Timberline Resources (TLRS) 10-Q 11 May 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2018	May 10, 2018
Document and Entity Information
Entity Registrant Name	Timberline Resources Corp
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Entity Central Index Key	1,288,750
Current Fiscal Year End Date	--09-30
Entity Common Stock, Shares Outstanding		43,527,819
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	2,018
Document Fiscal Period Focus	Q2
Trading Symbol	tlrs

TIMBERLINE RESOURCES CORPORATIO

TIMBERLINE RESOURCES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Interim period unaudited) - USD ($)		Mar. 31, 2018	Sep. 30, 2017
CURRENT ASSETS:
Cash		$ 15,318	$ 67,154
Prepaid expenses		204,788	20,716
Accounts receivable			2,633
TOTAL CURRENT ASSETS		220,106	90,503
PROPERTY, MINERAL RIGHTS AND EQUIPMENT, net		13,947,319	17,125,519
OTHER ASSETS:
Restricted cash		285,128	285,128
Deposits and other assets		9,750	9,750
TOTAL OTHER ASSETS		294,878	294,878
TOTAL ASSETS		14,462,303	17,510,900
CURRENT LIABILITIES:
Accounts payable		107,753	109,680
Accrued expenses		8,853	9,923
Accrued payroll, benefits and taxes		70,269	85,730
Payment obligation		212,273	250,000
TOTAL CURRENT LIABILITIES		399,148	455,333
LONG-TERM LIABILITIES:
Asset retirement obligation		156,718	152,940
TOTAL LONG-TERM LIABILITIES		156,718	152,940
COMMITMENTS AND CONTINGENCIES	[1]	0	0
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, 36,027,819 and 33,146,952 shares issued and outstanding, respectively		36,028	33,147
Additional paid-in capital		71,434,030	70,408,144
Accumulated deficit		(57,563,621)	(53,538,664)
TOTAL STOCKHOLDERS' EQUITY		13,906,437	16,902,627
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$ 14,462,303	$ 17,510,900
[1]	Notes 5 and 10

Statement of Financial Position

Statement of Financial Position - Parenthetical - $ / shares	Mar. 31, 2018	Sep. 30, 2017
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	36,027,819	33,146,952
Common Stock, Shares Outstanding	36,027,819	33,146,952

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, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
OPERATING EXPENSES:
Mineral exploration	$ 21,094	$ 36,392	$ 47,268	$ 82,120
Abandonment of mineral rights	3,231,700		3,231,700
Salaries and benefits	231,266	109,400	314,520	185,934
Professional fees	28,025	46,425	100,571	138,240
Insurance expense	24,057	23,517	47,236	43,643
Gain on disposal of equipment				(2,500)
Other general and administrative	155,588	328,032	288,092	401,118
TOTAL OPERATING EXPENSES	3,691,730	543,766	4,029,387	848,555
LOSS FROM OPERATIONS	(3,691,730)	(543,766)	(4,029,387)	(848,555)
OTHER INCOME (EXPENSE):
Foreign exchange gain (loss)	(122)	123	(89)	(798)
Interest expense	(3,943)		(10,114)
Gain on sale of available-for-sale securities		23,826		23,826
Miscellaneous other income		2	14,633	5
TOTAL OTHER INCOME (EXPENSE)	(4,065)	23,951	4,430	23,033
LOSS BEFORE INCOME TAXES	(3,695,795)	(519,815)	(4,024,957)	(825,522)
INCOME TAX PROVISION (BENEFIT)		11,632		32,632
NET LOSS	(3,695,795)	(531,447)	(4,024,957)	(858,154)
OTHER COMPREHENSIVE INCOME (LOSS):
Unrealized gain (loss) on available-for-sale equity securities, net of tax				(39,000)
Reclassification of (gain) on available-for-sale securities sold		(21,601)		(21,601)
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)		(21,601)		(60,601)
COMPREHENSIVE LOSS	$ (3,695,795)	$ (553,048)	$ (4,024,957)	$ (918,755)
NET LOSS PER SHARE AVAILABLE TO COMMON STOCKHOLDERS, BASIC AND DILUTED	$ (0.10)	$ (0.02)	$ (0.11)	$ (0.04)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND DILUTED	36,027,819	25,244,952	35,296,269	24,669,699

