Timberline Resources (TLRS) 10-Q 16 May 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2016	May. 11, 2016
Document and Entity Information
Entity Registrant Name	Timberline Resources Corporation
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Entity Central Index Key	1,288,750
Current Fiscal Year End Date	--09-30
Entity Common Stock, Shares Outstanding		14,006,946
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	2,016
Document Fiscal Period Focus	Q2
Entity Incorporation, State Country Name	Delaware
Trading Symbol	tlrs

TIMBERLINE RESOURCES CORPORATIO

TIMBERLINE RESOURCES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Interim period unaudited) - USD ($)	Mar. 31, 2016	Sep. 30, 2015
CURRENT ASSETS:
Cash	$ 54,307	$ 500,965
Prepaid expenses and other current assets	23,723	23,589
Joint venture receivable		5,761
Available-for-sale equity securities	270,000
TOTAL CURRENT ASSETS	348,030	530,315
PROPERTY, MINERAL RIGHTS AND EQUIPMENT	15,339,318	15,277,257
OTHER ASSETS:
Investment in joint venture		642,450
Restricted cash	694,157	764,662
Deposits and other assets	9,750	9,750
TOTAL OTHER ASSETS	703,907	1,416,862
TOTAL ASSETS	16,391,255	17,224,434
CURRENT LIABILITIES:
Accounts payable	244,536	219,474
Accrued expenses	253,500	313,048
Accrued payroll, benefits and taxes	126,274	130,965
TOTAL CURRENT LIABILITIES	624,310	663,487
LONG-TERM LIABILITIES:
Asset retirement obligation	142,146	138,720
TOTAL LONG-TERM LIABILITIES	$ 142,146	$ 138,720
COMMITMENTS
STOCKHOLDERS' EQUITY:
Common stock, $0.001 par value; 200,000,000 shares authorized, 14,006,946 and 13,331,946 shares issued and outstanding, respectively	$ 14,007	$ 13,332
Additional paid-in capital	65,895,810	65,544,517
Accumulated deficit	(50,332,118)	(49,135,622)
Accumulated other comprehensive income:
Unrealized gain on available-for-sale equity securities	47,100
TOTAL STOCKHOLDERS' EQUITY	15,624,799	16,422,227
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 16,391,255	$ 17,224,434

Statement of Financial Position

Statement of Financial Position - Parenthetical - $ / shares	Mar. 31, 2016	Sep. 30, 2015
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	$ 0.001	$ 0.001
Common Stock, Shares Authorized	200,000,000	200,000,000
Common Stock, Shares Issued	14,006,946	13,331,946
Common Stock, Shares Outstanding	14,006,946	13,331,946

TIMBERLINE RESOURCES CORPORATI4

TIMBERLINE RESOURCES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
OPERATING EXPENSES:
Mineral exploration expenses	$ 7,276	$ 498,373	$ 145,963	$ 740,693
Impairment of mineral rights		426,000		426,000
Salaries and benefits	98,109	315,761	602,144	516,208
Professional fees expense	62,089	123,092	168,133	212,170
Insurance expense (refund)	(13,634)	31,740	9,137	52,951
Gain on equipment exchanged for services	(25,644)		(25,644)
Loss on sale of investment in joint venture	180,050		180,050
Other general and administrative expenses	108,929	211,977	145,452	348,260
TOTAL OPERATING EXPENSES	417,175	1,606,943	1,225,235	2,296,282
LOSS FROM OPERATIONS	(417,175)	(1,606,943)	(1,225,235)	(2,296,282)
OTHER INCOME (EXPENSE):
Foreign exchange gain/(loss)	4,598	(5,806)	4,690	(5,271)
Miscellaneous other income		44	24,049	163
TOTAL OTHER INCOME (EXPENSE)	4,598	(5,762)	28,739	(5,108)
LOSS BEFORE INCOME TAXES	(412,577)	(1,612,705)	(1,196,496)	(2,301,390)
NET LOSS	(412,577)	(1,612,705)	(1,196,496)	(2,301,390)
COMPREHENSIVE INCOME:
Unrealized gain on available-for-sale equity securities	47,100		47,100
COMPREHENSIVE LOSS	$ (365,477)	$ (1,612,705)	$ (1,149,396)	$ (2,301,390)
NET LOSS PER SHARE AVAILABLE TO COMMON STOCKHOLDERS, BASIC AND DILUTED	$ (0.03)	$ (0.16)	$ (0.09)	$ (0.23)
WEIGHTED AVERAGE SHARES OUTSTANDING,BASIC AND DILUTED	13,547,055	9,971,195	13,438,912	9,934,333

