Timberline Resources (TLRS) 10-Q 19 Feb 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2018	Feb. 11, 2019
Details
Registrant Name	Timberline Resources Corp
Registrant CIK	1,288,750
SEC Form	10-Q
Period End date	Dec. 31, 2018
Fiscal Year End	--09-30
Trading Symbol	TLRS
Tax Identification Number (TIN)	820,291,227
Number of common stock shares outstanding		61,027,819
Filer Category	Non-accelerated Filer
Current with reporting	Yes
Small Business	true
Emerging Growth Company	false
Amendment Flag	false
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q1

TIMBERLINE RESOURCES CORPORATIO

TIMBERLINE RESOURCES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)	Dec. 31, 2018	Sep. 30, 2018
Current Assets
Cash	$ 185,688	$ 110,736
Prepaid expenses and other current assets	93,033	44,782
Total Current Assets	278,721	155,518
Property, Mineral Rights and Equipment, net	15,094,823	14,926,417
Other Assets
Reclamation bonds	307,286	307,286
Deposits and other assets	5,700	5,700
Total Other Assets	312,986	312,986
Total Assets	15,686,530	15,394,921
Current Liabilities
Accounts payable	98,812	110,134
Accrued expenses	110,193	42,166
Accrued payroll, benefits and taxes	13,846	32,295
Total Current Liabilities	222,851	184,595
Long-term Liaabilites
Asset retirement obligation	162,523	160,588
Payment obligation	198,806	198,806
Senior unsecured note payable - net of discount	216,503	196,432
Total Long-term Liabilities	577,832	555,826
Commitments and contingencies	0	0
Stockholders' Equity
Preferred stock value	0	0
Common stock	61,028	53,528
Additional paid-in capital	73,970,930	73,197,430
Accumulated deficit	(59,146,111)	(58,596,458)
Total Stockholders' Equity	14,885,847	14,654,500
Total Liabilites and Stockholders' Equity	$ 15,686,530	$ 15,394,921

TIMBERLINE RESOURCES CORPORAT_2

TIMBERLINE RESOURCES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) - Parenthetical - $ / shares	Dec. 31, 2018	Sep. 30, 2018
Details
Preferred stock par value	$ 0.01	$ 0.01
Preferred stock shares authorized	10,000,000	10,000,000
Preferred stock shares authorized	0	0
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	200,000,000	200,000,000
Common Stock, Shares, Outstanding	61,027,819	53,527,819

TIMBERLINE RESOURCES CORPORAT_3

TIMBERLINE RESOURCES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Operating Expenses
Mineral exploration	$ 271,525	$ 26,174
Salaries and benefits	43.318	83,254
Professional fees	92,792	72,546
Insurance expense	22,636	23,179
General and administrative expense	81,259	132,504
Total Operating Expenses	511,530	337,657
Loss From Operations	(511,530)	(337,657)
Other Income (Expense)
Foreign exchange gain	956	33
Interest expense	(39,079)	(6,171)
Miscellaneous other income	0	14,633
Other income	(38,123)	8,495
Loss Before Income Tax	(549,653)	(329,162)
Income tax provision (benefit)	0	0
Net Loss	$ (549,653)	$ (329,162)
NET LOSS PER SHARE AVAILABLE TO COMMON STOCKHOLDERS, BASIC AND DILUTED	$ (0.01)	$ (0.01)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND DILUTED	60,791,369	34,580,622

TIMBERLINE RESOURCES CORPORAT_4

TIMBERLINE RESOURCES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss	$ (549,653)	$ (329,162)
Adjustments to reconcile net loss to net cash used by operating activities:
Stock-based compensation	5,000	15,000
Accretion of asset retirement obligation	1,935	1,843
Accretion of debt discount	20,071	0
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(48,251)	(231,446)
Accounts receivable	0	2,633
Accounts payable	(11,322)	(10,000)
Accrued expenses	68,027	4,278
Accrued payroll, benefits and taxes	(18,449)	(46,269)
Net cash used by operating activities	(532,642)	(593,123)
Cash FLows from Investing Activities
Purchase of property, mineral rights and equipment	(18,000)	(25,500)
Proceeds from lease of property	25,594	0
Net cash provided (used) by investing activities	7,594	(25,500)
Cash FLows from Financing Activities
Proceeds from issuance of units, net	600,000	821,767
Payment obligation	0	(30,043)
Net cash provided by financing activities	600,000	791,724
Net increase in cash and cash equivalents	74,952	173,101
Cash at beginning of period	110,736	67,154
Cash at beginning of period	185,688	240,255
Non-cash Financing and Investing Activities
Warrants issued for purchase of mineral properties	$ 176,000	$ 0

Note 1 - Organization and Descr

Note 1 - Organization and Description of Business	3 Months Ended
	Dec. 31, 2018
Notes
Note 1 - Organization and Description of Business:	NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS: Timberline Resources Corporation (“Timberline” or “the Company) 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, the Company reincorporated into the State of Delaware, pursuant to a merger agreement approved by its shareholders. Basis of Presentation - For further information refer to the financial statements and footnotes thereto in the Company’s Annual Report on Form 10-K for the year ended September 30, 2018.

