Mines Management 10-Q 15 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	14-May-15
Document and Entity Information
Entity Registrant Name	MINES MANAGEMENT INC
Entity Central Index Key	66649
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		29,814,040
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2015	Dec. 31, 2014
CURRENT ASSETS:
Cash and cash equivalents	$2,653,693	$3,862,462
Interest receivable	1,078	4,484
Prepaid expenses and deposits	261,566	307,951
Total current assets	2,916,337	4,174,897
PROPERTY AND EQUIPMENT:
Buildings and leasehold improvements	836,454	836,454
Equipment	6,361,318	6,361,318
Office equipment	343,897	343,897
Total property and equipment, gross	7,541,669	7,541,669
Less accumulated depreciation	7,024,990	6,997,153
Total property and equipment, net	516,679	544,516
OTHER ASSETS:
Available-for-sale securities	3,447	2,467
Reclamation deposits	1,184,966	1,184,966
Total other assets	1,188,413	1,187,433
Total assets	4,621,429	5,906,846
CURRENT LIABILITIES:
Accounts payable	457,790	326,570
Payroll and payroll taxes payable	33,581	18,141
Dividends payable	52,890	52,890
Total current liabilities	544,261	397,601
LONG-TERM LIABILITIES:
Asset retirement obligation	509,325	503,279
Total liabilities	1,053,586	900,880
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock-no par value, 10,000,000 shares authorized; Series B 6% convertible preferred shares-$1,000 stated value, 3,526 shares issued and outstanding	3,526,000	3,526,000
Common shares - $0.001 par value, 100,000,000 shares authorized; 29,814,040 shares issued and outstanding	29,814	29,814
Additional paid-in capital	87,813,032	87,685,232
Accumulated deficit	-87,793,285	-86,226,382
Accumulated other comprehensive income	-7,718	-8,698
Total stockholders' equity	3,567,843	5,005,966
Total liabilities and stockholders' equity	$4,621,429	$5,906,846

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
CONDENSED CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$0	$0
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, dividend rate (as a percent)	6.00%	6.00%
Preferred stock, stated value (in dollars per share)	$1,000	$1,000
Preferred stock, shares issued	3,526	3,526
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	29,814,040	29,814,040
Common stock, shares outstanding	29,814,040	29,814,040

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
REVENUE:
Royalties		$7,291
OPERATING EXPENSES:
General and administrative	551,902	591,635
Technical services and exploration	422,958	481,918
Depreciation	27,837	206,701
Legal, accounting, and consulting	465,624	206,704
Fees, filing, and licenses	47,800	67,769
Total operating expenses	1,516,121	1,554,727
LOSS FROM OPERATIONS	-1,516,121	-1,547,436
OTHER INCOME:
Interest income, net	2,108	3,725
NET LOSS	-1,514,013	-1,543,711
CUMULATIVE PREFERRED STOCK DIVIDENDS	-52,890
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	($1,566,903)	($1,543,711)
NET LOSS PER SHARE (basic and diluted) (in dollars per share)	($0.05)	($0.05)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (basic and diluted)	29,814,040	29,036,990

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net loss	($1,514,013)	($1,543,711)
Adjustment to net unrealized gain (loss) on marketable securities	980	-7,941
COMPREHENSIVE LOSS	($1,513,033)	($1,551,652)

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	($1,514,013)	($1,543,711)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	127,800	42,805
Depreciation	27,837	206,701
Accretion of asset retirement obligation	6,046	5,760
Changes in operating assets and liabilities:
Interest receivable	3,406	5,911
Prepaid expenses and deposits	46,385	35,389
Accounts payable	131,220	94,014
Payroll and payroll taxes payable	15,440	8,856
Net cash used in operating activities	-1,155,879	-1,144,275
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from disposition of property and equipment		313
Proceeds from certificates of deposit		1,565,577
Net cash provided by (used in) investing activities		1,565,890
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from sales of common stock		128,250
Cumulative preferred stock dividends	-52,890
Net cash provided (used in) by financing activities	-52,890	128,250
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	-1,208,769	549,865
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	3,862,462	4,145,092
CASH AND CASH EQUIVALENTS, END OF YEAR	2,653,693	4,694,957
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITIES:
Accrual of cumulative preferred stock dividends	$52,890

