Timberline Resources (TLRS) 10-Q 14 May 21 2021 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2021	May 14, 2021
Registrant CIK	0001288750
Fiscal Year End	--09-30
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Transition Report	false
Entity File Number	001-34055
Entity Registrant Name	TIMBERLINE RESOURCES CORP
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-0291227
Entity Address, Address Line One	101 EAST LAKESIDE AVENUE
Entity Address, City or Town	COEUR D’ALENE
Entity Address, State or Province	ID
Entity Address, Postal Zip Code	83814
City Area Code	208
Local Phone Number	664-4859
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		116,487,724
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
TSX-V
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	TBR
Security Exchange Name	NONE
OTCQB
Trading Symbol	TLRS
Security Exchange Name	NONE

Timberline Resources Corp and S

Timberline Resources Corp and Subsidiaries Consolidated Balance Sheets (Unaudited) - USD ($)		Mar. 31, 2021	Sep. 30, 2020
CURRENT ASSETS:
Cash		$ 763,937	$ 2,520,726
Prepaid expenses and other current assets		76,454	14,144
TOTAL CURRENT ASSETS		840,391	2,534,870
PROPERTY, MINERAL RIGHTS AND EQUIPMENT, net	[1]	13,801,275	13,807,655
OTHER ASSETS:
Reclamation bonds		538,696	538,696
Deposits and other assets		5,700	5,700
TOTAL OTHER ASSETS		544,396	544,396
TOTAL ASSETS		15,186,062	16,886,921
CURRENT LIABILITIES:
Accounts payable		58,731	173,981
Accrued expenses		13,585	39,440
Accrued expenses - related party		8,034	0
Accrued interest - related party		183,741	142,492
Accrued payroll, benefits and taxes		37,204	23,557
TOTAL CURRENT LIABILITIES		301,295	379,470
LONG-TERM LIABILITIES:
Asset retirement obligation		115,431	112,615
Senior unsecured note payable - related party		300,000	300,000
TOTAL LONG-TERM LIABILITIES		415,431	412,615
TOTAL LIABILITIES		716,726	792,085
COMMITMENTS AND CONTINGENCIES (Note 8)	[1]	0	0
STOCKHOLDERS' EQUITY:
Preferred stock, $ 0.01 par value; 10,000,000 shares authorized, no shares issued and outstanding		0	0
Common stock, $0.001 par value; 500,000,000 shares authorized, 114,337,724 and 112,075,224 shares issued and outstanding, respectively		114,337	112,075
Additional paid-in capital		80,055,103	79,613,593
Accumulated deficit		(65,700,104)	(63,630,832)
TOTAL STOCKHOLDERS' EQUITY		14,469,336	16,094,836
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$ 15,186,062	$ 16,886,921
[1]	Note 8

Timberline Resources Corp and_2

Timberline Resources Corp and Subsidiaries Consolidated Balance Sheets (Unaudited) - Parenthetical - $ / shares	Mar. 31, 2021	Sep. 30, 2020
Details
Preferred Stock, Par or Stated Value Per Share	$ 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 or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	500,000,000	500,000,000
Common Stock, Shares, Issued	114,337,724	112,075,224
Common Stock, Shares, Outstanding	114,337,724	112,075,224

Timberline Resources Corp and_3

Timberline Resources Corp and Subsidiaries Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
OPERATING EXPENSES:
Mineral exploration	$ 223,546	$ 12,749	$ 1,400,072	$ 159,231
Salaries and benefits	78,261	67,324	155,918	192,614
Professional fees	46,305	50,614	120,873	119,465
Insurance expense	38,818	33,436	63,601	52,178
Other general and administrative	81,419	98,150	298,756	250,322
TOTAL OPERATING EXPENSES	468,349	262,273	2,039,220	773,810
LOSS FROM OPERATIONS	(468,349)	(262,273)	(2,039,220)	(773,810)
OTHER INCOME (EXPENSE):
Foreign exchange gain (loss)	4,717	392	12,128	394
Loss on debt modification - related party	0	0	0	(195,611)
Interest expense	0	(7,120)	0	(19,531)
Interest expense - related party	(21,547)	(46,034)	(42,234)	(91,112)
Miscellaneous other income	20	9	54	25
TOTAL OTHER INCOME (EXPENSE)	(16,810)	(52,753)	(30,052)	(305,835)
LOSS BEFORE INCOME TAXES	(485,159)	(315,026)	(2,069,272)	(1,079,645)
INCOME TAX PROVISION (BENEFIT)	0	0	0	0
NET LOSS	$ (485,159)	$ (315,026)	$ (2,069,272)	$ (1,079,645)
NET LOSS PER SHARE BASIC AND DILUTED	$ 0	$ 0	$ (0.02)	$ (0.01)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND DILUTED	114,180,916	74,895,260	113,347,269	73,952,637