TIMBERLINE RESOURCES CORPORATI5

TIMBERLINE RESOURCES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,196,496)	$ (2,301,390)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation and amortization	1,981	3,959
Stock based compensation	351,967	194,911
Accretion of asset retirement obligation	3,426	3,263
Equipment exchanged for services	29,603
Gain on equipment exchanged for services	(25,644)
Loss on sale of investment in joint venture	180,050
Impairment of mineral rights		426,000
Changes in operating assets and liabilities:
Prepaid expenses and other current assets, deposits and other assets	(134)	394
Joint venture receivable	5,761	9,388
Accounts payable	25,062	29,237
Accrued expenses	(59,548)	(38,420)
Accrued payroll, benefits and taxes	(4,691)	4,642
Net cash used by operating activities	(688,663)	(1,668,016)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, mineral rights and equipment	(68,000)	(147,000)
Proceeds from sale of property, mineral rights and equipment		8,500
Proceeds from sale of investment in joint venture	225,000
Refund of reclamation and road use bonds	85,005
Net cash provided (used) by investing activities	242,005	(138,500)
Net decrease in cash and cash equivalents	(446,658)	(1,806,516)
CASH AT BEGINNING OF PERIOD	500,965	2,825,320
CASH AT END OF PERIOD	54,307	1,018,804
NON-CASH FINANCING AND INVESTING ACTIVITIES:
Common stock issued for property, mineral rights and equipment purchase		$ 1,200,000
Available-for-sale equity securities received for investment in joint venture	$ 222,900

Note 1 - Organization and Descr

Note 1 - Organization and Description of Business	6 Months Ended
	Mar. 31, 2016
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.

Note 2 - Summary of Significant

Note 2 - Summary of Significant Accounting Policies	6 Months Ended
	Mar. 31, 2016
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 and six month periods ended March 31, 2016 are not necessarily indicative of the results that may be expected for the full year ending September 30, 2016. 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, 2015. The consolidated financial statements for the three and six month periods ended March 31, 2016 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 operations 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. Net Income (Loss) per Share The dilutive effect of convertible and outstanding securities, in periods of future income as of March 31, 2016 and 2015, would be as follows: 2016 2015 Stock options 450,945 594,189 Warrants 12,500 25,000 Total possible dilution 463,445 619,189 At March 31, 2016 and 2015, the effect of the Company’s outstanding options and common stock equivalents would have been anti-dilutive. c. Asset retirement obligation – d. Available-for-sale equity securities

Note 3 - Fair Value Measurement

Note 3 - Fair Value Measurements	6 Months Ended
	Mar. 31, 2016
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. March 31, 2016 September 30, 2015 Input Hierarchy Level Assets: Cash $ 54,307 $ 500,965 Level 1 Restricted cash 694,157 764,662 Level 1 Available-for-sale equity securities 270,000 - Level 1

