Timberline Resources (TLRS) 10-Q 10 Feb 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Dec. 31, 2014	Feb. 10, 2014
Document and Entity Information
Entity Registrant Name	Timberline Resources Corp
Document Type	10-Q
Document Period End Date	31-Dec-14
Amendment Flag	FALSE
Entity Central Index Key	1288750
Current Fiscal Year End Date	-21
Entity Common Stock, Shares Outstanding		10,000,084
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

TIMBERLINE_RESOURCES_CORPORATI

TIMBERLINE RESOURCES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (interim period unaudited) (USD $)	Dec. 31, 2014		Sep. 30, 2014
CURRENT ASSETS:
Cash	$2,095,759		$2,825,320
Prepaid expenses and other current assets	109,832		30,769
Joint venture receivable	1,896		11,576
Current portion of prepaid drilling services	220,000
TOTAL CURRENT ASSETS	2,427,487		2,867,665
PROPERTY, MINERAL RIGHTS AND EQUIPMENT	14,449,558		14,431,038
OTHER ASSETS:
Prepaid drilling services	220,000		440,000
Investment in joint venture	642,450		642,450
Restricted cash	971,854		971,854
Deposits and other assets	4,500		4,500
TOTAL OTHER ASSETS	1,838,804		2,058,804
TOTAL ASSETS	18,715,849		19,357,507
CURRENT LIABILITIES:
Accounts payable	210,051		140,697
Accrued expenses	15,000		57,419
Accrued director fees			91,000
Accrued payroll, benefits and taxes	35,958		35,958
TOTAL CURRENT LIABILITIES	261,009		325,074
LONG-TERM LIABILITIES:
Common stock payable			80,000
Asset retirement obligation	133,707		132,115
TOTAL LONG-TERM LIABILITIES	133,707		212,115
COMMITMENTS	0	[1]	0	[1]
STOCKHOLDERS' EQUITY:
Preferred stock, $0.01 par value; 10,000,000 shares authorized, none issued and outstanding	0		0
Common stock, $0.001 par value; 200,000,000 shares authorized, 9,900,084 and 9,816,751 shares issued and outstanding, respectively	9,900		9,817
Additional paid-in capital	63,763,092		63,573,675
Accumulated deficit	-45,451,859		-44,763,174
TOTAL STOCKHOLDERS' EQUITY	18,321,133		18,820,318
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$18,715,849		$19,357,507
[1]	Note 11

Statement_of_Financial_Positio

Statement of Financial Position - Parenthetical (USD $)	Dec. 31, 2014	Sep. 30, 2014
Statement of financial position
Preferred Stock, Par Value	$0.01	$0.01
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par Value	$0.00	$0.00
Common Stock, Shares Authorized	200,000,000	200,000,000
Common Stock, Shares Issued	9,900,084	9,816,751
Common Stock, Shares Outstanding	9,900,084	9,816,751

TIMBERLINE_RESOURCES_CORPORATI1

TIMBERLINE RESOURCES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
OPERATING EXPENSES:
Mineral exploration expenses	$242,320	$163,950
Salaries and benefits	200,447	201,512
Professional fees expense	89,078	57,919
Insurance expense	21,211	22,313
Gain on disposal of equipment		-16,565
Other general and administrative expenses	136,283	79,214
TOTAL OPERATING EXPENSES	689,339	508,343
LOSS FROM OPERATIONS	-689,339	-508,343
OTHER INCOME (EXPENSE):
Foreign exchange gain/(loss)	535	-426
Interest income, net	119	78
TOTAL OTHER INCOME (EXPENSE)	654	-348
LOSS BEFORE INCOME TAXES	-688,685	-508,691
INCOME TAX EXPENSE	0	0
NET LOSS	($688,685)	($508,691)
NET LOSS PER SHARE AVAILABLE TO COMMON STOCKHOLDERS, BASIC AND DILUTED	($0.07)	($0.08)
WEIGHTED AVERAGE SHARES OUTSTANDING, BASIC AND DILUTED	9,898,273	6,180,628

TIMBERLINE_RESOURCES_CORPORATI2

TIMBERLINE RESOURCES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	($688,685)	($508,691)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation and amortization	1,980	5,178
Stock based compensation	109,500
Gain on disposal of equipment		-16,565
Accretion of asset retirement obligation	1,592	1,516
Changes in operating assets and liabilities:
Prepaid drilling services, prepaid expenses and other current assets, deposits and other assets	-79,063	-2,454
Joint venture receivable	9,680	19,753
Accounts payable	69,354	-28,993
Accrued expenses	-133,419	-33,705
Accrued payroll, benefits and taxes		-1,215
Net cash used by operating activities	-709,061	-565,176
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, mineral rights and equipment	-29,000	-54,000
Proceeds from sale of property, mineral rights and equipment	8,500	22,056
Net cash used by investing activities	-20,500	-31,944
Net decrease in cash and cash equivalents	-729,561	-597,120
CASH AT BEGINNING OF PERIOD	2,825,320	824,919
CASH AT END OF PERIOD	2,095,759	227,799
NON-CASH FINANCING AND INVESTING ACTIVITIES:
Common stock issued for property, mineral rights and equipment purchase		40,000
Common stock payable for accounts payable		60,000
Common stock issued for common stock payable	$80,000

