Timberline Resources (TLRS) 10-Q 8 Aug 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2017	Aug. 07, 2017
Document and Entity Information
Entity Registrant Name	Timberline Resources Corp
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Entity Central Index Key	1,288,750
Current Fiscal Year End Date	--09-30
Entity Common Stock, Shares Outstanding		33,146,952
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	2,017
Document Fiscal Period Focus	Q3
Entity Incorporation, State Country Name	Delaware
Trading Symbol	tlrs

TIMBERLINE RESOURCES CORPORATIO

TIMBERLINE RESOURCES CORPORATION AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS (INTERIM PERIOD UNAUDITED) - USD ($)		Jun. 30, 2017	Sep. 30, 2016
CURRENT ASSETS:
Cash		$ 469,270	$ 82,275
Prepaid expenses and other current assets		25,623	15,237
Accounts receivable		2,633
Available-for-sale equity securities			420,000
TOTAL CURRENT ASSETS		497,526	517,512
PROPERTY, MINERAL RIGHTS AND EQUIPMENT, net		17,062,519	15,482,719
OTHER ASSETS:
Restricted cash		288,982	694,157
Deposits and other assets		9,750	9,750
TOTAL OTHER ASSETS		298,732	703,907
TOTAL ASSETS		17,858,777	16,704,138
CURRENT LIABILITIES:
Accounts payable		36,679	53,665
Accrued expenses		265,000	299,000
Accrued payroll, benefits and taxes		31,384	21,750
TOTAL CURRENT LIABILITIES		333,063	374,415
LONG-TERM LIABILITIES:
Asset retirement obligation		151,097	145,656
TOTAL LONG-TERM LIABILITIES		151,097	145,656
COMMITMENTS AND CONTINGENCIES	[1]	0	0
STOCKHOLDERS' EQUITY:
Common stock, $0.001 par value; 200,000,000 shares authorized, 33,146,952 and 24,106,952 shares issued and outstanding, respectively		33,147	24,107
Additional paid-in capital		70,393,144	67,924,709
Accumulated deficit		(53,051,674)	(51,892,864)
Accumulated other comprehensive income:
Unrealized gain on available-for-sale equity securities, net of tax			128,115
TOTAL STOCKHOLDERS' EQUITY		17,374,617	16,184,067
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$ 17,858,777	$ 16,704,138
[1]	Notes 5 and 10

Statement of Financial Position

Statement of Financial Position - Parenthetical - $ / shares	Jun. 30, 2017	Sep. 30, 2016
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	33,146,952	24,106,952
Common Stock, Shares Outstanding	33,146,952	24,106,952

TIMBERLINE RESOURCES CORPORATI4

TIMBERLINE RESOURCES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
OPERATING EXPENSES:
Mineral exploration	$ 34,964	$ 34,129	$ 117,084	$ 180,092
Salaries and benefits	92,010	56,545	277,944	658,689
Professional fees	52,771	67,396	191,011	235,529
Insurance expense	24,585	18,256	68,228	27,393
Gain on equipment exchanged for services				(25,644)
Gain on disposal of equipment			(2,500)
Loss on sale of investment in joint venture				180,050
Other general and administrative	160,829	296,842	561,947	442,294
TOTAL OPERATING EXPENSES	365,159	473,168	1,213,714	1,698,403
LOSS FROM OPERATIONS	(365,159)	(473,168)	(1,213,714)	(1,698,403)
OTHER INCOME (EXPENSE):
Foreign exchange gain (loss)	585	9,499	(213)	14,189
Gain on sale of available-for-sale securities	100,260	5,000	124,086	5,000
Related party financing fees		(5,200)		(5,200)
Miscellaneous other income	11	1	16	24,050
TOTAL OTHER INCOME (EXPENSE)	100,856	9,300	123,889	38,039
LOSS BEFORE INCOME TAXES	(264,303)	(463,868)	(1,089,825)	(1,660,364)
INCOME TAX PROVISION (BENEFIT)	36,353		68,985
NET LOSS	(300,656)	(463,868)	(1,158,810)	(1,660,364)
OTHER COMPREHENSIVE INCOME (LOSS):
Unrealized gain (loss) on available-for-sale equity securities, net of tax	(8,276)	30,000	(47,275)	77,100
Reclassification of (gain) on available-for-sale securities sold	(59,239)		(80,840)
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)	(67,515)	30,000	(128,115)	77,100
COMPREHENSIVE LOSS	$ (368,171)	$ (433,868)	$ (1,286,925)	$ (1,583,264)
NET LOSS PER SHARE AVAILABLE TO COMMON STOCKHOLDERS, BASIC AND DILUTED	$ (0.01)	$ (0.03)	$ (0.04)	$ (0.12)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND DILUTED	31,918,655	16,127,922	27,086,018	14,331,978

