26,831,603 | |||
Net loss | (2,578,537) | (2,578,537) | ||
BALANCE at Jun. 30, 2023 | $ 26,833 | 9,666,275 | (25,579,131) | (15,886,023) |
BALANCE (in Shares) at Jun. 30, 2023 | 26,831,603 | |||
Net loss | (2,273,354) | (2,273,354) | ||
BALANCE at Sep. 30, 2023 | $ 26,833 | $ 9,666,275 | $ (27,852,485) | $ (18,159,377) |
BALANCE (in Shares) at Sep. 30, 2023 | 26,831,603 |
Condensed Interim Statements _3
Condensed Interim Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (7,115,320) | $ (4,585,329) |
Adjustments to reconcile net loss to net cash provided (used) by operating activities | ||
Depreciation and amortization | 503,295 | 654,740 |
Accretion of asset retirement obligation | 112,407 | 100,607 |
Write down of inventory to net realizable value | 1,773,884 | 2,049,961 |
Loss on disposal of equipment | 9,258 | 22,921 |
Forward gold contract expense (NOTE 7) | 3,101,790 | 2,343,111 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 258,967 | |
Inventories | (200,814) | 86,656 |
Prepaid expenses and other current assets | 1,597 | 1,938 |
Accounts payable and accrued liabilities | 36,115 | (130,295) |
Royalties and upside participation payable (NOTE 7) | 640,431 | 791,464 |
Accrued interest, prepaid forward gold contract (NOTE 7) | 1,049,945 | 306,920 |
Accrued liabilities – officer and other wages | 48,536 | 21,000 |
Net cash provided (used) by operating activities | (38,876) | 1,922,661 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to property and equipment | (182,989) | (232,707) |
Proceeds from sale of equipment | 13,000 | 45,500 |
Increase in reclamation bonds | (6,254) | (89,180) |
Net cash used by investing activities | (176,243) | (276,387) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payment of notes payable | (58,061) | (442,584) |
Net cash used by financing activities | (58,061) | (442,584) |
Net increase (decrease) in cash and cash equivalents | (273,180) | 1,203,690 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 581,022 | 424,629 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 307,842 | $ 1,628,319 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2023 | |
Organization and Description Of Business [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS Desert Hawk Gold Corp. (the “Company”), a Nevada Corporation, was incorporated on November 5, 1957. The Company commenced its current mining activities on May 1, 2009. During the year ended December 31, 2009, the Company entered into Joint Venture Agreements with the Clifton Mining Company (“Clifton”), the Woodman Mining Company and the Moeller Family Trust for the lease of certain of their property interests in the Gold Hill Mining District of Utah. In 2011, the Company entered into an agreement with DMRJ Group, (a Platinum Partners related entity), which allowed for long term funding of the Kiewit project and helped to provide cash flow for operations during the period from 2009 until 2014 while the permitting process was ongoing. The final permit needed to begin development of the Kiewit property was received in January 2014 and development began in February 2014. Construction at the site was substantially complete on September 30, 2014. Revenue from the heap leach operation began in October 2014 with the first sales of gold concentrate. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES In the opinion of management, the accompanying unaudited condensed financial statements contain all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the interim periods reported. The condensed balance sheet at December 31, 2022 was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. Operating results for the nine-month period ended September 30, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2023. These unaudited condensed interim financial statements have been prepared by management in accordance with generally accepted accounting principles used in the United States of America (“U.S. GAAP”). These unaudited condensed interim financial statements should be read in conjunction with the annual audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission on March 30, 2023. This summary of significant accounting policies of the Company is presented to assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These accounting policies conform to U.S. GAAP and have been consistently applied in the preparation of the financial statements. Reclassifications Certain reclassifications have been made to conform prior periods’ amounts to the current presentation. These reclassifications have no effect on the results of operations, stockholders’ equity (deficit), and cash flows as previously reported. Earnings (Loss) Per Share Basic earnings (loss) per share includes no dilution and is computed by dividing net earnings (loss) available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of the Company. For the three- and nine-months ended September 30, 2023 and 2022, common stock equivalents of nil Going Concern As shown in the accompanying financial statements, the Company had an accumulated deficit of $27,852,485 through September 30, 2023 and net loss of $7,115,320 for the nine-month period ended September 30, 2023, along with negative working capital of $25,790,664 which raises substantial doubt about the Company’s ability to continue as a going concern. In addition, the Company has not delivered gold ounces as scheduled on its prepaid forward gold contract and could be subject to default provisions within the related agreement (see Note 7). The condensed interim financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue in existence. Although production restarted in 2019, operations were severely affected by COVID in 2020 and 2021, followed by a reduction in production while waiting for the approval of the permit modification to expand the pit, the approval of which was delayed at the government level, due to COVID. The expansion permit was eventually received in December 2022 causing an increase in the bonds totaling $644,000. The payment of the bond increase combined with the extended time period of less than optimal production have created very low working capital conditions that prevent the Company from returning to full production. A decision was made to halt mining completely at the end of June 2023 until increased working capital can be obtained. The timing and amount of capital requirements will depend on a number of factors, including demand for products, metals market pricing, and the availability of opportunities for expansion through affiliations and other business relationships. Management continues to seek new capital from equity securities issuances or other business arrangements to provide funds needed to increase liquidity, fund internal growth, and fully implement its business plan. The ability of the Company to continue as a going concern is dependent on the Company’s ability to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they are due. New Accounting Pronouncements Accounting standards that have been issued or proposed by the Financial Accounting Standards Board (“FASB”) that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. |
