Goldrich Mining (GRMC) 10-Q 17 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 17, 2015
Entity Registrant Name	Goldrich Mining Company
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Entity Central Index Key	59,860
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		131,082,809
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Trading Symbol	grmc

Goldrich Mining Company Consoli

Goldrich Mining Company Consolidated Balance Sheets (Interim period unaudited) - USD ($)		Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents		$ 1,023,708	$ 206,025
Gold Inventory		2,433	71,021
Prepaid expenses		93,558	70,136
Deferred financing costs		20,588	28,161
Other current assets		56,731	56,731
Total current assets		1,197,018	432,074
Property, plant, equipment, and mining claims:
Equipment, net of accumulated depreciation		72,297	117,311
Mining properties and claims		582,166	582,166
Total property, plant, equipment and mining claims		654,463	699,477
Investment in joint venture		55,300	55,300
Total assets		1,906,781	1,186,851
Current liabilities:
Accounts payable and accrued liabilities		379,047	272,947
Related party payable		123,678	73,659
Accrued remediation		464,109	878,000
Notes payable in gold		576,696	576,696
Dividends payable on preferred stock		22,083	22,083
Total current liabilities		1,565,613	1,823,385
Long-term liabilities:
Note payable, net of discount		268,358	257,168
Remediation and asset retirement obligation		353,228	347,282
Total long-term liabilities		621,586	604,450
Total liabilities		2,187,199	2,427,835
Commitments and contingencies	[1]	0	0
Stockholders' deficit:
Convertible preferred stock series A; 5% cumulative dividends, no par value, 1,000,000 shares authorized; 175,000 shares issued and outstanding, $350,000 liquidation preferences		175,000	175,000
Convertible preferred stock series B; no par value, 300 shares authorized, 200 shares issued and outstanding, $200,000 liquidation preference		57,758	57,758
Common stock; $.10 par value, 250,000,000 shares authorized; 131,082,809 and 126,082,809 issued and outstanding, respectively		13,108,281	12,608,281
Additional paid-in capital		13,217,982	13,380,145
Accumulated deficit		(26,839,439)	(27,462,168)
Total stockholders' deficit		(280,418)	(1,240,984)
Total liabilities and stockholders' deficit		$ 1,906,781	$ 1,186,851
[1]	Notes 9 and 10

Statement of Financial Position

Statement of Financial Position - Parenthetical - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Statement of financial position
Preferred Stock, Par Value	$ 0	$ 0
Preferred Stock, Shares Authorized	8,999,800	8,999,800
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Convertible preferred stock series A, no par value, 5% cumulative dividends, shares authorized	1,000,000	1,000,000
Convertible preferred stock series A, shares issued	175,000	175,000
Convertible preferred stock series A, shares outstanding	175,000	175,000
Liquidation preference	$ 350,000	$ 350,000
Convertible preferred stock series B, no par value, shares authorized	300	300
Convertible preferred stock series B, shares issued	200	200
Convertible preferred stock series B, shares outstanding	200	200
Liquidation preference, additional series	$ 200,000	$ 200,000
Common Stock, Par Value	$ 0.10	$ 0.10
Common Stock, Shares Authorized	250,000,000	250,000,000
Common Stock, Shares Issued	131,082,809	126,082,809
Common Stock, Shares Outstanding	131,082,809	126,082,809

Goldrich Mining Company Consol4

Goldrich Mining Company Consolidated Statements of Operations (unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Operating (income) expenses:
Mine preparation costs		$ 24,581		$ 44,754
Exploration	$ 186	20,199	$ 15,678	31,081
Depreciation	21,191	47,413	45,014	99,193
Management fees and salaries	52,031	56,688	117,219	125,656
Professional services	12,408	20,480	43,987	64,922
General and administrative	64,948	61,886	121,133	129,004
Office supplies and other	1,469	3,721	3,646	7,081
Directors' fees	5,100	10,100	19,600	25,400
Mineral property maintenance	19,037	16,988	36,375	33,975
Change in remediation estimate	(111,000)		(111,000)
Gain on sale of joint venture cash distribution interest	(986,192)		(986,192)
Loss on sale of gold purchased to satisfy notes payable in gold	0	1,465	8,476	1,465
Total operating (income) expense	(920,822)	263,521	(686,064)	562,531
Other (income) expense:
Interest income	(32)	(15)	(34)	(27)
Interest expense and finance costs	31,547	61,840	63,369	117,095
Total other expense	31,515	61,825	63,335	117,068
Net income (loss)	889,307	(325,346)	622,729	(679,599)
Preferred dividends	(25)	2,212	4,399	54,399
Net income/(loss) available to common stockholders	$ 889,332	$ (327,558)	$ 618,330	$ (733,998)
Net income (loss) per common share - basic	$ 0.01	$ 0	$ 0	$ (0.01)
Net income (loss) per common share - diluted	$ 0.01	$ 0	$ 0	$ (0.01)
Weighted average common shares outstanding - basic	130,983,355	102,808,122	129,013,798	102,199,596
Weighted average common shares outstanding - diluted	135,018,016	102,808,122	133,003,736	102,808,122

Goldrich Mining Company Consol5

Goldrich Mining Company Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income (loss)	$ 622,729	$ (679,599)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	45,014	99,193
Gain on sale of joint venture cash distribution interest	(986,192)
Loss on sale of gold purchased	8,476	1,465
Amortization of discount on note payable and notes payable in gold	11,190	70,747
Amortization of deferred financing costs	7,573	21,873
Accretion of asset retirement obligation	5,946	5,716
Change in:
Gold inventory	60,112
Prepaid expenses	(23,422)	(28,635)
Accounts payable and accrued liabilities	106,100	(170,718)
Related party deferred compensation	37,500	(75,000)
Related party payable	12,519	(26.739)
Accrued remediation costs	(413,891)
Net cash provided (used) - operating activities	(506,346)	(781,697)
Cash flows from investing activities:
Net proceeds from sale of joint venture cash distribution interest	1,074,836
Net cash provided - investing activities	1,074,836
Cash flows from financing activities:
Proceeds from issuance of common stock and warrants, net of offering costs	249,193	1,135,964
Proceeds from issuance of preferred stock and warrants		200,000
Proceeds on note payable and warrants		285,000
Financing costs of note payable		(54,511)
Net cash provided - financing activities	249,193	1,566,453
Net increase in cash and cash equivalents	817,683	784,756
Cash and cash equivalents, beginning of period	206,025	16,993
Cash and cash equivalents, end of period	1,023,708	$ 801,749
Non-cash investing and financing activities:
Fair value of warrants issued in sale of joint venture cash distribution	$ 88,644

1. Basis of Presentation

1. Basis of Presentation	6 Months Ended
	Jun. 30, 2015
Notes
1. Basis of Presentation:	1. BASIS OF PRESENTATION: The unaudited financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information, as well as the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of the Company’s management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the interim financial statements have been included. Operating results for the six-month period ended June 30, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2015. 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 December 31, 2014. Going Concern 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 and does not have sufficient cash to fund normal operations and meet debt obligations for the next 12 months without deferring payment on certain current liabilities and/or raising additional funds. The Company currently has no historical recurring source of revenue and its ability to continue as a going concern is dependent on the Company’s ability to raise capital to fund its future exploration and working capital requirements or its ability to profitably execute its business plan. The Company’s plans for the long-term return to and continuation as a going concern include the profitable exploitation of its mining properties and financing the Company’s future operations through sales of its common stock and/or debt. Additionally, the current capital markets and general economic conditions in the United States are significant obstacles to raising the required funds. 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.