ORGANIZATION_AND_SUMMARY_OF_SI

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2015
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	NOTE 1 — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
	Nature of Operations:
	Mines Management, Inc. (the Company) is an Idaho corporation incorporated in 1947.  The Company acquires, explores, and develops mineral properties in North America.  The Company’s principal mineral property interest, the Montanore Project, is held by its wholly owned subsidiaries, Newhi Inc. and Montanore Minerals Corp.  The Company’s properties, including the Montanore property are currently in the exploration stage; none of its properties are currently in production.  The Company has commenced       re-permitting of the Montanore Project and is determining its feasibility for development.  Approval by regulatory agencies will be required before the Montanore Project can proceed with exploration and project development.  The Company’s business, operations and financial condition are subject to significant risks and uncertainties, including failing to secure additional funding to continue our business or execute our planned advanced evaluation and delineation drilling program at the Montanore Project.
	Summary of Significant Accounting Policies:
	These unaudited interim financial statements have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information, as well as the instructions to Form 10-Q.  Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of the Company’s management, all adjustments (consisting solely of normal recurring adjustments) considered necessary for a fair presentation of the interim financial statements have been included.
	The preparation of financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company’s condensed consolidated financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of the Company’s consolidated financial position and results of operations. Operating results for the three month period ended March 31, 2015 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2015.
	For further information, refer to the consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.
		(a)	Going concern
	The accompanying consolidated financial statements have been prepared under the assumption that the Company will continue as a going concern and do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. The Company is an exploration stage company and has incurred losses since the inception of its exploration stage.  The Company currently does not have a recurring source of revenue sufficient to fund normal operations and its ability to continue as a going concern is dependent on the Company’s ability to secure sufficient funding for its future exploration and working capital requirements, which may include the sale of its equity or debt securities, and the eventual profitable exploitation of its mining properties.  The Company’s plans for the long-term return to and continuation as a going concern include securing additional funding and the eventual profitable operation of its mining property.  There can be no assurance that the Company will succeed in securing additional funding on terms acceptable to the Company or at all, or in generating future profitable operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern.
		(b)	Mining properties, exploration and development costs
	All exploration expenditures are expensed as incurred.  Significant property acquisition payments for active exploration properties are capitalized, including payments to acquire mineral rights.  Once a feasibility study has been completed and approved by management, and a decision is made to put the ore body into production, expenditures to develop new mines, to define further mineralization in existing ore bodies, and to expand the capacity of operating mines, are capitalized and amortized on the units of production basis over proven and probable reserves.  The Company charges to operations the allocable portion of capitalized costs attributable to properties sold.  Capitalized costs are allocated to properties sold based on the proportion of claims sold to the claims remaining within the project area.
		(c)	Fair value measurements
	The Company discloses the inputs used to develop the fair value measurements for the Company’s financial assets and liabilities that are measured at fair value on a recurring basis as well as the level within the fair value hierarchy in which the fair value measurements in their entirety fall.  The three levels of the fair value hierarchy are as follows:
	Level 1:  Unadjusted quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date.
	Level 2:  Quoted prices in inactive markets for identical assets or liabilities, quoted prices for similar assets or liabilities in active markets, or other observable inputs either directly related to the asset or liability or derived principally from corroborated observable market data.
	Level 3:  Unobservable inputs due to the fact that there is little or no market activity.
		(d)	Stock compensation
	The Company measures and records the costs of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award, recognized over the period during which an employee is required to provide services in exchange for such award.  Compensation cost is recognized for awards granted and for awards modified, repurchased or cancelled.
		(e)	Net loss per share
	Basic earnings or loss per share is computed on the basis of the weighted average number of shares outstanding during the period.  Diluted earnings or loss per share is calculated on the basis of the weighted average number of shares outstanding during the period plus the effect of potential dilutive shares during the period.  Potential dilutive shares include outstanding stock options and warrants.  For periods in which a net loss is reported, potential dilutive shares are excluded because they are antidilutive.  Therefore, basic loss per share is the same as diluted loss per share for the periods ended March 31, 2015 and 2014.
		(f)	Recent Accounting Pronouncements
	In June 2014, the Financial Accounting Standards Board (“FASB”) issued guidance with regard to Development Stage Entities which eliminates the requirement for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. The Company adopted the provisions of this guidance effective January 1, 2015. Adoption of this update is expected to affect only the presentation and disclosures of the Company’s consolidated financial statements.
	In August 2014, the FASB issued a new going concern standard which defines management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. This guidance is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter.  Adoption of this update is expected to affect only the presentation and disclosures of the Company’s consolidated financial statements.
		(g)	Subsequent events
	The Company evaluated events and transactions subsequent to the balance sheet date of March 31, 2015 for potential recognition or disclosure in the condensed consolidated financial statements.