Note 2 - Summary of Significant

Note 2 - Summary of Significant Accounting Policies	3 Months Ended
	Dec. 31, 2018
Notes
Note 2 - Summary of Significant Accounting Policies:	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: This summary of significant accounting policies is presented to assist in understanding the financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These accounting policies conform to GAAP and have been consistently applied in the preparation of the financial statements. a. Going Concern The consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. If the going concern basis were not appropriate for these financial statements, adjustments would be necessary in the carrying value of assets and liabilities, the reported expenses and the balance sheet classifications used. b. New Accounting Pronouncements - In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation, Improvements to Nonemployee Share-Based Payment Accounting. ASU No. 2018-07 expands the scope of to include share-based payment transactions for acquiring goods and services from nonemployees. The update is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company is currently evaluating the impact of this update on its consolidated financial statements and related disclosures. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. c. Principles of Consolidation d. Reclassifications e. Royalties f. Exploration Expenditures g. Property Holding Costs h. Fair Value of Financial Instruments At December 31, 2018 and September 30, 2018, the Company had no assets or liabilities accounted for at fair value on a recurring basis or nonrecurring basis. The carrying amounts of financial instruments, including loans payable, approximate fair value at December 31, 2018 and September 30, 2018. i. Cash Equivalents j. Reclamation Bonds k. Estimates and Assumptions l. Property and Equipment m. Review of Carrying Value of Property, Mineral Rights and Equipment for Impairment n. Asset Retirement Obligations – o. Provision for Income Taxes p. Translation of Foreign Currencies q. Stock-based Compensation The value of common stock awards is determined based upon the closing price of the Company’s stock on the grant date of the award. Compensation expense for grants that vest is recognized ratably over the vesting period. The fair value of stock unit or stock awards is determined by the closing price of the Company’s common stock on the date of the grant. r. Net Income (Loss) per Share The dilutive effect of convertible and outstanding securities as of December 31, 2018 and 2017 is as follows: December 31, 2018 December 31, 2017 Stock options 3,280,000 1,988,334 Warrants 49,106,373 20,840,873 Total potential dilution 52,389,373 22,829,207 At December 31, 2018 and 2017, the effect of the Company’s common stock equivalents would have been anti-dilutive. Accordingly, only basic EPS is presented .

Note 3 - Property, Mineral Righ

Note 3 - Property, Mineral Rights, and Equipment	3 Months Ended
	Dec. 31, 2018
Notes
Note 3 - Property, Mineral Rights, and Equipment:	NOTE 3 – PROPERTY, MINERAL RIGHTS, AND EQUIPMENT: The following is a summary of property, mineral rights, and equipment and accumulated depreciation at December 31, 2018 and September 30, 2018, respectively: Expected Useful Lives (years) December 31, 2018 September 30, 2018 Mineral rights – Eureka - $ 13,671,346 $ 13,678,940 Mineral rights – Elder Creek - 1,322,000 1,146,000 Mineral rights – Other - 50,000 50,000 Total mineral rights 15,043,346 14,874,940 Equipment and vehicles 2-5 53,678 53,678 Office equipment and furniture 3-7 70,150 70,150 Land - 51,477 51,477 Total property and equipment 175,305 175,305 Less accumulated depreciation (123,828) (123,828) Property, mineral rights, and equipment, net $ 15,094,823 $ 14,926,417 Depreciation expense for the quarters ended December 31, 2018 and 2017, was nil and nil, respectively. During the year ended September 30, 2018, the Company’s management and Board of Directors determined that certain payments received by the Company from a party of interest in two of the Company’s leases beginning in August 2017, which had been held and not recorded or deposited pending an expected resolution of circumstances relating to two historic leases at the Company’s Eureka property, should be deposited. The payments had been received from a third party with whom the Company is in discussions to resolve matters that had been under negotiation since the Company acquired the Eureka property in 2010. The total amount of these payments received for the quarter ended December 31, 2018 was $25,594. Monthly payments in the amount of approximately $8,500 are expected to continue to be received, recorded and deposited until the situation concerning the leases is resolved. These receipts are recorded as a reduction to property, mineral rights, and equipment. Elder Creek property: On May 23, 2018, the Company executed a definitive agreement with AGEI (the “Definitive Agreement”) for the purchase of interests in two mineral properties in Nevada (the “Transaction”). The mineral properties include the Elder Creek project, currently owned by McEwen Mining Inc., which includes an option to acquire up to 65% of the project interest, and an approximate 73.7% interest in the Paiute property (formerly ICBM), with LAC Minerals (USA) LLC, a wholly owned subsidiary of Barrick Gold Corporation. The Company is the operator at both of these projects. The consideration for the Transaction consisted of ten million shares of the Company’s common stock, valued at $0.0806 per share, or $806,000, and five million non-transferrable Class D-2 share purchase warrants (the “Consideration Warrants”), with each warrant exercisable to acquire one share of the Company’s common stock for $0.24 for a period of three years. The warrants were valued at $240,000. On June 18, 2018, the Company entered into an amendment to the Definitive Agreement wherein the Company agreed, upon closing of the Transaction, to reimburse AGEI for the initial payment of $100,000 due under the Elder Creek agreement with McEwen Mining. During the fourth quarter of the 2018 fiscal year, the Company paid the $100,000. Total consideration given during the year ended September 30, 2018 for the Transaction was $1,146,000 in the form of cash, common stock and warrants. In addition, the amendment to the Definitive Agreement required the Company to deliver to AGEI, subject to any required regulatory approval, an additional 5,000,000 common stock purchase warrants with the same terms and in the same form as the Consideration Warrants if and when the earlier of the following occurs: (i) the Company enters into an arrangement with a funding partner for the advancement of the Elder Creek Joint Venture, or (ii) the Company has met the 2018 work commitment of $500,000. The Company met the 2018 work commitment, and issued 5,000,000 Class G warrants, valued at $176,000 (See Note 7 for valuation assumptions).