2. Summary of Significant Accou

2. Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
Notes
2. Summary of Significant Accounting Policies	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash and Cash Equivalents For the purposes of the balance sheet and statement of cash flows, the Company considers all highly liquid investments with a maturity of three months or less when purchased to be a cash equivalent. Cash or cash equivalents which secure debt instruments, credit facilities, reclamation or environmental bonds, or that are otherwise limited Consolidation of and Accounting for Subsidiaries The consolidated financial statements include the accounts of the Company and the accounts of its 100% owned subsidiaries Minera LSG S.A. and Goldrich Placer, LLC. These subsidiaries are included in the accompanying financial statements by consolidation, with all intercompany balances and investment accounts eliminated. Accounting for Investments in Joint Ventures For joint ventures in which the Company does not have joint control or significant influence, the cost method is used. Under the cost method, these investments are carried at the lower of cost or fair value. For those joint ventures in which there is joint control between the parties and in which the Company has significant influence, the equity method is utilized whereby the Company’s share of the ventures’ earnings and losses is included in the statement of operations as earnings in joint ventures and its investments therein are adjusted by a similar amount. Goldrich has no significant influence over its joint venture described in Note 3 Joint Venture For joint ventures where the Company holds more than 50% of the voting interest and has significant influence, the joint venture is consolidated with the presentation of a non-controlling interest. In determining whether significant influence exists, the Company considers its participation in policy-making decisions and its representation on the venture’s management committee. Goldrich currently has no joint venture of this nature. The Company periodically assesses its investments in joint ventures for impairment. If management determines that a decline in fair value is other than temporary it will write-down the investment and charge the impairment against operations. Earnings (Loss) Per Common Share We are authorized to issue 250,000,000 shares of common stock, $0.10 par value per share. At June 30, 2015, there were 131,082,809 shares of our common stock issued and outstanding. The following table reconciles weighted average shares outstanding used in computations of basic and diluted earnings (loss) per share for the three- and six-month periods ended June 30, 2015 and 2014: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Numerator: Net income (loss) $ 889,307 $ (325,346) $ 622,729 $ (679,599) Preferred dividends (25) 2,212 4,399 54,399 Net income (loss) available to common stockholders $ 889,332 $ (327,558) $ 618,330 $ (733,998) Denominator: Basic weighted average common shares 130,983,355 102,808,122 129,013,798 102,199,596 Dilutive preferred stock, stock options and warrants 4,034,661 - 3,989,938 - Diluted weighted average common shares 135,018,016 102,808,122 133,003,736 102,808,122 Basic earnings (loss) per common share: Net income (loss) per common share – basic $ 0.01 $ (0) $ 0 $ (0.01) Diluted earnings (loss) per common share: Net income (loss) per common share – diluted $ 0.01 $ (0) $ 0 $ (0.01) For the three- and six-month periods ended June 30, 2014, the effect of the Company’s outstanding options and common stock equivalents would have been anti-dilutive. 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 certain reported amounts and disclosures. Significant estimates used in preparing these financial statements include those assumed in estimating the recoverability of the cost of mining claims, accrued remediation costs, asset retirement obligations, stock based compensation, and deferred tax assets and related valuation allowances. Actual results could differ from those estimates. Recent Accounting Pronouncements In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern”. The provisions of ASU No. 2014-15 require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this ASU are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The Company is currently assessing the impact of ASU No. 2014-15 on the Company’s consolidated financial statements once adopted. 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. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures. Reclassifications Certain reclassifications have been made to conform prior period’s data to the current presentation. These reclassifications have no effect on the results of reported operations or stockholders’ deficit. Plant, Equipment, and Accumulated Depreciation Plant and equipment are stated at cost, which is determined by cash paid or fair value of the shares of the Company’s common stock issued. The Company’s mill buildings and equipment are located on the Company’s unpatented state mining claims located in the Chandalar mining district of Alaska. All mill buildings and equipment purchased prior to 2009 are fully depreciated. The Company’s equipment is located at the Chandalar property in Alaska, with a small amount of office equipment located at Company offices in Spokane, Washington. Assets are depreciated on a straight-line basis. Improvements which significantly increase an asset’s value or significantly extend its useful life are capitalized and depreciated over the asset’s remaining useful life. When a fixed asset is sold at a price either higher or lower than its carrying amount, or undepreciated cost at the date of disposal, the difference between the sale proceeds over the carrying amount is recognized as gain, while a loss is recognized when the carrying amount exceeds the sale proceeds. The gain or loss is recognized in the Consolidated Statement of Operations. Mining Properties and Claims The Company capitalizes costs for acquiring mineral properties and expenses costs to maintain mineral rights and leases as incurred. Should a property reach the production stage, these capitalized costs would be amortized using the units-of-production method on the basis of periodic estimates of ore reserves. Mineral properties are periodically assessed for impairment of value, and any subsequent losses are charged to operations at the time of impairment. If a property is abandoned or sold, its capitalized costs are charged to operations. Mine Preparation Costs Mine preparation costs are expenditures incurred in the exploration stage that may ultimately benefit production are expensed due to the lack of proven and probable reserves, which would indicate future recovery of these expenses. These costs are expensed in the period in which they occur. Exploration Costs Exploration costs are expensed in the period in which they occur. Income Taxes Income taxes are recognized in accordance with Accounting Standards Codification (“ASC”) 740 Income Taxes, whereby deferred income tax liabilities or assets at the end of each period are determined using the tax rate expected to be in effect when the taxes are actually paid or recovered. A valuation allowance is recognized on deferred tax assets when it is more likely than not that some or all of these deferred tax assets will not be realized. ASC 740 prescribes a recognition threshold and measurement attribute for the recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company has assessed its tax positions and has determined that it has not taken a position that would give rise to an unrecognized tax liability being reported. In the event that the Company is assessed penalties and or interest; penalties will be charged to other operating expense and interest will be charged to interest expense. Management estimates that for the year ending December 31, 2015, the Company’s combined effective income tax rate will be approximately 43%. Revenue Recognition Revenue from the sale of gold is recorded net of smelter or refinery treatment and refining charges. Revenue is recognized when persuasive evidence of an arrangement exists, title and risk passes to the buyer, collection is reasonably assured and price is reasonably determinable. When alluvial gold is placed with the smelter, revenue is recognized and cash is remitted for any ounces of alluvial gold sold to the smelter, converted to ounces of fine gold at an assumed smelting loss percentage. Pricing of the sale is at the market price of gold on the date of sale. The number of gold ounces sold at deposit is limited to a certain percentage of the ounces of alluvial gold deposited, as agreed in each case with the smelter. Ounces not sold are smelted and retained in the Company’s inventory in a secured metals account at the smelter. Subsequent sales of gold from inventory are made at then-current market prices, with smelter treatment and refining charges deducted, and net cash proceeds are remitted to the Company. Fair Values of Financial Instruments The Company discloses the following information for each class of assets and liabilities that are measured at fair value: 1. The fair value measurement; 2. the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3); 3. for fair value measurements using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: a. total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings, and a description of where those gains or losses included in earnings are reported in the statement of operations; b. the amount of these gains or losses attributable to the change in unrealized gains or losses relating to those assets or liabilities still held at the reporting period date and a description of where those unrealized gains or losses are reported; c. purchases, sales, issuances, and settlements (net); and d. transfers into and/or out of Level 3 4. the amount of the total gains or losses for the period included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date and a description of where those unrealized gains or losses are reported in the statement of operations; and 5. in annual periods only, the valuation technique(s) used to measure fair value and a discussion of changes in valuation techniques, if any, during the period. The table below sets forth the Company’s financial assets that were accounted for at fair value on a recurring basis as of June 30, 2015 and December 31, 2014: Balance June 30, 2015 Balance December 31, 2014 Input Hierarchy level Cash and cash equivalents $ 1,023,708 $ 206,025 Level 1 The carrying amounts of financial instruments including cash and cash equivalents, notes payable in gold, and notes payable approximate fair value at June 30, 2015 and 2014. Remediation The Company’s operations have been, and are subject to, standards for mine reclamation that have been established by various governmental agencies. The Company records the fair value of an asset retirement obligation as a liability in the period in which the Company incurs a legal obligation for the retirement of tangible long-lived assets. A corresponding asset is also recorded and depreciated over the life of the long lived asset using a units of production method. After the initial measurement of the asset retirement obligation, the liability will be adjusted at the end of each reporting period to reflect changes in the estimated future cash flows underlying the obligation. Determination of any amounts recognized is based upon numerous estimates and assumptions, including future retirement costs, future inflation rates and the credit-adjusted risk-free interest rates. For non-operating properties, the Company accrues costs associated with environmental remediation obligations when it is probable that such costs will be incurred and they are reasonably estimable. Such costs are based on management’s estimate of amounts expected to be incurred when the remediation work is performed. Stock-Based Compensation The Company periodically issues common shares or options to purchase shares of the Company’s common shares to its officers, directors or other parties. These issuances are recorded at fair value for both the common shares issued and options granted. The Company uses a Black Scholes valuation model for determining fair value of options to purchase shares, and compensation expense is recognized ratably over the vesting periods on a straight line basis. Compensation expenses for grants that vest immediately are recognized in the period of grant.

