Timberline Resources (TLRS) 10-Q 15 Aug 22 2022 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Jun. 30, 2022	Aug. 15, 2022
Cover [Abstract]
Entity Registrant Name	TIMBERLINE RESOURCES CORPORATION
Entity Central Index Key	0001288750
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Jun. 30, 2022
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2022
Entity Common Stock Shares Outstanding		159,676,152
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-34055
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	82-0291227
Entity Address Address Line 1	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
Security 12b Title	Common Stock, $0.001 par value
Trading Symbol	TLRS
Entity Interactive Data Current	Yes

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2022	Sep. 30, 2021
Current Assets:
Cash	$ 4,182,930	$ 3,327,352
Prepaid Expenses And Other Current Assets	45,431	23,573
TOTAL CURRENT ASSETS	4,228,361	3,350,925
PROPERTY, MINERAL RIGHTS AND EQUIPMENT, net	13,875,085	13,821,085
OTHER ASSETS:
Reclamation Bonds	528,643	538,696
Deposits And Other Assets	5,700	5,700
TOTAL OTHER ASSETS	534,343	544,396
TOTAL ASSETS	18,637,789	17,716,406
CURRENT LIABILITIES:
Accounts Payable	134,128	114,819
Accrued Expenses	804	23,749
Accrued expenses - related party	19,790	0
Accrued Interest - related Party	43,482	4,145
Accrued Payroll, Benefits And Taxes	42,139	38,193
Senior Unsecured Note Payable - Related Party	270,991	0
TOTAL CURRENT LIABILITIES	511,334	180,906
LONG-TERM LIABILITIES:
Asset Retirement Obligation	122,681	118,247
Senior Unsecured Note Payable - Related Party	0	270,991
TOTAL LONG-TERM LIABILITIES	122,681	389,238
TOTAL LIABILITIES	634,015	570,144
COMMITMENTS AND CONTINGENCIES (Note 8)	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, 159,676,152 and 139,696,022 shares issued and outstanding, Respectively	159,676	139,696
Additional Paid-in Capital	89,955,640	85,345,213
Accumulated Deficit	(72,111,542)	(68,338,647)
TOTAL STOCKHOLDERS' EQUITY	18,003,774	17,146,262
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 18,637,789	$ 17,716,406

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2022	Sep. 30, 2021
CONSOLIDATED BALANCE SHEETS
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	159,676,152	139,696,022
Common Stock, Shares, Outstanding	159,676,152	139,696,022

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
OPERATING EXPENSES:
Mineral exploration	$ 896,465	$ 427,908	$ 2,696,797	$ 1,827,980
Salaries and benefits	71,819	74,584	219,750	230,502
Professional fees	61,234	39,384	155,938	160,257
Insurance expense	43,204	38,766	116,651	102,367
Other general and administrative	149,748	638,053	332,254	936,809
TOTAL OPERATING EXPENSES	1,222,470	1,218,695	3,521,390	3,257,915
LOSS FROM OPERATIONS	(1,222,470)	(1,218,695)	(3,521,390)	(3,257,915)
OTHER INCOME (EXPENSE):
Foreign exchange gain (loss)	(214,347)	(22,165)	(210,683)	(10,037)
Interest expense	(503)	0	(1,636)	0
Interest expense - related party	(13,701)	(22,424)	(39,337)	(64,658)
Miscellaneous other income	72	25	151	79
TOTAL OTHER INCOME (EXPENSE)	(228,479)	(44,564)	(251,505)	(74,616)
LOSS BEFORE INCOME TAXES	(1,450,949)	(1,263,259)	(3,772,895)	(3,332,531)
INCOME TAX PROVISION (BENEFIT)	0	0	0	0
NET LOSS	$ (1,450,949)	$ (1,263,259)	$ (3,772,895)	$ (3,332,531)
NET LOSS PER SHARE - BASIC AND DILUTED	$ (0.01)	$ (0.01)	$ (0.03)	$ (0.03)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND DILUTED	159,468,089	118,906,357	146,378,612	115,200,298

