| Significant Accounting Policies | 3.
Significant Accounting Policies These
financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The
significant accounting policies followed in the preparation of these financial statements are as follows: 4 Mineral
Properties and Exploration and Development Costs The
costs of acquiring mineral properties are capitalized at the date of acquisition. After acquisition, various factors can affect the recoverability
of the capitalized costs. If, after review, management concludes that the carrying amount of a mineral property is impaired, it will be
written down to estimated fair value. Exploration costs incurred on mineral properties are expensed as incurred. Development costs incurred
on proven and probable reserves will be capitalized. Upon commencement of production, capitalized costs will be amortized using the unit-of-production
method over the estimated life based on proven and probable reserves (which exclude non-recoverable reserves and anticipated processing
losses). When the Company receives an option payment related to a property, the proceeds of the payment are applied to reduce the carrying
value of the exploration asset. Impairment of Long-lived
Assets The Company’s long-lived
assets consist of plant, equipment, and mine development. The Company reviews and evaluates its long-lived assets for recoverability annually
and at interim periods if triggering events or changes in circumstances indicate that the related carrying amounts may not be recoverable.
Events that may trigger a test for recoverability include significant adverse changes to projected revenues, costs, or future expansion
plans, or changes to federal and state regulations (with which the Company must comply) that may adversely impact the Company’s
current or future operations. An impairment is determined to exist if the total projected future cash flows on an undiscounted basis are
less than the carrying amount of a long-lived asset group. An impairment loss is measured and recorded based on the excess carrying value
of the impaired long-lived asset group over fair value. To determine fair value,
the Company will use a discounted cash flow model based on quantities of estimated recoverable minerals and incorporates projections and
probabilities involving metal prices (considering current and historical prices, price trends and related factors), production levels,
operating and production costs, and the timing and capital costs of expansion and sustaining projects, all of which are based on life-of-mine
plans. The term “recoverable minerals” refers to the estimated amount of gold that will be sold after taking into account
losses during ore processing and treatment. In estimating future cash flows, assets will be grouped at the lowest level for which there
are identifiable cash flows that are largely independent of future cash flows from other asset groups. The Company’s estimates of
future cash flows will be based on numerous assumptions, which are consistent or reasonable in relation to internal budgets and projections,
and actual future cash flows will be significantly different than the estimates, as actual future quantities of recoverable gold and metal
prices, operating and production costs, and the timing and capital costs of expansion and sustaining projects are each subject to significant
risks and uncertainties. Mineral Properties Mineral properties are
tangible assets recorded at cost and include royalty interests and land and mineral rights to explore and extract minerals from properties.
Once a property is in the production phase, mineral property costs will be amortized using the units-of-production method based upon the
estimated recoverable gold ounces in proven and probable reserves at such properties. Currently, the Company has no property in production.
Costs to maintain mineral properties will be expensed in the period they are incurred. Gains and losses from the sale or disposal of mineral
properties will be recorded to Loss (gain) on dispositions or sales of mineral properties Asset Retirement Obligation The Company’s mining
and exploration activities will be subject to various federal and state laws and regulations governing the protection of the environment.
The Company’s asset retirement obligation (“ARO”), which will consist of estimated future mine reclamation and closure
costs, may increase, or decrease significantly as a result of changes in regulations, mine plans, estimates, or other factors. Currently,
the Company has no operating property. Therefore, no such property was recognized as a liability at fair value in the period incurred.
Any such ARO, which is initially estimated based on discounted cash flow estimates, will be accreted to full value over time through charges
to Accretion expense Foreign
Currency Translation The
Company has no foreign operations. Use
of Estimates The
preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods.
Actual results could differ from those estimates. Some of the Company’s more significant estimates include those related to going
concern, collectability of receivables, and the fair value of stock-based compensation and other equity instruments. These estimates are
reviewed periodically, and, as adjustments become necessary, they are reported in earnings in the period in which they become known. Comprehensive
Income The
Company follows the guidance in ASC 220, Comprehensive Income Fair
Value of Financial Instruments In
accordance with ASC 820, Fair Value Measurement, In
determining fair value, the Company uses various valuation approaches. A fair value hierarchy for inputs is used in measuring fair value
that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs
be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market
data obtained from sources independent of the Fund. Unobservable
inputs reflect the Company assumptions about the inputs market participants would use in pricing the asset or liability developed based
on the best information available in the circumstances. The
fair value hierarchy is categorized into three levels based on the inputs as follows:
Level
1 - Inputs
to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2 -
Inputs
to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable
for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.