3. Joint Venture

3. Joint Venture	6 Months Ended
	Jun. 30, 2015
Notes
3. Joint Venture	3. JOINT VENTURE On May 7, 2012, the Company entered into a joint venture (“the JV”) with NyacAU, LLC (“NyacAU”), an Alaskan private company, to bring Goldrich’s Chandalar placer gold properties into production as defined in the joint venture agreement. In each case as used herein in reference to the JV, “production” is as defined by the JV agreement. As part of the agreement, Goldrich and NyacAU formed a 50:50 joint venture company, Goldrich NyacAU Placer LLC (“GNP”), to operate the Chandalar placer mines, with NyacAU acting as managing partner. Goldrich has no significant control or influence over the JV, and therefore accounts for its investment using the cost method, which totals $55,300 at June 30, 2015 and December 31, 2014. Under the terms of the joint venture agreement (the “Agreement”), NyacAU provided funding to the JV. The loans are to be repaid from future production. According to the Agreement, on at least an annual basis, the JV shall allocate and distribute all revenue (whether in cash or as gold) generated from the JV’s placer operation in the following order: 1. Current year operating expenses, 2. Members’ distribution of 20% (10% to Goldrich and 10% to NyacAU) provided that, for so long as the loan (LOC2) to GNP from NyacAU for the purchase of a royalty is not paid in full, the JV shall retain 100% of Goldrich’s distribution and apply against the loan, 3. After payment of operating expenses and the member’s distribution of 20%, the JV will apply any remaining revenue to reduce the remaining balance of the loan from NyacAU to GNP for the development of the mine (LOC1), 4. Reserves for future operating expenses and capital needs, not to exceed $3,000,000 in any year, and 5. Member distributions of any remaining gold production on a 50:50 basis to each of the JV partners provided that, for so long as the loan LOC2 is not paid in full, the JV shall retain 100% of Goldrich’s distribution and apply against the loan. On June 23, 2015, the Company raised gross proceeds of $1.2 million through the sale of 12% of the cash flows Goldrich receives in the future from its interest in GNP (“Distribution Interest”) to Chandalar Gold, LLC (“CGL”), a non-related entity. Goldrich retained its ownership of its 50% interest in GNP but, after the transaction, subject to the terms of the GNP operating agreement, Goldrich will effectively receive approximately 44% and CGL will receive 6% (12% of Goldrich’s 50% of GNP = 6%) of any cash distributions produced by GNP. As part of the purchase, CGL received 2,250,000 Series P Warrants and an option to acquire an additional 10% Distribution Interest in the cash flows Goldrich receives from its interest in GNP. Each Series P Warrant is exercisable to purchase one share of common stock of the Company at $0.07, for a period of five (5) years. The Distribution Interest option must be exercised before July 1, 2016 to purchase an additional 10% of Goldrich’s future cash flow from GNP in consideration of a one-time cash payment of $1.3 million. Subsequent to the exercise of the option and payment of all commissions, Goldrich would effectively receive, subject to the terms of the GNP operating agreement, approximately 38.5% and CGL would receive 11% (22% of Goldrich’s 50% of GNP = 11%) of any cash distributions produced by GNP. The lead agent for the sale received a commission equal to 5% of gross proceeds raised, was granted a perpetual undivided 0.5% interest in distributions paid out by GNP to Goldrich, and was issued 1.2 million Series P-2 Warrants. Each Series P-2 Warrant is exercisable into one share of common stock of the Company for a period of five (5) years at a price of $0.05 per share. Should CGL exercise its option, the same fee structure would apply as above, including an additional 0.5% interest in distributions paid out by GNP to Goldrich. The fair values of the Series P and Series P-2 warrants were estimated on the issue date at $110,250 and $60,000, respectively, using the following weighted average assumptions: Risk-free interest rate 1.71% Expected dividend yield 0 Expected term (in years) 5 Expected volatility 141.7% After applying the costs of sale of $125,164 and recognizing the fair value of the Series P Warrants of $88,644, the Company recognized a gain of $986,192 on the sale of the joint venture cash distribution interest. A relative portion of the costs of sale, or $21,606, were allocated to Additional paid-in capital in proportion of the fair value of the warrants to the total sale price.

4. Related Party Transactions

4. Related Party Transactions	6 Months Ended
	Jun. 30, 2015
Notes
4. Related Party Transactions	4. RELATED PARTY TRANSACTIONS An amount of $4,969 was accrued for fees due to the Company’s Chief Financial Officer (“CFO”) at December 31, 2014. An amount of $7,438 has been accrued for fees at June 30, 2015. These amounts are included in related party payable. A total of $46,775 had been accrued for consultants and directors’ fees at December 31, 2014. For the six months ended June 30, 2015, the Company paid $1,000 of directors’ fees and accrued an additional $32,965 for services performed during the period, which is included in accounts payable. During the year ended December 31, 2014, a total of 1,650,000 common shares and 450,000 options to purchase common shares were issued to directors having a total fair value of $96,300, which brought the total consultants and directors’ fees recognized for the year ended December 31, 2014 to $143,075.

5. Note Payable

5. Note Payable	6 Months Ended
	Jun. 30, 2015
Notes
5. Note Payable	5. NOTE PAYABLE On January 24, 2014, the Company closed a three-year unsecured senior note financing for $300,000 with a private investment firm (“the lender”). Per the note agreement, the $300,000 is the first of six-staged loans for total aggregate amount of up to $2 million. The note bears interest at 15%, payable at the end of each quarter. Interest of $41,610 had been paid and expensed during the year ended December 31, 2014. During the six months ended June 30, 2015, interest of $22,500 has expensed, of which $11,250 was paid subsequent to the end of the period. Repayment of all amounts owed under the note is guaranteed by Goldrich Placer LLC, the Company’s wholly owned subsidiary, which in turn owns a 50% interest in Goldrich NyacAU Placer LLC. See Note 3 Joint Venture. Under the terms of the note, the three-year maturity date is measured from the closing date of each loan in the series. The loans will be issued at a 5% discount and, for each loan of the series, the Company will issue 5.25 Class M warrants, exercisable at $0.15 per common share, for each dollar loaned under this agreement. The Company has, at its election, the ability to cancel future loans at any time or prepay the loans together with interest thereon without penalty. The lender reserves the right, at its election, to determine whether to fund Loans 2 through 6 in the series. The Company is required to pay finders fees consisting of a 3% cash commission to parties other than the lender. At the inception of the first note, the Company issued warrants to purchase shares of common stock of the Company equal in number to 8% of the number of dollars of the aggregated loan package (160,000 warrants through December 31, 2014). One percent point of the three percentage points of commissions paid on the 2014 and future cash proceeds were and will be paid to a director of the Company. Three percentage points of the eight percentage points of the warrants were paid to a director of the Company. The terms of the warrants issued to finders are the same as the warrants issued to the lender. During the year ended December 31, 2014, the Company received the first staged loan of $300,000 less a discount of $15,000, for proceeds of $285,000. In total, the Company issued 1,735,000 Class M warrants, paid finder fees totaling $9,000 to a third party, and incurred other placement costs of $45,511, for a total of $54,511 of deferred finance costs, of which $20,588 remains unamortized at June 30, 2015. The fair value of warrants issued with the notes payable was estimated at the date of issuance using the Black-Scholes fair value model, which requires the use of highly subjective assumptions, including the expected volatility of the stock price, which may be difficult to estimate for small reporting companies traded on micro-cap stock exchanges. The fair value of the warrants was estimated on the issue date at $41,795 using the following weighted average assumptions: Risk-free interest rate 1.52% Expected dividend yield 0 Expected term (in years) 5 Expected volatility 157.1% The risk-free interest rate is based on the U.S. Treasury yield curve at the time of the grant. The expected term of warrants issued is from the date of issuance. The expected volatility is based on historical volatility. The Company has evaluated previous low occurrences of warrant forfeitures and believes that current holders of the warrants will hold them to maturity as has been experienced historically; therefore, no variable for forfeiture was used in the calculation of fair value. The Note payable is discounted by the fair value of the warrants, which is then amortized over the life of the note. At June 30, 2015, the Company had outstanding a total note payable of $300,000 less remaining unamortized discounts of $31,642 for a net liability of $268,358. The lender elected to defer the remaining tranches of the note advances pending the resolution and additional due diligence related to a lien that was placed on our claims in December 2013 by our joint venture partner, which was subsequently released during the quarter ended March 31, 2014. At June 30, 2015, the lender retains the right to lend the contracted amounts of the remaining tranches of the note.