Timberline Resources Corp and_4

Timberline Resources Corp and Subsidiaries Consolidated Statements of Changes in Stockholders' Equity - USD ($)	Common Stock	Additional Paid-in Capital	Retained Earnings	Total
Equity Balance at Sep. 30, 2019	$ 67,395	$ 74,568,258	$ (60,253,741)	$ 14,381,912
Equity balance, shares at Sep. 30, 2019	67,395,260
Stock based compensation	$ 0	161,100	0	161,100
Common stock and warrants issued for cash	$ 7,500	592,500	0	600,000
Common stock and warrants issued for cash	7,500,000
Warrants issued with Debt	$ 0	170,500	0	170,500
Net loss	$ 0	0	(764,619)	(764,619)
Equity balance, shares at Dec. 31, 2019	74,895,260
Equity Balance at Dec. 31, 2019	$ 74,895	75,492,358	(61,018,360)	14,548,893
Equity Balance at Sep. 30, 2019	$ 67,395	74,568,258	(60,253,741)	14,381,912
Equity balance, shares at Sep. 30, 2019	67,395,260
Equity balance, shares at Mar. 31, 2020	74,895,260
Equity Balance at Mar. 31, 2020	$ 74,895	75,492,358	(61,333,386)	14,233,867
Equity Balance at Dec. 31, 2019	$ 74,895	75,492,358	(61,018,360)	14,548,893
Equity balance, shares at Dec. 31, 2019	74,895,260
Net loss	$ 0	0	(315,026)	(315,026)
Equity balance, shares at Mar. 31, 2020	74,895,260
Equity Balance at Mar. 31, 2020	$ 74,895	75,492,358	(61,333,386)	14,233,867
Equity Balance at Sep. 30, 2020	$ 112,075	79,613,593	(63,630,832)	16,094,836
Equity balance, shares at Sep. 30, 2020	112,075,224
Common stock issued for exercise of warrants, Value	$ 950	132,050	0	133,000
Common stock issued for exercise of warrants, Shares	950,000
Stock based compensation	$ 0	127,022	0	127,022
Net loss	$ 0	0	(1,584,113)	(1,584,113)
Equity balance, shares at Dec. 31, 2020	113,025,224
Equity Balance at Dec. 31, 2020	$ 113,025	79,872,665	(65,214,945)	14,770,745
Equity Balance at Sep. 30, 2020	$ 112,075	79,613,593	(63,630,832)	16,094,836
Equity balance, shares at Sep. 30, 2020	112,075,224
Equity balance, shares at Mar. 31, 2021	114,337,724
Equity Balance at Mar. 31, 2021	$ 114,337	80,055,103	(65,700,104)	14,469,336
Equity Balance at Dec. 31, 2020	$ 113,025	79,872,665	(65,214,945)	14,770,745
Equity balance, shares at Dec. 31, 2020	113,025,224
Common stock issued for exercise of warrants, Value	$ 1,312	182,438	0	183,750
Common stock issued for exercise of warrants, Shares	1,312,500
Net loss	$ 0	0	(485,159)	(485,159)
Equity balance, shares at Mar. 31, 2021	114,337,724
Equity Balance at Mar. 31, 2021	$ 114,337	$ 80,055,103	$ (65,700,104)	$ 14,469,336