TIMBERLINE RESOURCES CORPORATI5

TIMBERLINE RESOURCES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (4,024,957)	$ (858,154)
Adjustments to reconcile net loss to net cash used by operating activities:
Deferred income tax provision		32,632
Gain on disposal of equipment		(2,500)
Stock-based compensation	207,000	15,000
Abandonment of mineral properties	3,231,700
Accretion of asset retirement obligation	3,778	3,598
Gain on sale of available-for-sale securities		(23,826)
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(184,072)	(11,824)
Accounts receivable	2,633	(2,633)
Accounts payable	(1,927)	2,017
Accrued expenses	(1,070)	(48,150)
Accrued payroll, benefits and taxes	(15,461)	9,634
Net cash used by operating activities	(782,376)	(884,206)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, mineral rights and equipment	(53,500)	(1,051,000)
Proceeds from disposal of equipment		2,500
Proceeds from sale of available-for-sale securities		77,856
Refund of reclamation and road use bonds		379,175
Net cash (used) by investing activities	(53,500)	(591,469)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of units, net	821,767	1,538,750
Proceeds from subscriptions agreements		100,000
Payment obligation	(37,727)
Net cash provided by financing activities	784,040	1,638,750
Net increase (decrease) in cash and cash equivalents	(51,836)	163,075
CASH AT BEGINNING OF PERIOD	67,154	82,275
CASH AT END OF PERIOD	$ 15,318	245,350
NON-CASH FINANCING AND INVESTING ACTIVITIES:
Common stock payable for mineral rights		$ 480,000

Note 1 - Organization and Descr

Note 1 - Organization and Description of Business	6 Months Ended
	Mar. 31, 2018
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, 2018
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 six month periods ended March 31, 2018 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 outstanding securities, in periods of future income as of March 31, 2018 and 2017, would be as follows: 2018 2017 Stock options 2,980,000 2,297,085 Warrants 20,840,873 16,155,006 Total possible dilution 23,820,873 18,452,091 At March 31, 2018 and 2017, the effect of the Company’s outstanding options and warrants would have been anti-dilutive. c. Asset retirement obligation – d. Available-for-sale equity securities e. New accounting pronouncements: Statement of cash flows – Restricted cash Compensation – Stock compensation f. Restricted cash Other Assets Restricted cash g. Reclassifications

Note 3 - Fair Value Measurement

Note 3 - Fair Value Measurements	6 Months Ended
	Mar. 31, 2018
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, 2018 September 30, 2017 Input Hierarchy Level Assets: Cash $ 15,318 $ 67,154 Level 1 Restricted cash 285,128 285,128 Level 1

Note 4 - Prepaid Expenses

Note 4 - Prepaid Expenses	6 Months Ended
	Mar. 31, 2018
Notes
Note 4 - Prepaid Expenses:	NOTE 4 – PREPAID EXPENSES: Any expenses paid prior to the related services being rendered will be recorded as prepaid expenses. At March 31, 2018 prepaid expenses included $166,667 related to a prepaid marketing consulting agreement, with the remainder related to prepaid insurance premiums and prepaid annual exchange listing fees.

Note 5 - Property Option Agreem

Note 5 - Property Option Agreement	6 Months Ended
	Mar. 31, 2018
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 had 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 were 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 retained the total of 2,000,000 shares, even though we did not exercise the Option. Pursuant to the Amended Agreement, during the Amended Option Period, we were required to make the following expenditures and stock issuances in order to retain the Option: · · · · We did not make the payment of $2 million nor issue the one million common shares of the Company by March 31, 2018, and, therefore, the Amended Agreement was terminated per its terms on March 31, 2018. As a result, in the three months ended March 31, 2018, we wrote off our entire investment of $3,231,700 in the Talapoosa property option pursuant to the Amended Agreement. This was recognized as an abandonment of mineral rights during the period ended March 31, 2018.

Note 6 - Accrued Expenses

Note 6 - Accrued Expenses	6 Months Ended
	Mar. 31, 2018
Notes
Note 6 - Accrued Expenses:	NOTE 6 – ACCRUED EXPENSES: As of March 31, 2018 and September 30, 2017, we had accrued $8,853 and $9,923 in expenses, respectively. The components of the accrued expenses are: Description March 31, 2018 September 30, 2017 Interest expense $ 3,853 $ - Other expenses 5,000 9,923 Total accrued expenses $ 8,853 $ 9,923