Note_1_Organization_and_Descri

Note 1 - Organization and Description of Business	3 Months Ended
	Dec. 31, 2014
Notes
Note 1 - Organization and Description of Business:	NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS:
	Timberline Resources Corporation (“Timberline” or “the Company”, “we”, “us”, “our”) was incorporated in August of 1968 under the laws of the State of Idaho as Silver Crystal Mines, Inc., for the purpose of exploring for precious metal deposits and advancing them to production.  In 2008, we reincorporated into the State of Delaware pursuant to a merger agreement approved by our shareholders.
	In 2006, we acquired Kettle Drilling, Inc. and its Mexican subsidiary, World Wide Exploration S.A. de C.V. (“World Wide”). In 2008, Kettle Drilling, Inc. changed its name to Timberline Drilling Incorporated (“Timberline Drilling”).  In November 2011, we sold Timberline Drilling and World Wide and became solely a mineral exploration enterprise.

Note_2_Summary_of_Significant_

Note 2 - Summary of Significant Accounting Policies	3 Months Ended
	Dec. 31, 2014
Notes
Note 2 - Summary of Significant Accounting Policies:	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
	a.     Basis of Presentation and Going Concern – The accompanying unaudited consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information, as well as the instructions to Form 10-Q. Accordingly, the financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of our management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the interim financial statements have been included. Operating results for the three months ended December 31, 2014 are not necessarily indicative of the results that may be expected for the full year ending September 30, 2015.  All amounts presented are in U.S. dollars.  For further information refer to the financial statements and footnotes thereto in our Annual Report on Form 10-K for the fiscal year ended September 30, 2014.
	The consolidated financial statements for the three months ended December 31, 2014 were prepared on the basis that the Company is a going concern, which contemplates the realization of its assets and the settlement of its liabilities in the normal course of operations. These financial statements do not reflect adjustments that would be necessary if the going concern assumption were not appropriate.  The Company’s ability to continue as a going concern is dependent upon its ability to receive cash flow from its Butte Highlands Gold Project or to successfully obtain additional financing. While the Company has been successful in the past in obtaining financing, there is no assurance that it will be able to obtain adequate financing in the future or that such financing will be on terms acceptable to the Company.
	b.     Reclassifications – Certain amounts in the prior period financial statements have been reclassified for comparative purposes to conform to current period presentation with no effect on previously reported net income (loss) and accumulated deficit.
	c.      Net Income (Loss) per Share – Basic earnings per share (“EPS”) is computed as net income (loss) divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock options, warrants, and other convertible securities.
	The dilutive effect of convertible and outstanding securities, in periods of future income as of December 31, 2014 and 2013, would be as follows:
		2014	2013
	Stock options	568,334	332,625
	Warrants	25,000	25,000
	Total possible dilution	593,334	357,625
	At December 31, 2014 and 2013, the effect of the Company’s outstanding options and common stock equivalents would have been anti-dilutive.
	d.      Asset retirement obligation – We account for asset retirement obligations by following the uniform methodology for accounting for estimated reclamation and abandonment costs as prescribed by authoritative accounting guidance.  This guidance provides that the fair value of a liability for an asset retirement obligation (“ARO”) will be recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. The ARO is capitalized as part of the carrying value of the assets to which it is associated, and depreciated over the useful life of the asset. Adjustments are made to the liability for changes resulting from passage of time and changes to either the timing or amount of the original present value estimate underlying the obligation. We have an ARO associated with our exploration program at the Lookout Mountain exploration project.
	e.      New accounting pronouncements – In June 2014 the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-10 (“the ASU”). This update changes the requirements for disclosures as it relates to exploration stage entities.  The ASU specifies that the ‘inception–to-date’ information is no longer required to be presented in the financial statements of an exploration stage entity.  The amendments in the ASU are effective for annual reporting periods beginning after December 15, 2014 and interim periods therein, with early application permitted for any financial statements that have not yet been issued.  The Company has elected to apply the amendments as of June 30, 2014.

Note_3_Fair_Value_Measurements

Note 3 - Fair Value Measurements	3 Months Ended
	Dec. 31, 2014
Notes
Note 3 - Fair Value Measurements:	NOTE 3 – FAIR VALUE MEASUREMENTS:
	The table below sets forth our financial assets and liabilities that were accounted for at fair value on a recurring basis and the fair value calculation input hierarchy level that we have determined applies to each asset and liability category.
			December 31,   2014	30-Sep-14		Input Hierarchy Level
	Assets:
	Cash	$	2,095,759	$	2,825,320		Level 1
	Restricted cash		971,854		971,854		Level 1