Reclamation Bonds
Reclamation Bonds | 9 Months Ended |
Sep. 30, 2023 | |
Reclamation Bonds [Abstract] | |
RECLAMATION BONDS | NOTE 3 – RECLAMATION BONDS At September 30, 2023 and December 31, 2022, reclamation bonds totaled $1,597,801 and $1,591,547, respectively, associated with estimated reclamation costs for its mineral properties. The totals at both dates include a surety bond of $674,000 with a bonding company for reclamation of its mineral property. This escrowed amount is held at Morgan Stanley for the Company’s benefit. It may not be released to the Company without the prior consent of the surety bondholder. The escrowed amount does not earn interest. The remaining balances of $923,801 and $917,547, respectively, are held as certificates of deposits by the Utah Department of Natural Resources. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2023 | |
Inventories [Abstract] | |
INVENTORIES | NOTE 4 – INVENTORIES Inventories at September 30, 2023 and December 31, 2022 consists of the following: September 30, December 31, 2023 2022 Ore on leach pad $ 1,664,489 $ 3,266,091 Carbon column in process 201,266 163,619 Finished goods 105,246 114,361 Total $ 1,971,001 $ 3,544,071 Inventories at September 30, 2023 and December 31, 2022 were valued at net realizable value because production costs were greater than the amount the Company expected to receive on the sale of the estimated gold ounces contained in inventories. The net realizable value adjustment to inventory, which is included in general production and projects costs on the statement of operations was $1,773,884 and $2,049,961 for the nine-month period ended September 30, 2023 and 2022, respectively. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2023 | |
Property and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 5 – PROPERTY AND EQUIPMENT The following is a summary of property and equipment at September 30, 2023 and December 31, 2022: September 30, December 31, 2023 2022 Equipment $ 6,586,606 $ 6,528,497 Furniture and fixtures 6,981 6,981 Electronic and computer equipment 50,587 50,587 Vehicles 429,866 369,595 Buildings 100,000 100,000 Land and improvements 98,121 105,299 7,272,161 7,160,959 Less accumulated depreciation (4,846,659 ) (4,401,690 ) 2,425,502 2,759,269 Kiewit property facilities 2,497,436 2,497,436 Less accumulated amortization (891,345 ) (888,307 ) 1,606,091 1,609,129 Total $ 4,031,593 $ 4,368,398 For the Kiewit property facilities, amortization based on total units of production was $ Nil Nil For the Kiewit property facilities, amortization based on total units of production was $3,038 and $78,121 for the nine-months ended September 30, 2023 and 2022, respectively. Depreciation expense on property and equipment for the three-months ended September 30, 2023 and 2022 was $165,700 and $160,619 respectively. Depreciation expense on property and equipment for the nine-months ended September 30, 2023 and 2022 was $494,498 and $513,460, respectively. |
Mineral Properties and Interest
Mineral Properties and Interests | 9 Months Ended |
Sep. 30, 2023 | |
Mineral Properties and Interests [Abstract] | |
MINERAL PROPERTIES AND INTERESTS | NOTE 6 – MINERAL PROPERTIES AND INTERESTS Mineral properties and interests as of September 30, 2023 and December 31, 2022 are as follows: September 30, December 31, 2023 2022 Kiewit and all other sites $ 3,700,000 $ 3,700,000 JJS property 250,000 250,000 3,950,000 3,950,000 Less accumulated amortization (856,805 ) (852,000 ) 3,093,195 3,098,000 Asset retirement obligation assets Kiewit Site 747,300 725,122 Kiewit Exploration 28,377 28,377 JJS property 31,016 31,016 Total 806,693 784,515 Less accumulated amortization (266,976 ) (266,022 ) 539,717 518,493 Total $ 3,632,912 $ 3,616,493 Due to the lack of production, there was no amortization of mineral properties and interests during the three months ended September 30, 2023 and 2022, respectively. Amortization of the mineral properties and interests based on total units of production was $5,759 and $63,159 for the nine months ended September 30, 2023 and 2022, respectively. The Company is required to pay a 4% net smelter royalty (“NSR”) to Qenta, Inc. (“Qenta”) on revenues of gold and silver from the Kiewit gold property and the JJS properties. See Note 7. |
Prepaid Forward Gold Contract L
Prepaid Forward Gold Contract Liability | 9 Months Ended |
Sep. 30, 2023 | |
Prepaid Forward Gold Contract Liability [Abstract] | |
PREPAID FORWARD GOLD CONTRACT LIABILITY | NOTE 7 – PREPAID FORWARD GOLD CONTRACT LIABILITY In 2019, the Company entered into and closed a Pre-Paid Forward Gold Purchase Agreement (the “Purchase Agreement”) with PDK Utah Holdings, LP (“PDK”) for the sale and purchase by PDK of gold produced from the Company’s mining property. Under the terms of the Purchase Agreement, as amended, PDK agreed to purchase a total of 47,045 ounces of gold from the Company. The Company agreed to deliver ounces of gold produced from the Kiewit property to PDK and the Company would then receive proceeds from PDK at the then current spot price less a discount specified in the Purchase Agreement. The Company has the option of paying cash for the number of ounces scheduled to be delivered each month at a rate of $500 per ounce. The Company received a net amount of $13,600,000 in 2019 for the future delivery of these gold ounces. In February 2023, PDK sold their ownership position in the Purchase