Note 7 - Payment Obligation

Note 7 - Payment Obligation	6 Months Ended
	Mar. 31, 2018
Notes
Note 7 - Payment Obligation:	NOTE 7 – PAYMENT OBLIGATION: On September 12, 2017, we entered into an agreement (the “Payment Agreement”) with a creditor (the “Creditor”) to pay by way of a payment plan an existing obligation of $250,000 (the “Debt”) related to a potential corporate transaction in 2015 that was not completed. Pursuant to the Payment Agreement, we agreed to pay the Debt to the Creditor, including interest, on or before September 12, 2020. Interest accrues on the unpaid principal amount of the Debt at the prime rate, as such rate may change from time to time, plus 3% per annum. We agreed to pay the Creditor 5% of the gross proceeds of any funds raised, whether though equity sales, debt, or sales of assets. If the gross proceeds of any equity financing are at least $1 million, then we agreed to also commence monthly installment payments of $10,000 until the Debt is paid. During the three months and six months ended March 31, 2018, we paid $8,850 and $43,213, respectively, to the Creditor, which represented 5% of the gross proceeds of two tranches of a private placement completed in December 2017. During the three months and six months ended March 31, 2018, $7,684 and $37,727, respectively, was applied to principal of the Debt and $1,166 and $5,486, respectively, was applied to interest. The payment made during the three months ended March 31, 2018 was paid in early January 2018 even though the final private placement proceeds were received in late December 2017. Interest on the Debt, in the amount of $3,853, was included in accrued expenses at March 31, 2018. The obligation to commence monthly installment payments of $10,000 until the Debt is paid has not yet been triggered because we have not completed a financing with gross proceeds of at least $1 million.

Note 8 - Common Stock, Warrants

Note 8 - Common Stock, Warrants and Preferred Stock	6 Months Ended
	Mar. 31, 2018
Notes
Note 8 - Common Stock, Warrants and Preferred Stock:	NOTE 8 – COMMON STOCK, WARRANTS AND PREFERRED STOCK: Private Placement On October 12, 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 $0.45 per share until the warrant expiration date of October 31, 2022. During the six months ended March 31, 2018, we closed the sale of two tranches of the Offering. In the aggregate, we sold a total of 2,880,867 Units at a price of $0.30 per unit for gross proceeds of $864,260 and net proceeds, net of offering costs, of $821,767. Stock Issued for Stock Options We did not issue any stock pursuant to the exercise of stock options or stock unit awards during the three months or the six months ended March 31, 2018. Warrants During the six months ended March 31, 2018, 2,880,867 warrants were issued pursuant to the Offering. No warrants expired during the three or six months ended March 31, 2018. At March 31, 2018, there were 9,960,006 warrants outstanding with an exercise price of $0.25 per share that expire on May 31, 2019, 8,000,000 warrants outstanding with an exercise price of $0.40 per share that expire on January 31, 2020, and 2,880,867 warrants outstanding with an exercise price of $0.45 that expire on October 31, 2022. In aggregate, as of March 31, 2018, there were 20,840,873 warrants outstanding at a weighted average exercise price of $0.335. 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 March 31, 2018.

Note 9 - Stock-based Awards

Note 9 - Stock-based Awards	6 Months Ended
	Mar. 31, 2018
Notes
Note 9 - Stock-based Awards:	NOTE 9 – STOCK-BASED AWARDS: During the three months ended March 31, 2018, 1,600,000 stock options with an exercise price of $0.17 and a five-year term where granted to our employees and directors. All of the awarded stock options vested immediately. The fair value of all of the options that were granted and vested during the three months ended March 31, 2018 was $192,000 ($0.12 per option). During the three months ended March 31, 2017, 250,000 stock options with an exercise price of $0.33 and a three-year term where granted to a consultant company. The options vested quarterly over a one-year period. The fair value of the 62,500 options that were vested during the three months ended March 31, 2017 was $15,000 ($0.24 per option) and was classified as other general and administrative expense. The value of the remaining 187,500 options was $45,000 and was recognized evenly over the following three quarters as the options vested, including $15,000 that was recognized during the three months ended December 31, 2017, which is included in the compensation cost of options for non-employees for the six months ended March 31, 2018. 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: 2018 2017 Expected volatility 121.6 % 128.2% Stock price on date of grant $ 0.17 $0.33 Expected dividends - - Expected term (in years) 3 3 Risk-free rate 2.33 % 1.68% Expected forfeiture rate 0 % 0% For the three and six months ended March 31, 2018 and 2017, the total compensation cost of stock options for employees was $120,000 and nil, respectively. These costs were classified under salaries and benefits expense. For the three months ended March 31, 2018 and 2017, the total compensation cost of options for non-employees was $72,000 and $15,000, respectively. These costs were classified under other general and administrative expense. For the six months ended March 31, 2018 and 2017, the total compensation cost of options for non-employees was $87,000 and $15,000, 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, 2017 2,233,334 $ 0.41 Granted 1,600,000 0.17 Expired (853,334) (0.43) Outstanding and exercisable at March 31, 2018 2,980,000 $ 0.28 Weighted average fair value of options granted during the three months ended March 31, 2018 $ 0.12 Average remaining contractual term of options outstanding and exercisable at March 31, 2018 (years) 3.91 The aggregate of options exercisable as of March 31, 2018 had an intrinsic value of nil, based on the closing price of $0.17 per share of our common stock on March 31, 2018.