TIMBERLINE RESOURCES CORPORATI5

TIMBERLINE RESOURCES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,158,810)	$ (1,660,364)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation and amortization		1,981
Deferred income tax provision	68,985
Gain on disposal of equipment	(2,500)
Stock-based compensation	30,000	351,967
Accretion of asset retirement obligation	5,441	5,181
Gain on sale of available-for-sale securities	(124,086)	(5,000)
Equipment exchanged for services		29,603
Gain on equipment exchanged for services		(25,644)
Loss on sale of investment in joint venture		180,050
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(10,386)	(10,717)
Accounts receivable	(2,633)
Joint venture receivable		5,761
Accounts payable	(16,986)	(172,884)
Accrued expenses	(34,000)	(19,969)
Accrued payroll, benefits and taxes	9,634	(106,908)
Net cash used by operating activities	(1,235,341)	(1,426,943)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, mineral rights and equipment	(1,099,800)	(118,400)
Proceeds from disposal of equipment	2,500
Proceeds from sale of available-for-sale securities	346,986	5,000
Proceeds from sale of investment in joint venture		225,000
Refund of reclamation and road use bonds	405,175	85,005
Net cash provided (used) by investing activities	(345,139)	196,605
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of units, net	1,957,475	1,500,000
Proceeds from related party notes		52,000
Payments on related party notes		(52,000)
Proceeds from exercise of warrants	10,000
Net cash provided by financing activities	1,967,475	1,500,000
Net increase in cash and cash equivalents	386,995	269,662
CASH AT BEGINNING OF PERIOD	82,275	500,965
CASH AT END OF PERIOD	469,270	770,627
NON-CASH FINANCING AND INVESTING ACTIVITIES:
Available-for-sale equity securities received for investment in joint venture		$ 222,900
Common stock issued for mineral rights	$ 480,000

Note 1 - Organization and Descr

Note 1 - Organization and Description of Business	9 Months Ended
	Jun. 30, 2017
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	9 Months Ended
	Jun. 30, 2017
Notes
Note 2 - Summary of Significant Accounting Policies:	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: a. Basis of Presentation and Going Concern – The consolidated financial statements for the three and nine month periods ended June 30, 2017 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. These factors raise substantial doubt about the Company’s ability to continue as a going concern. b. Net Income (Loss) per Share The dilutive effect of convertible and outstanding securities, in periods of future income as of June 30, 2017 and 2016, would be as follows: 2017 2016 Stock options 2,253,334 360,419 Warrants 17,960,006 10,012,506 Total possible dilution 20,213,340 10,372,925 At June 30, 2017 and 2016, 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	9 Months Ended
	Jun. 30, 2017
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. June 30, 2017 September 30, 2016 Input Hierarchy Level Assets: Cash $ 469,270 $ 82,275 Level 1 Restricted cash 288,982 694,157 Level 1 Available-for-sale equity securities - 420,000 Level 1

Note 4 - Restricted Cash

Note 4 - Restricted Cash	9 Months Ended
	Jun. 30, 2017
Notes
Note 4 - Restricted Cash:	NOTE 4 – RESTRICTED CASH: Cash that is restricted as to withdrawal or use under the terms of certain contractual arrangements, generally with regulatory agencies, is recorded in Other Assets Restricted cash During the three months ended June 30, 2017 and the nine months ended June 30, 2017, we received $26,000 and $405,175, respectively, as the result of partial reductions of the required reclamation bond amount projects in Nevada due to non-use and reclamation of land. Pursuant to our request, the Bureau of Land Management (“BLM”) inspected the projects and authorized the return of the unobligated portion of our reclamation bonds due to completed reclamation and less acres being disturbed than the acreage for which the bond had been required. Because the bond return for our Eureka project was for undisturbed land, there is no impact on our asset retirement obligation liability.