Note 4 - Entry into Property Op

Note 4 - Entry into Property Option Agreement	6 Months Ended
	Mar. 31, 2016
Notes
Note 4 - Entry into Property Option Agreement	NOTE 4 – ENTRY INTO PROPERTY OPTION AGREEMENT: On March 12, 2015 (the “Effective Date”), we entered into a property option agreement (“Agreement”) with Gunpoint Exploration Ltd. (“Gunpoint”), which closed on March 31, 2015. Gunpoint granted us an exclusive and irrevocable option (“Option”) to purchase a 100% interest in Gunpoint’s Talapoosa project (the “Project”) in western Nevada. Pursuant to the Agreement, we have the right to exercise the Option at any time beginning on March 31, 2015 and ending within thirty (30) months of March 12, 2015, unless sooner terminated (“Option Period”). As consideration for the Option, we agreed to issue two million (2,000,000) shares of common stock and pay $300,000 in cash. A $100,000 cash payment was made on March 31, 2015. The common stock was valued at fair value on the Effective Date and capitalized with the cash payment of $100,000 for a total of $1,300,000. The remaining $200,000 cash payment was paid on September 23, 2015. The common stock was issued on March 31, 2015 and is being held in escrow. The shares are irrevocable and will be released to Gunpoint as follows: 25% on September 12, 2015; 25% on March 12, 2016; 25% on September 12, 2016; and 25% on March 12, 2017. Gunpoint will receive the total of 2,000,000 shares even if the Company does not exercise the Option. At any time during the Option Period, we may purchase 100% of Talapoosa by providing written notification thereof and paying to Gunpoint $10 million in cash (the “Option Payment”) within ninety (90) days of the notification date. Upon the date that Gunpoint receives the Option Payment (the “Closing Date”), we will have earned a 100% interest in the Project. For a period of five years following the Closing Date (“Contingent Payment Period”), should the daily price of gold (as determined by the London PM Fix) be fixed at or above $1,600 per ounce, on any single day during the Contingent Payment Period (the “Initial Threshold Event”) and at any time after the Initial Threshold Event during the Contingent Payment Period the daily price of gold (as determined by the London PM Fix) averages U.S.$1,600 per ounce or greater for a period of ninety (90) consecutive trading days (the “Trigger Event”), we shall be required to pay or cause to be paid to Gunpoint an additional payment of $10 million (the “Contingent Payment”) within ninety (90) days of the date that the Trigger Event is deemed to have occurred. The Contingent Payment shall consist of $5 million in cash, and the remainder shall be paid either in cash or in shares of our common stock or a combination thereof at our sole discretion. Following our exercise of the Option, effective as of the Closing Date, Gunpoint reserves a net smelter returns royalty in all minerals mined and removed from the Project, in the amount of one percent (1%). We may purchase the royalty from Gunpoint at any time for a cash payment of $3 million.

Note 5 - Investment in Joint Ve

Note 5 - Investment in Joint Venture	6 Months Ended
	Mar. 31, 2016
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. During the quarter ended March 31, 2016, we executed a Member Interest Purchase Agreement (the “Purchase Agreement”) with New Jersey Mining Company (“NJMC”) pursuant to which we sold all of our 50% interest in the Butte Highlands, JV, LLC (the “JV Interest”). We received $225,000 in cash and 3 million restricted shares of common stock of NJMC (the “NJMC Shares”) as consideration for the sale of the JV Interest. The NJMC Shares were valued at $222,900 based on the closing price of the NJMC Shares ($0.0743) on the OTCQB market on January 29, 2016, the closing date of the transaction. The total value of the consideration at the closing date was $447,900. A loss of $180,050 was incurred on the sale of the JV Interest after reducing our investment by the amount received from an expired road use bond ($14,500). At March 31, 2016 and September 30, 2015 we had an investment in joint venture of nil and $642,450, respectively. At March 31, 2016 and September 30, 2015, we have a receivable from BHJV for expenses incurred on behalf of BHJV in the amount of nil and $5,761, respectively.

Note 6 - Available-for-sale Equ

Note 6 - Available-for-sale Equity Securities	6 Months Ended
	Mar. 31, 2016
Notes
Note 6 - Available-for-sale Equity Securities:	NOTE 6 – AVAILABLE-FOR-SALE EQUITY SECURITIES: Available-for-sale equity securities are comprised of 3,000,000 restricted shares of common stock in New Jersey Mining Company (“NJMC”) (the “NJMC Shares”) (See Note 5). The following table summarizes the Company’s available-for-sale equity securities: March 31, 2016 Cost $ 222,900 Unrealized Gain 47,100 Fair Value $ 270,000 Management has determined the best measure of NJMC fair value to be the closing price of NJMC common stock on the OTCQB market as of March 31, 2016, which was $0.09 per share.