Agreement to Qenta, Inc. (“Qenta”) Under the terms of the Purchase Agreement, as amended, the Company is obligated to deliver gold in the following quantities: Months Gold Ounces per Month Total Gold December 2020 655 655 January 2021 to March 2021 896 2,688 April 2021 to March 2022 911 10,932 April 2022 to March 2023 1,396 16,752 April 2023 to December 2023 1,753 15,777 January 2024 241 241 47,045 In addition, under the Purchase Agreement, Qenta may reduce the required number of ounces to be sold in exchange for up to 8,000 common shares of the Company. To date, this option has not been elected. As security for the obligations of the Company under the Purchase Agreement, the Company has granted a security interest in all of the assets of the Company. The Purchase Agreement contains representations and warranties, as well as affirmative and negative covenants customary to a transaction of this nature. To date, no gold has been delivered under the contract. As of September 30, 2023 and December 31, 2022, a cumulative of 41,545 and 26,839 ounces, respectively, were scheduled to be delivered under the terms of the Purchase Agreement. The ounces due but unpaid at September 30, 2023 and December 31, 2022 have been reflected in “Due in lieu of gold deliveries” on the balance sheet based on the Company’s option to pay cash in lieu of delivery at $500 per ounce. The forward gold contract balance as of September 30, 2023 and December 31, 2022 is as follows: September 30, December 31, 2023 2022 Total ounces to be delivered 41,545 26,839 Contractual payment per ounce in lieu of delivery $ 500 $ 500 Amount due in lieu of gold deliveries $ 20,772,500 $ 13,419,500 For the three months ended September 30, 2023 and 2022, the activity related to the forward gold contract is as follows: Three months ended 2023 2022 Prepaid forward gold contract liability balance at beginning of period $ 3,110,445 $ 8,262,715 Forward gold contract balance associated with ounces to be delivered during period 1,109,228 883,334 Reduction in prepaid forward gold contract liability balance (2,629,500 ) (2,094,000 ) Prepaid forward gold contract liability balance at end of period $ 1,590,173 $ 7,052,049 For the nine months ended September 30, 2023 and 2022, the activity related to the forward gold contract is as follows: Nine months ended 2023 2022 Prepaid forward gold contract liability balance at beginning of period $ 5,841,383 $ 10,263,438 Forward gold contract balance associated with ounces to be delivered during period 3,101,790 2,343,111 Reduction in prepaid forward gold contract liability balance (7,353,000 ) (5,554,500 ) Prepaid forward gold contract liability balance at end of period $ 1,590,173 $ 7,052,049 As of September 30, 2023, and through the issuance of these financial statements, the Company has received invoices for the deliveries and payments due. The failure to make gold deliveries and make additional payments as described below provides Qenta with certain remedies, including termination of the agreement, demand for early payment of the entire delivery obligations, and enforcement of foreclosure rights against the assets pledged as security under the agreement. Due to the delinquent status of the deliveries and Qenta’s rights under the default provisions of the Purchase Agreement, the Company has classified the entire liability balance owing as current on the balance sheets. The Company’s management has been in discussions with Qenta regarding the status of the Purchase Agreement. To date, Qenta has not exercised its rights of default as defined in the agreement nor has it indicated plans to do so. In addition to the delivery of gold ounces, the Purchase Agreement contains a royalty provision whereby royalties of 4% are due on gold and silver recovered from mining operations at the Kiewit site and sold by the Company to a third party. Under the Purchase Agreement, the Company also accrues a 5% withholding tax to the state of Utah on the royalty payments. Royalties are payable within 30 days following the end of each fiscal quarter. To date, $145,187 in royalties have been paid to PDK. The Purchase Agreement contains a participation payment whereby Qenta receives a portion of the proceeds from gold sold by the Company to a third party. The payment due is based upon a percentage of proceeds over a set gold price per ounce. The upside participation amounts are payable within four days following each sale. To date, none The Purchase Agreement provides for the Company to pay default interest (calculated at the rate of LIBOR plus 2%) on outstanding amounts due. To date, none The following is a summary of royalties, upside participation and interest payable: September 30, December 31, 2023 2022 Royalties payable $ 705,792 $ 585,536 Royalties withholding payable 37,170 30,820 Upside participation payable 2,740,560 2,226,735 Subtotal 3,483,522 2,843,091 Accrued interest, prepaid forward gold contract 1,690,687 640,742 Total $ 5,174,209 $ 3,483,833 |
Notes Payable
Notes Payable | 9 Months Ended |
Sep. 30, 2023 | |
Notes Payable [Abstract] | |
NOTES PAYABLE | NOTE 8 – NOTES PAYABLE The following is a summary of the notes payable: December 31, 2022 Note payable to Epiroc, collateralized by a used Epiroc drill due in 36 monthly payments of $14,679 including interest at 5.2%. 58,061 58,061 Current portion (58,061 ) Long term portion $ - During the nine months ended September 30, 2023, the Company paid the remaining note payable balance of $58,061. |
Asset Retirement Obligation
Asset Retirement Obligation | 9 Months Ended |
Sep. 30, 2023 | |
Asset Retirement Obligation [Abstract] | |