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($)	Total	Common Stock	Additional Paid-In Capital	Subscription Receivable	Accumulated Deficit
Balance, shares at Sep. 30, 2020		112,075,224
Balance, amount at Sep. 30, 2020	$ 16,094,836	$ 112,075	$ 79,613,593	$ 0	$ (63,630,832)
Common stock issued for exercise of warrants, shares		950,000
Common stock issued for exercise of warrants, amount	133,000	$ 950	132,050	0	0
Stock based compensation	127,022	0	127,022	0	0
Net loss	(1,584,113)	$ 0	0	0	(1,584,113)
Balance, shares at Dec. 31, 2020		113,025,224
Balance, amount at Dec. 31, 2020	14,770,745	$ 113,025	79,872,665	0	(65,214,945)
Balance, shares at Sep. 30, 2020		112,075,224
Balance, amount at Sep. 30, 2020	$ 16,094,836	$ 112,075	79,613,593	0	(63,630,832)
Common stock issued for exercise of warrants, shares	2,492,493
Net loss	$ (3,332,531)
Common stock to be issued for cash	1,788,334
Balance, shares at Jun. 30, 2021		125,429,390
Balance, amount at Jun. 30, 2021	18,640,637	$ 125,429	82,652,745	2,825,826	(66,963,363)
Balance, shares at Dec. 31, 2020		113,025,224
Balance, amount at Dec. 31, 2020	14,770,745	$ 113,025	79,872,665	0	(65,214,945)
Common stock issued for exercise of warrants, shares		1,312,500
Common stock issued for exercise of warrants, amount	183,750	$ 1,312	182,438	0	0
Net loss	(485,159)	$ 0	0	0	(485,159)
Balance, shares at Mar. 31, 2021		114,337,724
Balance, amount at Mar. 31, 2021	14,469,336	$ 114,337	80,055,103	0	(65,700,104)
Common stock issued for exercise of warrants, shares		2,150,000
Common stock issued for exercise of warrants, amount	301,000	$ 2,150	298,850	0	0
Stock based compensation	519,400	0	519,400	0	0
Net loss	(1,263,259)	0	0	0	(1,263,259)
Subscribed shares	2,492,493	0	0	2,492,493	0
Common stock to be issued for cash	333,333	0	0	333,333	0
Common stock and warrants issued for cash, amount	1,788,334	$ 8,942	1,779,392	0	0
Balance, shares at Jun. 30, 2021		125,429,390
Balance, amount at Jun. 30, 2021	18,640,637	$ 125,429	82,652,745	2,825,826	(66,963,363)
Balance, shares at Sep. 30, 2021		139,696,022
Balance, amount at Sep. 30, 2021	17,146,262	$ 139,696	85,345,213	0	(68,338,647)
Stock based compensation	44,321	0	44,321	0	0
Net loss	(1,624,223)	$ 0	0	0	(1,624,223)
Balance, shares at Dec. 31, 2021		139,696,022
Balance, amount at Dec. 31, 2021	15,566,360	$ 139,696	85,389,534	0	(69,962,870)
Balance, shares at Sep. 30, 2021		139,696,022
Balance, amount at Sep. 30, 2021	17,146,262	$ 139,696	85,345,213	0	(68,338,647)
Net loss	(3,772,895)
Common stock to be issued for cash	4,439,587
Balance, shares at Jun. 30, 2022		159,676,152
Balance, amount at Jun. 30, 2022	18,003,774	$ 159,676	89,955,640	0	(72,111,542)
Balance, shares at Dec. 31, 2021		139,696,022
Balance, amount at Dec. 31, 2021	15,566,360	$ 139,696	85,389,534	0	(69,962,870)
Common stock issued for exercise of warrants, shares		1,546,425
Common stock issued for exercise of warrants, amount	146,499	$ 1,546	214,953	(70,000)	0
Net loss	(697,723)	$ 0	0		(697,723)
Balance, shares at Mar. 31, 2022		141,242,447
Balance, amount at Mar. 31, 2022	15,015,136	$ 141,242	85,604,487	(70,000)	(70,660,593)
Net loss	(1,450,949)	0	0	0	(1,450,949)
Common stock to be issued for cash	4,439,587	$ 18,934	4,420,653	0	0
Common stock to be issued for cash, shares		18,933,705
Refund of subscription receivable, shares		(500,000)
Refund of subscription receivable, amount	0	$ (500)	(69,500)	70,000	0
Balance, shares at Jun. 30, 2022		159,676,152
Balance, amount at Jun. 30, 2022	$ 18,003,774	$ 159,676	$ 89,955,640	$ 0	$ (72,111,542)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (3,772,895)	$ (3,332,531)
Adjustments to reconcile net loss to net cash used by operating activities:
Stock-based compensation	44,321	646,422
Accretion of asset retirement obligation	4,434	4,224
Changes in assets and liabilities:
Prepaid expenses and other current assets	(21,858)	(30,888)
Accounts payable	19,310	(57,642)
Accrued expenses	(22,946)	(25,660)
Accrued expenses - related party	19,790	3,536
Accrued interest - related party	39,337	63,284
Accrued payroll, benefits and taxes	3,946	13,647
Net cash used by operating activities	(3,686,561)	(2,715,608)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of mineral rights	(54,000)	(64,000)
Refund of reclamation bond	10,053	0
Proceeds from lease of mineral rights	0	78,571
Net cash provided (used) by investing activities	(43,947)	14,571
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of common stock and warrants, net	4,439,587	1,788,334
Proceeds from subscribed shares	0	333,333
Proceeds from exercise of warrants	146,499	617,750
Net cash provided by financing activities	4,586,086	2,739,417
Net increase in cash and cash equivalents	855,578	38,380
CASH AT BEGINNING OF PERIOD	3,327,352	2,520,726
CASH AT END OF PERIOD	$ 4,182,930	$ 2,559,106
Non-cash financing and investing activities:
Shares of common stock to be issued under subscription		2,492,493