Note_4_Acquisition_of_Wolfpack

Note 4 - Acquisition of Wolfpack Gold (Nevada) Corp.	3 Months Ended
	Dec. 31, 2014
Notes
Note 4 - Acquisition of Wolfpack Gold (Nevada) Corp.:	NOTE 4 - ACQUISITION OF WOLFPACK GOLD (NEVADA) CORP.:
	On August 15, 2014, we completed our acquisition of all of the issued and outstanding common shares of Wolfpack Gold (Nevada) Corp. (“Wolfpack Nevada”) in accordance with the terms of an Arrangement Agreement, dated May 6, 2014, by and between the Company and the parent company of Wolfpack Nevada, Wolfpack Gold Corp. (“Wolfpack”).  The acquisition was approved by the stockholders of both Timberline and Wolfpack.   Wolfpack Nevada was a subsidiary company of Wolfpack, a publicly held Canadian corporation engaged in the exploration of precious metals properties in Nevada.  We acquired Wolfpack Nevada in order to further the exploration and development of mineral properties owned or leased by Wolfpack Nevada, as well as to increase our working capital.
	This transaction was accounted for as a business combination.  We acquired all of the shares of Wolfpack Nevada in consideration for the issuance of one share of common stock of Timberline for each 0.75 common shares of Wolfpack. Pre-acquisition Timberline shareholders own approximately 64% of our issued and outstanding common stock as of the acquisition date and former Wolfpack shareholders own approximately 36%.
	The purchase price of the transaction was $5,151,847, consisting entirely of the issuance of 3,577,672 shares of our common stock.  Of the 3,577,672 shares of common stock issued, 706,407 shares of common stock were issued to Wolfpack in exchange for the cancellation of a $1,000,000 promissory note of Timberline held by Wolfpack, as well as $17,226 of accrued and unpaid interest on the promissory note (see Note 8).
	We incurred $256,223 in expenses specifically related to the acquisition, $236,866 of which is included in professional fees expense, $1,918 is included in mineral exploration expenses, and $17,439 is included in other general and administrative expenses in the consolidated statement of operations for the year ended September 30, 2014.
	The acquisition of Wolfpack Nevada closed at 9:00 a.m. pacific time on August 15, 2014.  The closing price of the Company’s common stock on the NYSE MKT on the day prior to this date was $1.44 per share (adjusted for the reverse stock split – See Note 9).
	The purchase price allocation of the acquisition is summarized as follows:
	Purchase price:
	Shares issued on acquisition	$	5,151,847
	Cancellation of promissory note and accrued interest		-1,017,226
		$	4,134,621
	Net assets acquired:
	Cash	$	3,554,143
	Restricted cash		348,616
	Property, mineral rights, and equipment, net		231,862
		$	4,134,621

Note_5_Investment_in_Joint_Ven

Note 5 - Investment in Joint Venture	3 Months Ended
	Dec. 31, 2014
Notes
Note 5 - Investment in Joint Venture:	NOTE 5 – INVESTMENT IN JOINT VENTURE:
	In July 2009, we entered into a joint venture operating agreement (the “Agreement”) with Highland Mining, LLC (“Highland”).  The joint venture entity, Butte Highlands JV, LLC (“BHJV”) was created for the purpose of developing and mining the Butte Highlands Gold Project.  As a result of our contribution of our 100% interest in the Butte Highlands Gold Project, carried on our balance sheet at cost, we hold a 50% interest in BHJV.  Under terms of the Agreement, our interest in BHJV will be carried to production by Highland, which will fund all future project exploration and mine development costs.
	Under the Agreement, Highland contributed property and agreed to fund all future mine development costs at Butte Highlands.  Both the Company’s and Highland’s share of development costs will be paid from proceeds of future mine production.  The Operating Agreement stipulates that Highland shall appoint a manager of BHJV and that Highland will manage BHJV until such time as all mine development costs, less $2 million (the deemed value of our contribution of property to BHJV), are distributed to Highland out of the proceeds from future mine production.
	At December 31, 2014 and September 30, 2014, we have a receivable from BHJV for expenses incurred on behalf of BHJV in the amount of $1,896 and $11,576, respectively.

Note_6_Prepaid_Drilling_Servic

Note 6 - Prepaid Drilling Services	3 Months Ended
	Dec. 31, 2014
Notes
Note 6 - Prepaid Drilling Services:	NOTE 6 – PREPAID DRILLING SERVICES:
	During the year ended September 30, 2012, we obtained $1,100,000 in prepaid drilling services as a portion of the consideration received from the sale of Timberline Drilling.  The prepayment amount represents discounts on future drilling services, or cash if we do not use the prepaid drilling services, to be provided by Timberline Drilling to us between November 2011 and November 2016.  During the year ended September 30, 2014, we accepted $150,000 as settlement of the portion of the prepaid drilling services that was due to be paid to the Company in November 2014 ($220,000).
	The following table summarizes activity in the Company’s prepaid drilling services:
		Three months ended		Year ended
		31-Dec-14		30-Sep-14
	Beginning balance	$	440,000	$	660,000
	Cash received in lieu of drilling services		-		-150,000
	Loss on settlement of prepaid drilling services		-		-70,000
	Less current portion		-220,000		-
	Ending balance	$	220,000	$	440,000