Note 4 - Related-party Transact

Note 4 - Related-party Transactions	3 Months Ended
	Dec. 31, 2018
Notes
Note 4 - Related-party Transactions:	NOTE 4 – RELATED-PARTY TRANSACTIONS: In connection with the definitive agreement with AGEI for the purchase of two joint venture interests during the fiscal year ended September 30 2018, Mr. Donald J. McDowell and Mr. Dave Mathewson were appointed to the Company’s Board of Directors on June 21, 2018. Mr. McDowell is the majority owner of AGEI and is the beneficial owner of the majority of the consideration for the Transaction. Therefore, he is the beneficial owner of the majority of the 5,000,000 Class G warrants issued to AGEI as described in Note 3 – Property, Mineral Rights and Equipment. During the quarter ended December 31, 2018, the Board of Directors agreed to issue 100,000 stock options to acquire shares of common stock of the Company to Mr. Ted R. Sharp, the Company’s Chief Financial Officer, appointed to the position in September of 2018. The options were valued at $5,000 based upon the closing price of the Company’s shares of common stock at December 31, 2018 (See Note 7 for valuation assumptions). During the quarter ended December 31, 2018, two executive officers participated in a private placement offering of Units of the Company purchasing, in the aggregate, 1,062,500 units for proceeds of $85,000. Each Unit was priced at $0.08 and consisted of one share of common stock of the Company and one common share Class E Warrant, with each warrant exercisable to acquire an additional share of common stock of the Company at a price of $0.14 per share until April 30, 2021. The participation of the executive officers of the Company was done at the same terms as the other investors in the private placement offering. The Board of Directors approved the insiders’ participation in the private placement.

Note 5 - Payment Obligation

Note 5 - Payment Obligation	3 Months Ended
	Dec. 31, 2018
Notes
Note 5 - Payment Obligation:	NOTE 5 – PAYMENT OBLIGATION: On September 12, 2017, the Company 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 “Payment Obligation”) related to a potential corporate transaction in 2015 that was not completed. Pursuant to the Payment Agreement, the Company agreed to pay the Payment Obligation to the Creditor, including interest, on or before September 12, 2020. Interest accrues on the unpaid principal amount of the Payment Obligation at the prime rate (5% at September 30, 2018), as such rate may change from time to time, plus 3% per annum. The Company agreed to pay the Creditor 5% of the gross proceeds of any funds raised, whether through equity sales, payment obligation, or sales of assets. If the gross proceeds of any equity financing are at least $1 million, then the Company agreed to also commence monthly installment payments of $10,000 until the Payment Obligation is paid. The balance of the Payment Obligation was $198,806 at both December 31, 2018 and September 30, 2018. During the quarter ended December 31, 2018, the Company made no payments to the Creditor. The obligation to commence monthly installment payments of $10,000 until the Payment Obligation is paid has not yet been triggered because the Company has not completed a financing with gross proceeds of at least $1 million. Subsequent to the end of the quarter, the Company paid $30,000 (5% of a $600,000 private placement) to the Creditor, which included $9,728 of interest.