CERTIFICATE_OF_DEPOSIT

CERTIFICATE OF DEPOSIT	3 Months Ended
	Mar. 31, 2015
CERTIFICATES OF DEPOSIT
CERTIFICATES OF DEPOSIT
	NOTE 2 — CERTIFICATE OF DEPOSIT:
	The Company has a certificate of deposit in the amount of $1,124,055 pledged as security for a Letter of Credit to the Montana Department of Environmental Quality as a reclamation guarantee for the Montanore expansion evaluation program.  This certificate matures on January 3, 2016, bears interest at the rate of 0.40% and renews automatically each year.  This certificate of deposit is included with reclamation deposits on the Condensed Consolidated Balance Sheets as of March 31, 2015 and December 31, 2014.

AVAILABLEFORSALE_SECURITIES

AVAILABLE-FOR-SALE SECURITIES	3 Months Ended
	Mar. 31, 2015
AVAILABLE-FOR-SALE SECURITIES.
AVAILABLE-FOR-SALE SECURITIES
	NOTE 3 — AVAILABLE-FOR-SALE SECURITIES:
	Available-for-sale securities are comprised of common stocks which have been valued using quoted market prices in active markets.  The following table summarizes the Company’s available-for-sale securities:
		March 31,			December 31,
		2015			2014
	Cost	$	11,165		$	11,165
	Unrealized Losses	(7,718		)	(8,698		)
	Fair Market Value	$	3,447		$	2,467

FAIR_VALUE_MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2015
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS
	NOTE 4 — FAIR VALUE MEASUREMENTS:
	The following table summarizes the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2015, and the fair value calculation input hierarchy level determined to apply to each asset and liability category. Quoted market prices were used to determine the fair value of available-for-sale securities. The Company has no financial assets or liabilities that are measured at fair value on a nonrecurring basis.
		March 31,		December 31,		Input
		2015		2014		Hierarchy
						Level
	Assets:
	Available-for-sale securities	$	3,447	$	2,467	Level 1
	Liabilities:
	Asset retirement obligation	$	509,325	$	503,279	Level 3
	The following table presents the fair value reconciliation of Level 3 liabilities measured at fair value during the three months ended March 31, 2015 and 2014:
		Asset Retirement Obligation
		2015		2014
	Balance January 1	$	503,279	$	479,488
	Accretion expense	6,046		5,760
	Balance March 31	$	509,325	$	485,248

CONCENTRATION_OF_CREDIT_RISK

CONCENTRATION OF CREDIT RISK	3 Months Ended
	Mar. 31, 2015
CONCENTRATION OF CREDIT RISK.
CONCENTRATION OF CREDIT RISK
	NOTE 5 — CONCENTRATION OF CREDIT RISK:
	The Company maintains most of its cash and cash equivalents in one financial institution.  To date, the Company has not experienced a material loss or lack of access to its invested cash or cash equivalents; however, no assurance can be provided that access to the Company’s invested cash and cash equivalents will not be impacted by adverse conditions in the financial markets. The total uninsured bank deposit balance on the Company’s bank statements was approximately $3,560,000 as of March 31, 2015.