ORGANIZATION AND DESCRIPTION OF

ORGANIZATION AND DESCRIPTION OF BUSINESS	9 Months Ended
	Jun. 30, 2022
ORGANIZATION AND DESCRIPTION OF BUSINESS
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.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Jun. 30, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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, 2021. 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. Principles of Consolidation c. Fair Value Measurements At June 30, 2022 and September 30, 2021, 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 June 30, 2022 and September 30, 2021. d. Estimates and Assumptions e. Net Income (Loss) per Share The dilutive effect of convertible and outstanding securities as of June 30, 2022 and 2021 is as follows: June 30, 2022 June 30, 2021 Stock options 8,335,000 8,722,500 Warrants 57,414,898 67,628,336 Total potential dilution 65,749,898 76,350,836 At June 30, 2022 and 2021, the effect of the Company’s common stock equivalents would have been anti-dilutive. Accordingly, only basic EPS is presented.

PROPERTY, MINERAL RIGHTS, AND E

PROPERTY, MINERAL RIGHTS, AND EQUIPMENT	9 Months Ended
	Jun. 30, 2022
PROPERTY, MINERAL RIGHTS, AND EQUIPMENT
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 June 30, 2022 and September 30, 2021, respectively: Expected Useful Lives (years) June 30, 2022 September 30, 2021 Mineral rights - Eureka - $ 13,758,608 $ 13,704,608 Mineral rights – Other - 65,000 65,000 Total mineral rights 13,823,608 13,769,608 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 - $ 13,875,085 $ 13,821,085 For the nine months ended June 30, 2022 and 2021, the Company received mineral lease payments of $nil and $78,571, respectively, from a third party on two property blocks the Company leases at the Company’s Eureka property. These receipts are recorded as a reduction to property, mineral rights, and equipment.

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS	9 Months Ended
	Jun. 30, 2022
RELATED-PARTY TRANSACTIONS
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. The Company reimburses the health insurance premiums for a former director. At June 30, 2022 and September 30, 2021, the Company owed $19,790 and $3,536, respectively, for related party expenses. No remittance was made during the nine months ended June 30, 2022, and $16,254 was recognized as expense during the period.