ASSET RETIREMENT OBLIGATION | NOTE 9 – ASSET RETIREMENT OBLIGATION Changes in the asset retirement obligation for the three months ended September 30, 2023 and 2022 are as follows: Three months ended 2023 2022 Asset retirement obligation, beginning of period $ 1,593,431 $ 1,429,365 Accretion expense 37,588 33,536 Asset retirement obligation, end of period $ 1,631,019 $ 1,462,901 Changes in the asset retirement obligation for the nine months ended September 30, 2023 and 2022 are as follows: Nine months ended 2023 2022 Asset retirement obligation, beginning of period $ 1,496,434 $ 1,362,294 Increase due to change in estimated costs 22,178 - Accretion expense 112,407 100,607 Asset retirement obligation, end of period $ 1,631,019 $ 1,462,901 In the first quarter of 2023, the Company updated its estimate for reclamation and closure costs of the mine at the end of its life based on an expanded permit and bonding requirement finalized in December 31, 2022. The updated estimate was $2,557,553 on an undiscounted cash flow basis, an increase of $1,020,553 from the previous plan. The estimated reclamation costs were discounted using credit adjusted, risk-free interest rate of 11% from the time we incurred the obligation to the time we expect to pay the retirement obligation. During the nine months ended September 30, 2023, asset retirement obligation and the associated retirement asset both increased $22,178 as a result of this change in estimated costs. |
Settlement of Consulting Contra
Settlement of Consulting Contract | 9 Months Ended |
Sep. 30, 2023 | |
Settlement of Consulting Contract [Abstract] | |
SETTLEMENT OF CONSULTING CONTRACT | NOTE 10 – SETTLEMENT OF CONSULTING CONTRACT On March 29, 2018, the Company entered into a five-year Agency Agreement (the “Agency Agreement”) with H&H Metals Corp., a New York corporation (“H&H”). Under the terms of the Agency Agreement, H&H agreed to provide certain advisory services in regard to natural resources activities and to assist in securing purchasers for minerals produced from its mining properties. The Company negotiated a settlement in 2019 with H&H resulting in the Company owing a balance of $200,000 due in July 2020 to H&H. This payment has not yet been paid and is classified as a current liability at both September 30, 2023 and December 31, 2022. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 11 – RELATED PARTY TRANSACTIONS The Company has a month-to-month lease agreement for its office space with RMH Overhead, LLC (“RMH”), a company owned by Rick Havenstrite, the Company’s President and a director. The Company recognized rent expense of $4,500 and $4,500 for three months ended September 30, 2023 and 2022. The Company recognized rent expense of $13,500 and $13,500 for nine months ended September 30, 2023 and 2022. The Company rents a haul truck from RMH at a current rate of $7,500 per month on a month-to-month basis with a lower moratorium rate in effect during periods when mining is halted. Rent expense of $10,000 and $15,000 was recognized during the three months ended September 30, 2023 and 2022, respectively. Rent expense of $52,500 and $70,000 was recognized during the nine months ended September 30, 2023 and 2022, respectively. At September 30, 2023 and December 31, 2022, $ Nil Nil Employment Agreements The Company has an employment agreement with Mr. Havenstrite as President of the Company, which is ongoing. The agreement, as amended, requires Mr. Havenstrite to meet certain time requirements and limits the number of other board member obligations in which he can participate. The agreement allows for a base annual salary of $144,000 plus an auto allowance and certain performance compensation upon fulfillment of established goals. The agreement allows the board of directors to terminate Mr. Havenstrite’s employment at any time, providing for a severance payment upon termination without cause. The amounts accrued at September 30, 2023 and December 31, 2022 is due to the officers of the Company as follows: September 30, December 31, 2023 2022 Rick Havenstrite, President $ 54,157 $ 37,697 Marianne Havenstrite, Treasurer and Principal Financial Officer 29,538 18,462 Total $ 83,695 $ 56,159 Directors’ fees The Company compensates independent directors for their contributions to the management of the Company, with one director receiving fees of $6,000 per month and another director receiving $5,000 per quarter. At September 30, 2023 and December 31, 2022, accrued compensation due to directors was $102,000 and $81,000 respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 12 – COMMITMENTS AND CONTINGENCIES In addition to commitments disclosed in Notes 6 and 7, the Company had the following commitments and contingencies. Personal property tax and other accrued liabilities Personal property tax for Tooele County, Utah, is billed and becomes due on November 30 of each year. At September 30, 2023 and December 31, 2022, the amount due to Tooele County is $ Nil Mining Leases Annual claim fees are currently $165 per claim plus administrative and school trust land fees. For the three months ended September 30, 2023 and 2022, claims’ fees paid were $11,028 and $11,029, respectively. For the nine months ended September 30, 2023 and 2022, claims fees paid were $11,028 and $11,162, respectively. Claims fees are due in August for the year beginning in September of that year. |
Capital Stock
Capital Stock | 9 Months Ended |
Sep. 30, 2023 | |
Capital Stock [Abstract] | |
CAPITAL STOCK | NOTE 13 – CAPITAL STOCK Common Stock The Company is authorized to issue 100,000,000 shares of common stock. All shares have equal voting rights and have one vote per share. Voting rights are not cumulative and, therefore, the holders of more than 50% of the common stock could, if they choose to do so, elect all of the directors of the Company. During the three- and nine-months ended September 30, 2023 and 2022, the Company had no transactions relating to common stock. Preferred Stock The Company's Articles of Incorporation authorized 10,000,000 shares of $0.001 par value Preferred Stock available for issuance with such rights and preferences, including liquidation, dividend, conversion, and voting rights, as the Board of Directors may determine. |
Stock Options
Stock Options | 9 Months Ended |
Sep. 30, 2023 | |
Stock Options [Abstract] | |
STOCK OPTIONS | NOTE 14 – STOCK OPTIONS The Company had reserved 2,400,000 shares under its 2018 Stock Incentive Plan (the “Plan”). The Plan was adopted by the board of directors on March 28, 2018, retroactive to February 23, 2018, as a vehicle for the recruitment and retention of qualified employees, officers, directors, consultants, and other service providers. The Plan is administered by the Board of Directors. The Company may issue, to eligible persons, restricted common stock, incentive and non-statutory options, stock appreciation rights and restricted stock units. The terms and conditions of awards under the Plan will be determined by the Board of Directors. Outstanding and vested options at September 30, 2023 and December 31, 2022 were Nil |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2023 | |