STOCKHOLDERS_EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2015
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY
	NOTE 6 — STOCKHOLDERS’ EQUITY:
	Common Shares:
	For a description of the public offerings and sales of common stock that occurred prior to 2014, refer to the consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.
	Preferred Shares:
	The Company sold to one investor 4,000 units consisting of one share of the Company’s Series B 6% convertible preferred stock, no par value, and a warrant to purchase the Company’s common stock, par value $0.001 per share, at a stated value of $1,000 per unit.  Each share of Series B convertible preferred stock is immediately convertible into shares of common stock at a conversion rate of approximately 1,271 shares of common stock for each share of Series B convertible preferred stock (equivalent to a conversion price of $0.7866 per share of common stock).  The conversion rate is subject to downward adjustment upon the Company issuing or selling shares of the Company’s common stock for a per share price less than the applicable conversion rate.  The offering yielded gross proceeds, before offering expenses, of $4.0 million (net proceeds of $3.5 million after deducting placement agent and investor fees and expenses and other offering expenses).  The preferred stock has no voting rights but will entitle the holders to receive cumulative dividends at the rate of 6% per annum per share, payable quarterly.  The dividends are payable in either cash or common stock at the Company’s discretion.  As of March 31, 2015, 474 shares of the Series B 6% convertible preferred stock had been converted into 602,592 shares of common stock.  Upon the occurrence of certain events the Company believes are within its control, the holders of the preferred shares may have the option to redeem or convert them into common shares or increase the dividend rate to 18% per annum.
	Warrants:  Each warrant is immediately exercisable and allows the holder to purchase approximately 636 shares of the Company’s common stock.  The warrants are not listed on a national securities exchange and do not have the rights or privileges of a holder of common stock, including any voting rights, until the holder exercises the warrant.  Upon the occurrence of a Fundamental Transaction, as defined in the warrant, the Company or its successor may be required to purchase the unexercised portion of the warrant from the warrant holder.  The Company does not currently anticipate that this will occur.  The following table summarizes exercise prices and expiration dates of outstanding common stock purchase warrants as of March 31, 2015.
	Number of Warrants	Exercise Price Per Share		Expiration Date
	4,000	$	1.0816	November 30, 2018
	Liquidation:  Upon any dissolution, liquidation or winding up, whether voluntary or involuntary, holders of the preferred stock are entitled to receive distributions out of the Company’s assets, whether capital or surplus, before any distributions may be made on any other outstanding classes of stock.  The amount received by holders of the preferred stock will be equal to the stated value of $1,000 per share of preferred stock plus any accrued and unpaid dividends thereon, and any other fees or liquidated damages then due and owing.

STOCK_OPTIONS

STOCK OPTIONS	3 Months Ended
	Mar. 31, 2015
STOCK OPTIONS
STOCK OPTIONS
	NOTE 7 — STOCK OPTIONS:
	For a description of the Company’s Equity Incentive Plans, refer to the consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. A summary of the option activity under the Company’s Equity Incentive Plans as of March 31, 2015, and changes during the period then ended, is presented below:
		Number of		Weighted-		Weighted-	Aggregate
		Options		Average		Average	Intrinsic Value
				Exercise		Remaining
				Price		Contractual
						Term
	Outstanding at January 1, 2015	4,876,000		$	1.31
	Forfeited or expired	(539,000	)	$	2.48
	Outstanding at March 31, 2015	4,337,000		$	1.16	3.07	$	—
	Exercisable at March 31, 2015	3,437,000		$	1.3	2.56	$	—
	The fair value for each option award is estimated at the date of grant using the Black-Scholes option-pricing model. Volatility for the periods presented is based on the historical volatility of the Company’s common shares over the expected life of the option. The risk-free rate for periods within the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The Company does not foresee the payment of dividends in the near term.  There were no options granted during the three month periods ended March 31, 2015 and 2014.
	During the three months ended March 31, 2015 there were no stock options exercised.  During the three months ended March 31, 2014, there were 187,000 stock options exercised with a weighted average exercise price of $0.87 and a total intrinsic value of $67,724.
	A summary of the status of the Company’s nonvested options as of March 31, 2015 and changes during the period then ended is presented below:
		Number of		Weighted-
		Options		Average
				Grant-Date
				Fair Value
	Nonvested at January 1, 2015 and March 31, 2015	900,000		$	0.28
	As of March 31, 2015, there was $48,649 of unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the Company’s Equity Incentive Plans.  The cost is expected to be recognized over a weighted-average period of less than one year.
	Total compensation costs recognized for stock-based employee compensation awards was $127,800 and $42,805 for the three months ended March 31, 2015 and 2014, respectively.  These costs were included in general and administrative expenses and technical services and exploration expenses on the Condensed Consolidated Statements of Operations.  Total costs recognized for stock-based compensation awards for services performed by outside parties were $0 and $5,519 during the three months ended March 31, 2015 and 2014, respectively.  Cash received from options exercised under all share-based payment arrangements during the three months ended March 31, 2015 and 2014 was $0 and $128,250, respectively.