Level 3 - Inputs to the valuation
methodology are unobservable and significant to the fair value. Income
Taxes The
Company accounts for income taxes pursuant to ASC 740, Income Taxes Stock-based
Compensation The
Company accounts for Stock-Based Compensation in accordance with ASC 718, Compensation – Stock Compensation Awards
granted to non-employees fall under ASC 505-50 and are recognized based on the fair value of the goods or services received or the equity
instruments, whichever is more reliable. Net
Earnings (Loss) Per Share The
Company accounts for earnings (loss) per share pursuant ASC 260, Earnings Per Share There
were no dilutive financial instruments for the period ended March 31, 2022. Recent
Accounting Pronouncements The
below recent accounting pronouncements were adopted during the year ended December 31, 2019: ● ”Compensation
- Stock Compensation (Topic 718): Scope of Modification Accounting” (ASU 2017-09) was issued in May 2017. This update provides clarity
and reduces both diversity in practice, cost, and complexity when applying the guidance in Topic 718, Compensation - Stock Compensation,
to a change to the terms or conditions of a share-based payment award. This standard was effective for annual periods beginning after
December 15, 2017. The adoption of ASU 2017-09 did not have an impact on the Company’s financial statements. ● ”Statement
of Cash Flows (Topic 230)” (“ASU 2016-15”) was issued during August 2016. ASU 2016-15 is intended to reduce the diversity
in practice regarding how certain transactions are classified within the statement of cash flows. ASU 2016-15 is effective for public
business entities for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. In November
2016, the FASB issued ASU 2016-18, “Statement of Cash Flows, Restricted Cash (Topic 230)” (“ASU 2016-18”), which
requires the inclusion of restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total
amounts shown on the statement of cash flows. ASU 2016-15 and ASU 2016-18 were both effective for fiscal years beginning after December
15, 2017, including interim periods within those fiscal years, provided that all of the amendments are adopted in the same period. The
amendments were applied using a retrospective transition method to each period presented. The adoption of ASU 2016-15 did not have an
impact on the Company’s financial statements. ●
In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall: Recognition and Measurement of Financial
Assets and Financial Liabilities (“ASU 2016-01”). This standard affects the accounting for equity instruments, financial
liabilities under the fair value option and the presentation and disclosure requirements of financial instruments. In February 2018, the
FASB issued ASU 2018-03, “Technical Corrections and Improvements to Financial Instruments (Subtopic 825-10) – Recognition
and Measurement of Financial Assets and Financial Liabilities”. This update was issued to clarify certain narrow aspects of guidance
concerning the recognition of financial assets and liabilities established in ASU No. 2016-01, ”Financial Instruments—Overall
(Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”. This includes an amendment to
clarify that an entity measuring an equity security using the measurement alternative may change its measurement approach to a fair valuation
method in accordance with Topic 820, Fair Value Measurement, through an irrevocable election that would apply to that security and all
identical or similar investments of the same issued. The update is effective for fiscal years beginning after December 15, 2017 and interim
periods within those fiscal years beginning after June 15, 2018. The adoption of ASU 2016-01 did not have an impact on the Company’s
financial statements. ●
In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)
2018-03, Technical Corrections and Improvements to Financial Instruments – Overall (Subtopic-10): Recognition and Measurement
of Financial Assets and Financial Liabilities to clarify codification and to correct unintended application of the guidance. The Company
adopted this pronouncement concurrently with the adoption of ASU 2016-01. The adoption of this update had no impact on the Company’s
financial statements. The
following are recent accounting pronouncements, which may have an impact on the Company’s future financial statements: ●
“Leases” (ASU 2016-02) was issued during February 2016. This update will require organizations that lease assets to recognize
on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The new guidance will also require
additional disclosure about the amount, timing and uncertainty of cash flows arising from leases. This guidance is effective for annual
and interim periods beginning after December 15, 2018. The adoption of ASU 2016-02 will not have an impact on the Company’s financial
statements. ●
In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments”, amended in November by
ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses,” which introduces
the current expected credit losses model in the estimation of credit losses on financial instruments. This update is effective retrospectively
for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption being permitted
for fiscal years beginning after December 15, 2018. The Company plans to adopt this ASU on January 1, 2023. ● ”Compensation
- Stock Compensation (Topic 718): Scope of Modification Accounting.” (“ASU 2017-09”) Issued in May 2017, ASU 2017-09
amends the scope of modification accounting for share-based payment arrangements and provides guidance on the types of changes to the
terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting. The new guidance
will allow companies to make certain changes to awards without accounting for them as modifications. It does not change the accounting
for modifications. ASU 2017-09 is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted,
including adoption in any interim period for which financial statements have not yet been issued. The Company does not expect that the
adoption of ASU 2017-09 will have a material impact on the Company’s financial statement. ● In
August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic: 820): Disclosure Framework – Changes to the Disclosure
Requirements for Fair Value Measurement (ASU 2018-13). FASB issued the update to modify the disclosure requirements in Topic 820. ASU
2018-07 will be effective for public companies for fiscal years beginning after December 15, 2018 including interim periods. The
Company continues to evaluate the impact of these ASU’s on its financial statements. |