Note_7_Related_Party_Transacti

Note 7 - Related Party Transactions	3 Months Ended
	Dec. 31, 2014
Notes
Note 7 - Related Party Transactions:	NOTE 7 – RELATED PARTY TRANSACTIONS:
	Director fees
	The Company has accrued nil and $91,000 in director fees as of December 31, 2014 and September 30, 2014, respectively.
	Daycon Minerals
	We own approximately 5% and 5% of the issued and outstanding stock of Daycon Minerals (“Daycon”) as of December 31, 2014 and September 30, 2014, respectively.  In addition, our former President and CEO, Paul Dircksen, is a member of the board of directors of Daycon as of December 31, 2014.  At September 30, 2013 we evaluated the fair value of our investment in Daycon and determined that this asset was impaired.  We determined that the fair value measurement of our investment in Daycon fell under Level 3 (no significant observable inputs) of the fair value hierarchy.  Given the adverse market conditions for mineral exploration companies and our doubt about Daycon’s ability to continue as a going concern, we concluded that the fair value of our investment in Daycon was zero.  As a result, we recognized a $450,000 impairment of long term investments in our consolidated statement of operations for the year ended September 30, 2013.

Note_8_Note_Payable

Note 8 - Note Payable	3 Months Ended
	Dec. 31, 2014
Notes
Note 8 - Note Payable:	NOTE 8 – NOTE PAYABLE:
	On March 14, 2014, the Company entered into a promissory note (the “Note”) and deed of trust, security agreement, assignment of leases and rents and fixture filing to secure promissory note (the “Deed of Trust”) with Wolfpack.  The Company and Wolfpack entered into the Note and the Deed of Trust in connection with a proposed business combination (the “Proposed Transaction”) that was the subject of a letter of intent between the parties dated effective March 11, 2014 and was completed on August 15, 2014 (see Note 4).
	Pursuant to the Note, the Company agreed to repay Wolfpack the unpaid principal amount of advances made under the Note up to a maximum principal amount of $1,000,000, together with accrued interest thereon.   The amount drawn on the Note bore interest at 5% during the first six months of the loan and 10% thereafter until repaid.  Interest was payable in arrears on the date that the Note was prepaid, in proportion to the principal amount being prepaid, or on the date that the Note was due and payable. The Note became payable five business days after the Proposed Transaction closed.  The outstanding principal amount of $1,000,000, together with accrued interest of $17,226, was paid to Wolfpack with the issuance of 706,407 shares of our common stock on August 15, 2014.

Note_9_Common_Stock_Warrants_a

Note 9 - Common Stock, Warrants and Preferred Stock	3 Months Ended
	Dec. 31, 2014
Notes
Note 9 - Common Stock, Warrants and Preferred Stock:	NOTE 9 – COMMON STOCK, WARRANTS AND PREFERRED STOCK:
	One-for-twelve Reverse Stock Split
	Subsequent to September 30, 2014, our board of directors and stockholders approved a one-for-twelve reverse stock split of the Company’s common stock. After the reverse stock split, effective October 31, 2014, each holder of record held one share of common stock for every 12 shares held immediately prior to the effective date. As a result of the reverse stock split, the number of shares underlying outstanding stock options and warrants and the related exercise prices were adjusted to reflect the change in the share price and outstanding shares on the date of the reverse stock split. The effect of fractional shares was not material.
	Following the effective date of the reverse stock split, the par value of the common stock remained at $0.001 per share. As a result, we have reduced the common stock in the consolidated balance sheets and statement of changes in stockholders’ equity included herein on a retroactive basis for all periods presented, with a corresponding increase to additional paid-in capital. All share and per-share amounts and related disclosures have been retroactively adjusted for all periods presented to reflect the one-for-twelve reverse stock split.
	Increase in Authorized Shares
	During the year ended September 30, 2014, our board of directors and stockholders approved an increase in the number of  authorized shares of common stock from 100,000,000 shares, par value $0.001, to 200,000,000 shares of common stock, par value $0.001.
	Stock Issued for Mineral Rights, Property and Equipment
	During the year ended September 30, 2014, pursuant to a vendor agreement related to the provision of metallurgical testing services, we issued 53,922 restricted common shares with a value of $110,000 based upon the closing price of our shares of common stock on the date of issuance as quoted on the NYSE MKT.
	During the year ended September 30, 2014, pursuant to an amended mineral property lease and option agreement for mineral claims, we issued 16,667 restricted common shares with a value of $40,000 based upon the closing price of our shares of common stock on the date of issuance as quoted on the NYSE MKT.
	On October 3, 2014, pursuant to a mineral property lease and option agreement for mineral claims, we issued 83,334 restricted common shares with a value of $80,000 based upon the closing price of our shares of common stock on the date of issuance as quoted on the NYSE MKT.
	Stock Issued for Repayment of Note Payable
	On March 14, 2014, we entered into a promissory note (the “Note”) and deed of trust, security agreement, assignment of leases and rents and fixture filing to secure promissory note (the “Deed of Trust”) with Wolfpack (see Notes 4 and 8). The outstanding principal amount of $1,000,000, together with accrued interest of $17,226, was paid to Wolfpack with the issuance of 706,407 shares of our common stock on August 15, 2014.
	Warrants
	We issued 25,000 warrants during the year ended September 30, 2013 in connection with our public offerings.  12,500 of the warrants are exercisable on a cashless basis, at the holders’ option, for a two-year term commencing December 26, 2013.  The remaining 12,500 warrants are exercisable on a cashless basis, at the holders’ option, for a two-year term commencing September 10, 2014.  No warrants were issued during the year ended September 30, 2014, and no warrants were exercised or expired during the years ended September 30, 2014 or 2013.
	Preferred Stock
	We are authorized to issue up to 10,000,000 shares of preferred stock, $0.01 par value. Our Board of Directors is authorized to issue the preferred stock from time to time in series, and is further authorized to establish such series, to fix and determine the variations in the relative rights and preferences as between series, to fix voting rights, if any, for each series, and to allow for the conversion of preferred stock into common stock.