Timberline Resources Corp and_5

Timberline Resources Corp and Subsidiaries Consoldiated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (2,069,272)	$ (1,079,645)
Adjustments to reconcile net loss to net cash used by operating activities:
Stock based compensation	127,022	161,100
Accretion of asset retirement obligation	2,816	4,165
Amortization of discount on senior unsecured notes payable - related party	0	31,785
Loss on debt modification - related party	0	195,611
Changes in assets and liabilities:
Prepaid expenses and other current assets	(62,310)	(27,021)
Accounts receivable	0	118,525
Accounts payable	(115,250)	(81,140)
Accrued expenses	(25,855)	(84,910)
Accrued interest	0	(8,028)
Accrued payroll, benefits and taxes	13,647	(480)
Related party advance	0	205,194
Increase Decrease Accrued Expenses Related Party	8,034	0
Increase Decrease Interest Payable Related Party	41,249	59,327
Net cash used by operating activities	(2,079,919)	(505,517)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of mineral rights	(46,000)	0
Proceeds from lease of mineral rights	52,380	58,209
Increase decrease in Accrued Cost of Mineral Reclamation	0	12,500
Net cash provided by investing activities	6,380	70,709
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of common stock and warrants, net	0	600,000
Payments on payment obligation	0	(28,294)
Proceeds from exercise of warrants	316,750	0
Net cash provided by financing activities	316,750	571,706
Net increase (decrease) in cash and cash equivalents	(1,756,789)	136,898
CASH AT BEGINNING OF PERIOD	2,520,726	30,757
CASH AT END OF PERIOD	$ 763,937	$ 167,655

Note 1 - Organization and Descr

Note 1 - Organization and Description of Business	6 Months Ended
	Mar. 31, 2021
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.

Note 2 - Summary of Significant

Note 2 - Summary of Significant Accounting Policies	6 Months Ended
	Mar. 31, 2021
Notes
Note 2 - Summary of Significant Accounting Policies:	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: a. Basis of Presentation and Going Concern 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, 2020. The accompanying consolidated financial statements have been prepared under the assumption that the Company will continue as a going concern. The Company has incurred losses since its inception. The Company has sufficient cash to fund normal operations and meet all of its obligations for the next 12 months without raising additional funds. However, we are an exploration company with exploration programs that require significant cash expenditures. A significant drilling program, such are those we have planned, can result in depletion of cash and return us to a position of insufficient cash to support normal operations for 12 months. The Company currently has no historical recurring source of revenue, and its ability to continue as a going concern is dependent on its ability to raise capital to fund future exploration and working capital requirements, or the Company’s ability to profitably execute its business plan. The Company’s plans for the long-term return to and continuation as a going concern include financing its future operations through sales of common stock and/or debt and the eventual profitable exploitation of its mining properties. 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. 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 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. Exploration Expenditures capitalized costs are expensed in the period the property is abandoned. When it is determined that a mineral deposit can be economically developed as a result of establishing proven and probable reserves, the costs incurred after such determination will be capitalized and amortized over their useful lives. To date, the Company has not established the commercial feasibility of its exploration prospects; therefore, all exploration costs are being expensed. e. Property Holding Costs f. Fair Value At March 31, 2021 and September 30, 2020, 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 a senior unsecured note payable-related party, approximate fair value at March 31, 2021 and September 30, 2020. g. Cash Equivalents h. Reclamation Bonds i. Estimates and Assumptions j. Property and Equipment k. Asset Impairments - Carrying Value of Property, Mineral Rights and Equipment l. Asset Retirement Obligations – m. Stock-based Compensation The fair 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. n. Net Income (Loss) per Share The dilutive effect of convertible and outstanding securities as of March 31, 2021 and 2020 is as follows: March 31, 2021 March 31, 2020 Stock options 5,937,500 5,400,000 Warrants 73,372,170 45,541,908 Total potential dilution 79,309,670 50,941,908 At March 31, 2021 and 2020, 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	6 Months Ended
	Mar. 31, 2021
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 March 31, 2021 and September 30, 2020, respectively: Expected Useful Lives (years) March 31, 2021 September 30, 2020 Mineral rights - Eureka - $ 13,684,798 $ 13,701,178 Mineral rights – Other - 65,000 55,000 Total mineral rights 13,749,798 13,756,178 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 $ 13,801,275 $ 13,807,655 For the six months ended March 31, 2021 and 2020, the Company received mineral lease payments of $52,380 and $58,209, respectively, from a third party on two property blocks the Company leases at the Company’s Eureka property. Monthly payments in the amount of approximately $8,700 are expected to continue to be received. These receipts are recorded as a reduction to property, mineral rights, and equipment.