Note 5 - Property Option Agreem

Note 5 - Property Option Agreement	9 Months Ended
	Jun. 30, 2017
Notes
Note 5 - Property Option Agreement:	NOTE 5 – 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 and was amended on October 19, 2016 (“Amended Agreement”). Pursuant to the Agreement, Gunpoint granted us an exclusive and irrevocable option (“Option”) to purchase a 100% interest in Gunpoint’s Talapoosa project (the “Project”) in western Nevada. We acquired 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”). Pursuant to the Amended Agreement, we have the right to exercise the Option through March 31, 2019 (“Amended Option Period”), subject to certain interim payments and cumulative project expenditures. As consideration for the Option, we issued two million (2,000,000) shares of common stock and paid $300,000 in cash. The common stock was valued at fair value on the Effective Date and combined with the cash payments of $300,000 for total consideration of $1,500,000. The common stock was issued on March 31, 2015 into escrow with periodic releases to Gunpoint. The shares are irrevocable and were 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. All of the shares have been released from escrow. Gunpoint will retain the total of 2,000,000 shares, even if we do not exercise the Option. Pursuant to the Amended Agreement, during the Amended Option Period, we are required to make the following expenditures and stock issuances in order to retain the Option: · · · · Upon the date that Gunpoint receives all of the required payments and stock issuances (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) average greater than or equal to $1,600 per ounce over any 90-day period (“Trigger Event”), we will pay Gunpoint an additional payment of $10 million (the “Contingent Payment”), of which a minimum of $5 million will be payable within six months of the Trigger Event and the remaining $5 million payable within twelve months of the Trigger Event. The Contingent Payment is payable with 50% in cash and 50% in common shares of the Company, at our sole discretion. Following our exercise of the Option, effective as of the Closing Date, Gunpoint reserves a one-percent (1%) net smelter returns royalty in all minerals mined and removed from the Project (the “Royalty”). The Company’s option granted in the Agreement to purchase the Royalty from Gunpoint at any time for a cash payment of $3 million was eliminated in the Amended Agreement. During the three months ended June 30, 2017, we issued one million common shares of the Company that were due on March 31, 2017. Management had determined the best measure of the fair value of the common shares was the closing price of the Company’s common stock on the OTCQB market on March 31, 2017, which was $0.48 per share. Accordingly, in the quarter ended March 31, 2017, $480,000 had been recorded as an increase to property, mineral rights, and equipment, net and was accrued as common stock payable. In the quarter ended June 30, 2017, the value of the common stock issued was recorded as equity, offsetting the common stock payable from the prior quarter.

Note 6 - Available-for-sale Equ

Note 6 - Available-for-sale Equity Securities	9 Months Ended
	Jun. 30, 2017
Notes
Note 6 - Available-for-sale Equity Securities:	NOTE 6 – AVAILABLE-FOR-SALE EQUITY SECURITIES: As of June 30, 2017 and September 30, 2016, available-for-sale equity securities were comprised of nil and 3,000,000 shares of common stock, respectively, in New Jersey Mining Company (“NJMC”) (the “NJMC Shares”) that we received in January 2016 as partial consideration of the sale of our 50% interest in Butte Highlands JV, LLC. During the three-month and nine-month periods ended June 30, 2017, we sold 2,272,800 and 3,000,000 NJMC Shares, respectively, and realized gain on the sale of available-for-sale securities of $100,260 and $124,086, respectively.

Note 7 - Accrued Expenses

Note 7 - Accrued Expenses	9 Months Ended
	Jun. 30, 2017
Notes
Note 7 - Accrued Expenses:	NOTE 7 – ACCRUED EXPENSES: As of June 30, 2017 and September 30, 2016, we had accrued $265,000 and $299,000 in expenses, respectively, including $250,000 in costs recognized as financing transaction expense during the year ended September 30, 2015, as a result of a potential corporate transaction that was not completed. The components of these accrued expenses are: Description June 30, 2017 September 30, 2016 Break fee for terminated transaction $ 250,000 $ 250,000 Other expenses 15,000 49,000 Total accrued expenses $ 265,000 $ 299,000