Note 6 - Senior Unsecured Note

Note 6 - Senior Unsecured Note Payable	3 Months Ended
	Dec. 31, 2018
Notes
Note 6 - Senior Unsecured Note Payable:	NOTE 6 – SENIOR UNSECURED NOTE PAYABLE : On July 30, 2018, the Company entered into a binding loan agreement and promissory note with William Matlack (the “Lender”). Under the loan agreement, the Lender loaned the Company $300,000 in the form of a senior unsecured note, with the principal bearing interest at an annual rate of 18%, compounded monthly. The loan is unsecured and the principal and accrued interest will become due for repayment on January 20, 2020, but may be repaid early without penalty. Amounts drawn under the loan agreement were used for exploration expenditures, annual property holding costs, and working capital requirements of the Company. Pursuant to the terms of the loan agreement, the Company issued to the Lender 3,265,500 non-transferrable common share purchase Series F Warrants of the Company. The exercise price of the warrants is $0.09, and the warrants contain a provision restricting their exercise in the event any such exercise would cause the Lender to own 10% or more of the Company’s outstanding common shares. The relative fair value of the warrants issued in connection with the senior unsecured note was estimated at $110,900, based upon a total fair value as calculated by a Black-Scholes option-pricing model. The relative fair value of the warrants was recorded as a discount of the note, with $20,071 amortized to interest expense in the quarter ended December 31, 2018. At December 31, 2018, the note payable was $216,503, net of the unamortized discount of $83,497.

Note 7 - Common Stock, Warrants

Note 7 - Common Stock, Warrants and Preferred Stock	3 Months Ended
	Dec. 31, 2018
Notes
Note 7 - Common Stock, Warrants and Preferred Stock:	NOTE 7 – COMMON STOCK, WARRANTS AND PREFERRED STOCK: Common Shares - Private Placement On October 18, 2018, and on December 3, 2018, the Company closed two tranches of Warrants During the quarter ended December 31, 2018, 12,500,000 warrants were issued, a total of 7,500,000 pursuant to the private placement offering, and another 5,000,000 warrants issued to AGEI under the terms of the Elder Creek purchase of mineral rights (See Note 3). The fair value of the 5,000,000 warrants issued in connection with the purchase of mineral rights was estimated at $176,000 on the date of issuance with a Black-Scholes option-pricing model. The assumptions used to calculate fair values are noted in the following table: Warrants Issued During the Quarter Ended December 31, 2018 Expected volatility 135.7 % - 138.2 % Stock price on date of grant $ 0.06 Exercise price $ 0.14 - $ 0.24 Expected dividends - Expected term (in years) 3 Risk-free rate 2.46 % – 2.95 % Expected forfeiture rate 0 % There were 49.106,373 and 36,606,373 warrants outstanding as of December 31, 2018 and September 30, 2018, respectively. Preferred Stock The Company is authorized to issue up to 10,000,000 shares of preferred stock, $0.01 par value. The Company’s 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 December 31, 2018.

Note 8 - Stock-based Awards

Note 8 - Stock-based Awards	3 Months Ended
	Dec. 31, 2018
Notes
Note 8 - Stock-based Awards:	NOTE 8 – STOCK-BASED AWARDS: During the quarter ended December 31, 2018, the Company’s shareholders approved and the Company’s Board of Directors adopted of the Company’s 2018 Stock and Incentive Plan. This plan replaced the Company’s 2015 Equity Incentive Plan. The aggregate number of shares that may be issued to employees, directors, and consultants under all stock-based awards made under the 2018 Stock and Incentive Plan is 8 million shares of the Company’s common stock. Upon exercise of options or other 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 the Company’s stock at the date of grant. During the quarter ended December 31, 2018, the Board of Directors agreed to issue 100,000 stock options to the Chief Financial Officer. The fair value of the option awards granted during the quarter ended December 31, 2018 was $5,000 and measured on the date of the issuance with a Black-Scholes option-pricing model using the assumptions noted in the following table: Option Obligation Matured During Quarter Ended December 31, 2018 Expected volatility 137.4% Stock price on date of grant $ 0.06 Exercise price $ 0.10 Expected dividends - Expected term (in years) 5 Risk-free rate 2.46 % Expected forfeiture rate 0 % During the quarter ended December 31, 2018, 100,000 options were terminated as a result of the resignation of a member of the Board of Directors. The following is a summary of options issued and outstanding at December 31, 2017: 2017 Options Weighted Average Exercise Price Outstanding at September 30, 2017 2,233,334 $ 0.41 Issued - - Expired (245,000) (0.41) Outstanding and exercisable at December 31, 2017 1,988,334 $ 0.41 Average remaining contractual term of options outstanding and exercisable at December 31, 2017 (years) 3.19 The aggregate of options exercisable as of December 31, 2017 had an intrinsic value of nil, based on the closing price of $0.23 per share of the Company’s common stock on December 31, 2017. The following is a summary of options issued and outstanding at December 31, 2018: 2018 Options Weighted Average Exercise Price Outstanding at September 30, 2018 3,280,000 $ 0.26 Issued 100,000 0.10 Terminated (100,000) (0.10) Outstanding and exercisable at December 31, 2018 3,280,000 $ 0.26 Average remaining contractual term of options outstanding and exercisable at December 31, 2017 (years) 3.69 The aggregate of options exercisable as of December 31, 2018 had an intrinsic value of nil, based on the closing price of $0.06 per share of the Company’s common stock on December 31, 2018.