6. Notes Payable in Gold

6. Notes Payable in Gold	6 Months Ended
	Jun. 30, 2015
Notes
6. Notes Payable in Gold	6. NOTES PAYABLE IN GOLD During 2013, the Company issued notes in principal amounts totaling $820,000, less a discount of $205,000, for proceeds of $615,000. Under the terms of the notes, the Company agreed to deliver gold to the holders at the lesser of $1,350 per ounce of fine gold or a 25% discount to market price as calculated on the contract date and specify delivery of gold in November 2014. The notes payable in gold contracts contain standard terms regarding delivery and receipt of gold and payment of delivery costs. The Company paid a finder’s fee of $42,000, and incurred other placement costs of $2,143, for a total of $44,143 of deferred finance costs. Additionally, for each dollar of note payable in gold entered, the holder received one half of a common stock purchase warrant. A total of 307,500 warrants were issued. Each whole warrant is exercisable to purchase one share of common stock of the Company at an exercise price of $0.40 for a period of two years following the date of issue. A portion of the proceeds from the notes were allocated to the warrants, resulting in an increase in additional paid in capital and a discount on the notes payable in gold of $7,590. The fair value of warrants issued with the notes payable in gold was estimated at the date of issuance using the Black-Scholes fair value model, which requires the use of highly subjective assumptions, including the expected volatility of the stock price, which may be difficult to estimate for small reporting companies traded on micro-cap stock exchanges. At December 31, 2014 and June 30, 2015, the Company had outstanding total notes payable in gold of $576,696, representing 446.788 ounces of fine gold deliverable at November 30, 2015. As required by ASC 470, the payments required under the original note were compared to the payments required from the notes as amended to determine whether a debt modification or debt extinguishment had occurred. A difference greater than 10% requires the modification to be accounted for as a debt extinguishment. In accordance with ASC 470, the Company calculated the potential gain or loss on debt modification or extinguishment. The net carrying amount of debt is the amount due at maturity, adjusted for unamortized premium, discount, and cost of issuance. The reacquisition price of the new or amended debt instrument is the amount satisfied on extinguishment, including any call premium and miscellaneous costs of reacquisition. A difference between the reacquisition price of the debt and the net carrying amount of the extinguished debt was recognized currently in income of the period of extinguishment as losses or gains and identified as a separate item. Gains and losses are not amortized to future periods. The Company calculated a 22% difference between the carrying value of the original contracted notes of $742,358 and the fair value under the amended notes of $576,696. Because the change in valuation exceeded 10% of the carrying value of the original debt obligation, a gain on extinguishment of debt of $165,662 was recognized for the year ended December 31, 2014. The Company is not required to purchase gold on the open market to meet delivery obligations. In the event that sufficient gold is not produced to meet future distribution requirements, the Company may be required to renegotiate the terms of the notes with the holders to avoid default. A renegotiation or default may require a change in future accounting treatment to that of derivative accounting as required by ASC 450.

7. Stockholders' Equity

7. Stockholders' Equity	6 Months Ended
	Jun. 30, 2015
Notes
7. Stockholders' Equity	7. STOCKHOLDERS’ EQUITY Private Placement Offerings Unit Private Placements On March 31, 2015, the Company completed the first tranche of the private placement consisting of 4,800,000 units issued at a price of $0.05 per unit and resulted in net proceeds of $239,193. A second tranche of 200,000 units at the same price per unit for net proceeds of $10,000 was completed on April 7, 2015. Each unit consists of one share of our common stock and one full share Class O warrant. Each full Class O warrant is exercisable to purchase one additional common share of the Company at $0.06, for a period of five years following the date of issue. Preferred Shares: Series A Convertible Preferred Stock: The Company has 175,000 shares of Series A Convertible Preferred Stock outstanding at June 30, 2015. These shares were issued from the designated 1,000,000 shares of Series A Preferred Stock, no par value, with the following rights and preferences: · · · · · · Series B Convertible Preferred Stock: The Company has 200 shares of Series B Convertible Preferred Stock outstanding at June 30, 2015. These shares were issued from the designated 300 shares of Series B Preferred Stock, no par value, with the following rights and preferences: · · · · Warrants: Shares Exercise Price ($) Expiration Date Class H Warrants: (Issued for Private Placement) Outstanding and exercisable at January 1, 2014 5,125,936 0.30 May 31, 2016 Outstanding and exercisable at December 31, 2014 5,125,936 Outstanding and exercisable at June 30, 2015 5,125,936 Class I Warrants: (Issued for Private Placement) Outstanding and exercisable at January 1, 2014 13,906,413 0.40 May 31, 2016 Outstanding and exercisable at December 31, 2014 13,906,413 Outstanding and exercisable at June 30, 2015 13,906,413 Class J Warrants: (Issued for Private Placement) Outstanding and exercisable at January 1, 2014 8,780,478 0.30 July 29, 2016 Outstanding and exercisable at December 31, 2014 8,780,478 Outstanding and exercisable at June 30, 2015 8,780,478 Class K Warrants: (Issued for Notes payable in gold) Outstanding and exercisable at January 1, 2014 307,500 0.40 March 29, 2015 Outstanding and exercisable at December 31, 2014 307,500 Warrants expired March 29, 2015 (307,500) Outstanding and exercisable at June 30, 2015 - Class L Warrants: (Issued for Private Placement of Preferred Stock Warrants issued January 23, 2014 2,857,142 0.10 January 23, 2019 Outstanding and exercisable at December 31, 2014 2,857,142 Outstanding and exercisable at June 30, 2015 2,857,142 Class M Warrants: (Issued for Note Payable) Warrants issued January 29, 2014 1,735,000 0.15 January 29, 2019 Outstanding and exercisable at December 31, 2014 1,735,000 Outstanding and exercisable at June 30, 2015 1,735,000 Class N Warrants: (Issued for Private Placement) Warrants issued June 6, 2014 7,104,317 0.11 June 6, 2019 Warrants issued June 30, 2014 4,350,180 0.11 June 30, 2019 Warrants issued July 18, 2014 2,408,545 0.11 July 18, 2019 Outstanding and exercisable at December 31, 2014 13,863,042 Outstanding and exercisable at June 30, 2015 13,863,042 Class N-2 Warrants: (Issued for Finders Fees) Warrants issued July 18, 2014 2,701,386 .055 July 18, 2019 Outstanding and exercisable at December 31, 2014 2,701,386 Outstanding and exercisable at June 30, 2015 2,701,386 Class O Warrants: Warrants issued March 31, 2015 4,800,000 .06 March 31, 2020 Outstanding and exercisable at June 30, 2015 4,800,000 Class P Warrants: (Issued for Sale of Distribution Interest) Warrants issued June 23, 2015 2,250,000 .07 June 23, 2020 Outstanding and exercisable at June 30, 2015 2.250,000 Class P-2 Warrants: (Issued for Finders Fees) Warrants issued June 23, 2015 1,200,000 .05 June 23, 2020 Outstanding and exercisable at June 30, 2015 1,200,000 * Weighted average exercise of warrants outstanding and weighted average exercise price at June 30, 2015 57,219,397 0.172 * dilutive for the three- and six-month periods ending June 30, 2015 Stock Options and Stock-Based Compensation: Under the Company’s 2008 Equity Incentive Plan, as amended by shareholder vote on November 27, 2013 (the “Plan”), options to purchase shares of common stock may be granted to key employees, contract management and directors of the Company. The Plan permits the granting of nonqualified stock options, incentive stock options and shares of common stock. Upon exercise of options, shares of common stock are issued from the Company’s treasury stock or, if insufficient treasury shares are available, from authorized but unissued shares. Options are granted at a price equal to the closing price of the common stock on the date of grant. The stock options are generally exercisable immediately upon grant and for a period of 10 years. In the event of cessation of the holder’s relationship with the Company, the holder’s exercise period terminates 90 days following such cessation. For the periods ended June 30, 2015 and December 31, 2014, the fair value of stock options was estimated at the date of grant using the Black-Scholes option pricing model, which requires the use of highly subjective assumptions, including the expected volatility of the stock price, which may be difficult to estimate for small reporting companies traded on micro-cap stock exchanges. The fair value of each option grant was estimated on the grant date using the following weighted average assumptions: 2015 2014 Risk-free interest rate -- 2.17% Expected dividend yield -- -- Expected term (in years) -- 10 Expected volatility -- 143% The risk-free interest rate is based on the U.S. Treasury yield curve at the time of the grant. The expected term of stock options granted is from the date of the grant. The expected volatility is based on historical volatility. The Company has evaluated previous low occurrences of option forfeitures and believes that current holders of the option will hold them to maturity as has been experience historically; therefore, no variable for forfeiture was used in the calculation of fair value. During the year ended December 31, 2014, the Company issued 450,000 options to directors. The fair value of these options was determined using a Black Scholes model, resulting in a fair value of $22,050. The Company also issued 2,700,000 common shares to officers, directors, and employees. These shares were issued at the grant date market price of $0.045 per share, resulting in share based compensation expense of $121,025. A summary of stock option transactions for the period ended June 30, 2015 are as follows: Shares Weighted- Average Exercise Price (per share) Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Options outstanding at December 31, 2013 3,315,000 $ 0.28 4.41 $0 Granted 450,000 0.05 $0 Forfeited (265,000) 0.23 Options outstanding and exercisable at December 31, 2014 3,500,000 $ 0.26 4.71 $0 Granted - - Forfeited (150,000) 0.68 Options outstanding and exercisable at June 30, 2015 3,350,000 $ 0.24 4.83 $0 Options available for future grants 1,925,672 For the period ended June 30, 2015, the Company recognized total share-based compensation for employees and directors of $nil.