Note 7 - Common Stock, Warrants

Note 7 - Common Stock, Warrants and Preferred Stock	6 Months Ended
	Mar. 31, 2016
Notes
Note 7 - Common Stock, Warrants and Preferred Stock:	NOTE 7 – COMMON STOCK, WARRANTS AND PREFERRED STOCK: Private Placement In September 2015, in connection with the Transaction with Waterton (Note 6), we closed a private placement of our common stock. We sold 1,331,861 shares of common stock to Waterton at a price of $0.375 per share for gross proceeds of $499,448. Stock Issued for Mineral Rights, Property and Equipment In October 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. The value of these shares was listed as common stock payable on September 30, 2014. Stock Issued for Property Option Agreement On March 31, 2015, pursuant to a property option agreement (Note 4), we issued 2,000,000 restricted common shares with a value of $1,200,000 based upon the closing price of our shares of common stock as quoted on the NYSE MKT on March 12, 2015, the effective date of the property option agreement. Stock Issued for Compensation On January 27, 2015, we issued 100,000 restricted common shares for employee compensation. The shares were valued at $69,000 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 Stock Unit Awards On March 3, 2016, we issued 675,000 common shares upon the exercise of Stock Unit Awards granted to certain employees in October 2015 for compensation related to modifications to employment contracts. These Stock Unit Awards had a value of $337,500, which was recognized as salaries and benefits expense during the quarter ended December 31, 2015. Warrants No warrants were issued during the three months ended March 31, 2016 or the year ended September 30, 2015, and no warrants were exercised or expired during the year ended September 30, 2015. 12,500 warrants expired during the six months ended March 31, 2016. There are 12,500 warrants remaining with an exercise price of $3.00 per share that expire on September 9, 2016. 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 8 - Stock-based Awards

Note 8 - Stock-based Awards	6 Months Ended
	Mar. 31, 2016
Notes
Note 8 - Stock-based Awards:	NOTE 8 – STOCK-BASED AWARDS: During the year ended September 30, 2015 our Board of Directors adopted and our stockholders approved the adoption of the Company’s 2015 Stock and Incentive Plan. This plan replaces our 2005 Equity Incentive Plan, as amended. The aggregate number of shares that may be issued to employees, directors, and consultants under all stock-based awards made under the 2015 Stock and Incentive Plan is 4 million shares of our common stock. Upon exercise of stock-based awards, shares are issued from the available authorized shares of the Company. Option awards are granted with an exercise price equal to the fair value of our stock at the date of grant. The 2005 Equity Incentive Plan, as amended, terminated on May 28, 2015 and no stock or option awards may be granted under this plan after it was terminated. 407,108 stock options remain outstanding at an average exercise price of $1.42 and may be exercised under the 2005 Equity Incentive Plan, as amended. During the six months ended March 31, 2016, 43,837 stock options and 675,000 stock unit awards were granted to certain employees by the Company’s Board of Directors and vested immediately. Stock unit awards are awards granted under the Company’s 2015 Stock and Incentive Plan which are payable in common shares of the Company upon the occurrence of certain events, achievement of certain milestones, or at a future date. Total compensation cost of options and stock unit awards for employees was $351,967 and $125,911 for the six months ended March 31, 2016 and 2015 respectively. These costs are classified under salaries and benefits expense. Total compensation cost of options and stock unit awards for employees was nil and $16,411 for the three months ended March 31, 2016 and 2015 respectively. These costs are classified under salaries and benefits expense. The fair value of the stock unit awards was determined by the closing price of the Company’s common stock on the NYSE MKT on the grant date. The fair value of the option awards granted during the six months ended March 31, 2016 was estimated on the date of grant with a Black-Scholes option-pricing model using the assumptions noted in the following table: Expected volatility 110.4% Stock price on date of grant $0.50 Expected dividends - Expected term (in years) 3 Risk-free rate 0.90% Expected forfeiture rate 0% The following is a summary of our options issued under the Amended 2005 Equity Incentive Plan and the 2015 Stock and Incentive Plan: Options Weighted Average Exercise Price Outstanding at September 30, 2015 533,778 $ 2.48 Granted 43,837 0.50 Exercised Expired (126,670) (5.89) Outstanding and exercisable at March 31, 2016 450,945 $ 1.33 Weighted average fair value of options granted during the six months ended March 31, 2016 $ 0.33 Average remaining contractual term of options outstanding and exercisable at March 31, 2016 (years) 3.38 The aggregate of options exercisable as of March 31, 2016 had an intrinsic value of nil based on the closing price of $0.14 per share of our common stock on March 31, 2016.