Note 8 - Common Stock, Warrants

Note 8 - Common Stock, Warrants and Preferred Stock	9 Months Ended
	Jun. 30, 2017
Notes
Note 8 - Common Stock, Warrants and Preferred Stock:	NOTE 8 – COMMON STOCK, WARRANTS AND PREFERRED STOCK: Private Placement On January 13, 2017, we initiated Each Unit in the Offering consisted of one share of common stock of the Company and one common share purchase warrant (each a “Warrant”), with each Warrant exercisable to acquire an additional share of common stock of the Company at a price of $0.40 per share until the warrant expiration date of January 31, 2020. The Company may accelerate the warrant expiration date if the price of the Company’s common stock closes at or above $0.90 for twenty consecutive trading days. During the three months ended June 30, 2017, we closed the sale of the third and final tranche of the Offering. In this final tranche, we sold a total of 1,845,000 Units at a price of $0.25 per unit for gross proceeds of $461,250. In the aggregate for this Offering that closed on April 12, 2017, we sold 8,000,000 Units consisting of 8,000,000 shares of common stock and 8,000,000 warrants to purchase one share of common stock for $0.40 until January 31, 2020, at a price of $0.25 per Unit for gross proceeds of $2,000,000. On May 26, 2017, we filed a Registration Statement on Form S-1 (the “Registration Statement”) (SEC File No. 333-218289) covering the resale from time to time of shares of our common stock issued in this Offering, and shares issuable upon exercise of the warrants included in this Offering, by the persons listed in the Prospectus as “Selling Shareholders”. The Registration Statement was declared effective by the Securities and Exchange Commission on June 27, 2017. Stock Issued for Property Option Agreement During the three months ended June 30, 2017, pursuant to a property option agreement (Note 5), we issued one million restricted common shares of the Company with a value of $480,000, based upon the last trading price of our common stock on the payment due date of March 31, 2017. Warrants During the nine months ended June 30, 2017, 8,000,000 warrants were issued and 40,000 warrants were exercised. During the nine months ended June 30, 2017, we issued 40,000 common shares pursuant to the exercise of warrants sold in our 2016 private placement with an exercise price of $0.25 per share for total gross proceeds of $10,000. No warrants expired during the nine months ended June 30, 2017. At June 30, 2017, there were 9,960,006 warrants outstanding with an exercise price of $0.25 per share that expire on May 31, 2019 and 8,000,000 warrants outstanding with an exercise price of $0.40 per share that expire on January 31, 2020. In aggregate, as of June 30, 2017, there are 17,960,006 warrants outstanding at a weighted average exercise price of $0.32. 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. There is no preferred stock issued as of June 30, 2017.

Note 9 - Stock-based Awards

Note 9 - Stock-based Awards	9 Months Ended
	Jun. 30, 2017
Notes
Note 9 - Stock-based Awards:	NOTE 9 – STOCK-BASED AWARDS: During the nine months ended June 30, 2017, 250,000 stock options with an exercise price of $0.33 and a five-year term were granted to a consultant company. The fair value of all of the options granted was $60,000 ($0.24 per option). The options vest quarterly over a one-year period, including 25% of which (62,500 options) vested on March 15, 2017 (the grant date) and an additional 25% (62,500 options) vested on June 15, 2017. The fair value of the 62,500 options that vested during the three months ended June 30, 2017 was $15,000 and was classified as other general and administrative expense. The value of the remaining 125,000 options is $30,000 and will be recognized evenly over the next two quarters as the options vest. The value of the options was estimated on the date of grant with a Black-Scholes option-pricing model using the assumptions noted in the following table: Expected volatility 128.2% Stock price on date of grant $0.33 Expected dividends - Expected term (in years) 3 Risk-free rate 1.68% Expected forfeiture rate 0% During the nine months ended June 30, 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 were awards granted under the Company’s 2015 Stock and Incentive Plan which were payable in common shares of the Company upon the occurrence of certain events, achievement of certain milestones, or at a future date. 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 nine months ended June 30, 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% For the nine months ended June 30, 2017 and 2016, respectively, the total compensation cost of options and stock unit awards for employees was nil and $351,967, respectively. These costs were classified under salaries and benefits expense. For the nine months ended June 30, 2017 and 2016, respectively, the total compensation cost of options for non-employees was $30,000 and nil, respectively. These costs were classified under other general and administrative expense. 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, 2016 2,055,419 $ 0.56 Granted 250,000 0.33 Exercised - Expired (52,085) (5.98) Outstanding at June 30, 2017 2,253,334 $ 0.41 Exercisable at June 30, 2017 2,128,334 $ 0.41 Weighted average fair value of options granted during the nine months ended June 30, 2017 $ 0.24 Average remaining contractual term of options outstanding and exercisable at June 30, 2017 (years) 3.67 The aggregate of options exercisable as of June 30, 2017 had an intrinsic value of $3,750, based on the closing price of $0.36 per share of our common stock on June 30, 2017.