Revenues [Abstract] | |
REVENUE | NOTE 15 – REVENUE Product sales for three months ended September 30, 2023 and 2022, are shown below: Three months ended September 30, 2023 2022 Concentrate sales $ $ Gold 754,777 1,389,897 Silver 14,214 18,569 Total concentrate sales 768,991 1,408,466 Deductions to concentrate sales Royalties (32,379 ) (59,304 ) Upside participation payments (129,481 ) (187,255 ) Outside processing (49,437 ) (69,053 ) Subtotal – deductions to concentrate sales (211,297 ) (315,612 ) Net concentrate sales 557,694 1,092,854 Net contract processing income - 158,757 TOTAL REVENUE $ 557,694 $ 1,251,611 Product sales for nine months ended September 30, 2023 and 2022, are shown below: Nine months ended 2023 2022 Concentrate sales $ $ Gold 2,949,698 4,061,437 Silver 56,709 53,422 Total concentrate sales 3,006,407 4,114,859 Deductions to concentrate sales Royalties (126,586 ) (173,257 ) Upside participation payments (513,825 ) (620,370 ) Outside processing (160,181 ) (193,349 ) Subtotal – deductions to concentrate sales (800,592 ) (986,976 ) Net concentrate sales 2,205,815 3,127,883 Net contract processing income - 1,130,186 TOTAL REVENUE $ 2,205,815 $ 4,258,069 For the three and nine months ended September 30, 2023 and 2022, all revenues from concentrate sale were from concentrate sold to Asahi Refining. Mining was halted in June 2023 due to a lack of working capital. See Note 2. Processing is ongoing, but without the addition of new mineralized material to the heap leach pad, recoveries will continue to diminish. Contract processing income is proceeds received for ore processed for another company. The contract agreement with the outside company for which we were processing material was terminated in October 2022. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Reclassifications | Reclassifications Certain reclassifications have been made to conform prior periods’ amounts to the current presentation. These reclassifications have no effect on the results of operations, stockholders’ equity (deficit), and cash flows as previously reported. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share includes no dilution and is computed by dividing net earnings (loss) available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of the Company. For the three- and nine-months ended September 30, 2023 and 2022, common stock equivalents of nil |
Going Concern | Going Concern As shown in the accompanying financial statements, the Company had an accumulated deficit of $27,852,485 through September 30, 2023 and net loss of $7,115,320 for the nine-month period ended September 30, 2023, along with negative working capital of $25,790,664 which raises substantial doubt about the Company’s ability to continue as a going concern. In addition, the Company has not delivered gold ounces as scheduled on its prepaid forward gold contract and could be subject to default provisions within the related agreement (see Note 7). The condensed interim financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue in existence. Although production restarted in 2019, operations were severely affected by COVID in 2020 and 2021, followed by a reduction in production while waiting for the approval of the permit modification to expand the pit, the approval of which was delayed at the government level, due to COVID. The expansion permit was eventually received in December 2022 causing an increase in the bonds totaling $644,000. The payment of the bond increase combined with the extended time period of less than optimal production have created very low working capital conditions that prevent the Company from returning to full production. A decision was made to halt mining completely at the end of June 2023 until increased working capital can be obtained. The timing and amount of capital requirements will depend on a number of factors, including demand for products, metals market pricing, and the availability of opportunities for expansion through affiliations and other business relationships. Management continues to seek new capital from equity securities issuances or other business arrangements to provide funds needed to increase liquidity, fund internal growth, and fully implement its business plan. The ability of the Company to continue as a going concern is dependent on the Company’s ability to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they are due. |
New Accounting Pronouncements | New Accounting Pronouncements Accounting standards that have been issued or proposed by the Financial Accounting Standards Board (“FASB”) that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Schedule of Inventories [Abstract] | |
Schedule of Inventories | Inventories at September 30, 2023 and December 31, 2022 consists of the following: September 30, December 31, 2023 2022 Ore on leach pad $ 1,664,489 $ 3,266,091 Carbon column in process 201,266 163,619 Finished goods 105,246 114,361 Total $ 1,971,001 $ 3,544,071 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property and Equipment [Abstract] | |
Schedule of Property and Equipment | The following is a summary of property and equipment at September 30, 2023 and December 31, 2022: September 30, December 31, 2023 2022 Equipment $ 6,586,606 $ 6,528,497 Furniture and fixtures 6,981 6,981 Electronic and computer equipment 50,587 50,587 Vehicles 429,866 369,595 Buildings 100,000 100,000 Land and improvements 98,121 105,299 7,272,161 7,160,959 Less accumulated depreciation (4,846,659 ) (4,401,690 ) 2,425,502 2,759,269 Kiewit property facilities 2,497,436 2,497,436 Less accumulated amortization (891,345 ) (888,307 ) 1,606,091 1,609,129 Total $ 4,031,593 $ 4,368,398 |
Mineral Properties and Intere_2
Mineral Properties and Interests (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Mineral Properties and Interests [Abstract] | |