9. Remediation

9. Remediation	6 Months Ended
	Jun. 30, 2015
Notes
9. Remediation	9. REMEDIATION In prior years, the Company accrued $50,000 for remediation of a historic mill site. In 2013, the Company accrued an additional $300,000 for the cost of remediation of a mine road and associated disturbance which must be completed by October 2015 per an order issued by the Army Corps of Engineers. In 2014, the Company received a quote from an independent third party to perform the remediation work and accrued an additional $578,000 to cover the anticipated costs of this remediation prior to October 2015. The cost of this remediation is in addition to the asset retirement obligation calculated in previous years and is classified as a current liability. Remediation activities were nearly complete at the end of July 2015, and the Company has reduced the accrued liability by $111,000 for actual cost experience that came in lower than estimated costs yet to be recognized subsequent to the end of the quarter. The accrual of $464,109 and $928,000 respectively at June 30, 2015 and December 31, 2014 is for anticipated costs to remediate a road and associated disturbance and contamination caused by activities of a previous operator next to an inactive mill site. During the six month period ended June 30, 2105, the Company made payments to the independent third party of $300,000 and incurred internal expenses of $2,891. These amounts were charged to the remediation accrual to apply remediation costs incurred during the period. The Company believes the accrual remaining at June 30, 2015 of $464,109 for the final remediation of the mine road is sufficient to cover anticipated remaining costs.

10. Commitments and Contingenci

10. Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Notes
10. Commitments and Contingencies	10. COMMITMENTS AND CONTINGENCIES The Company has 426.5 acres of patented claims and 22,432 acres of non-patented claims. We are subject to annual claims rental fees in order to maintain our non-patented claims. In addition to the annual claims rental fees due November 30 of each year, we are also required to meet annual labor requirements due November 30 of each year. The Company is able to carry forward costs for annual labor that exceed the required yearly totals for four years. Following are the annual claims and labor requirements for 2015 and 2016. November 30, 2015 November 30, 2016 Claims Rental $ 83,570 $ 84,770 Annual Labor 61,100 61,100 Yearly Totals $ 144,670 $ 145,870 The Company has a carryover to 2015 of approximately $17.1 million to satisfy its annual labor requirements. This carryover expires in the years 2015 through 2020 if unneeded to satisfy requirements in those years.

2. Summary of Significant Acc15

2. Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies)	6 Months Ended
	Jun. 30, 2015
Policies
Cash and Cash Equivalents	Cash and Cash Equivalents For the purposes of the balance sheet and statement of cash flows, the Company considers all highly liquid investments with a maturity of three months or less when purchased to be a cash equivalent. Cash or cash equivalents which secure debt instruments, credit facilities, reclamation or environmental bonds, or that are otherwise limited

2. Summary of Significant Acc16

2. Summary of Significant Accounting Policies: Consolidation of and Accounting For Subsidiaries (Policies)	6 Months Ended
	Jun. 30, 2015
Policies
Consolidation of and Accounting For Subsidiaries	Consolidation of and Accounting for Subsidiaries The consolidated financial statements include the accounts of the Company and the accounts of its 100% owned subsidiaries Minera LSG S.A. and Goldrich Placer, LLC. These subsidiaries are included in the accompanying financial statements by consolidation, with all intercompany balances and investment accounts eliminated.

2. Summary of Significant Acc17

2. Summary of Significant Accounting Policies: Accounting For Investments in Joint Ventures (Policies)	6 Months Ended
	Jun. 30, 2015
Policies
Accounting For Investments in Joint Ventures	Accounting for Investments in Joint Ventures For joint ventures in which the Company does not have joint control or significant influence, the cost method is used. Under the cost method, these investments are carried at the lower of cost or fair value. For those joint ventures in which there is joint control between the parties and in which the Company has significant influence, the equity method is utilized whereby the Company’s share of the ventures’ earnings and losses is included in the statement of operations as earnings in joint ventures and its investments therein are adjusted by a similar amount. Goldrich has no significant influence over its joint venture described in Note 3 Joint Venture For joint ventures where the Company holds more than 50% of the voting interest and has significant influence, the joint venture is consolidated with the presentation of a non-controlling interest. In determining whether significant influence exists, the Company considers its participation in policy-making decisions and its representation on the venture’s management committee. Goldrich currently has no joint venture of this nature. The Company periodically assesses its investments in joint ventures for impairment. If management determines that a decline in fair value is other than temporary it will write-down the investment and charge the impairment against operations.