Note 10 - Commitments and Conti

Note 10 - Commitments and Contingencies	9 Months Ended
	Jun. 30, 2017
Notes
Note 10 - Commitments and Contingencies:	NOTE 10 – COMMITMENTS AND CONTINGENCIES : Mineral Exploration A portion of our Lookout Mountain mineral claims are subject to a mining lease and agreement dated August 22, 2003 with Rocky Canyon Mining Company, as amended on June 1, 2008. The lease term was extended to 20 years on June 1, 2008, and thereafter for as long as minerals are mined on the project. Under this agreement, we are obligated to make advance royalty payments of $6,000 per month. A portion of our Eureka mineral claims are subject to two mining leases with purchase option agreements dated July 12, 2012 with Silver International, Inc. The initial term of each of the agreements is ten years and may be extended for four additional periods of five years each. Under these agreements, we are obligated to make advance royalty payments of $10,000 per annum. A portion of our Eureka mineral claims are subject to a mining claim lease agreement dated November 1, 2012 with four individuals. The initial term of the agreement is five years and may be extended for an additional five years and annually as long as mining operations are being conducted on the property on a continuous basis. Under this agreement, we are obligated to make advance royalty payments of $15,000 per year. A portion of the Talapoosa mineral claims is subject to a mining lease and option to purchase agreement dated June 21, 2011 with The Nevada Bighorns Foundation. The initial term of the agreement is 20 years and may be extended for an additional 20 years and thereafter as long as minimum payments are being paid and exploration, development or mining activities are taking place. Under this agreement, we are obligated to make annual minimum payments of $10.00 per acre ($12,800) through June 21, 2020, increasing by $5.00 per acre in 2021 and every five years thereafter, subject to a maximum annual payment of $30.00 per acre. A portion of the Talapoosa mineral claims are subject to a mining lease with option to purchase agreement dated June 2, 1997 with Sario Livestock Company. The initial term of the agreement is 20 years and may be extended for an additional period of 20 years. This agreement was amended in June 2017. Under the amended terms of this agreement, we made a minimum royalty payment of $18,000 in June 2017, and we are obligated to make minimum royalty payments of $21,000 in June 2018 and $24,000 in June 2019. If the lease agreement is extended beyond June 2020, the minimum royalty payments increase to $54,000 per year. Another portion of the Talapoosa mineral claims is subject to a separate mining lease with option to purchase agreement with Sario Livestock Company dated September 11, 1989 and amended on July 13, 2010. The term of the agreement, as amended, is until September 10, 2029, with no right to extend the agreement beyond that date. Under this agreement, we are obligated to make a minimum royalty payment of $30,000 per year. A portion of the Talapoosa mineral claims is subject to a mining lease dated July 14, 1990, as amended on August 25, 1998 and July 13, 2010, with Sierra Denali Minerals Inc. The term of the agreement, as amended in July 2010, is 10 years and may be extended for two additional periods of five years each. Under this amended agreement, we are obligated to make minimum payments of $35,000 per year. Pursuant to the Amended Option Agreement at Talapoosa (see Note 5), we had an obligation to make a payment of $1 million by March 31, 2017, which payment was made. There are also future payment and property expenditure obligations of $17.5 million, including $2 million due by March 31, 2018 and $8 million due by March 31, 2019. We pay federal and county claim maintenance fees on unpatented claims that are included in our mineral exploration properties. Should we continue to explore all of our mineral properties we expect annual fees to total approximately $285,000 per year in the future. While we recognize that we will not be able to meet these obligations with our current cash balances, we do expect to make these required payments with proceeds from expected capital raises. We expect to obtain additional capital through refunds of excess restricted cash held for exploration bonds and financing transactions such as equity investments, asset sales, joint ventures, debt facilities, or other types of strategic arrangements. Real Estate Lease Commitments The Company has real estate lease commitments related to its facilities in Sparks, Nevada. As of June 30, 2017, lease obligations until the termination of the lease are $3,000. The Company’s office in Coeur d’Alene, Idaho and its facility in Eureka, Nevada are rented on a month-to-month basis. Total office lease and rental expense from continuing operations is included in the following line items in the consolidated statements of operations and comprehensive income (loss): Three months ended June 30, Nine months ended June 30, 2017 2016 2017 2016 Mineral exploration expenses $ 12,900 $ 12,900 $ 38,700 $ 43,950 Other general and administrative expenses 10,500 10,500 31,500 31,500 Total $ 23,400 $ 23,400 $ 70,200 $ 75,450 Employment Agreements There have been no recent interactions between the Company and its prior President and Chief Executive Officer regarding his dismissal in January 2016 and his employment agreement. No amounts have been accrued in the Company’s financial statements as of June 30, 2017 for severance benefits or claims as the Company is unable to estimate an amount, if any. The Company has an employment agreement with an executive employee that requires certain termination benefits and payments in defined circumstances.

Note 2 - Summary of Significa16

Note 2 - Summary of Significant Accounting Policies: a. Basis of Presentation and Going Concern (Policies)	9 Months Ended
	Jun. 30, 2017
Policies
a. Basis of Presentation and Going Concern	Basis of Presentation and Going Concern – The consolidated financial statements for the three and nine month periods ended June 30, 2017 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. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

Note 2 - Summary of Significa17

Note 2 - Summary of Significant Accounting Policies: Earnings Per Share, Policy (Policies)	9 Months Ended
	Jun. 30, 2017
Policies
Earnings Per Share, Policy	Net Income (Loss) per Share The dilutive effect of convertible and outstanding securities, in periods of future income as of June 30, 2017 and 2016, would be as follows: 2017 2016 Stock options 2,253,334 360,419 Warrants 17,960,006 10,012,506 Total possible dilution 20,213,340 10,372,925 At June 30, 2017 and 2016, the effect of the Company’s outstanding options and common stock equivalents would have been anti-dilutive.