SENIOR UNSECURED NOTE PAYABLE -

SENIOR UNSECURED NOTE PAYABLE - RELATED PARTY	9 Months Ended
	Jun. 30, 2022
SENIOR UNSECURED NOTE PAYABLE - RELATED PARTY
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”), thereafter becoming a related party. 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 June 30, 2022 and at September 30, 2021, the senior unsecured note payable was $270,991. The accrued interest on the senior unsecured note payable was $43,482 and $4,145 at June 30, 2022 and September 30, 2021, respectively. Interest expense related to the senior unsecured note payable to this related party was $13,701 and $22,035 for the three months ended June 30, 2022 and June 30, 2021, respectively, and $39,337 and $64,658 for the nine months ended June 30, 2022 and June 30, 2021, respectively. The $270,991 senior unsecured note payable would be senior to any other debt obtained by the Company subsequent to September 30, 2021. The note 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. At August 30, 2021, the Lender provided a waiver of default on the Note that would otherwise have existed due to a non-payment under this contract term for the note. Payment of the remainder of the note’s principal balance will not be required until the next qualifying financing, whether debt or equity. On August 30, 2021, $250,000 was paid to the Lender in conjunction with the common stock private placement financing that occurred in June 2021, consisting of $29,009 of principal and $220,991 of interest. At June 30, 2022, the Lender provided a verbal waiver of default on the note that would otherwise have existed due to a non-payment under this contract term for the note. The Company is completing an operating budget to determine an amount that can be remitted toward the note under this verbal waiver agreement.

COMMON STOCK AND WARRANTS

COMMON STOCK AND WARRANTS	9 Months Ended
	Jun. 30, 2022
COMMON STOCK AND WARRANTS
Common Stock and Warrants:	NOTE 6 – COMMON STOCK AND WARRANTS: At the Annual General Meeting of shareholders held on April 14, 2021, the shareholders approved an increase in the number of authorized common shares of the Company from 200,000,000 to 500,000,000, with no change in par value and no split or other modification to any outstanding shares. The Certificate of Incorporation of the Company in the State of Delaware was amended to reflect that change in October 2021. On May 2, 2022, the Company closed a non-brokered private placement of the Company to accredited investors at a price of $0.25 per common share. The Company issued 18,933,705 common shares for cash proceeds of $4,733,426. Finders fees in the amount of $293,839 and 1,016,022 Series N Warrants were paid and issued, respectively, to licensed brokers and consultants in association with the offering. The warrants have a term of 18 months and are exercisable at $0.25 per common share. During the nine months ended June 30, 2022, 6,825,000 Series E warrants, 5,000,000 Series G warrants and 4,446,016 Series H warrants expired. Also, holders of Series H Warrants exercised 1,546,425 warrants for $0.14 per share to acquire 1,546,425 shares of the Company’s common stock for total cash proceeds of $146,499 and a subscription receivable of $70,000 to the Company. The warrant holder decided not to exercise the 500,000 warrants subscribed, the $70,000 was refunded and the warrants expired, resulting in a total of 1,046,425 shares being issued. On June 25, 2021, the Company closed on total subscriptions for a private placement offering for 23,070,798 Units of the Company at a price of $0.20 per Unit. Each Unit consisted of one share of common stock of the Company and one-half common share purchase Series M Warrant (each whole such warrant a “Warrant”), with each Warrant exercisable to acquire an additional share of common stock of the Company at a price of $0.30 per share until the Warrant expiration date of May 31, 2023. A total of 8,941,666 shares and 5,304,166 Warrants were paid for and issued during the quarter ended June 30, 2021, for net proceeds of $1,788,334 to the Company. Another $333,333 was received for shares subscribed but not yet issued as of the end of the quarter. Additionally, 102,000 broker Warrants were issued for finders fees. No cash was paid for finders fees during the quarter ended June 30, 2021. The units subscribed but not yet paid for at June 30, 2021 were accounted for as subscriptions receivable of $2,492,493. Subsequent to the close of the quarter ended June 30, 2021, and prior to the issuance of the financial statements for that period, cash of $2,375,393, net of $117,100 finders fees, was received and 14,129,132 shares and 6,725,481 Warrants were issued to complete the private placement transactions, including 494,248 Warrants issued for finders fees. During the three months ended June 30, 2021, holders of Series D Warrants exercised 1,775,000 warrants for $0.14 per share to acquire 1,775,000 shares of the Company’s common stock for total cash proceeds of $248,500 to the Company. Also, holders of Series H Warrants exercised 375,000 warrants for $0.14 per share to acquire 375,000 shares of the Company’s common stock for total cash proceeds of $52,500 to the Company. During the three months ended June 30, 2021, 9,000,000 Series D warrants expired. During the nine months ended June 30, 2021, holders of Series D Warrants exercised 3,500,000 warrants for 0.14 per share to acquire 3,500,000 shares of the Company’s common stock for total cash proceeds of $490,000 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. Also, holders of Series H Warrants exercised 375,000 warrants for $0.14 per share to acquire 375,000 shares of the Company’s common stock for total cash proceeds of $52,500 to the Company. At June 30, 2022, the Company has a total of 57,414,898 warrants outstanding with a weighted average exercise price of $0.22 with a weighted average remaining contractual term of 0.87 year.