Note 9 - Commitments and Contin

Note 9 - Commitments and Contingencies	3 Months Ended
	Dec. 31, 2018
Notes
Note 9 - Commitments and Contingencies:	NOTE 9 – COMMITMENTS AND CONTINGENCIES : Mineral Exploration A portion of the Company’s mining claims on the Company’s properties are subject to lease and option agreements with various terms, obligations, and royalties payable in certain circumstances. The Company pays federal and county claim maintenance fees on unpatented claims that are included in the Company’s mineral exploration properties. Should the Company continue to explore all of the Company’s mineral properties, it expects annual fees to total approximately $255,500 per year in the future, of which $105,778 is for the two joint venture mineral property interests (See Note 3). Real Estate Lease Commitments As of December 31, 2018, the Company has real estate lease commitments for certain mineral properties totaling $82,000. The Company’s office in Coeur d’Alene, Idaho and its facilities in Eureka, Nevada are rented on a month-to-month basis. Commitments for mineral exploration and real estate lease expense is included in the following line items in the Consolidated Statements of Operations: Three Months Ended December 31, 2018 December 31, 2017 Mineral exploration expenses $ 337,500 $ 12,900 Other general and administrative expenses 42,000 10,500 Total $ 379,500 $ 23,400

Note 10 - Subsequent Events

Note 10 - Subsequent Events	3 Months Ended
	Dec. 31, 2018
Notes
Note 10 - Subsequent Events	NOTE 10 – SUBSEQUENT EVENTS : Subsequent to the end of the quarter, the Company paid $30,000 (5% of a $600,000 private placement) to the Creditor, which included $9,728 of interest. On February 5, 2019 , the Company announced a

Note 2 - Summary of Significa_2

Note 2 - Summary of Significant Accounting Policies: Going concern (Policies)	3 Months Ended
	Dec. 31, 2018
Policies
Going concern	a. Going Concern The consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. If the going concern basis were not appropriate for these financial statements, adjustments would be necessary in the carrying value of assets and liabilities, the reported expenses and the balance sheet classifications used.

Note 2 - Summary of Significa_3

Note 2 - Summary of Significant Accounting Policies: b. New Accounting Pronouncements (Policies)	3 Months Ended
	Dec. 31, 2018
Policies
b. New Accounting Pronouncements	b. New Accounting Pronouncements - In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation, Improvements to Nonemployee Share-Based Payment Accounting. ASU No. 2018-07 expands the scope of to include share-based payment transactions for acquiring goods and services from nonemployees. The update is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company is currently evaluating the impact of this update on its consolidated financial statements and related disclosures. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption.

Note 2 - Summary of Significa_4

Note 2 - Summary of Significant Accounting Policies: c. Principles of Consolidation (Policies)	3 Months Ended
	Dec. 31, 2018
Policies
c. Principles of Consolidation	c. Principles of Consolidation

Note 2 - Summary of Significa_5

Note 2 - Summary of Significant Accounting Policies: d. Reclassifications (Policies)	3 Months Ended
	Dec. 31, 2018
Policies
d. Reclassifications	d. Reclassifications

Note 2 - Summary of Significa_6

Note 2 - Summary of Significant Accounting Policies: Mineral Properties Royalty Income Policy (Policies)	3 Months Ended
	Dec. 31, 2018
Policies
Mineral Properties Royalty Income Policy	e. Royalties

Note 2 - Summary of Significa_7

Note 2 - Summary of Significant Accounting Policies: f. Exploration Expenditures (Policies)	3 Months Ended
	Dec. 31, 2018
Policies
f. Exploration Expenditures	f. Exploration Expenditures

Note 2 - Summary of Significa_8

Note 2 - Summary of Significant Accounting Policies: g. Property Holding Costs (Policies)	3 Months Ended
	Dec. 31, 2018
Policies
g. Property Holding Costs	g. Property Holding Costs

Note 2 - Summary of Significa_9

Note 2 - Summary of Significant Accounting Policies: h. Fair Value of Financial Instruments (Policies)	3 Months Ended
	Dec. 31, 2018
Policies
h. Fair Value of Financial Instruments	h. Fair Value of Financial Instruments At December 31, 2018 and September 30, 2018, the Company had no assets or liabilities accounted for at fair value on a recurring basis or nonrecurring basis. The carrying amounts of financial instruments, including loans payable, approximate fair value at December 31, 2018 and September 30, 2018.