Note_10_Stock_Options

Note 10 - Stock Options	3 Months Ended
	Dec. 31, 2014
Notes
Note 10 - Stock Options:	NOTE 10 – STOCK OPTIONS:
	We have established the Amended 2005 Equity Incentive Plan (as amended by our shareholders on May 28, 2010) to authorize the granting of up to 833,334 stock options to employees, directors and consultants. Upon exercise of options, shares are issued from the available authorized shares of the Company.  Option awards are granted with an exercise price equal to the fair market value of our stock at the date of grant.
	During the three months ended December 31, 2014, 365,000 options were granted, with a vesting date of January 1, 2015.  No option awards were granted during the three months ended December 31, 2013, and no option awards vested under the plan during the period.  Total compensation cost of options is generally recognized from the grant date through the vesting date.  Total compensation cost of options for employees was $55,500 and nil for the three months ended December 31, 2014 and 2013, respectively.  These costs are classified under salaries and benefits expense. Total compensation cost of options for directors was $54,000 and nil for the three months ended December 31, 2014 and 2013, respectively.  These costs are classified as other general and administrative expenses.
	The fair value of the option awards was estimated to be $109,500 on the date of grant with a Black-Scholes option-pricing model using the assumptions noted in the following table.
			Three months ended
			31-Dec-14
	Expected volatility		100.90%
	Stock price on date of grant		$0.48
	Expected dividends		0
	Expected term (in years)		3
	Risk-free rate		1.06%
	Expected forfeiture rate		0%
	The following is a summary of our options issued under the Amended 2005 Equity Incentive Plan:
				Options		Weighted  Average
						Exercise Price
	Outstanding at September 30, 2014				203,334	$	9.09
		Granted			365,000		0.48
		Exercised			-		-
		Expired			-		-
	Outstanding at December 31, 2014				568,334	$	3.56
	Exercisable at December 31, 2014				203,334	$	9.09
	Weighted average fair value of options granted during the year ended December 31, 2014					$	0.3
	Unrecognized compensation expense related to options at December 31, 2014					$	-
	Average remaining contractual term of options outstanding and exercisable
	at December 31, 2014 (years)
	Outstanding						3.69
	Exercisable						1.42
	The aggregate of options exercisable as of December 31, 2014 had no intrinsic value based on the closing price of $0.59 per share of our common stock on December 31, 2014.

Note_11_Commitments

Note 11 - Commitments	3 Months Ended
	Dec. 31, 2014
Notes
Note 11 - Commitments:	NOTE 11 – COMMITMENTS:
	Real Estate Lease Commitments
	The Company has real estate lease commitments related to its main office in Coeur d’Alene, Idaho and a facility in Eureka, Nevada.
	Total office lease expense from continuing operations is included in the consolidated statements of operations as follows:
			Three months ended December 31,
			2014		2013
	Mineral exploration expenses	$	3,900	$	3,900
	Other general and administrative expenses		10,500		12,000
	Total	$	14,400	$	15,900

Note_12_Subsequent_Events

Note 12 - Subsequent Events	3 Months Ended
	Dec. 31, 2014
Notes
Note 12 - Subsequent Events	NOTE 12 – SUBSEQUENT EVENTS
	On January 14, 2015, 34,189 stock options were awarded, with a vesting date of January 14, 2015.  The fair value of the option awards was estimated to be $16,753 on the date of grant with a Black-Scholes option-pricing model using the assumptions noted in the following table.
		14-Jan-15
	Expected volatility	110.10%
	Weighted-average volatility	110.10%
	Expected dividends	0
	Expected term (in years)	3
	Risk-free rate	0.83%
	Expected forfeiture rate	0%

Note_2_Summary_of_Significant_1

Note 2 - Summary of Significant Accounting Policies: a. Basis of Presentation (Policies)	3 Months Ended
	Dec. 31, 2014
Policies
a. Basis of Presentation	a.     Basis of Presentation and Going Concern – The accompanying unaudited consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information, as well as the instructions to Form 10-Q. Accordingly, the financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of our management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the interim financial statements have been included. Operating results for the three months ended December 31, 2014 are not necessarily indicative of the results that may be expected for the full year ending September 30, 2015.  All amounts presented are in U.S. dollars.  For further information refer to the financial statements and footnotes thereto in our Annual Report on Form 10-K for the fiscal year ended September 30, 2014.
	The consolidated financial statements for the three months ended December 31, 2014 were prepared on the basis that the Company is a going concern, which contemplates the realization of its assets and the settlement of its liabilities in the normal course of operations. These financial statements do not reflect adjustments that would be necessary if the going concern assumption were not appropriate.  The Company’s ability to continue as a going concern is dependent upon its ability to receive cash flow from its Butte Highlands Gold Project or to successfully obtain additional financing. While the Company has been successful in the past in obtaining financing, there is no assurance that it will be able to obtain adequate financing in the future or that such financing will be on terms acceptable to the Company.