STOCK-BASED AWARDS

STOCK-BASED AWARDS	9 Months Ended
	Jun. 30, 2022
STOCK-BASED AWARDS
Stock-based Awards:	NOTE 7 – STOCK-BASED AWARDS: During the year ended September 30, 2021, the Company’s shareholders approved an increase to the number of shares of common stock reserved for issuance under the Plan to 15,000,000 shares of common stock, including 10,000,000 shares of common stock reserved for incentive stock options. 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 trading price of the Company’s stock at the date of grant. On October 8, 2020, the Company granted a total of 750,000 options to purchase shares of the Company’s common stock that vest over a three-year period. These vesting options had a total fair value of $177,284, with $44,321 recognized immediately and $44,321 being recognized on each of the three grant anniversary dates. On May 6, 2021, the Company granted a total of 2,785,000 options to employees, consultants, officers and directors to purchase shares of the Company’s common stock that expire in five years with an exercise price of $0.25. These granted options had a total fair value of $519,400. All options vested upon grant. The share-based compensation recognized for the option awards vested during the nine months ended June 30, 2022 and 2021 was $44,321 and $519,400, respectively. No options were granted during the three months ended June 30, 2022 or 2021. The unvested options will be recognized as compensation expense in the amount of $44,321 in each of the following two 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 May 6, 2021 Options Granted at October 8, 2020 Expected volatility 167.9 % 171.9 % Stock price on date of grant $ 0.20 $ 0.25 Exercise price $ 0.25 $ 0.25 Expected dividends - - Expected term (in years) 5 5 Risk-free rate 0.05 % 0.09 % Expected forfeiture rate 0 % 0 % Fair value at grant date $ 519,400 $ 259,985 The following is a summary of activity for the fiscal year ended September 30, 2021 and the nine months ended June 30, 2022: Options Weighted Average Exercise Price Outstanding at September 30, 2020 5,400,000 $ 0.16 Granted 3,885,000 0.12 Expired (950,000 ) (0.43 ) Outstanding at September 30, 2021 8,335,000 0.18 Granted - - Expired - - Outstanding at June 30, 2022 8,335,000 $ 0.18 Outstanding and exercisable at June 30, 2022 7,960,000 $ 0.17 Weighted average remaining contractual term (years) 2.56 The aggregate of options exercisable as of June 30, 2022 had an intrinsic value of $222,000, based on the closing price of $0.16 per share of the Company’s common stock on June 30, 2022.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Jun. 30, 2022
COMMITMENTS AND CONTINGENCIES
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 including advance minimum royalty payments, with various terms, obligations, and royalties payable in certain circumstances. Total mining claim lease, option agreements and royalty agreements total $82,000 per year. 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 $236,277 per year in the future. Real Estate Lease Commitments At June 30, 2022, the Company’s office in Coeur d’Alene, Idaho and its facilities in Eureka, Nevada are rented on a month-to-month basis.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Jun. 30, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis Of Presentation And Going Concern	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, 2021. 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.
Principles Of Consolidation	Principles of Consolidation
Fair Value Measurement	Fair Value Measurements At June 30, 2022 and September 30, 2021, 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 June 30, 2022 and September 30, 2021.
Estimates And Assumptions	Estimates and Assumptions
Net Income (loss) Per Share	e. Net Income (Loss) per Share The dilutive effect of convertible and outstanding securities as of June 30, 2022 and 2021 is as follows: June 30, 2022 June 30, 2021 Stock options 8,335,000 8,722,500 Warrants 57,414,898 67,628,336 Total potential dilution 65,749,898 76,350,836 At June 30, 2022 and 2021, the effect of the Company’s common stock equivalents would have been anti-dilutive. Accordingly, only basic EPS is presented.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Jun. 30, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule Of Anti-dilutive Basic Of Eps	June 30, 2022 June 30, 2021 Stock options 8,335,000 8,722,500 Warrants 57,414,898 67,628,336 Total potential dilution 65,749,898 76,350,836