Note 9 - Commitments

Note 9 - Commitments	6 Months Ended
	Mar. 31, 2016
Notes
Note 9 - Commitments:	NOTE 9 – COMMITMENTS : Real Estate Lease Commitments The Company has real estate lease commitments related to its main office in Coeur d’Alene, Idaho and facilities in Eureka, Nevada and Sparks, Nevada. Total office lease expense from continuing operations is included in the consolidated statements of operations as follows: Three months ended March 31, Six months ended March 31, 2016 2015 2016 2015 Mineral exploration expenses $ 15,000 $ 3,900 $ 31,050 $ 7,800 Other general and administrative expenses 10,500 10,500 21,000 21,000 Total $ 25,500 $ 14,400 $ 52,050 $ 28,800 Employment Agreements The Company has employment agreements with an executive employee that requires certain termination benefits and payments in defined circumstances.

Note 10 - Related-party Transac

Note 10 - Related-party Transactions	6 Months Ended
	Mar. 31, 2016
Notes
Note 10 - Related-party Transactions:	NOTE 10 – RELATED-PARTY TRANSACTIONS : During the period ended March 31, 2016, certain vehicles were transferred to a director, the former Chief Financial Officer, and a former employee of the Company in exchange for services. The fair value of the transferred vehicles was $ 29,603 which was classified as an expense under other general and administrative expenses. A gain of $ 25,644 was recognized on the exchange because the vehicles had a carrying value of $ 3,959 on the exchange date.

Note 2 - Summary of Significa16

Note 2 - Summary of Significant Accounting Policies: a. Basis of Presentation (Policies)	6 Months Ended
	Mar. 31, 2016
Policies
a. Basis of Presentation	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 and six month periods ended March 31, 2016 are not necessarily indicative of the results that may be expected for the full year ending September 30, 2016. 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, 2015.

Note 2 - Summary of Significa17

Note 2 - Summary of Significant Accounting Policies: a. Going Concern (Policies)	6 Months Ended
	Mar. 31, 2016
Policies
a. Going Concern	The consolidated financial statements for the three and six month periods ended March 31, 2016 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 operations 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 Significa18

Note 2 - Summary of Significant Accounting Policies: b. Net Income (Loss) per Share (Policies)	6 Months Ended
	Mar. 31, 2016
Policies
b. Net Income (Loss) per Share	b. Net Income (Loss) per Share The dilutive effect of convertible and outstanding securities, in periods of future income as of March 31, 2016 and 2015, would be as follows: 2016 2015 Stock options 450,945 594,189 Warrants 12,500 25,000 Total possible dilution 463,445 619,189 At March 31, 2016 and 2015, the effect of the Company’s outstanding options and common stock equivalents would have been anti-dilutive.

Note 2 - Summary of Significa19

Note 2 - Summary of Significant Accounting Policies: c. Asset Retirement Obligation (Policies)	6 Months Ended
	Mar. 31, 2016
Policies
c. Asset Retirement Obligation	c. Asset retirement obligation –

Note 2 - Summary of Significa20

Note 2 - Summary of Significant Accounting Policies: d. Available-for-sale equity securities (Policies)	6 Months Ended
	Mar. 31, 2016
Policies
d. Available-for-sale equity securities	d. Available-for-sale equity securities

Note 2 - Summary of Significa21

Note 2 - Summary of Significant Accounting Policies: b. Net Income (Loss) per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Tables)	6 Months Ended
	Mar. 31, 2016
Tables/Schedules
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	2016 2015 Stock options 450,945 594,189 Warrants 12,500 25,000 Total possible dilution 463,445 619,189

Note 3 - Fair Value Measureme22

Note 3 - Fair Value Measurements: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Tables)	6 Months Ended
	Mar. 31, 2016
Tables/Schedules
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	March 31, 2016 September 30, 2015 Input Hierarchy Level Assets: Cash $ 54,307 $ 500,965 Level 1 Restricted cash 694,157 764,662 Level 1 Available-for-sale equity securities 270,000 - Level 1