Note 4 - Related-party Transact

Note 4 - Related-party Transactions	6 Months Ended
	Mar. 31, 2021
Notes
Note 4 - Related-party Transactions:	NOTE 4 – RELATED-PARTY TRANSACTIONS: A senior unsecured note payable and interest accrued thereon payable to William Matlack, a shareholder and director of the Company, is disclosed in Note 5. During the year ended September 30, 2020, two directors participated in a private placement offering of units of the Company, purchasing 909,091 units for total proceeds of $100,000. Each Unit was priced at $0.11 and consisted of one share of common stock of the Company and one common share Class L Warrant, with each warrant exercisable to acquire an additional share of common stock of the Company at a price of $0.20 per share until August 15, 2023. The participation of the directors of the Company in this private placement was at arm’s length, on the same terms as other investors in the private placement offering. The Board of Directors approved the insiders’ participation in the private placement. At March 31, 2021, two officers were owed a total of $6,249 for expenses recorded in Accounts payable on the balance sheet that were reimbursed subsequent to the end of the period. Also at March 31, 2021, the Company owed $8,034 related to a former officer’s insurance who remained as a director at that date.

Note 5 - Senior Unsecured Note

Note 5 - Senior Unsecured Note Payable - Related Party	6 Months Ended
	Mar. 31, 2021
Notes
Note 5 - Senior Unsecured Note Payable - Related Party	NOTE 5 – SENIOR UNSECURED NOTE PAYABLE – RELATED PARTY: On July 30, 2018, the Company entered into a loan agreement and promissory note with William Matlack, a significant shareholder and a director as of October 29, 2019, (the “Lender”). Under the loan agreement, the Lender loaned the Company $300,000 in the form of a senior unsecured note payable, with the principal bearing interest at an annual rate of 18%, compounded monthly. The loan is unsecured and has a maturity date of January 20, 2023. At March 31, 2021 and at September 30, 2020, the senior unsecured note payable was $300,000. The accrued interest on the senior unsecured note payable was $183,741 and $142,492 at March 31, 2021 and September 30, 2020, respectively. Interest expense related to the senior unsecured note payable to this related party was $42,234 and $91,112 for the six months ended March 31, 2021 and March 31, 2020, respectively. The $300,000 senior unsecured note payable is senior to any other debt obtained by the Company subsequent to March 31, 2021. The senior unsecured note payable requires that when the Company enters into any other financings, 25% of the proceeds of such financings will be paid toward reduction of the principal and interest accrued on the note. No payments have been made by the Company to the Lender, and the Lender provided a waiver of default as of September 30, 2020 on the note that would otherwise have occurred due to such non-payment of the 25% of proceeds at the time of the financing in 2020.

Note 6 - Common Stock, Warrants

Note 6 - Common Stock, Warrants and Preferred Stock	6 Months Ended
	Mar. 31, 2021
Notes
Note 6 - Common Stock, Warrants and Preferred Stock:	NOTE 6 – STOCKHOLDERS’ EQUITY: Common Shares issued for Exercise of Warrants During the six months ended March 31, 2021, holders of Series D Warrants exercised 1,725,000 warrants for $0.14 per share to acquire 1,725,000 shares of the Company’s common stock for total cash proceeds of $241,500 to the Company. Also, holders of Series E Warrants exercised 537,500 warrants for $0.14 per share to acquire 537,500 shares of the Company’s common stock for total cash proceeds of $75,250 to the Company. At March 31, 2021, the Company has a total of 73,372,170 warrants outstanding with a weighted average exercise price of $0.19, a weighted average remaining term of 1.6 years and an intrinsic value of $450,957.