PROPERTY MINERAL RIGHTS AND EQU

PROPERTY MINERAL RIGHTS AND EQUIPMENT (Tables)	9 Months Ended
	Jun. 30, 2022
PROPERTY, MINERAL RIGHTS, AND EQUIPMENT
Property, Plant And Equipment	Expected Useful Lives (years) June 30, 2022 September 30, 2021 Mineral rights - Eureka - $ 13,758,608 $ 13,704,608 Mineral rights – Other - 65,000 65,000 Total mineral rights 13,823,608 13,769,608 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 - $ 13,875,085 $ 13,821,085

STOCKBASED AWARDS (Tables)

STOCKBASED AWARDS (Tables)	9 Months Ended
	Jun. 30, 2022
STOCKBASED AWARDS (Tables)
Schedule Of Option-pricing Model Using The Assumptions	Options Granted at May 6, 2021 Options Granted at October 8, 2020 Expected volatility 167.9 % 171.9 % Stock price on date of grant $ 0.20 $ 0.25 Exercise price $ 0.25 $ 0.25 Expected dividends - - Expected term (in years) 5 5 Risk-free rate 0.05 % 0.09 % Expected forfeiture rate 0 % 0 % Fair value at grant date $ 519,400 $ 259,985
Summary Of Options Activity	Options Weighted Average Exercise Price Outstanding at September 30, 2020 5,400,000 $ 0.16 Granted 3,885,000 0.12 Expired (950,000 ) (0.43 ) Outstanding at September 30, 2021 8,335,000 0.18 Granted - - Expired - - Outstanding at June 30, 2022 8,335,000 $ 0.18 Outstanding and exercisable at June 30, 2022 7,960,000 $ 0.17 Weighted average remaining contractual term (years) 2.56

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - shares	9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Stock Options	8,335,000	8,722,500
Warrants	57,414,898	67,628,336
Total Potential Dilution	65,749,898	76,350,836

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	9 Months Ended
	Jun. 30, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Substantial Doubt About Going Concern, Management's Evaluation	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

PROPERTY, MINERAL RIGHTS, AND_2

PROPERTY, MINERAL RIGHTS, AND EQUIPMENT (Details) - USD ($)	9 Months Ended
	Jun. 30, 2022	Sep. 30, 2021
Property, Plant And Equipment, Gross	$ 175,305	$ 175,305
Less Accumulated Depreciation	(123,828)	(123,828)
Property, Mineral Rights, And Equipment, Net	13,875,085	13,821,085
Mineral Rights	13,823,608	13,769,608
Office equipment and furniture
Property, Plant And Equipment, Gross	70,150	70,150
Mineral rights - Eureka
Mineral Rights	13,758,608	13,704,608
Mineral rights - Other
Mineral Rights	65,000	65,000
Land
Property, Plant And Equipment, Gross	51,477	51,477
Equipment and vehicles
Property, Plant And Equipment, Gross	$ 53,678	$ 53,678
Minimum | Office equipment and furniture
Expected Useful Lives (years)	3 years
Minimum | Equipment and vehicles
Expected Useful Lives (years)	2 years
Maximum | Office equipment and furniture
Expected Useful Lives (years)	7 years
Maximum | Equipment and vehicles
Expected Useful Lives (years)	5 years