ORGANIZATION_AND_SUMMARY_OF_SI1

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2015
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Going concern
	(a)Going concern
	The accompanying consolidated financial statements have been prepared under the assumption that the Company will continue as a going concern and do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. The Company is an exploration stage company and has incurred losses since the inception of its exploration stage.  The Company currently does not have a recurring source of revenue sufficient to fund normal operations and its ability to continue as a going concern is dependent on the Company’s ability to secure sufficient funding for its future exploration and working capital requirements, which may include the sale of its equity or debt securities, and the eventual profitable exploitation of its mining properties.  The Company’s plans for the long-term return to and continuation as a going concern include securing additional funding and the eventual profitable operation of its mining property.  There can be no assurance that the Company will succeed in securing additional funding on terms acceptable to the Company or at all, or in generating future profitable operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern.
Mining properties, exploration and development costs
	(b)Mining properties, exploration and development costs
	All exploration expenditures are expensed as incurred.  Significant property acquisition payments for active exploration properties are capitalized, including payments to acquire mineral rights.  Once a feasibility study has been completed and approved by management, and a decision is made to put the ore body into production, expenditures to develop new mines, to define further mineralization in existing ore bodies, and to expand the capacity of operating mines, are capitalized and amortized on the units of production basis over proven and probable reserves.  The Company charges to operations the allocable portion of capitalized costs attributable to properties sold.  Capitalized costs are allocated to properties sold based on the proportion of claims sold to the claims remaining within the project area.
Fair value measurements
	(c)Fair value measurements
	The Company discloses the inputs used to develop the fair value measurements for the Company’s financial assets and liabilities that are measured at fair value on a recurring basis as well as the level within the fair value hierarchy in which the fair value measurements in their entirety fall.  The three levels of the fair value hierarchy are as follows:
	Level 1:  Unadjusted quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date.
	Level 2:  Quoted prices in inactive markets for identical assets or liabilities, quoted prices for similar assets or liabilities in active markets, or other observable inputs either directly related to the asset or liability or derived principally from corroborated observable market data.
	Level 3:  Unobservable inputs due to the fact that there is little or no market activity.
Stock compensation
	(d)Stock compensation
	The Company measures and records the costs of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award, recognized over the period during which an employee is required to provide services in exchange for such award.  Compensation cost is recognized for awards granted and for awards modified, repurchased or cancelled.
Net loss per share
	(e)Net loss per share
	Basic earnings or loss per share is computed on the basis of the weighted average number of shares outstanding during the period.  Diluted earnings or loss per share is calculated on the basis of the weighted average number of shares outstanding during the period plus the effect of potential dilutive shares during the period.  Potential dilutive shares include outstanding stock options and warrants.  For periods in which a net loss is reported, potential dilutive shares are excluded because they are antidilutive.  Therefore, basic loss per share is the same as diluted loss per share for the periods ended March 31, 2015 and 2014.
Recent Accounting Pronouncements
	(f)Recent Accounting Pronouncements
	In June 2014, the Financial Accounting Standards Board (“FASB”) issued guidance with regard to Development Stage Entities which eliminates the requirement for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. The Company adopted the provisions of this guidance effective January 1, 2015. Adoption of this update is expected to affect only the presentation and disclosures of the Company’s consolidated financial statements.
	In August 2014, the FASB issued a new going concern standard which defines management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. This guidance is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter.  Adoption of this update is expected to affect only the presentation and disclosures of the Company’s consolidated financial statements.
Subsequent events
	(g)Subsequent events
	The Company evaluated events and transactions subsequent to the balance sheet date of March 31, 2015 for potential recognition or disclosure in the condensed consolidated financial statements.