Note 7 - Stock-based Awards

Note 7 - Stock-based Awards	6 Months Ended
	Mar. 31, 2021
Notes
Note 7 - Stock-based Awards:	NOTE 7 – STOCK-BASED AWARDS: On October 8, 2020, the Company granted a total of 1,100,000 options to purchase shares of the Company’s common stock that expire in five years with an exercise price of $0.25 in conjunction with the appointment of Patrick Highsmith as CEO (750,000 options), Mr. Steven Osterberg as VP-Exploration (250,000 options), and addition of Mr. Quinton Hennigh to the Board of Directors (100,000 options). Of Mr. Highsmith’s options, 187,500 vested immediately, with 187,500 vesting at each of the following three grant anniversary dates. The fair value of the option awards granted and vested during the six months ended March 31, 2021 and 2020 was $127,022 and $161,100, respectively. No options were granted during the three months ended March 31, 2021 or 2020. The fair value of unvested options will be recognized as compensation in the amount of $44,321 in each of the following three years covered by the vesting period. Fair values of options issued were measured on the date of the grant with a Black-Scholes option-pricing model using the assumptions noted in the following table: Options Granted at October 8, 2020 Options Granted at October 29, 2019 Expected volatility 171.9% 149.5% Stock price on date of grant $0.25 $ 0.07 Exercise price $0.25 $ 0.08 Expected dividends - - Expected term (in years) 5 5 Risk-free rate 0.09% 1.66% Expected forfeiture rate 0% 0% The following is a summary of options issued and outstanding at March 31, 2021: Options Weighted Average Exercise Price Outstanding at September 30, 2019 3,280,000 $ 0.26 Granted 2,550,000 0.08 Expired (430,000) (0.43) Outstanding at September 30, 2020 5,400,000 0.09 Granted 1,100,000 0.25 Expired - - Outstanding at March 31, 2021 6,500,000 $ 0.18 Outstanding and exercisable at March 31, 2021 5,937,500 $ 0.17 Weighted average remaining contractual term (years) 2.52 The aggregate of options exercisable as of March 31, 2021 had an intrinsic value of $517,500, based on the closing price of $0.23 per share of the Company’s common stock on March 31, 2021.

Note 8 - Commitments and Contin

Note 8 - Commitments and Contingencies	6 Months Ended
	Mar. 31, 2021
Notes
Note 8 - Commitments and Contingencies:	NOTE 8 – COMMITMENTS AND CONTINGENCIES: The Company has the following 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 $209,449 per year in the future. Real Estate Lease Commitments At September 30, 2020, the Company had real estate lease commitments for certain mineral properties totaling $72,000 annually. The Company’s office in Coeur d’Alene, Idaho and its facilities in Eureka, Nevada are rented on a month-to-month basis.

Note 9 - Subsequent Events

Note 9 - Subsequent Events	6 Months Ended
	Mar. 31, 2021
Notes
Note 9 - Subsequent Events:	NOTE 9 – SUBSEQUENT EVENTS: Subsequent to March 31, 2021, holders of Class D and Class H Warrants exercised a total of 2,150,000 warrants for $0.14 per share and received 2,150,000 shares of the Company’s common stock for total cash proceeds of $301,000 to the Company. On May 6, 2021, the Company granted 2,785,000 stock options to directors, officers, and consultants to the Company.

Note 2 - Summary of Significa_2

Note 2 - Summary of Significant Accounting Policies: a. Basis of Presentation and Going Concern (Policies)	6 Months Ended
	Mar. 31, 2021
Policies
a. Basis of Presentation and Going Concern	a. Basis of Presentation and Going Concern 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, 2020. The accompanying consolidated financial statements have been prepared under the assumption that the Company will continue as a going concern. The Company has incurred losses since its inception. The Company has sufficient cash to fund normal operations and meet all of its obligations for the next 12 months without raising additional funds. However, we are an exploration company with exploration programs that require significant cash expenditures. A significant drilling program, such are those we have planned, can result in depletion of cash and return us to a position of insufficient cash to support normal operations for 12 months. The Company currently has no historical recurring source of revenue, and its ability to continue as a going concern is dependent on its ability to raise capital to fund future exploration and working capital requirements, or the Company’s ability to profitably execute its business plan. The Company’s plans for the long-term return to and continuation as a going concern include financing its future operations through sales of common stock and/or debt and the eventual profitable exploitation of its mining properties. 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. 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)	6 Months Ended
	Mar. 31, 2021
Policies
b. New Accounting Pronouncements	b. New Accounting Pronouncements 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)	6 Months Ended
	Mar. 31, 2021
Policies
c. Principles of Consolidation	c. Principles of Consolidation

Note 2 - Summary of Significa_5

Note 2 - Summary of Significant Accounting Policies: d. Exploration Expenditures (Policies)	6 Months Ended
	Mar. 31, 2021
Policies
d. Exploration Expenditures	d. Exploration Expenditures capitalized costs are expensed in the period the property is abandoned. When it is determined that a mineral deposit can be economically developed as a result of establishing proven and probable reserves, the costs incurred after such determination will be capitalized and amortized over their useful lives. To date, the Company has not established the commercial feasibility of its exploration prospects; therefore, all exploration costs are being expensed.