PROPERTY, MINERAL RIGHTS, AND_3

PROPERTY, MINERAL RIGHTS, AND EQUIPMENT (Details Narrative) - USD ($)	9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
PROPERTY, MINERAL RIGHTS, AND EQUIPMENT
Proceeds From Lease Of Mineral Rights	$ 0	$ 78,571

RELATED-PARTY TRANSACTIONS (Det

RELATED-PARTY TRANSACTIONS (Details Narrative) - William Matlack - USD ($)	9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Owed To Related Party For Expenses	$ 19,790	$ 3,536
Related party expense	$ 16,254

SENIOR UNSECURED NOTE PAYABLE_2

SENIOR UNSECURED NOTE PAYABLE - RELATED PARTY (Details Narrative) - USD ($)	1 Months Ended			3 Months Ended		9 Months Ended		12 Months Ended
	Aug. 30, 2021	Jun. 30, 2021	Jul. 30, 2018	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2021
Interest Expense				$ 503	$ 0	$ 1,636	$ 0
Senior Unsecured Notes Interest Paid
Reduction Of Principal And Interest Accrued, Rate						25%
Debt Instrument, Increase, Accrued Interest						$ 43,482		$ 4,145
Interest Expense				13,701	22,035	39,337	64,658
Senior Unsecured Note Payable				270,991		270,991
Senior Unsecured Notes Interest Paid | Private Placement Financing
Paid To The Lender In Conjunction With The Common Stock	$ 250,000
Principal Senior Unsecured Debt		$ 29,009			$ 29,009		$ 29,009
Interest On Senior Unsecured Debt		$ 220,991
Senior Unsecured Notes Payable, Transaction #1
Debt Instrument, Face Amount			$ 300,000	$ 270,991		$ 270,991		$ 270,991
Debt Instrument, Description			loan agreement and promissory note
Interest Annual, Rate			18%
Debt Instrument, Issuance Date						Jul. 30, 2018
Debt Instrument, Maturity Date						Jan. 20, 2023
Debt Instrument, Interest Rate				18%		18%

COMMON STOCK AND WARRANTS (Deta

COMMON STOCK AND WARRANTS (Details Narrative) - USD ($)		1 Months Ended		3 Months Ended	9 Months Ended
	May 02, 2022	Jun. 25, 2021	Apr. 14, 2021	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Weighted Average Exercise Price					$ 0.22
Warrants subscribed not exercised					500,000
Total share issued					1,046,425
Description Of Authorized Common Shares			the shareholders approved an increase in the number of authorized common shares of the Company from 200,000,000 to 500,000,000
Warrants Outstanding					$ 57,414,898
Warrants received		494,248
Weighted Average Remaining Contractual Term (in Years)					10 months 13 days
Exercised, shares	18,933,705
Subscription Receivable					$ 70,000
Cash Proceeds Common Stock, Shares	$ 4,733,426
Subscription Receivable		23,070,798
Proceeds from subscribed shares						$ 333,333
Par Value Of Acquire Common Stock		$ 0.20
Warrants Exercised, Shares						2,492,493
Proceeds from warrant exercised					$ 146,499	$ 617,750
Series M Warrants [Member]
Weighted Average Exercise Price		$ 0.30
Warrants received		14,129,132
Exercised, shares						5,304,166
Subscription Receivable		$ 2,492,493
Cash		2,375,393
Net		$ 117,100
Warrants expiration term		May 31, 2023
Total shares						8,941,666
Additional brokers warrants						102,000
Net proceeds		$ 1,788,334
Warrants Exercised, Shares		6,725,481
Series N Warrants
Weighted Average Exercise Price					$ 0.25
Total shares	1,016,022
Warrants term	18 years
Finder fess	$ 293,839
Series E Warrants
Cash Proceeds Common Stock, Shares						$ 75,250
Par Value Of Acquire Common Stock						$ 0.14
Warrants Exercised, Shares						537,500
Warrants Expired					6,825,000
Acquire Common Stock, Shares						537,500
Series G Warrants
Warrants Expired					5,000,000
Series H Warrants
Weighted Average Exercise Price					$ 0.14
Exercised, shares				375,000	1,546,425	375,000
Subscription Receivable					$ 70,000
Par Value Of Acquire Common Stock				$ 0.14		$ 0.14
Warrants Expired					4,446,016
Acquire Common Stock, Shares				375,000		375,000
Number of common stock called by warrants					1,546,425
Proceeds from warrant exercised				$ 52,500	$ 146,499	$ 52,500
Series D Warrants
Cash Proceeds Common Stock, Shares				$ 248,500		$ 490,000
Par Value Of Acquire Common Stock				$ 0.14		$ 0.14
Warrants Exercised, Shares				1,775,000		3,500,000
Warrants Expired				9,000,000
Acquire Common Stock, Shares				1,775,000		3,500,000