Note 2 - Summary of Signific_10

Note 2 - Summary of Significant Accounting Policies: i. Cash Equivalents (Policies)	3 Months Ended
	Dec. 31, 2018
Policies
i. Cash Equivalents	i. Cash Equivalents

Note 2 - Summary of Signific_11

Note 2 - Summary of Significant Accounting Policies: j. Reclamation Bonds (Policies)	3 Months Ended
	Dec. 31, 2018
Policies
j. Reclamation Bonds	j. Reclamation Bonds

Note 2 - Summary of Signific_12

Note 2 - Summary of Significant Accounting Policies: k. Estimates and Assumptions (Policies)	3 Months Ended
	Dec. 31, 2018
Policies
k. Estimates and Assumptions	k. Estimates and Assumptions

Note 2 - Summary of Signific_13

Note 2 - Summary of Significant Accounting Policies: l. Property and Equipment (Policies)	3 Months Ended
	Dec. 31, 2018
Policies
l. Property and Equipment	l. Property and Equipment

Note 2 - Summary of Signific_14

Note 2 - Summary of Significant Accounting Policies: m. Review of Carrying Value of Property, Mineral Rights and Equipment for Impairment (Policies)	3 Months Ended
	Dec. 31, 2018
Policies
m. Review of Carrying Value of Property, Mineral Rights and Equipment for Impairment	m. Review of Carrying Value of Property, Mineral Rights and Equipment for Impairment

Note 2 - Summary of Signific_15

Note 2 - Summary of Significant Accounting Policies: n. Asset Retirement Obligations (Policies)	3 Months Ended
	Dec. 31, 2018
Policies
n. Asset Retirement Obligations	n. Asset Retirement Obligations –

Note 2 - Summary of Signific_16

Note 2 - Summary of Significant Accounting Policies: o. Provision for Income Taxes (Policies)	3 Months Ended
	Dec. 31, 2018
Policies
o. Provision for Income Taxes	o. Provision for Income Taxes

Note 2 - Summary of Signific_17

Note 2 - Summary of Significant Accounting Policies: p. Translation of Foreign Currencies (Policies)	3 Months Ended
	Dec. 31, 2018
Policies
p. Translation of Foreign Currencies	p. Translation of Foreign Currencies

Note 2 - Summary of Signific_18

Note 2 - Summary of Significant Accounting Policies: q. Stock-based Compensation (Policies)	3 Months Ended
	Dec. 31, 2018
Policies
q. Stock-based Compensation	q. Stock-based Compensation The value of common stock awards is determined based upon the closing price of the Company’s stock on the grant date of the award. Compensation expense for grants that vest is recognized ratably over the vesting period. The fair value of stock unit or stock awards is determined by the closing price of the Company’s common stock on the date of the grant.

Note 2 - Summary of Signific_19

Note 2 - Summary of Significant Accounting Policies: r. Net Income (Loss) per Share (Policies)	3 Months Ended
	Dec. 31, 2018
Policies
r. Net Income (Loss) per Share	r. Net Income (Loss) per Share The dilutive effect of convertible and outstanding securities as of December 31, 2018 and 2017 is as follows: December 31, 2018 December 31, 2017 Stock options 3,280,000 1,988,334 Warrants 49,106,373 20,840,873 Total potential dilution 52,389,373 22,829,207 At December 31, 2018 and 2017, the effect of the Company’s common stock equivalents would have been anti-dilutive. Accordingly, only basic EPS is presented

Note 2 - Summary of Signific_20

Note 2 - Summary of Significant Accounting Policies: r. Net Income (Loss) per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] (Tables)	3 Months Ended
	Dec. 31, 2018
Tables/Schedules
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	December 31, 2018 December 31, 2017 Stock options 3,280,000 1,988,334 Warrants 49,106,373 20,840,873 Total potential dilution 52,389,373 22,829,207

Note 3 - Property, Mineral Ri_2

Note 3 - Property, Mineral Rights, and Equipment: Property, Plant and Equipment (Tables)	3 Months Ended
	Dec. 31, 2018
Tables/Schedules
Property, Plant and Equipment	Expected Useful Lives (years) December 31, 2018 September 30, 2018 Mineral rights – Eureka - $ 13,671,346 $ 13,678,940 Mineral rights – Elder Creek - 1,322,000 1,146,000 Mineral rights – Other - 50,000 50,000 Total mineral rights 15,043,346 14,874,940 Equipment and vehicles 2-5 53,678 53,678 Office equipment and furniture 3-7 70,150 70,150 Land - 51,477 51,477 Total property and equipment 175,305 175,305 Less accumulated depreciation (123,828) (123,828) Property, mineral rights, and equipment, net $ 15,094,823 $ 14,926,417