Note 10 - Commitments and Conti

Note 10 - Commitments and Contingencies	6 Months Ended
	Mar. 31, 2018
Notes
Note 10 - Commitments and Contingencies:	NOTE 10 – COMMITMENTS AND CONTINGENCIES : Mineral Exploration A portion of our mining claims on our properties are subject to lease and option agreements with various terms, obligations, and royalties payable in certain circumstances. Pursuant to the Amended Option Agreement at Talapoosa (see Note 5), we had an obligation to make a payment of $2 million by March 31, 2018, which payment was not made and, therefore, the Amended Option Agreement was terminated per its terms on March 31, 2018. We have no future obligations related to the Amended Option Agreement at Talapoosa. 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 $158,000 per year in the future. While we recognize that we will not be able to meet these payments with our current cash balances, we do expect to make these 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 As of March 31, 2018, the Company has no real estate lease commitments. The Company’s office in Coeur d’Alene, Idaho and its facilities in Sparks, Nevada and 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 March 31, Six months ended March 31, 2018 2017 2018 2017 Mineral exploration expenses $ 12,900 $ 12,900 $ 25,800 $ 25,800 Other general and administrative expenses 10,500 10,500 21,000 21,000 Total $ 23,400 $ 23,400 $ 46,800 $ 46,800 Employment Agreements The Company has employment agreements with two executive employees that require certain termination benefits and payments in defined circumstances.

Note 11 - Subsequent Events

Note 11 - Subsequent Events	6 Months Ended
	Mar. 31, 2018
Notes
Note 11 - Subsequent Events:	NOTE 11 – SUBSEQUENT EVENTS : Eureka Property Lease Payments Subsequent to March 31, 2018, our management and Board of Directors determined that certain payments received by the Company, which had been held and not recorded or deposited pending an expected resolution of circumstances relating to two historic leases at our Eureka property, should be deposited. The payments had been received from a third party with whom we are in discussions to resolve matters that had been under negotiation since we acquired the Eureka property. The funds are subject to potential return to the third party pending the outcome of the negotiations. The total amount of these payments received through April 2018 was $70,772. Monthly payments in the amount of $8,326 are expected to continue to be received, recorded and deposited until the situation concerning the leases is resolved.

Note 2 - Summary of Significa17

Note 2 - Summary of Significant Accounting Policies: a. Basis of Presentation and going concern (Policies)	6 Months Ended
	Mar. 31, 2018
Policies
a. Basis of Presentation and going concern	a. Basis of Presentation and Going Concern – The consolidated financial statements for the three and six month periods ended March 31, 2018 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 Significa18

Note 2 - Summary of Significant Accounting Policies: b. Net Income (Loss) per Share (Policies)	6 Months Ended
	Mar. 31, 2018
Policies
b. Net Income (Loss) per Share	b. Net Income (Loss) per Share The dilutive effect of outstanding securities, in periods of future income as of March 31, 2018 and 2017, would be as follows: 2018 2017 Stock options 2,980,000 2,297,085 Warrants 20,840,873 16,155,006 Total possible dilution 23,820,873 18,452,091 At March 31, 2018 and 2017, the effect of the Company’s outstanding options and warrants 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, 2018
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, 2018
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: e. New Accounting Pronouncements (Policies)	6 Months Ended
	Mar. 31, 2018
Policies
e. New Accounting Pronouncements:	e. New accounting pronouncements: Statement of cash flows – Restricted cash Compensation – Stock compensation