STOCK-BASED AWARDS (Details)

STOCK-BASED AWARDS (Details) - USD ($)	9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
STOCK-BASED AWARDS
Expected Volatility	167.90%	171.90%
Stock Price On Date Of Grant	$ 0.20	$ 0.25
Exercise Price	$ 0.25	$ 0.25
Expected Term (in Years)	5 years	5 years
Expected Dividends	$ 0	$ 0
Risk-free Rate	0.05%	0.09%
Expected Forfeiture Rate	0%	0%
Fair value at grant date	$ 519,400	$ 259,985

STOCK-BASED AWARDS (Details 1)

STOCK-BASED AWARDS (Details 1) - $ / shares	9 Months Ended	12 Months Ended
	Jun. 30, 2022	Sep. 30, 2021
STOCK-BASED AWARDS
Outstanding, Beggining Balance	8,335,000	5,400,000
Granted	0	3,885,000
Expired	0	(950,000)
Outstanding, Ending Balance	8,335,000	8,335,000
Outstanding And Exercisable, Ending Balance	7,960,000
Weighted Average Exercise Price, Outstanding, Beggining Balance	$ 0.18	$ 0.16
Weighted Average Exercise Price, Granted	0	0.12
Weighted Average Exercise Price, Expired	0	(0.43)
Weighted Average Exercise Price, Outstanding, Ending Balance	0.18	$ 0.18
Weighted Average Exercise Price, Outstanding And Exercisable	$ 0.17
Weighted Average Remaining Contractual Term (years)	2 years 6 months 21 days

STOCK-BASED AWARDS (Details Nar

STOCK-BASED AWARDS (Details Narrative) - USD ($)	9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Mar. 31, 2022	Sep. 30, 2021	Sep. 30, 2020
Common Stock Reserved For Issuance	15,000,000
Common Stock Reserved For Incentive Stock Options	10,000,000
Aggregate Of Options Exercisable As Intrinsic Value	$ 222,000
Aggregate Of Options Exercisable As Intrinsic Value Closing Price	$ 0.16
Share-based Compensation Arrangement By Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 0.18			$ 0.18	$ 0.16
Share-based compensation	$ 44,321	$ 646,422
Stock-based Award #1
Sale Of Stock, Transaction Date	Oct. 08, 2020
Share-based Compensation Arrangement By Share-based Payment Award, Options, Grants In Period, Net Of Forfeitures	750,000
Granted Options Fair Value Recognized	44,321
Granted Options Fair Value Recognized In Future	44,321
Share-based Compensation Arrangement By Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price			$ 0.25
Granted Options Total Fair Value	177,284
Stock-based Award #2
Sale Of Stock, Transaction Date	May 06, 2021
Share-based Compensation Arrangement By Share-based Payment Award, Options, Grants In Period, Net Of Forfeitures	2,785,000
Granted Options Total Fair Value	519,400
Black Scholes Option Pricing Model
Share-based compensation	$ 44,321	$ 519,400
Stock option, cost not yet recognized, amount			$ 44,321

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative)	9 Months Ended
	Jun. 30, 2022 USD ($)
COMMITMENTS AND CONTINGENCIES
Total Royalty Agreements	$ 82,000
Mineral Properties Annual Fees	$ 236,277