Schedule of Mineral Properties and Interests | Mineral properties and interests as of September 30, 2023 and December 31, 2022 are as follows: September 30, December 31, 2023 2022 Kiewit and all other sites $ 3,700,000 $ 3,700,000 JJS property 250,000 250,000 3,950,000 3,950,000 Less accumulated amortization (856,805 ) (852,000 ) 3,093,195 3,098,000 Asset retirement obligation assets Kiewit Site 747,300 725,122 Kiewit Exploration 28,377 28,377 JJS property 31,016 31,016 Total 806,693 784,515 Less accumulated amortization (266,976 ) (266,022 ) 539,717 518,493 Total $ 3,632,912 $ 3,616,493 |
Prepaid Forward Gold Contract_2
Prepaid Forward Gold Contract Liability (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Prepaid Forward Gold Contract Liability [Abstract] | |
Schedule of Company is Obligated to Deliver Gold | Under the terms of the Purchase Agreement, as amended, the Company is obligated to deliver gold in the following quantities: Months Gold Ounces per Month Total Gold December 2020 655 655 January 2021 to March 2021 896 2,688 April 2021 to March 2022 911 10,932 April 2022 to March 2023 1,396 16,752 April 2023 to December 2023 1,753 15,777 January 2024 241 241 47,045 |
Schedule of Related Contract Expense | The forward gold contract balance as of September 30, 2023 and December 31, 2022 is as follows: September 30, December 31, 2023 2022 Total ounces to be delivered 41,545 26,839 Contractual payment per ounce in lieu of delivery $ 500 $ 500 Amount due in lieu of gold deliveries $ 20,772,500 $ 13,419,500 Three months ended 2023 2022 Prepaid forward gold contract liability balance at beginning of period $ 3,110,445 $ 8,262,715 Forward gold contract balance associated with ounces to be delivered during period 1,109,228 883,334 Reduction in prepaid forward gold contract liability balance (2,629,500 ) (2,094,000 ) Prepaid forward gold contract liability balance at end of period $ 1,590,173 $ 7,052,049 Nine months ended 2023 2022 Prepaid forward gold contract liability balance at beginning of period $ 5,841,383 $ 10,263,438 Forward gold contract balance associated with ounces to be delivered during period 3,101,790 2,343,111 Reduction in prepaid forward gold contract liability balance (7,353,000 ) (5,554,500 ) Prepaid forward gold contract liability balance at end of period $ 1,590,173 $ 7,052,049 |
Schedule of Royalties, Upside Participation and Interest Payable | The following is a summary of royalties, upside participation and interest payable: September 30, December 31, 2023 2022 Royalties payable $ 705,792 $ 585,536 Royalties withholding payable 37,170 30,820 Upside participation payable 2,740,560 2,226,735 Subtotal 3,483,522 2,843,091 Accrued interest, prepaid forward gold contract 1,690,687 640,742 Total $ 5,174,209 $ 3,483,833 |
Notes Payable (Tables)
Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Payable [Abstract] | |
Schedule of Notes Payable | The following is a summary of the notes payable December 31, 2022 Note payable to Epiroc, collateralized by a used Epiroc drill due in 36 monthly payments of $14,679 including interest at 5.2%. 58,061 58,061 Current portion (58,061 ) Long term portion $ - |
Asset Retirement Obligation (Ta
Asset Retirement Obligation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Asset Retirement Obligation [Abstract] | |
Schedule of Asset Retirement Obligations | Changes in the asset retirement obligation for the three months ended September 30, 2023 and 2022 are as follows: Three months ended 2023 2022 Asset retirement obligation, beginning of period $ 1,593,431 $ 1,429,365 Accretion expense 37,588 33,536 Asset retirement obligation, end of period $ 1,631,019 $ 1,462,901 Nine months ended 2023 2022 Asset retirement obligation, beginning of period $ 1,496,434 $ 1,362,294 Increase due to change in estimated costs 22,178 - Accretion expense 112,407 100,607 Asset retirement obligation, end of period $ 1,631,019 $ 1,462,901 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Amounts Accrued | The amounts accrued at September 30, 2023 and December 31, 2022 is due to the officers of the Company as follows: September 30, December 31, 2023 2022 Rick Havenstrite, President $ 54,157 $ 37,697 Marianne Havenstrite, Treasurer and Principal Financial Officer 29,538 18,462 Total $ 83,695 $ 56,159 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenues [Abstract] | |
Schedule of Product Sales | Product sales for three months ended September 30, 2023 and 2022, are shown below: Three months ended September 30, 2023 2022 Concentrate sales $ $ Gold 754,777 1,389,897 Silver 14,214 18,569 Total concentrate sales 768,991 1,408,466 Deductions to concentrate sales Royalties (32,379 ) (59,304 ) Upside participation payments (129,481 ) (187,255 ) Outside processing (49,437 ) (69,053 ) Subtotal – deductions to concentrate sales (211,297 ) (315,612 ) Net concentrate sales 557,694 1,092,854 Net contract processing income - 158,757 TOTAL REVENUE $ 557,694 $ 1,251,611 Nine months ended 2023 2022 Concentrate sales $ $ Gold 2,949,698 4,061,437 Silver 56,709 53,422 Total concentrate sales 3,006,407 4,114,859 Deductions to concentrate sales Royalties (126,586 ) (173,257 ) Upside participation payments (513,825 ) (620,370 ) Outside processing (160,181 ) (193,349 ) Subtotal – deductions to concentrate sales (800,592 ) (986,976 ) Net concentrate sales 2,205,815 3,127,883 Net contract processing income - 1,130,186 TOTAL REVENUE $ 2,205,815 $ 4,258,069 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Summary of Significant Accounting Policies [Abstract] | ||||
Outstanding stock options were excluded (in Shares) | 2,400,000 | |||
Accumulated deficit | $ 27,852,485 | $ 27,852,485 | ||
Net loss | 7,115,320 | |||
Working capital | $ 25,790,664 | $ 25,790,664 | ||
Increase Bond | $ 644,000 |
Reclamation Bonds (Details)
Reclamation Bonds (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Reclamation Bonds [Line Items] | ||
Surety bond in escrow account | $ 674,000 | $ 674,000 |
Deposits | 923,801 | 917,547 |
Mineral [Member] | ||
Reclamation Bonds [Line Items] | ||
Reclamation costs | $ 1,597,801 | $ 1,591,547 |
Inventories (Details)
Inventories (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Inventories [Abstract] | ||
General production and project costs | $ 1,773,884 | $ 2,049,961 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of Inventories - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory [Line Items] | ||
Total Inventory | $ 1,971,001 | $ 3,544,071 |
Ore on leach pad [Member] | ||
Inventory [Line Items] | ||