2. Summary of Significant Acc18

2. Summary of Significant Accounting Policies: Earnings (loss) Per Common Share (Policies)	6 Months Ended
	Jun. 30, 2015
Policies
Earnings (loss) Per Common Share	Earnings (Loss) Per Common Share We are authorized to issue 250,000,000 shares of common stock, $0.10 par value per share. At June 30, 2015, there were 131,082,809 shares of our common stock issued and outstanding. The following table reconciles weighted average shares outstanding used in computations of basic and diluted earnings (loss) per share for the three- and six-month periods ended June 30, 2015 and 2014: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Numerator: Net income (loss) $ 889,307 $ (325,346) $ 622,729 $ (679,599) Preferred dividends (25) 2,212 4,399 54,399 Net income (loss) available to common stockholders $ 889,332 $ (327,558) $ 618,330 $ (733,998) Denominator: Basic weighted average common shares 130,983,355 102,808,122 129,013,798 102,199,596 Dilutive preferred stock, stock options and warrants 4,034,661 - 3,989,938 - Diluted weighted average common shares 135,018,016 102,808,122 133,003,736 102,808,122 Basic earnings (loss) per common share: Net income (loss) per common share – basic $ 0.01 $ (0) $ 0 $ (0.01) Diluted earnings (loss) per common share: Net income (loss) per common share – diluted $ 0.01 $ (0) $ 0 $ (0.01) For the three- and six-month periods ended June 30, 2014, the effect of the Company’s outstanding options and common stock equivalents would have been anti-dilutive.

2. Summary of Significant Acc19

2. Summary of Significant Accounting Policies: Use of Estimates (Policies)	6 Months Ended
	Jun. 30, 2015
Policies
Use of Estimates	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 certain reported amounts and disclosures. Significant estimates used in preparing these financial statements include those assumed in estimating the recoverability of the cost of mining claims, accrued remediation costs, asset retirement obligations, stock based compensation, and deferred tax assets and related valuation allowances. Actual results could differ from those estimates.

2. Summary of Significant Acc20

2. Summary of Significant Accounting Policies: Reclassifications (Policies)	6 Months Ended
	Jun. 30, 2015
Policies
Reclassifications	Reclassifications Certain reclassifications have been made to conform prior period’s data to the current presentation. These reclassifications have no effect on the results of reported operations or stockholders’ deficit.

2. Summary of Significant Acc21

2. Summary of Significant Accounting Policies: Plant, Equipment, and Accumulated Depreciation (Policies)	6 Months Ended
	Jun. 30, 2015
Policies
Plant, Equipment, and Accumulated Depreciation	Plant, Equipment, and Accumulated Depreciation Plant and equipment are stated at cost, which is determined by cash paid or fair value of the shares of the Company’s common stock issued. The Company’s mill buildings and equipment are located on the Company’s unpatented state mining claims located in the Chandalar mining district of Alaska. All mill buildings and equipment purchased prior to 2009 are fully depreciated. The Company’s equipment is located at the Chandalar property in Alaska, with a small amount of office equipment located at Company offices in Spokane, Washington. Assets are depreciated on a straight-line basis. Improvements which significantly increase an asset’s value or significantly extend its useful life are capitalized and depreciated over the asset’s remaining useful life. When a fixed asset is sold at a price either higher or lower than its carrying amount, or undepreciated cost at the date of disposal, the difference between the sale proceeds over the carrying amount is recognized as gain, while a loss is recognized when the carrying amount exceeds the sale proceeds. The gain or loss is recognized in the Consolidated Statement of Operations.

2. Summary of Significant Acc22

2. Summary of Significant Accounting Policies: Mining Properties and Claims (Policies)	6 Months Ended
	Jun. 30, 2015
Policies
Mining Properties and Claims	Mining Properties and Claims The Company capitalizes costs for acquiring mineral properties and expenses costs to maintain mineral rights and leases as incurred. Should a property reach the production stage, these capitalized costs would be amortized using the units-of-production method on the basis of periodic estimates of ore reserves. Mineral properties are periodically assessed for impairment of value, and any subsequent losses are charged to operations at the time of impairment. If a property is abandoned or sold, its capitalized costs are charged to operations.

2. Summary of Significant Acc23

2. Summary of Significant Accounting Policies: Mine Preparation Costs (Policies)	6 Months Ended
	Jun. 30, 2015
Policies
Mine Preparation Costs	Mine Preparation Costs Mine preparation costs are expenditures incurred in the exploration stage that may ultimately benefit production are expensed due to the lack of proven and probable reserves, which would indicate future recovery of these expenses. These costs are expensed in the period in which they occur.

2. Summary of Significant Acc24

2. Summary of Significant Accounting Policies: Exploration Costs (Policies)	6 Months Ended
	Jun. 30, 2015
Policies
Exploration Costs	Exploration Costs Exploration costs are expensed in the period in which they occur.

2. Summary of Significant Acc25

2. Summary of Significant Accounting Policies: Income Taxes (Policies)	6 Months Ended
	Jun. 30, 2015
Policies
Income Taxes	Income Taxes Income taxes are recognized in accordance with Accounting Standards Codification (“ASC”) 740 Income Taxes, whereby deferred income tax liabilities or assets at the end of each period are determined using the tax rate expected to be in effect when the taxes are actually paid or recovered. A valuation allowance is recognized on deferred tax assets when it is more likely than not that some or all of these deferred tax assets will not be realized. ASC 740 prescribes a recognition threshold and measurement attribute for the recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company has assessed its tax positions and has determined that it has not taken a position that would give rise to an unrecognized tax liability being reported. In the event that the Company is assessed penalties and or interest; penalties will be charged to other operating expense and interest will be charged to interest expense. Management estimates that for the year ending December 31, 2015, the Company’s combined effective income tax rate will be approximately 43%.

2. Summary of Significant Acc26

2. Summary of Significant Accounting Policies: Revenue Recognition (Policies)	6 Months Ended
	Jun. 30, 2015
Policies
Revenue Recognition	Revenue Recognition Revenue from the sale of gold is recorded net of smelter or refinery treatment and refining charges. Revenue is recognized when persuasive evidence of an arrangement exists, title and risk passes to the buyer, collection is reasonably assured and price is reasonably determinable. When alluvial gold is placed with the smelter, revenue is recognized and cash is remitted for any ounces of alluvial gold sold to the smelter, converted to ounces of fine gold at an assumed smelting loss percentage. Pricing of the sale is at the market price of gold on the date of sale. The number of gold ounces sold at deposit is limited to a certain percentage of the ounces of alluvial gold deposited, as agreed in each case with the smelter. Ounces not sold are smelted and retained in the Company’s inventory in a secured metals account at the smelter. Subsequent sales of gold from inventory are made at then-current market prices, with smelter treatment and refining charges deducted, and net cash proceeds are remitted to the Company.

2. Summary of Significant Acc27

2. Summary of Significant Accounting Policies: Fair Values of Financial Instruments (Policies)	6 Months Ended
	Jun. 30, 2015
Policies
Fair Values of Financial Instruments	Fair Values of Financial Instruments The Company discloses the following information for each class of assets and liabilities that are measured at fair value: 1. The fair value measurement; 2. the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3); 3. for fair value measurements using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: a. total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings, and a description of where those gains or losses included in earnings are reported in the statement of operations; b. the amount of these gains or losses attributable to the change in unrealized gains or losses relating to those assets or liabilities still held at the reporting period date and a description of where those unrealized gains or losses are reported; c. purchases, sales, issuances, and settlements (net); and d. transfers into and/or out of Level 3 4. the amount of the total gains or losses for the period included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date and a description of where those unrealized gains or losses are reported in the statement of operations; and 5. in annual periods only, the valuation technique(s) used to measure fair value and a discussion of changes in valuation techniques, if any, during the period. The table below sets forth the Company’s financial assets that were accounted for at fair value on a recurring basis as of June 30, 2015 and December 31, 2014: Balance June 30, 2015 Balance December 31, 2014 Input Hierarchy level Cash and cash equivalents $ 1,023,708 $ 206,025 Level 1 The carrying amounts of financial instruments including cash and cash equivalents, notes payable in gold, and notes payable approximate fair value at June 30, 2015 and 2014.