Note 2 - Summary of Significa_6

Note 2 - Summary of Significant Accounting Policies: e. Property Holding Costs (Policies)	6 Months Ended
	Mar. 31, 2021
Policies
e. Property Holding Costs	e. Property Holding Costs

Note 2 - Summary of Significa_7

Note 2 - Summary of Significant Accounting Policies: f. Fair Value (Policies)	6 Months Ended
	Mar. 31, 2021
Policies
f. Fair Value	f. Fair Value At March 31, 2021 and September 30, 2020, 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 a senior unsecured note payable-related party, approximate fair value at March 31, 2021 and September 30, 2020.

Note 2 - Summary of Significa_8

Note 2 - Summary of Significant Accounting Policies: g. Cash Equivalents (Policies)	6 Months Ended
	Mar. 31, 2021
Policies
g. Cash Equivalents	g. Cash Equivalents

Note 2 - Summary of Significa_9

Note 2 - Summary of Significant Accounting Policies: h. Reclamation Bonds (Policies)	6 Months Ended
	Mar. 31, 2021
Policies
h. Reclamation Bonds	h. Reclamation Bonds

Note 2 - Summary of Signific_10

Note 2 - Summary of Significant Accounting Policies: i. Estimates and Assumptions (Policies)	6 Months Ended
	Mar. 31, 2021
Policies
i. Estimates and Assumptions	i. Estimates and Assumptions

Note 2 - Summary of Signific_11

Note 2 - Summary of Significant Accounting Policies: j. Property and Equipment (Policies)	6 Months Ended
	Mar. 31, 2021
Policies
j. Property and Equipment	j. Property and Equipment

Note 2 - Summary of Signific_12

Note 2 - Summary of Significant Accounting Policies: k. Asset Impairments - Carrying Value of Property, Mineral Rights and Equipment for Impairment (Policies)	6 Months Ended
	Mar. 31, 2021
Policies
k. Asset Impairments - Carrying Value of Property, Mineral Rights and Equipment for Impairment	k. Asset Impairments - Carrying Value of Property, Mineral Rights and Equipment

Note 2 - Summary of Signific_13

Note 2 - Summary of Significant Accounting Policies: l. Asset Retirement Obligations (Policies)	6 Months Ended
	Mar. 31, 2021
Policies
l. Asset Retirement Obligations	l. Asset Retirement Obligations –

Note 2 - Summary of Signific_14

Note 2 - Summary of Significant Accounting Policies: m. Stock-based Compensation (Policies)	6 Months Ended
	Mar. 31, 2021
Policies
m. Stock-based Compensation	m. Stock-based Compensation The fair 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.

Note 2 - Summary of Signific_15

Note 2 - Summary of Significant Accounting Policies: n. Net Income (Loss) per Share (Policies)	6 Months Ended
	Mar. 31, 2021
Policies
n. Net Income (Loss) per Share	n. Net Income (Loss) per Share The dilutive effect of convertible and outstanding securities as of March 31, 2021 and 2020 is as follows: March 31, 2021 March 31, 2020 Stock options 5,937,500 5,400,000 Warrants 73,372,170 45,541,908 Total potential dilution 79,309,670 50,941,908 At March 31, 2021 and 2020, 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_16

Note 2 - Summary of Significant Accounting Policies: n. Net Income (Loss) per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Tables)	6 Months Ended
	Mar. 31, 2021
Tables/Schedules
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	March 31, 2021 March 31, 2020 Stock options 5,937,500 5,400,000 Warrants 73,372,170 45,541,908 Total potential dilution 79,309,670 50,941,908