Note 2 - Summary of Significa22

Note 2 - Summary of Significant Accounting Policies: f. Restricted cash (Policies)	6 Months Ended
	Mar. 31, 2018
Policies
f. Restricted cash	f. Restricted cash Other Assets Restricted cash

Note 2 - Summary of Significa23

Note 2 - Summary of Significant Accounting Policies: g. Reclassifications (Policies)	6 Months Ended
	Mar. 31, 2018
Policies
g. Reclassifications	g. Reclassifications

Note 2 - Summary of Significa24

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, 2018
Tables/Schedules
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	2018 2017 Stock options 2,980,000 2,297,085 Warrants 20,840,873 16,155,006 Total possible dilution 23,820,873 18,452,091

Note 3 - Fair Value Measureme25

Note 3 - Fair Value Measurements: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Tables)	6 Months Ended
	Mar. 31, 2018
Tables/Schedules
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	March 31, 2018 September 30, 2017 Input Hierarchy Level Assets: Cash $ 15,318 $ 67,154 Level 1 Restricted cash 285,128 285,128 Level 1

Note 9 - Stock-based Awards_ Sc

Note 9 - Stock-based Awards: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Tables)	6 Months Ended
	Mar. 31, 2018
Tables/Schedules
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	2018 2017 Expected volatility 121.6 % 128.2% Stock price on date of grant $ 0.17 $0.33 Expected dividends - - Expected term (in years) 3 3 Risk-free rate 2.33 % 1.68% Expected forfeiture rate 0 % 0%

Note 9 - Stock-based Awards_ Sh

Note 9 - Stock-based Awards: Share-based Compensation, Stock Options, Activity (Tables)	6 Months Ended
	Mar. 31, 2018
Tables/Schedules
Share-based Compensation, Stock Options, Activity	Options Weighted Average Exercise Price Outstanding at September 30, 2017 2,233,334 $ 0.41 Granted 1,600,000 0.17 Expired (853,334) (0.43) Outstanding and exercisable at March 31, 2018 2,980,000 $ 0.28 Weighted average fair value of options granted during the three months ended March 31, 2018 $ 0.12 Average remaining contractual term of options outstanding and exercisable at March 31, 2018 (years) 3.91

Note 10 - Commitments and Con28

Note 10 - Commitments and Contingencies: Schedule of Rent Expense (Tables)	6 Months Ended
	Mar. 31, 2018
Tables/Schedules
Schedule of Rent Expense	Three months ended March 31, Six months ended March 31, 2018 2017 2018 2017 Mineral exploration expenses $ 12,900 $ 12,900 $ 25,800 $ 25,800 Other general and administrative expenses 10,500 10,500 21,000 21,000 Total $ 23,400 $ 23,400 $ 46,800 $ 46,800

Note 2 - Summary of Significa29

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, 2018	Mar. 31, 2017
Details
Stock options	2,980,000	2,297,085
Warrants	20,840,873	16,155,006
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	23,820,873	18,452,091

Note 3 - Fair Value Measureme30

Note 3 - Fair Value Measurements: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Details
Cash and Cash Equivalents, Fair Value Disclosure	$ 15,318	$ 67,154
Restricted Cash and Cash Equivalents, Current	$ 285,128	$ 285,128

Note 4 - Prepaid Expenses (Deta

Note 4 - Prepaid Expenses (Details)	6 Months Ended
	Mar. 31, 2018USD ($)
Details
Marketing Expense	$ 166,667

Note 5 - Property Option Agre32

Note 5 - Property Option Agreement (Details) - USD ($)	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2018	Sep. 30, 2015
Details
Share issuance on equity method investment				2,000,000
Cash payment on equity method investment				$ 300,000
Payments to Acquire Equity Method Investments				$ 1,500,000
Stock Issued During Period, Shares, Other	1,000,000
Stock Issued During Period, Value, Other	$ 480,000
Abandonment of mineral rights		$ 3,231,700	$ 3,231,700

Note 6 - Accrued Expenses (Deta

Note 6 - Accrued Expenses (Details) - USD ($)	6 Months Ended	12 Months Ended
	Mar. 31, 2018	Sep. 30, 2017
Details
Accrued expenses	$ 8,853	$ 9,923
Interest Expense, Other	3,853
Other Expenses	5,000	9,923
Accrued expenses	$ 8,853	$ 9,923