Note 7 - Common Stock, Warran_2

Note 7 - Common Stock, Warrants and Preferred Stock: Schedule of fair value of warrants issued for mineral rights (Tables)	3 Months Ended
	Dec. 31, 2018
Tables/Schedules
Schedule of fair value of warrants issued for mineral rights	Warrants Issued During the Quarter Ended December 31, 2018 Expected volatility 135.7 % - 138.2 % Stock price on date of grant $ 0.06 Exercise price $ 0.14 - $ 0.24 Expected dividends - Expected term (in years) 3 Risk-free rate 2.46 % – 2.95 % Expected forfeiture rate 0 %

Note 8 - Stock-based Awards_ Sc

Note 8 - Stock-based Awards: Schedule of fair value of option awards (Tables)	3 Months Ended
	Dec. 31, 2018
Tables/Schedules
Schedule of fair value of option awards	Option Obligation Matured During Quarter Ended December 31, 2018 Expected volatility 137.4% Stock price on date of grant $ 0.06 Exercise price $ 0.10 Expected dividends - Expected term (in years) 5 Risk-free rate 2.46 % Expected forfeiture rate 0 %

Note 8 - Stock-based Awards_ Sh

Note 8 - Stock-based Awards: Share-based Compensation, Stock Options, Activity (Tables)	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Tables/Schedules
Share-based Compensation, Stock Options, Activity	2018 Options Weighted Average Exercise Price Outstanding at September 30, 2018 3,280,000 $ 0.26 Issued 100,000 0.10 Terminated (100,000) (0.10) Outstanding and exercisable at December 31, 2018 3,280,000 $ 0.26 Average remaining contractual term of options outstanding and exercisable at December 31, 2017 (years) 3.69	2017 Options Weighted Average Exercise Price Outstanding at September 30, 2017 2,233,334 $ 0.41 Issued - - Expired (245,000) (0.41) Outstanding and exercisable at December 31, 2017 1,988,334 $ 0.41 Average remaining contractual term of options outstanding and exercisable at December 31, 2017 (years) 3.19

Note 9 - Commitments and Cont_2

Note 9 - Commitments and Contingencies: Schedule of Rent Expense (Tables)	3 Months Ended
	Dec. 31, 2018
Tables/Schedules
Schedule of Rent Expense	Three Months Ended December 31, 2018 December 31, 2017 Mineral exploration expenses $ 337,500 $ 12,900 Other general and administrative expenses 42,000 10,500 Total $ 379,500 $ 23,400

Note 1 - Organization and Des_2

Note 1 - Organization and Description of Business (Details)	3 Months Ended
	Dec. 31, 2018
Details
Entity Incorporation, State Country Name	Delaware

Note 2 - Summary of Signific_21

Note 2 - Summary of Significant Accounting Policies: r. Net Income (Loss) per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] (Details) - shares	Dec. 31, 2018	Dec. 31, 2017
Details
Stock options	3,280,000	1,988,334
Warrants	49,106,373	20,840,873
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	52,389,373	22,829,207

Note 3 - Property, Mineral Ri_3

Note 3 - Property, Mineral Rights, and Equipment: Property, Plant and Equipment (Details) - USD ($)	Dec. 31, 2018	Sep. 30, 2018
Details
Mineral rights Eureka	$ 13,671,346	$ 13,678,940
Mineral rights Elder Creek	1,322,000	1,146,000
Mineral rights	50,000	50,000
Total Mineral Rights	15,043,346	14,874,940
Equipment and vehicles	53,678	53,678
Office equipment and furniture	70,150	70,150
Land	51,477	51,477
Property, Plant and Equipment, Gross	175,305	175,305
Less accumulated depreciation	(123,828)	(123,828)
Property, mineral rights and equipment, net	$ 15,094,823	$ 14,926,417

Note 3 - Property, Mineral Ri_4

Note 3 - Property, Mineral Rights, and Equipment (Details) - USD ($)	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2018	May 23, 2018
Details
Depreciation	$ 0	$ 0
Royalty Income, Nonoperating	25,594
Expected monthly payments, Eureka property	$ 8,500
Purchase of Nevada Mineral Properties, Shares				10,000,000
Purchase of Nevada Mineral Properties, Stock Value per Share				$ 0.0806
Purchase of Nevada Mineral Properties, Value				$ 806,000
Purchase of Nevada Mineral Properties, Warrants Issued				5,000,000
Purchase of Nevada Mineral Properties, Warrants Issued value				$ 240,000
Purchase of Nevada Mineral Properties, total consideration paid during fiscal year			$ 1,146,000
Purchase of Nevada Mineral Properties, Additional Warrants Issued	5,000,000		5,000,000
Purchase of Nevada Mineral Properties, Additional Warrants Issued, Value	$ 176,000		$ 176,000