Note 6 - Available-for-sale E23

Note 6 - Available-for-sale Equity Securities: Schedule of Available-for-sale Securities Reconciliation (Tables)	6 Months Ended
	Mar. 31, 2016
Tables/Schedules
Schedule of Available-for-sale Securities Reconciliation	March 31, 2016 Cost $ 222,900 Unrealized Gain 47,100 Fair Value $ 270,000

Note 8 - Stock-based Awards_ Sc

Note 8 - Stock-based Awards: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Tables)	6 Months Ended
	Mar. 31, 2016
Tables/Schedules
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	Expected volatility 110.4% Stock price on date of grant $0.50 Expected dividends - Expected term (in years) 3 Risk-free rate 0.90% Expected forfeiture rate 0%

Note 8 - Stock-based Awards_ 25

Note 8 - Stock-based Awards: Schedule of Share-based Compensation, Activity (Tables)	6 Months Ended
	Mar. 31, 2016
Tables/Schedules
Schedule of Share-based Compensation, Activity	Options Weighted Average Exercise Price Outstanding at September 30, 2015 533,778 $ 2.48 Granted 43,837 0.50 Exercised Expired (126,670) (5.89) Outstanding and exercisable at March 31, 2016 450,945 $ 1.33 Weighted average fair value of options granted during the six months ended March 31, 2016 $ 0.33 Average remaining contractual term of options outstanding and exercisable at March 31, 2016 (years) 3.38

Note 9 - Commitments_ Schedule

Note 9 - Commitments: Schedule of Rent Expense (Tables)	6 Months Ended
	Mar. 31, 2016
Tables/Schedules
Schedule of Rent Expense	Three months ended March 31, Six months ended March 31, 2016 2015 2016 2015 Mineral exploration expenses $ 15,000 $ 3,900 $ 31,050 $ 7,800 Other general and administrative expenses 10,500 10,500 21,000 21,000 Total $ 25,500 $ 14,400 $ 52,050 $ 28,800

Note 1 - Organization and Des27

Note 1 - Organization and Description of Business (Details)	6 Months Ended
	Mar. 31, 2016
Details
Entity Incorporation, State Country Name	Delaware

Note 2 - Summary of Significa28

Note 2 - Summary of Significant Accounting Policies: b. Net Income (Loss) per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Details
Stock options	450,945	594,189
Warrants	12,500	25,000
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	463,445	619,189

Note 3 - Fair Value Measureme29

Note 3 - Fair Value Measurements: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)	Mar. 31, 2016	Sep. 30, 2015
Details
Cash and Cash Equivalents, Fair Value Disclosure	$ 54,307	$ 500,965
Restricted Cash and Cash Equivalents, Current	694,157	$ 764,662
Available-for-sale Securities, Fair Value of Securities	$ 270,000

Note 4 - Entry into Property 30

Note 4 - Entry into Property Option Agreement (Details) - USD ($)	Sep. 23, 2015	Mar. 31, 2015
Share issuance on equity method investment		2,000,000
Cash payment on equity method investment		$ 300,000
Total payment on equity method investment		1,300,000
Gunpoint
Payments to Acquire Equity Method Investments	$ 200,000	$ 100,000

Note 5 - Investment in Joint 31

Note 5 - Investment in Joint Venture (Details) - USD ($)	Jan. 29, 2016	Mar. 31, 2016	Mar. 31, 2016	Sep. 30, 2015
Noncash or Part Noncash Divestiture, Amount of Consideration Received			$ 447,900
Loss on sale of investment in joint venture		$ 180,050	180,050
Investment in joint venture				$ 642,450
Due from Affiliate, Current				5,761
Sale of our Interest in Butte Highlands JV, LLC
Cash payment received on equity method investment.	$ 225,000
Restricted shares received for equity method investment.	3,000,000
Restricted shares received for equity method investment, value.	$ 222,900
Shares Issued, Price Per Share	$ 0.0743
Loss on sale of investment in joint venture			$ 180,050
Investment in joint venture				$ 642,450