Total Inventory | 1,664,489 | 3,266,091 |
Carbon column in process [Member] | ||
Inventory [Line Items] | ||
Total Inventory | 201,266 | 163,619 |
Finished goods [Member] | ||
Inventory [Line Items] | ||
Total Inventory | $ 105,246 | $ 114,361 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Property and Equipment [Abstract] | ||||
Amortization expense | $ 3,038 | $ 78,121 | ||
Depreciation expense | $ 165,700 | $ 160,619 | $ 494,498 | $ 513,460 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of Property and Equipment - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Property and Equipment [Line Items] | ||
Property and equipment, Net total | $ 4,031,593 | $ 4,368,398 |
Property and Equipment [Member] | ||
Schedule of Property and Equipment [Line Items] | ||
Property and equipment, Other Gross | 7,272,161 | 7,160,959 |
Less accumulated depreciation | (4,846,659) | (4,401,690) |
Property and equipment, Gross | 2,425,502 | 2,759,269 |
Equipment [Member] | Property and Equipment [Member] | ||
Schedule of Property and Equipment [Line Items] | ||
Property and equipment, Other Gross | 6,586,606 | 6,528,497 |
Furniture and fixtures [Member] | Property and Equipment [Member] | ||
Schedule of Property and Equipment [Line Items] | ||
Property and equipment, Other Gross | 6,981 | 6,981 |
Electronic and computer equipment [Member] | Property and Equipment [Member] | ||
Schedule of Property and Equipment [Line Items] | ||
Property and equipment, Other Gross | 50,587 | 50,587 |
Vehicles [Member] | Property and Equipment [Member] | ||
Schedule of Property and Equipment [Line Items] | ||
Property and equipment, Other Gross | 429,866 | 369,595 |
Buildings [Member] | Property and Equipment [Member] | ||
Schedule of Property and Equipment [Line Items] | ||
Property and equipment, Other Gross | 100,000 | 100,000 |
Land and improvements [Member] | Property and Equipment [Member] | ||
Schedule of Property and Equipment [Line Items] | ||
Property and equipment, Other Gross | 98,121 | 105,299 |
Kiewit property facilities [Member] | Property and Equipment [Member] | ||
Schedule of Property and Equipment [Line Items] | ||
Property and equipment, Other Gross | 2,497,436 | 2,497,436 |
Less accumulated depreciation | (891,345) | (888,307) |
Property and equipment, Gross | $ 1,606,091 | $ 1,609,129 |
Mineral Properties and Intere_3
Mineral Properties and Interests (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Mineral Properties and Interests [Abstract] | ||
Amortization of the mineral properties | $ 5,759 | $ 63,159 |
Smelter royalty | 4% |
Mineral Properties and Intere_4
Mineral Properties and Interests (Details) - Schedule of Mineral Properties and Interests - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Mineral Properties and Interests [Abstract] | ||
Kiewit and all other sites | $ 3,700,000 | $ 3,700,000 |
JJS property | 250,000 | 250,000 |
Total | 3,950,000 | 3,950,000 |
Less accumulated amortization | (856,805) | (852,000) |
Total | 3,093,195 | 3,098,000 |
Asset retirement obligation assets | ||
Kiewit Site | 747,300 | 725,122 |
Kiewit Exploration | 28,377 | 28,377 |
JJS property | 31,016 | 31,016 |
Total | 806,693 | 784,515 |
Less accumulated amortization | (266,976) | (266,022) |
Mineral properties after accumulated depletion | 539,717 | 518,493 |
Total | $ 3,632,912 | $ 3,616,493 |
Prepaid Forward Gold Contract_3
Prepaid Forward Gold Contract Liability (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2023 | Dec. 31, 2022 | |
Prepaid Forward Gold Contract Liability [Line Items] | |||
Purchased shares (in Shares) | 47,045 | ||
Per Ounce Rate amount | $ 500 | $ 500 | |
Common shares (in Shares) | 8,000 | ||
Cumulative (in Shares) | 41,545 | 26,839 | |
Royalties percentage | 4% | ||
Withholding tax percentage | 5% | ||
Royalties amount | $ 145,187 | ||
Paid amount | |||
Default interest percentage | 2% | ||
Purchase paid | |||
PDK [Member] | |||
Prepaid Forward Gold Contract Liability [Line Items] | |||
Per Ounce Rate amount | $ 500 | ||
Received net amount | $ 13,600,000 |
Prepaid Forward Gold Contract_4
Prepaid Forward Gold Contract Liability (Details) - Schedule of Company is Obligated to Deliver Gold | Sep. 30, 2023 |
Prepaid Forward Gold Contract Liability (Details) - Schedule of Company is Obligated to Deliver Gold [Line Items] | |
Total Gold Ounces | 47,045 |
December 2020 [Member] | |
Prepaid Forward Gold Contract Liability (Details) - Schedule of Company is Obligated to Deliver Gold [Line Items] | |
Gold Ounces per Month | 655 |
Total Gold Ounces | 655 |
January 2021 to March 2021 [Member] | |
Prepaid Forward Gold Contract Liability (Details) - Schedule of Company is Obligated to Deliver Gold [Line Items] | |
Gold Ounces per Month | 896 |
Total Gold Ounces | 2,688 |
April 2021 to March 2022 [Member] | |
Prepaid Forward Gold Contract Liability (Details) - Schedule of Company is Obligated to Deliver Gold [Line Items] | |
Gold Ounces per Month | 911 |
Total Gold Ounces | 10,932 |
April 2022 to March 2023 [Member] | |
Prepaid Forward Gold Contract Liability (Details) - Schedule of Company is Obligated to Deliver Gold [Line Items] | |
Gold Ounces per Month | 1,396 |
Total Gold Ounces | 16,752 |
April 2023 to December 2023 [Member] | |
Prepaid Forward Gold Contract Liability (Details) - Schedule of Company is Obligated to Deliver Gold [Line Items] | |
Gold Ounces per Month | 1,753 |
Total Gold Ounces | 15,777 |
January 2024 [Member] | |
Prepaid Forward Gold Contract Liability (Details) - Schedule of Company is Obligated to Deliver Gold [Line Items] | |
Gold Ounces per Month | 241 |
Total Gold Ounces | 241 |
Prepaid Forward Gold Contract_5
Prepaid Forward Gold Contract Liability (Details) - Schedule of Related Contract Expense - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Schedule of Related Contract Expense [Abstract] | |||||
Total ounces to be delivered | $ 41,545 | $ 41,545 | $ 26,839 | ||
Contractual payment per ounce in lieu of delivery | 500 | 500 | |||
Amount due in lieu of gold deliveries | 20,772,500 | 20,772,500 | 13,419,500 | ||
Prepaid forward gold contract liability balance at beginning of period | 3,110,445 | $ 8,262,715 | 5,841,383 | $ 10,263,438 | $ 10,263,438 |
Forward gold contract balance associated with ounces to be delivered during period | 1,109,228 | 883,334 | 3,101,790 | 2,343,111 | |