Note_2_Summary_of_Significant_2

Note 2 - Summary of Significant Accounting Policies: b. Reclassifications (Policies)	3 Months Ended
	Dec. 31, 2014
Policies
b. Reclassifications	b.     Reclassifications – Certain amounts in the prior period financial statements have been reclassified for comparative purposes to conform to current period presentation with no effect on previously reported net income (loss) and accumulated deficit.

Note_2_Summary_of_Significant_3

Note 2 - Summary of Significant Accounting Policies: c. Net Income (Loss) per Share (Policies)	3 Months Ended
	Dec. 31, 2014
Policies
c. Net Income (Loss) per Share	c.      Net Income (Loss) per Share – Basic earnings per share (“EPS”) is computed as net income (loss) divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock options, warrants, and other convertible securities.
	The dilutive effect of convertible and outstanding securities, in periods of future income as of December 31, 2014 and 2013, would be as follows:
		2014	2013
	Stock options	568,334	332,625
	Warrants	25,000	25,000
	Total possible dilution	593,334	357,625
	At December 31, 2014 and 2013, the effect of the Company’s outstanding options and common stock equivalents would have been anti-dilutive.

Note_2_Summary_of_Significant_4

Note 2 - Summary of Significant Accounting Policies: d. Asset Retirement Obligation (Policies)	3 Months Ended
	Dec. 31, 2014
Policies
d. Asset Retirement Obligation	d.      Asset retirement obligation – We account for asset retirement obligations by following the uniform methodology for accounting for estimated reclamation and abandonment costs as prescribed by authoritative accounting guidance.  This guidance provides that the fair value of a liability for an asset retirement obligation (“ARO”) will be recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. The ARO is capitalized as part of the carrying value of the assets to which it is associated, and depreciated over the useful life of the asset. Adjustments are made to the liability for changes resulting from passage of time and changes to either the timing or amount of the original present value estimate underlying the obligation. We have an ARO associated with our exploration program at the Lookout Mountain exploration project.

Note_2_Summary_of_Significant_5

Note 2 - Summary of Significant Accounting Policies: e. New Accounting Pronouncements (Policies)	3 Months Ended
	Dec. 31, 2014
Policies
e. New Accounting Pronouncements	e.      New accounting pronouncements – In June 2014 the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-10 (“the ASU”). This update changes the requirements for disclosures as it relates to exploration stage entities.  The ASU specifies that the ‘inception–to-date’ information is no longer required to be presented in the financial statements of an exploration stage entity.  The amendments in the ASU are effective for annual reporting periods beginning after December 15, 2014 and interim periods therein, with early application permitted for any financial statements that have not yet been issued.  The Company has elected to apply the amendments as of June 30, 2014.

Note_2_Summary_of_Significant_6

Note 2 - Summary of Significant Accounting Policies: c. Net Income (Loss) per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Tables)	3 Months Ended
	Dec. 31, 2014
Tables/Schedules
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
		2014	2013
	Stock options	568,334	332,625
	Warrants	25,000	25,000
	Total possible dilution	593,334	357,625

Note_3_Fair_Value_Measurements1

Note 3 - Fair Value Measurements: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Tables)	3 Months Ended
	Dec. 31, 2014
Tables/Schedules
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
			December 31,   2014	30-Sep-14		Input Hierarchy Level
	Assets:
	Cash	$	2,095,759	$	2,825,320		Level 1
	Restricted cash		971,854		971,854		Level 1

Note_4_Acquisition_of_Wolfpack1

Note 4 - Acquisition of Wolfpack Gold (Nevada) Corp.: Schedule of Business Acquisitions, by Acquisition (Tables)	3 Months Ended
	Dec. 31, 2014
Tables/Schedules
Schedule of Business Acquisitions, by Acquisition
	Purchase price:
	Shares issued on acquisition	$	5,151,847
	Cancellation of promissory note and accrued interest		-1,017,226
		$	4,134,621
	Net assets acquired:
	Cash	$	3,554,143
	Restricted cash		348,616
	Property, mineral rights, and equipment, net		231,862
		$	4,134,621

Note_6_Prepaid_Drilling_Servic1

Note 6 - Prepaid Drilling Services: Schedule of Other Assets (Tables)	3 Months Ended
	Dec. 31, 2014
Tables/Schedules
Schedule of Other Assets
		Three months ended		Year ended
		31-Dec-14		30-Sep-14
	Beginning balance	$	440,000	$	660,000
	Cash received in lieu of drilling services		-		-150,000
	Loss on settlement of prepaid drilling services		-		-70,000
	Less current portion		-220,000		-
	Ending balance	$	220,000	$	440,000

Note_10_Stock_Options_Compensa

Note 10 - Stock Options: Compensation and Employee Benefit Plans (Tables)	3 Months Ended
	Dec. 31, 2014
Tables/Schedules
Compensation and Employee Benefit Plans	We have established the Amended 2005 Equity Incentive Plan (as amended by our shareholders on May 28, 2010) to authorize the granting of up to 833,334 stock options to employees, directors and consultants. Upon exercise of options, shares are issued from the available authorized shares of the Company.  Option awards are granted with an exercise price equal to the fair market value of our stock at the date of grant.