Note 2 - Summary of Significa18

Note 2 - Summary of Significant Accounting Policies: c. Asset Retirement Obligations (Policies)	9 Months Ended
	Jun. 30, 2017
Policies
c. Asset Retirement Obligations	c. Asset retirement obligation –

Note 2 - Summary of Significa19

Note 2 - Summary of Significant Accounting Policies: d. Available-for-sale equity securities (Policies)	9 Months Ended
	Jun. 30, 2017
Policies
d. Available-for-sale equity securities	d. Available-for-sale equity securities

Note 2 - Summary of Significa20

Note 2 - Summary of Significant Accounting Policies: Earnings Per Share, Policy: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Tables)	9 Months Ended
	Jun. 30, 2017
Tables/Schedules
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	2017 2016 Stock options 2,253,334 360,419 Warrants 17,960,006 10,012,506 Total possible dilution 20,213,340 10,372,925

Note 3 - Fair Value Measureme21

Note 3 - Fair Value Measurements: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Tables)	9 Months Ended
	Jun. 30, 2017
Tables/Schedules
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	June 30, 2017 September 30, 2016 Input Hierarchy Level Assets: Cash $ 469,270 $ 82,275 Level 1 Restricted cash 288,982 694,157 Level 1 Available-for-sale equity securities - 420,000 Level 1

Note 7 - Accrued Expenses_ Sche

Note 7 - Accrued Expenses: Schedule of Accrued Liabilities (Tables)	9 Months Ended
	Jun. 30, 2017
Tables/Schedules
Schedule of Accrued Liabilities	Description June 30, 2017 September 30, 2016 Break fee for terminated transaction $ 250,000 $ 250,000 Other expenses 15,000 49,000 Total accrued expenses $ 265,000 $ 299,000

Note 9 - Stock-based Awards_ Sc

Note 9 - Stock-based Awards: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Tables)	9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Tables/Schedules
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	Expected volatility 128.2% Stock price on date of grant $0.33 Expected dividends - Expected term (in years) 3 Risk-free rate 1.68% Expected forfeiture rate 0%	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 9 - Stock-based Awards_ Sh

Note 9 - Stock-based Awards: Share-based Compensation, Stock Options, Activity (Tables)	9 Months Ended
	Jun. 30, 2017
Tables/Schedules
Share-based Compensation, Stock Options, Activity	Options Weighted Average Exercise Price Outstanding at September 30, 2016 2,055,419 $ 0.56 Granted 250,000 0.33 Exercised - Expired (52,085) (5.98) Outstanding at June 30, 2017 2,253,334 $ 0.41 Exercisable at June 30, 2017 2,128,334 $ 0.41 Weighted average fair value of options granted during the nine months ended June 30, 2017 $ 0.24 Average remaining contractual term of options outstanding and exercisable at June 30, 2017 (years) 3.67

Note 10 - Commitments and Con25

Note 10 - Commitments and Contingencies: Schedule of Rent Expense (Tables)	9 Months Ended
	Jun. 30, 2017
Tables/Schedules
Schedule of Rent Expense	Three months ended June 30, Nine months ended June 30, 2017 2016 2017 2016 Mineral exploration expenses $ 12,900 $ 12,900 $ 38,700 $ 43,950 Other general and administrative expenses 10,500 10,500 31,500 31,500 Total $ 23,400 $ 23,400 $ 70,200 $ 75,450

Note 1 - Organization and Des26

Note 1 - Organization and Description of Business (Details)	9 Months Ended
	Jun. 30, 2017
Details
Entity Incorporation, State Country Name	Delaware

Note 2 - Summary of Significa27

Note 2 - Summary of Significant Accounting Policies: a. Basis of Presentation and Going Concern (Details)	9 Months Ended
	Jun. 30, 2017
Details
Substantial Doubt about Going Concern	The consolidated financial statements for the three and nine month periods ended June 30, 2017 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.  These factors raise substantial doubt about the Company’s ability to continue as a going concern.