AVAILABLEFORSALE_SECURITIES_Ta

AVAILABLE-FOR-SALE SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2015
AVAILABLE-FOR-SALE SECURITIES.
Schedule of the Company's available-for-sale securities
		March 31,			December 31,
		2015			2014
	Cost	$	11,165		$	11,165
	Unrealized Losses	(7,718		)	(8,698		)
	Fair Market Value	$	3,447		$	2,467

FAIR_VALUE_MEASUREMENTS_Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2015
FAIR VALUE MEASUREMENTS
Schedule of financial assets and liabilities accounted for at fair value on a recurring basis
		March 31,		December 31,		Input
		2015		2014		Hierarchy
						Level
	Assets:
	Available-for-sale securities	$	3,447	$	2,467	Level 1
	Liabilities:
	Asset retirement obligation	$	509,325	$	503,279	Level 3
Schedule of fair value reconciliation of level 3 liabilities measured at fair value
		Asset Retirement Obligation
		2015		2014
	Balance January 1	$	503,279	$	479,488
	Accretion expense	6,046		5,760
	Balance March 31	$	509,325	$	485,248

STOCKHOLDERS_EQUITY_Tables

STOCKHOLDERS' EQUITY (Tables)	3 Months Ended
	Mar. 31, 2015
STOCKHOLDERS' EQUITY
Schedule of exercise prices and expiration dates of the Company's outstanding common share purchase warrants
	Number of Warrants	Exercise Price Per Share		Expiration Date
	4,000	$	1.0816	November 30, 2018

STOCK_OPTIONS_Tables

STOCK OPTIONS (Tables)	3 Months Ended
	Mar. 31, 2015
STOCK OPTIONS
Summary of stock option activity
		Number of		Weighted-		Weighted-	Aggregate
		Options		Average		Average	Intrinsic Value
				Exercise		Remaining
				Price		Contractual
						Term
	Outstanding at January 1, 2015	4,876,000		$	1.31
	Forfeited or expired	(539,000	)	$	2.48
	Outstanding at March 31, 2015	4,337,000		$	1.16	3.07	$	—
	Exercisable at March 31, 2015	3,437,000		$	1.3	2.56	$	—
Summary of nonvested options
		Number of		Weighted-
		Options		Average
				Grant-Date
				Fair Value
	Nonvested at January 1, 2015 and March 31, 2015	900,000		$	0.28

ORGANIZATION_AND_SUMMARY_OF_SI2

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIE: (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014	Jul. 30, 2014
Preferred Stock and Common Shares:
Number of units sold or outstanding	3,526	3,526
Warrant Derivatives
Preferred Stock and Common Shares:
Number of shares of common stock that can be purchased on exercise of warrants	636	636	636
Convertible Preferred Stock
Preferred Stock and Common Shares:
Number of units sold or outstanding			4,000
Issue price (in dollars per share)			1,000

CERTIFICATE_OF_DEPOSIT_Details

CERTIFICATE OF DEPOSIT: (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
CERTIFICATES OF DEPOSIT:
Reclamation deposits	$1,184,966	$1,184,966
Certificates of deposit maturing on January 3, 2016
CERTIFICATES OF DEPOSIT:
Reclamation deposits	$1,124,055
Interest rate (as a percent)	0.40%

AVAILABLEFORSALE_SECURITIES_De

AVAILABLE-FOR-SALE SECURITIES: (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
AVAILABLE-FOR-SALE SECURITIES.
Cost	$11,165	$11,165
Unrealized Losses	-7,718	-8,698
Fair Market Value	$3,447	$2,467

FAIR_VALUE_MEASUREMENTS_Detail

FAIR VALUE MEASUREMENTS (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
FAIR VALUE MEASUREMENTS
Financial assets that are measured at fair value on a nonrecurring basis	$0
Financial liabilities that are measured at fair value on a nonrecurring basis	0
Assets:
Available-for-sale securities	3,447	2,467
Liabilities:
Asset retirement obligation	509,325	503,279
Recurring basis | Level 1
Assets:
Available-for-sale securities	3,447	2,467
Recurring basis | Level 3
Liabilities:
Asset retirement obligation	$509,325	$503,279