Note_10_Stock_Options_Schedule

Note 10 - Stock Options: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Tables)	3 Months Ended
	Dec. 31, 2014
Tables/Schedules
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions
		Three months ended
		31-Dec-14
	Expected volatility	100.90%
	Stock price on date of grant	$0.48
	Expected dividends	0
	Expected term (in years)	3
	Risk-free rate	1.06%
	Expected forfeiture rate	0%

Note_10_Stock_Options_Schedule1

Note 10 - Stock Options: Schedule of Share-based Compensation, Stock Options, Activity (Tables)	3 Months Ended
	Dec. 31, 2014
Tables/Schedules
Schedule of Share-based Compensation, Stock Options, Activity
			Options		Weighted  Average
					Exercise Price
	Outstanding at September 30, 2014			203,334	$	9.09
		Granted		365,000		0.48
		Exercised		-		-
		Expired		-		-
	Outstanding at December 31, 2014			568,334	$	3.56
	Exercisable at December 31, 2014			203,334	$	9.09
	Weighted average fair value of options granted during the year ended December 31, 2014				$	0.3
	Unrecognized compensation expense related to options at December 31, 2014				$	-
	Average remaining contractual term of options outstanding and exercisable
	at December 31, 2014 (years)
	Outstanding					3.69
	Exercisable					1.42

Note_11_Commitments_Schedule_o

Note 11 - Commitments: Schedule of Rent Expense (Tables)	3 Months Ended
	Dec. 31, 2014
Tables/Schedules
Schedule of Rent Expense
			Three months ended December 31,
			2014		2013
	Mineral exploration expenses	$	3,900	$	3,900
	Other general and administrative expenses		10,500		12,000
	Total	$	14,400	$	15,900

Note_2_Summary_of_Significant_7

Note 2 - Summary of Significant Accounting Policies: a. Basis of Presentation (Details)	3 Months Ended
	Dec. 31, 2014
Details
Going Concern Note	The consolidated financial statements for the three months ended December 31, 2014 were prepared on the basis that the Company is a going concern, which contemplates the realization of its assets and the settlement of its liabilities in the normal course of operations. These financial statements do not reflect adjustments that would be necessary if the going concern assumption were not appropriate. The Company’s ability to continue as a going concern is dependent upon its ability to receive cash flow from its Butte Highlands Gold Project or to successfully obtain additional financing. While the Company has been successful in the past in obtaining financing, there is no assurance that it will be able to obtain adequate financing in the future or that such financing will be on terms acceptable to the Company.

Note_2_Summary_of_Significant_8

Note 2 - Summary of Significant Accounting Policies: c. Net Income (Loss) per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Details
Stock options	568,334	332,625
Warrants	25,000	25,000
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	593,334	357,625

Note_3_Fair_Value_Measurements2

Note 3 - Fair Value Measurements: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) (USD $)	Dec. 31, 2014	Sep. 30, 2014
Details
Cash and Cash Equivalents, Fair Value Disclosure	$2,095,759	$2,825,320
Restricted Cash and Cash Equivalents, Current	$971,854	$971,854

Note_4_Acquisition_of_Wolfpack2

Note 4 - Acquisition of Wolfpack Gold (Nevada) Corp. (Details) (USD $)	3 Months Ended
	Sep. 30, 2014	Aug. 15, 2014	Jun. 30, 2014
Details
Business Combination, Consideration Transferred, Other	$5,151,847
Stock Issued During Period, Shares, Acquisitions	3,577,672
Stock Issued During Period Stock Acquisitions Detail 1	706,407
Notes Payable			1,000,000
Interest Paid	17,226
Business Combination, Acquisition Related Costs	256,223
Professional fees, business combination detail	236,866
Mineral Exploration Expense, business combination detail	1,918
General and Administrative Expense, business combination detail	$17,439
Business Acquisition, Share Price		$1.44

Note_4_Acquisition_of_Wolfpack3

Note 4 - Acquisition of Wolfpack Gold (Nevada) Corp.: Schedule of Business Acquisitions, by Acquisition (Details) (USD $)	3 Months Ended
	Sep. 30, 2014
Details
Business Combination, Consideration Transferred, Other	$5,151,847
Stock Issued During Period, Value, Acquisitions	4,134,621
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents	3,554,143
Business combination recognized identifiable assets acquired and liabilities assumed, restricted cash	348,616
Business combination recognized identifiable assets acquired and liabilities assumed, property, mineral rights and equipment, net	231,862
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets	$4,134,621