Note 7 - Payment Obligation (De

Note 7 - Payment Obligation (Details) - USD ($)	3 Months Ended	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2018	Sep. 30, 2017
Payment obligation	$ 212,273	$ 212,273	$ 250,000
Debt Instrument, Periodic Payment	8,850	43,213
Debt Instrument, Periodic Payment, Principal		37,727
Interest Paid		5,486
Payment Agreement
Debt Instrument, Periodic Payment, Principal	7,684
Interest Paid	$ 1,166
Debt Instrument, Increase, Accrued Interest		$ 3,853

Note 8 - Common Stock, Warran35

Note 8 - Common Stock, Warrants and Preferred Stock (Details) - USD ($)	6 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017
Preferred Stock, Shares Authorized	10,000,000		10,000,000
Preferred Stock, Par Value	$ 0.01	$ 0.01	$ 0.01
Private Placement
Private Placement Description	On October 12, 2017, we initiated a $1,250,000 private placement offering of Units of the Company at a price of $0.30 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'). 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 $0.45 per share until the warrant expiration date of October 31, 2022.
Private Placement Units Price Per Unit	2,880,867
Private Placement Units Price Per Unit	$ 0.30
Proceeds from issuance of private placement units	$ 864,260
Proceeds from issuance of private placement units, net	$ 821,767
Warrants
Warrants issued with offering	2,880,867
Warrants detail 1	9,960,006
Warrants detail price per share 1	0.25
Warrants detail 2	8,000,000
Warrants detail price per share 2	0.40
Warrants detail 3	2,880,867
Warrants detail price per share 3	0.45
Warrants outstanding	20,840,873
Warrants outstanding, weighted average exercise price	0.335

Note 9 - Stock-based Awards (De

Note 9 - Stock-based Awards (Details) - USD ($)	3 Months Ended		6 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Other general and administrative	$ 155,588	$ 328,032	$ 288,092	$ 401,118
Options issued incentives
Options issued	1,600,000
Options price per share	0.17
Options issued price fair value	$ 192,000
Options issued consultant
Options issued		250,000
Options price per share		0.33
Options vested in period		62,500
Other general and administrative		$ 15,000			$ 45,000
Options not vested in period		187,500
Options issued employees
Salaries, Wages and Officers' Compensation	120,000	$ 0	120,000	$ 0
Options issued nonemployees
Other general and administrative	$ 15,000		$ 87,000

Note 9 - Stock-based Awards_ 37

Note 9 - Stock-based Awards: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) - $ / shares	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Details
Fair Value Assumptions, Expected Volatility Rate	121.60%	128.20%
stock price on date of grant	$ 0.17	$ 0.33
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	2.33%	1.68%
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	3 Months Ended	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2018	Sep. 30, 2017
Details
Exercisable	2,980,000	2,980,000	2,233,334
Weighted Average Exercise Price, Exercisable	$ 0.28	$ 0.28	$ 0.41
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures		1,600,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price		$ 0.17
Expired		(853,334)
Weighted Average Exercise Price, Expired		$ (0.43)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 0.12
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term		3 years 10 months 28 days

Note 10 - Commitments and Con39

Note 10 - Commitments and Contingencies (Details)	6 Months Ended
	Mar. 31, 2018USD ($)
Details
Expected annual fees, mineral exploration properties	$ 158,000

Note 10 - Commitments and Con40

Note 10 - Commitments and Contingencies: Schedule of Rent Expense (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Details
Results of Operations Exploration Expense Mining	$ 12,900	$ 12,900	$ 25,800	$ 25,800
General and Administrative Expense	10,500	10,500	21,000	21,000
Operating Leases, Rent Expense	$ 23,400	$ 23,400	$ 46,800	$ 46,800

Note 11 - Subsequent Events (De

Note 11 - Subsequent Events (Details)	6 Months Ended
	Mar. 31, 2018
Details
Subsequent Event, Description	Subsequent to March 31, 2018, our management and Board of Directors determined that certain payments received by the Company, which had been held and not recorded or deposited pending an expected resolution of circumstances relating to two historic leases at our Eureka property, should be deposited. The payments had been received from a third party with whom we are in discussions to resolve matters that had been under negotiation since we acquired the Eureka property. The funds are subject to potential return to the third party pending the outcome of the negotiations. The total amount of these payments received through April 2018 was $70,772. Monthly payments in the amount of $8,326 are expected to continue to be received, recorded and deposited until the situation concerning the leases is resolved.