Note 2 - Summary of Significa28

Note 2 - Summary of Significant Accounting Policies: Earnings Per Share, Policy: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Details
Stock options	2,253,334	360,419
Warrants	17,960,006	10,012,506
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	20,213,340	10,372,925

Note 3 - Fair Value Measureme29

Note 3 - Fair Value Measurements: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)	Jun. 30, 2017	Sep. 30, 2016
Details
Cash and Cash Equivalents, Fair Value Disclosure	$ 469,270	$ 82,275
Restricted Cash and Cash Equivalents, Current	$ 288,982	694,157
Available-for-sale Securities, Equity Securities		$ 420,000

Note 4 - Restricted Cash (Detai

Note 4 - Restricted Cash (Details) - USD ($)	3 Months Ended	9 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016
Details
Refund of reclamation and road use bonds	$ 26,000	$ 405,175	$ 85,005

Note 5 - Property Option Agre31

Note 5 - Property Option Agreement (Details) - USD ($)	3 Months Ended	9 Months Ended	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Sep. 30, 2015
Details
Share issuance on equity method investment	1,000,000		2,000,000
Cash payment on equity method investment			$ 300,000
Total payment on equity method investment			$ 1,500,000
Common stock issued for mineral rights	$ 480,000	$ 480,000

Note 6 - Available-for-sale E32

Note 6 - Available-for-sale Equity Securities (Details) - USD ($)	3 Months Ended	9 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Sep. 30, 2016
Details
Available for sale securities owned	0	0	3,000,000
Gain on sale of available-for-sale securities	$ 100,260	$ 124,086

Note 7 - Accrued Expenses (Deta

Note 7 - Accrued Expenses (Details) - USD ($)	9 Months Ended	12 Months Ended
	Jun. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Details
Accrued expenses	$ 265,000	$ 299,000
Break fee for terminated transaction	$ 250,000	$ 250,000	$ 250,000

Note 7 - Accrued Expenses_ Sc34

Note 7 - Accrued Expenses: Schedule of Accrued Liabilities (Details) - USD ($)	9 Months Ended	12 Months Ended
	Jun. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Details
Break fee for terminated transaction	$ 250,000	$ 250,000	$ 250,000
Professional and Contract Services Expense	15,000	49,000
Accrued expenses	$ 265,000	$ 299,000

Note 8 - Common Stock, Warran35

Note 8 - Common Stock, Warrants and Preferred Stock (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Apr. 12, 2017	Jun. 30, 2017	Sep. 30, 2016	Jun. 30, 2016
Initial Offering Period			On January 13, 2017, we initiated a $1,250,000 private placement offering of Units of the Company at a price of $0.25 per Unit, with an over-allotment option to increase the offering by up to 20%, solely to persons who qualify as accredited investors (the 'Offering'). The Offering was subsequently increased to total $2,000,000. Each Unit in the Offering consisted of one share of common stock of the Company and one common share purchase warrant (each a “Warrant”), with each Warrant exercisable to acquire an additional share of common stock of the Company at a price of $0.40 per share until the warrant expiration date of January 31, 2020. The Company may accelerate the warrant expiration date if the price of the Company’s common stock closes at or above $0.90 for twenty consecutive trading days.
Common stock and warrant units		8,000,000
Price per unit		0.25
Common stock issued for mineral rights	$ 480,000		$ 480,000
Warrants issued			8,000,000
Warrants exercised			40,000
Warrants and Rights Outstanding					$ 17,960,006
Weighted Average Exercise Price, Exercisable	$ 0.41		$ 0.41	$ 0.56	$ 0.32
Preferred Stock, Shares Authorized	10,000,000		10,000,000	10,000,000	10,000,000
Preferred Stock, Par Value	$ 0.01		$ 0.01	$ 0.01	$ 0.01
Private offering at end of period
Common stock and warrant units	1,845,000
Price per unit	0.25
Common stock and warrant units, value	$ 461,250
Aggregate of Offering
Common stock and warrant units, value		$ 2,000,000

Note 9 - Stock-based Awards (De

Note 9 - Stock-based Awards (Details) - USD ($)	3 Months Ended	9 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures		250,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value	$ 3,750	$ 3,750
Options issued to nonemployees
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures		250,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value	$ 15,000		$ 30,000
Options issued to employees
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures			43,837
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value			$ 351,967
Share Based Compensation Arrangement By Share Based Payment Award Stock Units Fair Value			675,000

Note 9 - Stock-based Awards_ 37

Note 9 - Stock-based Awards: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) - $ / shares	9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Details
Fair Value Assumptions, Expected Volatility Rate	128.20%	110.40%
Stock price on date of grant	$ 0.33	$ 0.50
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	3 years	3 years
Fair Value Assumptions, Risk Free Interest Rate	1.68%	0.90%
Sharebased Compensation Arrangement By Sharebased Payment Award FairValue Assumptions Expected Forfeiture Rate	0.00%	0.00%