Note 3 - Property, Mineral Ri_2

Note 3 - Property, Mineral Rights, and Equipment: Property, Plant and Equipment (Tables)	6 Months Ended
	Mar. 31, 2021
Tables/Schedules
Property, Plant and Equipment	Expected Useful Lives (years) March 31, 2021 September 30, 2020 Mineral rights - Eureka - $ 13,684,798 $ 13,701,178 Mineral rights – Other - 65,000 55,000 Total mineral rights 13,749,798 13,756,178 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 $ 13,801,275 $ 13,807,655

Note 7 - Stock-based Awards_ Su

Note 7 - Stock-based Awards: Summary of fair value of options issued and outstanding (Tables)	6 Months Ended
	Mar. 31, 2021
Options
Summary of fair value of options issued and outstanding	Options Granted at October 8, 2020 Options Granted at October 29, 2019 Expected volatility 171.9% 149.5% Stock price on date of grant $0.25 $ 0.07 Exercise price $0.25 $ 0.08 Expected dividends - - Expected term (in years) 5 5 Risk-free rate 0.09% 1.66% Expected forfeiture rate 0% 0%

Note 7 - Stock-based Awards_ Sh

Note 7 - Stock-based Awards: Share-based Compensation, Stock Options, Activity (Tables)	6 Months Ended
	Mar. 31, 2020
Tables/Schedules
Share-based Compensation, Stock Options, Activity	Options Weighted Average Exercise Price Outstanding at September 30, 2019 3,280,000 $ 0.26 Granted 2,550,000 0.08 Expired (430,000) (0.43) Outstanding at September 30, 2020 5,400,000 0.09 Granted 1,100,000 0.25 Expired - - Outstanding at March 31, 2021 6,500,000 $ 0.18 Outstanding and exercisable at March 31, 2021 5,937,500 $ 0.17 Weighted average remaining contractual term (years) 2.52

Note 2 - Summary of Signific_17

Note 2 - Summary of Significant Accounting Policies: a. Basis of Presentation and Going Concern (Details)	6 Months Ended
	Mar. 31, 2021
Details
Substantial Doubt about Going Concern, Conditions or Events	The Company has incurred losses since its inception. The Company has sufficient cash to fund normal operations and meet all of its obligations for the next 12 months without raising additional funds. However, we are an exploration company with exploration programs that require significant cash expenditures.

Note 2 - Summary of Signific_18

Note 2 - Summary of Significant Accounting Policies: n. Net Income (Loss) per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Details
Stock options	5,937,500	5,400,000
Warrants	73,372,170	45,541,908
Total potential dilution	79,309,670	50,941,908

Note 3 - Property, Mineral Ri_3

Note 3 - Property, Mineral Rights, and Equipment: Property, Plant and Equipment (Details) - USD ($)		6 Months Ended
		Mar. 31, 2021	Sep. 30, 2020
Mineral Rights		$ 13,749,798	$ 13,756,178
Property, Plant and Equipment, Gross		175,305	175,305
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment		(123,828)	(123,828)
Property, mineral rights, and equipment, net	[1]	13,801,275	13,807,655
Mineral rights - Eureka
Mineral Rights		13,684,798	13,701,178
Mineral rights - Other
Mineral Rights		$ 65,000	$ 55,000
Equipment and vehicles | Minimum
Expected Useful Lives (years)		2 years
Equipment and vehicles | Maximum
Expected Useful Lives (years)		5 years
Office equipment and furniture | Minimum
Expected Useful Lives (years)		3 years
Office equipment and furniture | Maximum
Expected Useful Lives (years)		7 years
[1]	Note 8

Note 3 - Property, Mineral Ri_4

Note 3 - Property, Mineral Rights, and Equipment (Details) - USD ($)	6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Details
Proceeds from lease of mineral rights	$ 52,380	$ 58,209

Note 4 - Related-party Transa_2

Note 4 - Related-party Transactions (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Common stock issued for exercise of warrants, Value	$ 183,750	$ 133,000
Related parties
Subsequent Event, Description			At March 31, 2021, two officers were owed a total of $6,249 for expenses recorded in Accounts payable on the balance sheet that were reimbursed subsequent to the end of the period. Also at March 31, 2021, the Company owed $8,034 related to a former officer’s insurance who remained as a director at that date
Private placement
Common stock issued for exercise of warrants, Shares				909,091
Common stock issued for exercise of warrants, Value			$ 100,000
Stock options issued to officer, value				$ 0.11