Note 4 - Related-party Transa_2

Note 4 - Related-party Transactions (Details) - USD ($)	Dec. 31, 2018	Sep. 30, 2018
Details
Related Party Transaction, Description of Transaction		In connection with the definitive agreement with AGEI for the purchase of two joint venture interests during the fiscal year ended September 30 2018, Mr. Donald J. McDowell and Mr. Dave Mathewson were appointed to the Company’s Board of Directors on June 21, 2018.
Stock options issued to officer	100,000
Stock options issued to officer, value	$ 5,000
Private placement units sold to related parties	1,062,500
Private placement units sold to related parties, value	$ 85,000
Private placement units sold to related parties, price per unit	0.08

Note 5 - Payment Obligation (De

Note 5 - Payment Obligation (Details) - USD ($)	3 Months Ended
	Dec. 31, 2018	Sep. 30, 2018
Details
Debt Instrument, Description	On September 12, 2017, the Company 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 “Payment Obligation”) related to a potential corporate transaction in 2015 that was not completed.
Payment obligation	$ 198,806	$ 198,806

Note 6 - Senior Unsecured Not_2

Note 6 - Senior Unsecured Note Payable (Details) - USD ($)	Dec. 31, 2018	Sep. 30, 2018
Details
Proceeds from Unsecured Notes Payable		$ 300,000
Series E Warrants Issued		3,265,500
Relative fair value of warrants issued		$ 110,900
Amortization of Debt Discount (Premium)	$ 20,071
Senior unsecured note payable	216,503	$ 196,432
Discount on senior unsecured note	$ 83,497

Note 7 - Common Stock, Warran_3

Note 7 - Common Stock, Warrants and Preferred Stock (Details) - USD ($)	Dec. 31, 2018	Sep. 30, 2018
Details
Units sold	$ 7,500,000
Units sold net proceeds	600,000
Warrant units, gross	12,500,000
Private placement units sold	$ 7,500,000
Purchase of Nevada Mineral Properties, Additional Warrants Issued	5,000,000	5,000,000
Purchase of Nevada Mineral Properties, Additional Warrants Issued, Value	$ 176,000	$ 176,000
Warrants and Rights Outstanding	$ 49.106373	$ 36,606,373
Preferred stock shares authorized	10,000,000	10,000,000
Preferred stock par or state value per share	$ 0.01	$ 0.01

Note 7 - Common Stock, Warran_4

Note 7 - Common Stock, Warrants and Preferred Stock: Schedule of fair value of warrants issued for mineral rights (Details)	3 Months Ended
	Dec. 31, 2018$ / shares
Details
Expected volatility rate, minimum	135.70%
Expected volatility rate, maximum	138.20%
Stock price on date of grant	$ 0.06
Minimum exercise price	0.14%
Maximum exercise price	0.24%
Expected dividend rate	0.00%
Expected term simplified	3
Risk free interest rate, minimum	2.46%
Risk free interest rate, maximum	2.95%
Expected forfeiture rate	0.00%

Note 8 - Stock-based Awards_ _2

Note 8 - Stock-based Awards: Schedule of fair value of option awards (Details)	3 Months Ended
	Dec. 31, 2018$ / shares
Details
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	137.40%
Sale of Stock, Price Per Share	$ 0.06
Exercise price	$ 0.10
Expected term (in years)	5
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	2.46%
Expected forfeiture rate	0.00%

Note 8 - Stock-based Awards (De

Note 8 - Stock-based Awards (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Details
Shares forfeited	100,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value	$ 0	$ 0

Note 9 - Commitments and Cont_3

Note 9 - Commitments and Contingencies: Schedule of Rent Expense (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Details
Results of Operations Exploration Expense Mining	$ 337,500	$ 12,900
Other General and Administrative Expense	42,000	10,500
Operating Leases, Rent Expense	$ 379,500	$ 23,400

Note 10 - Subsequent Events (De

Note 10 - Subsequent Events (Details)	3 Months Ended
	Dec. 31, 2018
Payment
Subsequent Event, Description	Subsequent to the end of the quarter, the Company paid $30,000 (5% of a $600,000 private placement) to the Creditor, which included $9,728 of interest.
Private Placement
Subsequent Event, Description	On February 5, 2019, the Company announced a private placement offering of 6,250,000 Units of the Company at a price of $0.08 per Unit for net proceeds of $500,000, with an over-allotment of up to $100,000, or an additional 1,250,000 Units. Each Unit in the offering consisted of one share of common stock of the Company and one Class H Warrant, with each warrant exercisable to acquire an additional share of common stock of the Company at a price of $0.14 per share until the warrant expiration date.
Subsequent Event, Date	Feb. 5, 2019