Note 6 - Available-for-sale E32

Note 6 - Available-for-sale Equity Securities: Schedule of Available-for-sale Securities Reconciliation (Details)	Mar. 31, 2016USD ($)	Mar. 31, 2016USD ($)	Mar. 31, 2016USD ($)
Details
Available-for-sale equity securities received for investment in joint venture			$ 222,900
Unrealized gain on available-for-sale equity securities	$ 47,100	$ 47,100	47,100
Available-for-sale Securities, Fair Value of Securities	$ 270,000	$ 270,000	$ 270,000

Note 6 - Available-for-sale E33

Note 6 - Available-for-sale Equity Securities (Details)	Mar. 31, 2016$ / shares
Details
Fair value determination, price per share	$ 0.09

Note 7 - Common Stock, Warran34

Note 7 - Common Stock, Warrants and Preferred Stock (Details) - USD ($)	Sep. 30, 2014	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2015	Sep. 30, 2014
Common stock issued stock, mineral claims				2,000,000
Common stock issued value, mineral claims				$ 1,200,000
Common stock compensation to employee, stock				100,000
Common stock compensation to employee				$ 69,000
Common Stock Public Offering, warrants issued and expired		12,500
Common Stock Public Offering, warrants issued and outstanding		12,500
Common Stock Public Offering, warrants issued and outstanding, price per share		3
Preferred Stock, Shares Authorized		10,000,000		10,000,000
Preferred Stock, Par Value		$ 0.01		$ 0.01
Stock issued on exercise of Stock Unit Awards
Common stock compensation to employee, stock			675,000
Common stock compensation to employee			$ 337,500
Waterton
Stock Issued During Period Shares New Issues		1,331,861
Sale of Stock, Price Per Share		$ 0.375
Stock Issued During Period Value New Issues		$ 499,448
Mineral Rights Property and Equipment
Stock Issued During Period Value New Issues	$ 80,000
Common stock issued, mineral claims					83,334

Note 8 - Stock-based Awards (De

Note 8 - Stock-based Awards (Details) - USD ($)	May. 28, 2015	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Details
Stock Options Outstanding Under Terminated Plan	407,108
Stock Options Outstanding Under Terminated Plan, Average Exercise Price	$ 1.42
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			43,837
Share Based Compensation Arrangement By Share Based Payment Award Stock Units			675,000
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost		$ 16,411	$ 351,967	$ 125,911

Note 8 - Stock-based Awards_ 36

Note 8 - Stock-based Awards: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details)	3 Months Ended
	Dec. 31, 2015$ / shares
Details
Fair Value Assumptions, Expected Volatility Rate	110.40%
Stock price on date of grant	$ 0.50
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	3 years
Fair Value Assumptions, Risk Free Interest Rate	0.90%
Sharebased Compensation Arrangement By Sharebased Payment Award FairValue Assumptions Expected Forfeiture Rate	0.00%

Note 8 - Stock-based Awards_ 37

Note 8 - Stock-based Awards: Schedule of Share-based Compensation, Activity (Details) - $ / shares	6 Months Ended
	Mar. 31, 2016	Sep. 30, 2015
Details
Outstanding		533,778
Weighted Average Exercise Price, Exercisable	$ 1.33	$ 2.48
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	43,837
Weighted Average Exercise Price, Granted	$ 0.50
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period	(126,670)
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price	$ (5.89)
Exercisable	450,945
Weighted average fair value of options granted	$ 0.33
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	3 years 4 months 17 days

Note 9 - Commitments_ Schedul38

Note 9 - Commitments: Schedule of Rent Expense (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Details
Results of Operations Exploration Expense Mining	$ 15,000	$ 3,900	$ 31,050	$ 7,800
Other General and Administrative Expense	10,500	10,500	21,000	21,000
Operating Leases, Rent Expense	$ 25,500	$ 14,400	$ 52,050	$ 28,800

Note 10 - Related-party Trans39

Note 10 - Related-party Transactions (Details) - USD ($)	3 Months Ended	6 Months Ended
	Mar. 31, 2016	Mar. 31, 2016
Gain on equipment exchanged for services	$ 25,644	$ 25,644
Transfer of vehicle
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party	29,603
Gain on equipment exchanged for services	25,644
Carrying Value Vehicles Exchanged	$ 3,959