Note 5 - Senior Unsecured Not_2

Note 5 - Senior Unsecured Note Payable - Related Party (Details) - USD ($)	Jul. 30, 2018	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Sep. 30, 2020
Interest Expense		$ 0	$ 7,120	$ 0	$ 19,531
Senior Unsecured Notes Payable, Transaction #1
Debt Instrument, Issuance Date				Jul. 30, 2018
Debt Instrument, Description	loan agreement and promissory note with William Matlack
Debt Instrument, Face Amount	$ 300,000	300,000		$ 300,000		$ 300,000
Debt Instrument, Interest Rate, Stated Percentage	18.00%
Senior Unsecured Notes Interest Paid
Debt Instrument, Increase, Accrued Interest		183,741				$ 142,492
Interest Expense		$ 42,234	$ 91,112

Note 6 - Common Stock, Warran_2

Note 6 - Common Stock, Warrants and Preferred Stock (Details) - USD ($)	6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Warrants	73,372,170	45,541,908
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	$ 5,937,500
Warrants
Warrants	73,372,170
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Period Increase (Decrease), Weighted Average Exercise Price	$ 0.19
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	1 year 7 months 6 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	$ 450,957
Sale of Stock, Transaction #1
Sale of Stock, Description of Transaction	During the six months ended March 31, 2021, holders of Series D Warrants exercised 1,725,000 warrants for $0.14 per share to acquire 1,725,000 shares of the Company’s common stock for total cash proceeds of $241,500 to the Company. Also, holders of Series E Warrants exercised 537,500 warrants for $0.14 per share to acquire 537,500 shares of the Company’s common stock for total cash proceeds of $75,250 to the Company

Note 7 - Stock-based Awards (De

Note 7 - Stock-based Awards (Details) - USD ($)	6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Intrinsic value of options outstanding and exercisable	$ 517,500
Shares Issued, Price Per Share	$ 0.23
Stock-based Award #2
Sale of Stock, Transaction Date	Oct. 8, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	1,100,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 0.25
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value	$ 127,022	$ 161,100

Note 7 - Stock-based Awards_ _2

Note 7 - Stock-based Awards: Summary of fair value of options issued and outstanding (Details) - Options - USD ($)	6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Expected volatility	171.90%	149.50%
Exercise price	$ 0.25	$ 0.08
Expected dividends	$ 0	$ 0
Expected term (in years)	5 years	5 years
Risk-free rate	0.09%	1.66%
Expected forfeiture rate	0.00%	0.00%

Note 7 - Stock-based Awards_ _3

Note 7 - Stock-based Awards: Share-based Compensation, Stock Options, Activity (Details) - USD ($)	6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Sep. 30, 2020	Sep. 30, 2019
Details
Outstanding	6,500,000	5,400,000	3,280,000
Weighted Average Exercise Price, Outstanding	$ 0.18	$ 0.09		$ 0.26
Granted	1,100,000	2,550,000
Weighted Average Exercise Price, Granted	$ 0.25	$ 0.08
Expired		(430,000)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	$ 5,937,500
Weighted Average Exercise Price, Outstanding	$ 0.17
Weighted average fair value of options granted	$ 2.52

Note 8 - Commitments and Cont_2

Note 8 - Commitments and Contingencies (Details)	6 Months Ended
	Mar. 31, 2021
Other Commitments, Description	At September 30, 2020, the Company had real estate lease commitments for certain mineral properties totaling $72,000 annually
Commtment or Contingency #1
Other Commitments, Description	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
Commtment or Contingency #2
Other Commitments, Description	The Company pays federal and county claim maintenance fees on unpatented claims that are included in the Company’s mineral exploration properties.

Note 9 - Subsequent Events (Det

Note 9 - Subsequent Events (Details)	6 Months Ended
	Mar. 31, 2021
Event #1
Subsequent Event, Description	Subsequent to March 31, 2021, holders of Class D and Class H Warrants exercised a total of 2,150,000 warrants
Event #2
Subsequent Event, Description	On May 6, 2021, the Company granted 2,785,000 stock options to directors, officers, and consultants to the Company