Reduction in prepaid forward gold contract liability balance | (2,629,500) | (2,094,000) | (7,353,000) | (5,554,500) | |
Prepaid forward gold contract liability balance at end of period | $ 1,590,173 | $ 7,052,049 | $ 1,590,173 | $ 7,052,049 |
Prepaid Forward Gold Contract_6
Prepaid Forward Gold Contract Liability (Details) - Schedule of Royalties, Upside Participation and Interest Payable - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Prepaid Forward Gold Contract Liability (Details) - Schedule of Royalties, Upside Participation and Interest Payable [Line Items] | ||
Royalties payable | $ 705,792 | $ 585,536 |
Royalties withholding payable | 37,170 | 30,820 |
Upside participation payable | 2,740,560 | 2,226,735 |
Subtotal | 3,483,522 | 2,843,091 |
Accrued interest [Member] | ||
Prepaid Forward Gold Contract Liability (Details) - Schedule of Royalties, Upside Participation and Interest Payable [Line Items] | ||
Accrued interest, prepaid forward gold contract | 1,690,687 | 640,742 |
Total | $ 5,174,209 | $ 3,483,833 |
Notes Payable (Details)
Notes Payable (Details) | Sep. 30, 2023 USD ($) |
Notes Payable [Abstract] | |
Notes payable | $ 58,061 |
Notes Payable (Details) - Sched
Notes Payable (Details) - Schedule of Notes Payable | Sep. 30, 2023 USD ($) |
Schedule of notes payable [Abstract] | |
Note payable to Epiroc, collateralized by a used Epiroc drill due in 36 monthly payments of $14,679 including interest at 5.2%. | $ 58,061 |
Total Principal amount | 58,061 |
Current portion | (58,061) |
Long term portion |
Notes Payable (Details) - Sch_2
Notes Payable (Details) - Schedule of Notes Payable (Parentheticals) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Schedule of notes payable [Abstract] | |
Number of due | 36 |
Monthly payments (in Dollars) | $ 14,679 |
Epiroc [Member] | |
Schedule of notes payable [Abstract] | |
Interest rate percentage | 5.20% |
Asset Retirement Obligation (De
Asset Retirement Obligation (Details) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Asset Retirement Obligation [Abstract] | |
Estimate value | $ 2,557,553 |
Increase estimate value | $ 1,020,553 |
Risk-free interest rate | 11% |
Asset retirement obligation | $ 22,178 |
Asset Retirement Obligation (_2
Asset Retirement Obligation (Details) - Schedule of Asset Retirement Obligations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Asset Retirement Obligations [Abstract] | ||||
Asset retirement obligation, beginning of period | $ 1,593,431 | $ 1,429,365 | $ 1,496,434 | $ 1,362,294 |
Increase due to change in estimated costs | 22,178 | |||
Accretion expense | 37,588 | 33,536 | 112,407 | 100,607 |
Asset retirement obligation, end of period | $ 1,631,019 | $ 1,462,901 | $ 1,631,019 | $ 1,462,901 |
Settlement of Consulting Cont_2
Settlement of Consulting Contract (Details) | Mar. 29, 2018 USD ($) |
Settlement of Consulting Contract [Abstract] | |
Company owing balance | $ 200,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Related Party Transactions [Line Items] | |||||
Rent expense | $ 4,500 | $ 4,500 | $ 13,500 | $ 13,500 | |
Current rate rent | 7,500 | 7,500 | |||
Accrued expenses | |||||
Accounts payable | |||||
Base annual salary | 144,000 | ||||
One Director [Member] | |||||
Related Party Transactions [Line Items] | |||||
Fees received | 6,000 | ||||
Another Director [Member] | |||||
Related Party Transactions [Line Items] | |||||
Fees received | 5,000 | ||||
Director [Member] | |||||
Related Party Transactions [Line Items] | |||||
Accrued compensation | 102,000 | 102,000 | $ 81,000 | ||
RMH Overhead, LLC (“RMH”) [Member] | |||||
Related Party Transactions [Line Items] | |||||
Rent expense | $ 10,000 | $ 15,000 | $ 52,500 | $ 70,000 |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of Amounts Accrued - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Schedule of Amounts Accrued [Line Items] | ||
Total | $ 83,695 | $ 56,159 |
Rick Havenstrite, President [Member] | ||
Schedule of Amounts Accrued [Line Items] | ||
Total | 54,157 | 37,697 |
Marianne Havenstrite, Treasurer and Principal Financial Officer [Member] | ||
Schedule of Amounts Accrued [Line Items] | ||
Total | $ 29,538 | $ 18,462 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Commitments and Contingencies [Line Items] | |||||
Claim fees | $ 11,028 | $ 11,029 | $ 11,028 | $ 11,162 | |
Tooele County [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
Amount due | $ 33,027 | ||||
Mining Lease [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
Annual claims fees | $ 165 |
Capital Stock (Details)
Capital Stock (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Capital Stock [Abstract] | ||
Common stock shares, authorized | 100,000,000 | 100,000,000 |
Common stock, voting rights | All shares have equal voting rights and have one vote per share | |
Cumulative percentage | 50% | |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Stock Options (Details)
Stock Options (Details) - $ / shares | 9 Months Ended | ||
Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2018 | |
Stock Options [Line Items] | |||
Outstanding and vested options | 2,400,000 | ||
Exercise price (in Dollars per share) | $ 0.4 | ||
Stock Incentive Plan [Member] | |||
Stock Options [Line Items] | |||
Reserved shares | 2,400,000 |
Revenue (Details) - Schedule of
Revenue (Details) - Schedule of Product Sales - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Concentrate sales | ||||
Total concentrate sales | $ 768,991 | $ 1,408,466 | $ 3,006,407 | $ 4,114,859 |
Deductions to concentrate sales | ||||
Royalties | (32,379) | (59,304) | (126,586) | (173,257) |
Upside participation payments | (129,481) | (187,255) | (513,825) | (620,370) |
Outside processing | (49,437) | (69,053) | (160,181) | (193,349) |
Subtotal – deductions to concentrate sales | (211,297) | (315,612) | (800,592) | (986,976) |
Net concentrate sales | 557,694 | 1,092,854 | 2,205,815 | 3,127,883 |
Net contract processing income | 158,757 | 1,130,186 | ||
TOTAL REVENUE | 557,694 | 1,251,611 | 2,205,815 | 4,258,069 |
Gold [Member] | ||||
Concentrate sales | ||||
Total concentrate sales | 754,777 | 1,389,897 | 2,949,698 | 4,061,437 |
Silver [Member] | ||||
Concentrate sales | ||||
Total concentrate sales | $ 14,214 | $ 18,569 | $ 56,709 | $ 53,422 |