2. Summary of Significant Acc28

2. Summary of Significant Accounting Policies: Remediation (Policies)	6 Months Ended
	Jun. 30, 2015
Policies
Remediation	Remediation The Company’s operations have been, and are subject to, standards for mine reclamation that have been established by various governmental agencies. The Company records the fair value of an asset retirement obligation as a liability in the period in which the Company incurs a legal obligation for the retirement of tangible long-lived assets. A corresponding asset is also recorded and depreciated over the life of the long lived asset using a units of production method. After the initial measurement of the asset retirement obligation, the liability will be adjusted at the end of each reporting period to reflect changes in the estimated future cash flows underlying the obligation. Determination of any amounts recognized is based upon numerous estimates and assumptions, including future retirement costs, future inflation rates and the credit-adjusted risk-free interest rates. For non-operating properties, the Company accrues costs associated with environmental remediation obligations when it is probable that such costs will be incurred and they are reasonably estimable. Such costs are based on management’s estimate of amounts expected to be incurred when the remediation work is performed.

2. Summary of Significant Acc29

2. Summary of Significant Accounting Policies: Stock-based Compensation (Policies)	6 Months Ended
	Jun. 30, 2015
Policies
Stock-based Compensation	Stock-Based Compensation The Company periodically issues common shares or options to purchase shares of the Company’s common shares to its officers, directors or other parties. These issuances are recorded at fair value for both the common shares issued and options granted. The Company uses a Black Scholes valuation model for determining fair value of options to purchase shares, and compensation expense is recognized ratably over the vesting periods on a straight line basis. Compensation expenses for grants that vest immediately are recognized in the period of grant.

2. Summary of Significant Acc30

2. Summary of Significant Accounting Policies: Earnings (loss) Per Common Share: Schedule of Earnings Per Share Reconciliation (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Schedule of Earnings Per Share Reconciliation	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Numerator: Net income (loss) $ 889,307 $ (325,346) $ 622,729 $ (679,599) Preferred dividends (25) 2,212 4,399 54,399 Net income (loss) available to common stockholders $ 889,332 $ (327,558) $ 618,330 $ (733,998) Denominator: Basic weighted average common shares 130,983,355 102,808,122 129,013,798 102,199,596 Dilutive preferred stock, stock options and warrants 4,034,661 - 3,989,938 - Diluted weighted average common shares 135,018,016 102,808,122 133,003,736 102,808,122 Basic earnings (loss) per common share: Net income (loss) per common share – basic $ 0.01 $ (0) $ 0 $ (0.01) Diluted earnings (loss) per common share: Net income (loss) per common share – diluted $ 0.01 $ (0) $ 0 $ (0.01)

2. Summary of Significant Acc31

2. Summary of Significant Accounting Policies: Fair Values of Financial Instruments: Fair Value, Option, Quantitative Disclosures (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Fair Value, Option, Quantitative Disclosures	Balance June 30, 2015 Balance December 31, 2014 Input Hierarchy level Cash and cash equivalents $ 1,023,708 $ 206,025 Level 1

3. Joint Venture_ Warrants issu

3. Joint Venture: Warrants issued in conjunction with sale of percentage, valuation assumptions (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Warrants issued in conjunction with sale of percentage, valuation assumptions	Risk-free interest rate 1.71% Expected dividend yield 0 Expected term (in years) 5 Expected volatility 141.7%

5. Note Payable_ Warrants issue

5. Note Payable: Warrants issued with notes payable valuation assumptions (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Warrants issued with notes payable valuation assumptions	Risk-free interest rate 1.52% Expected dividend yield 0 Expected term (in years) 5 Expected volatility 157.1%

7. Stockholders' Equity_ Schedu

7. Stockholders' Equity: Schedule of Stockholders' Equity Note, Warrants or Rights (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Schedule of Stockholders' Equity Note, Warrants or Rights	Shares Exercise Price ($) Expiration Date Class H Warrants: (Issued for Private Placement) Outstanding and exercisable at January 1, 2014 5,125,936 0.30 May 31, 2016 Outstanding and exercisable at December 31, 2014 5,125,936 Outstanding and exercisable at June 30, 2015 5,125,936 Class I Warrants: (Issued for Private Placement) Outstanding and exercisable at January 1, 2014 13,906,413 0.40 May 31, 2016 Outstanding and exercisable at December 31, 2014 13,906,413 Outstanding and exercisable at June 30, 2015 13,906,413 Class J Warrants: (Issued for Private Placement) Outstanding and exercisable at January 1, 2014 8,780,478 0.30 July 29, 2016 Outstanding and exercisable at December 31, 2014 8,780,478 Outstanding and exercisable at June 30, 2015 8,780,478 Class K Warrants: (Issued for Notes payable in gold) Outstanding and exercisable at January 1, 2014 307,500 0.40 March 29, 2015 Outstanding and exercisable at December 31, 2014 307,500 Warrants expired March 29, 2015 (307,500) Outstanding and exercisable at June 30, 2015 - Class L Warrants: (Issued for Private Placement of Preferred Stock Warrants issued January 23, 2014 2,857,142 0.10 January 23, 2019 Outstanding and exercisable at December 31, 2014 2,857,142 Outstanding and exercisable at June 30, 2015 2,857,142 Class M Warrants: (Issued for Note Payable) Warrants issued January 29, 2014 1,735,000 0.15 January 29, 2019 Outstanding and exercisable at December 31, 2014 1,735,000 Outstanding and exercisable at June 30, 2015 1,735,000 Class N Warrants: (Issued for Private Placement) Warrants issued June 6, 2014 7,104,317 0.11 June 6, 2019 Warrants issued June 30, 2014 4,350,180 0.11 June 30, 2019 Warrants issued July 18, 2014 2,408,545 0.11 July 18, 2019 Outstanding and exercisable at December 31, 2014 13,863,042 Outstanding and exercisable at June 30, 2015 13,863,042 Class N-2 Warrants: (Issued for Finders Fees) Warrants issued July 18, 2014 2,701,386 .055 July 18, 2019 Outstanding and exercisable at December 31, 2014 2,701,386 Outstanding and exercisable at June 30, 2015 2,701,386 Class O Warrants: Warrants issued March 31, 2015 4,800,000 .06 March 31, 2020 Outstanding and exercisable at June 30, 2015 4,800,000 Class P Warrants: (Issued for Sale of Distribution Interest) Warrants issued June 23, 2015 2,250,000 .07 June 23, 2020 Outstanding and exercisable at June 30, 2015 2.250,000 Class P-2 Warrants: (Issued for Finders Fees) Warrants issued June 23, 2015 1,200,000 .05 June 23, 2020 Outstanding and exercisable at June 30, 2015 1,200,000 * Weighted average exercise of warrants outstanding and weighted average exercise price at June 30, 2015 57,219,397 0.172 * dilutive for the three- and six-month periods ending June 30, 2015

7. Stockholders' Equity_ Sche35

7. Stockholders' Equity: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	2015 2014 Risk-free interest rate -- 2.17% Expected dividend yield -- -- Expected term (in years) -- 10 Expected volatility -- 143%

7. Stockholders' Equity_ Share-

7. Stockholders' Equity: Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable	Shares Weighted- Average Exercise Price (per share) Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Options outstanding at December 31, 2013 3,315,000 $ 0.28 4.41 $0 Granted 450,000 0.05 $0 Forfeited (265,000) 0.23 Options outstanding and exercisable at December 31, 2014 3,500,000 $ 0.26 4.71 $0 Granted - - Forfeited (150,000) 0.68 Options outstanding and exercisable at June 30, 2015 3,350,000 $ 0.24 4.83 $0 Options available for future grants 1,925,672

10. Commitments and Contingen37

10. Commitments and Contingencies: Patented and nonpatented claims, annual costs (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Patented and nonpatented claims, annual costs	November 30, 2015 November 30, 2016 Claims Rental $ 83,570 $ 84,770 Annual Labor 61,100 61,100 Yearly Totals $ 144,670 $ 145,870

1. Basis of Presentation (Detai

1. Basis of Presentation (Details)	6 Months Ended
	Jun. 30, 2015
Details
Substantial Doubt about Going Concern	Going Concern 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 and does not have sufficient cash to fund normal operations and meet debt obligations for the next 12 months without deferring payment on certain current liabilities and/or raising additional funds. The Company currently has no historical recurring source of revenue and its ability to continue as a going concern is dependent on the Company’s ability to raise capital to fund its future exploration and working capital requirements or its ability to profitably execute its business plan. The Company’s plans for the long-term return to and continuation as a going concern include the profitable exploitation of its mining properties and financing the Company’s future operations through sales of its common stock and/or debt. Additionally, the current capital markets and general economic conditions in the United States are significant obstacles to raising the required funds. 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.