Note_5_Investment_in_Joint_Ven1

Note 5 - Investment in Joint Venture (Details) (USD $)	Dec. 31, 2014	Sep. 30, 2014
Details
Due from Affiliate, Current	$1,896	$11,576

Note_6_Prepaid_Drilling_Servic2

Note 6 - Prepaid Drilling Services (Details) (USD $)	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2012
Details
Prepaid drilling services acquired		$1,100,000
Cash received in lieu of drilling services	$150,000

Note_6_Prepaid_Drilling_Servic3

Note 6 - Prepaid Drilling Services: Schedule of Other Assets (Details) (USD $)	3 Months Ended	12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014
Details
Beginning balance, Prepaid drilling services	440,000	660,000
Cash received in lieu of drilling services		($150,000)
Other Nonoperating Gains (Losses)		-70,000
Current portion of prepaid drilling services	-220,000
Prepaid drilling services	$220,000	$440,000

Note_7_Related_Party_Transacti1

Note 7 - Related Party Transactions (Details) (USD $)	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Details
Noninterest Expense Directors Fees	$91,000
Impairment of Long-Lived Assets to be Disposed of		$450,000

Note_8_Note_Payable_Details

Note 8 - Note Payable (Details) (USD $)	3 Months Ended
	Sep. 30, 2014	Jun. 30, 2014
Details
Notes Payable		$1,000,000
Interest Paid	$17,226
Stock Issued During Period Stock Acquisitions Detail 1	706,407

Note_9_Common_Stock_Warrants_a1

Note 9 - Common Stock, Warrants and Preferred Stock (Details) (USD $)	3 Months Ended	12 Months Ended	24 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Sep. 10, 2016	Dec. 26, 2015	Sep. 30, 2013
Details
Stockholders' Equity, Reverse Stock Split	One-for-twelve Reverse Stock Split Subsequent to September 30, 2014, our board of directors and stockholders approved a one-for-twelve reverse stock split of the Company’s common stock. After the reverse stock split, effective October 31, 2014, each holder of record held one share of common stock for every 12 shares held immediately prior to the effective date. As a result of the reverse stock split, the number of shares underlying outstanding stock options and warrants and the related exercise prices were adjusted to reflect the change in the share price and outstanding shares on the date of the reverse stock split. The effect of fractional shares was not material. Following the effective date of the reverse stock split, the par value of the common stock remained at $0.001 per share. As a result, we have reduced the common stock in the consolidated balance sheets and statement of changes in stockholders’ equity included herein on a retroactive basis for all periods presented, with a corresponding increase to additional paid-in capital. All share and per-share amounts and related disclosures have been retroactively adjusted for all periods presented to reflect the one-for-twelve reverse stock split.
Common Stock, Shares Authorized	200,000,000	200,000,000			100,000,000
Common Stock, Par Value	$0.00	$0.00			$0.00
Common stock issued, vendor		53,922
Common stock issued value, vendor		$110,000
Common stock issued, mineral claims	83,334	16,667
Common stock issued value, mineral claims	80,000	40,000
Warrants and Rights Outstanding					$25,000
Common Stock Public Offering, warrants issued			12,500	12,500
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Par Value	$0.01	$0.01

Note_10_Stock_Options_Details

Note 10 - Stock Options (Details) (USD $)	3 Months Ended
	Dec. 31, 2014
Details
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares	365,000
Stock or Unit Option Plan Expense	$55,500
Stock option plan expense, directors	54,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value	$109,500
Share Price	$0.59

Note_10_Stock_Options_Schedule2

Note 10 - Stock Options: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) (USD $)	3 Months Ended
	Dec. 31, 2014
Details
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum	100.90%
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	0.48%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Payments	$0
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	3 years
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum	1.06%
Sharebased Compensation Arrangement By Sharebased Payment Award FairValue Assumptions Expected Forfeiture Rate	0.00%

Note_10_Stock_Options_Schedule3

Note 10 - Stock Options: Schedule of Share-based Compensation, Stock Options, Activity (Details) (USD $)	3 Months Ended	12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014
Details
Outstanding	568,334	203,334
Weighted Average Exercise Price, Exercisable	$9.09	$9.09
Granted	365,000
Weighted Average Exercise Price, Granted	$0.48
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$3.56
Exercisable	203,334
Weighted average fair value of options granted	$0.30
Outstanding	3.69
Exercisable		1.42

Note_11_Commitments_Schedule_o1

Note 11 - Commitments: Schedule of Rent Expense (Details) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Details
Results of Operations Exploration Expense Mining	$3,900	$3,900
Other General and Administrative Expense	10,500	12,000
Operating Leases, Rent Expense	$14,400	$15,900

Note_12_Subsequent_Events_Deta

Note 12 - Subsequent Events (Details)	3 Months Ended
	Dec. 31, 2014
Details
Subsequent Event, Description	On January 14, 2015, 34,189 stock options were awarded, with a vesting date of January 14, 2015. The fair value of the option awards was estimated to be $16,753 on the date of grant with a Black-Scholes option-pricing model using the assumptions noted in the following table.