Note 9 - Stock-based Awards_ 38

Note 9 - Stock-based Awards: Share-based Compensation, Stock Options, Activity (Details) - $ / shares	9 Months Ended
	Jun. 30, 2017	Sep. 30, 2016	Jun. 30, 2016
Details
Outstanding	2,253,334	2,055,419
Weighted Average Exercise Price, Exercisable	$ 0.41	$ 0.56	$ 0.32
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	250,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 0.33
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period	(52,085)
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price	$ (5.98)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 0.41
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	2,128,334
Weighted average fair value of options granted	$ 0.24
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	3 years 8 months 1 day

Note 10 - Commitments and Con39

Note 10 - Commitments and Contingencies (Details)	9 Months Ended
	Jun. 30, 2017USD ($)
LookoutMountainMember
Real Estate Lease Commitments	A portion of our Lookout Mountain mineral claims are subject to a mining lease and agreement dated August 22, 2003 with Rocky Canyon Mining Company, as amended on June 1, 2008. The lease term was extended to 20 years on June 1, 2008, and thereafter for as long as minerals are mined on the project. Under this agreement, we are obligated to make advance royalty payments of $6,000 per month.
EurekaMember
Real Estate Lease Commitments	A portion of our Eureka mineral claims are subject to two mining leases with purchase option agreements dated July 12, 2012 with Silver International, Inc. The initial term of each of the agreements is ten years and may be extended for four additional periods of five years each. Under these agreements, we are obligated to make advance royalty payments of $10,000 per annum. A portion of our Eureka mineral claims are subject to a mining claim lease agreement dated November 1, 2012 with four individuals. The initial term of the agreement is five years and may be extended for an additional five years and annually as long as mining operations are being conducted on the property on a continuous basis. Under this agreement, we are obligated to make advance royalty payments of $15,000 per year.
TalapoosaMember
Real Estate Lease Commitments	A portion of the Talapoosa mineral claims is subject to a mining lease and option to purchase agreement dated June 21, 2011 with The Nevada Bighorns Foundation. The initial term of the agreement is 20 years and may be extended for an additional 20 years and thereafter as long as minimum payments are being paid and exploration, development or mining activities are taking place. Under this agreement, we are obligated to make annual minimum payments of $10.00 per acre ($12,800) through June 21, 2020, increasing by $5.00 per acre in 2021 and every five years thereafter, subject to a maximum annual payment of $30.00 per acre. A portion of the Talapoosa mineral claims are subject to a mining lease with option to purchase agreement dated June 2, 1997 with Sario Livestock Company. The initial term of the agreement is 20 years and may be extended for an additional period of 20 years. This agreement was amended in June 2017. Under the amended terms of this agreement, we made a minimum royalty payment of $18,000 in June 2017, and we are obligated to make minimum royalty payments of $21,000 in June 2018 and $24,000 in June 2019. If the lease agreement is extended beyond June 2020, the minimum royalty payments increase to $54,000 per year. Another portion of the Talapoosa mineral claims is subject to a separate mining lease with option to purchase agreement with Sario Livestock Company dated September 11, 1989 and amended on July 13, 2010. The term of the agreement, as amended, is until September 10, 2029, with no right to extend the agreement beyond that date. Under this agreement, we are obligated to make a minimum royalty payment of $30,000 per year. A portion of the Talapoosa mineral claims is subject to a mining lease dated July 14, 1990, as amended on August 25, 1998 and July 13, 2010, with Sierra Denali Minerals Inc. The term of the agreement, as amended in July 2010, is 10 years and may be extended for two additional periods of five years each. Under this amended agreement, we are obligated to make minimum payments of $35,000 per year. Pursuant to the Amended Option Agreement at Talapoosa (see Note 5), we had an obligation to make a payment of $1 million by March 31, 2017, which payment was made. There are also future payment and property expenditure obligations of $17.5 million, including $2 million due by March 31, 2018 and $8 million due by March 31, 2019.
FederalAndCountyClaimMaintenanceFeesMember
Maintenance fees, mineral exploration properties	$ 285,000
Real Estate commitments
Real Estate Lease Commitments	The Company has real estate lease commitments related to its facilities in Sparks, Nevada. As of June 30, 2017, lease obligations until the termination of the lease are $3,000. The Company’s office in Coeur d’Alene, Idaho and its facility in Eureka, Nevada are rented on a month-to-month basis.

Note 10 - Commitments and Con40

Note 10 - Commitments and Contingencies: Schedule of Rent Expense (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Details
Results of Operations Exploration Expense Mining	$ 12,900	$ 12,900	$ 38,700	$ 43,950
Other General and Administrative Expense	10,500	10,500	31,500	31,500
Operating Leases, Rent Expense	$ 23,400	$ 23,400	$ 70,200	$ 75,450