2. Summary of Significant Acc39

2. Summary of Significant Accounting Policies: Earnings (loss) Per Common Share (Details) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Details
Common Stock, Shares Authorized	250,000,000	250,000,000
Common Stock, Par Value	$ 0.10	$ 0.10
Common Stock, Shares Outstanding	131,082,809	126,082,809

2. Summary of Significant Acc40

2. Summary of Significant Accounting Policies: Earnings (loss) Per Common Share: Schedule of Earnings Per Share Reconciliation (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Details
NetIncomeLoss	$ 889,307	$ (325,346)	$ 622,729	$ (679,599)
Dividends, Preferred Stock	(25)	2,212	4,399	54,399
Net income/(loss) available to common stockholders	$ 889,332	$ (327,558)	$ 618,330	$ (733,998)
Weighted average common shares outstanding - basic	130,983,355	102,808,122	129,013,798	102,199,596
Weighted average common shares outstanding - diluted	135,018,016	102,808,122	133,003,736	102,808,122
Net income (loss) per common share - basic	$ 0.01	$ 0	$ 0	$ (0.01)
Net income (loss) per common share - diluted	$ 0.01	$ 0	$ 0	$ (0.01)

2. Summary of Significant Acc41

2. Summary of Significant Accounting Policies: Fair Values of Financial Instruments: Fair Value, Option, Quantitative Disclosures (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
Details
Cash and cash equivalents	$ 1,023,708	$ 206,025	$ 801,749	$ 16,993

3. Joint Venture (Details)

3. Joint Venture (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Details
Investment in joint venture	$ 55,300	$ 55,300	$ 55,300
Sale of percentage of cash flows, gross proceeds		$ 1,200,000
Sale of percentage of cash flows, percent sold		12.00%
Sale of percentage of cash flows, warrants issued		2,250,000
Sale of percentage of cash flows, price per warrant share	$ 0.07	$ 0.07
Sale of percentage, cost of sale		$ 125,164
Sale of percentage, fair value of warrants		88,644
Gain on sale of joint venture cash distribution interest	$ 986,192	$ 986,192

3. Joint Venture_ Warrants is43

3. Joint Venture: Warrants issued in conjunction with sale of percentage, valuation assumptions (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Details
Fair Value Assumptions, Risk Free Interest Rate	1.71%	1.52%
Fair Value Assumptions, Expected Dividend Rate	0.00%	0.00%
Fair Value Assumptions, Expected Term	5 years	5 years
Fair Value Assumptions, Expected Volatility Rate	141.70%	157.10%

4. Related Party Transactions (

4. Related Party Transactions (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Details
Related Party Transaction, Amounts of Transaction	$ 7,438	$ 4,969
Consultant and director fees	1,000	$ 46,775
Additional consultant and director fees	$ 32,965
Shares issued to consulting directors		1,650,000
Options issued to consulting directors		450,000
Fair value stock and options issued to consulting directors		$ 96,300
Share-based Compensation, Total		$ 143,075

5. Note Payable (Details)

5. Note Payable (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014	Jan. 24, 2014	Dec. 31, 2013
Details
Unsecured Debt detail 1			$ 300,000
Interest paid on unsecured note	$ 22,500	$ 41,610
Unsecured Debt detail 2		300,000
Discount on unsecured note		15,000
Unsecured Debt detail 2 proceeds		$ 285,000
Warrants issued with unsecured note		1,735,000
Finders fees related to unsecured note		9,000
Placement costs related to unsecured note		$ 45,511
Deferred Finance Costs, Net		54,511		$ 44,143
Placement costs related to unsecured noteUnamortized	20,588
Fair value warrants issued with unsecured note		$ 41,795
Unsecured Debt detail 3	300,000
Debt Instrument, Unamortized Discount	31,642
Unsecured debt, net	$ 268,358

5. Note Payable_ Warrants iss46

5. Note Payable: Warrants issued with notes payable valuation assumptions (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Details
Fair Value Assumptions, Risk Free Interest Rate	1.71%	1.52%
Fair Value Assumptions, Expected Dividend Rate	0.00%	0.00%
Fair Value Assumptions, Expected Term	5 years	5 years
Fair Value Assumptions, Expected Volatility Rate	141.70%	157.10%

6. Notes Payable in Gold (Detai

6. Notes Payable in Gold (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014	Dec. 31, 2013	Mar. 31, 2015
Details
Principal amount of notes payable in gold			$ 820,000
Discount on notes payable in gold			205,000
Proceeds from notes payable in gold and warrants, net			$ 615,000
Finders fees related to notes payable in gold			42,000
Placement costs related to notes payable in gold			$ 2,143
Deferred Finance Costs, Net		$ 54,511	$ 44,143
Warrants issued with notes payable in gold	307,500
Warrants with notes payable in gold, exercise price			$ 0.40
Warrants issued with notes payable in gold	$ 7,590
Notes payable in gold				$ 576,696
Gains (Losses) on Extinguishment of Debt		$ 165,662

7. Stockholders' Equity (Detail

7. Stockholders' Equity (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2015shares	Dec. 31, 2014USD ($)$ / sharesshares	Apr. 07, 2015	Mar. 31, 2015
Details
Private placement, first tranche, number of units				4,800,000
Private placement, first tranche, PricePerUnit				0.05
Private placement, first tranche, net proceeds				239,193
Private placement, second tranche, number of units			200,000
Private placement, second tranche, net proceeds			10,000
Convertible preferred stock series A, shares issued	175,000	175,000
Convertible preferred stock series A, no par value, 5% cumulative dividends, shares authorized	1,000,000	1,000,000
Convertible preferred stock series B, shares issued	200	200
Convertible preferred stock series B, no par value, shares authorized	300	300
Options available for future grants	1,925,672
Shares issued or exercised under stock option plan	4,275,000
Options outstanding under stock option plan	3,350,000
Options issued during period director options		450,000
Options issued during period director options fair value | $		$ 22,050
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures		2,700,000
Shares Issued, Price Per Share | $ / shares		$ 0.045
Stock Granted, Value, Share-based Compensation, Net of Forfeitures | $		$ 121,025

7. Stockholders' Equity_ Sche49

7. Stockholders' Equity: Schedule of Stockholders' Equity Note, Warrants or Rights (Details) - Jun. 30, 2015 - $ / shares	Total
Details
All classes of warrants outstanding	57,219,397
Weighted average exercise price of warrants	$ 0.172

7. Stockholders' Equity_ Sche50

7. Stockholders' Equity: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) - 6 months ended Jun. 30, 2015	Total
Details
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	2.17%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term, Simplified Method	10
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	143.00%

7. Stockholders' Equity_ Shar51

7. Stockholders' Equity: Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2015$ / sharesshares	Dec. 31, 2014$ / sharesshares	Dec. 31, 2013$ / sharesshares
Details
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	3,350,000	3,500,000	3,315,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares	$ 0.24	$ 0.26	$ 0.28
Weighted Averate Remaining Term	4.83	4.71	4.41
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures		450,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares		$ 0.05
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period	(150,000)	(265,000)
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ / shares	$ 0.68	$ 0.23
Options available for future grants	1,925,672

9. Remediation (Details)

9. Remediation (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Details
Remediation expense reduction in accrual	$ 111,000
Accrued remediation costs	464,109	$ 928,000
Payments for remediation	300,000
Remediation expense	2,891
Accrued remediation costs	$ 464,109	$ 928,000

10. Commitments and Contingen53

10. Commitments and Contingencies: Patented and nonpatented claims, annual costs (Details) - USD ($)	Nov. 30, 2016	Nov. 30, 2015
Details
Claims rental	$ 84,770	$ 83,570
Annual labor requirement	61,100	61,100
Non-patented claims expense	$ 145,870	$ 144,670