FAIR_VALUE_MEASUREMENTS_Detail1

FAIR VALUE MEASUREMENTS (Details 2) (Asset Retirement Obligation, USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Asset Retirement Obligation
Fair value reconciliation of level 3 liabilities measured at fair value
Balance at the beginning of the period	$503,279	$479,488
Accretion expense	6,046	5,760
Balance at the end of the period	$509,325	$485,248

CONCENTRATION_OF_CREDIT_RISK_D

CONCENTRATION OF CREDIT RISK (Details) (Cash and cash equivalents, Concentration of credit risk, USD $)	3 Months Ended
	Mar. 31, 2015
	item
Cash and cash equivalents | Concentration of credit risk
CONCENTRATION OF CREDIT RISK:
Number of financial institutions	1
Uninsured bank deposit balance	$3,560,000

STOCKHOLDERS_EQUITY_Details

STOCKHOLDERS' EQUITY: (Details) (USD $)	0 Months Ended	3 Months Ended	12 Months Ended
In Millions, except Share data, unless otherwise specified	Jul. 30, 2014	Mar. 31, 2015	Dec. 31, 2014	Jul. 30, 2014
Preferred Stock and Common Shares:
Common stock, par value (in dollars per share)		$0.00	$0.00
Preferred Shares:
Preferred stock, dividend rate (as a percent)		6.00%	6.00%
Preferred stock, stated value (in dollars per share)		$1,000	$1,000
Number of units sold or outstanding		3,526	3,526
Preferred stock, par value (in dollars per share)		$0	$0
Maximum
Preferred Shares:
Preferred stock, dividend rate (as a percent)		18.00%
Convertible Preferred Stock
Preferred Shares:
Number of preferred shares converted		474
Number of investor	1
Number of units sold or outstanding	4,000			4,000
Preferred stock, par value (in dollars per share)	$0			$0
Issue price (in dollars per share)	$1,000			$1,000
Gross proceeds before offering expenses	$4
Net proceeds before deducting other offering expenses	$3.50
Warrant Derivatives
Warrants
Number of shares of common stock that can be purchased on exercise of warrants	636	636	636	636
Number of shares associated with a specific exercise price per share and expiration date	4,000	4,000	4,000
Exercise Price (in dollars per share)	1.0816	1.0816	1.0816	1.0816
Common Stock
Preferred Stock and Common Shares:
Common stock, par value (in dollars per share)	$0.00			$0.00
Number of common shares received for each share of preferred stock on any given date	1,271
Common stock issued at conversion of preferred stock, shares		602,592
Conversion price per share of common stock (in dollars per share)	$0.79	$0.79	$0.79	$0.79

STOCK_OPTIONS_Details

STOCK OPTIONS (Details) (USD $)	0 Months Ended	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2015	Mar. 31, 2014
Number of Options
Outstanding at the beginning of the period (in shares)	4,337,000	4,876,000
Forfeited or expired (in shares)		-539,000
Outstanding at the end of the period (in shares)		4,337,000
Exercisable at the end of the period (in shares)		3,437,000
Weighted-Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$1.16	$1.31
Forfeited or expired (in dollars per share)		$2.48
Outstanding at the end of the period (in dollars per share)		$1.16
Exercisable at the end of the period (in dollars per share)		$1.30
Weighted-Average Remaining Contractual Term
Outstanding at the end of the period	3 years 26 days
Exercisable at the end of the period		2 years 6 months 22 days
Assumptions used to estimate the fair value of stock options
Exercised (in shares)		0	187,000
Weighted average exercised (in dollars per share)			$0.87
Total intrinsic value			$67,724
Number of Options
Nonvested at the beginning of the period (in shares)	900,000
Nonvested at the end of the period (in shares)		900,000
Weighted-Average Grant-Date Fair Value
Nonvested at the beginning of the period (in dollars per share)	$0.28
Nonvested at the end of the period (in dollars per share)		$0.28
Disclosures for share-based compensation cost
Unrecognized compensation expense related to nonvested share-based compensation arrangements		48,649
Expected weighted-average period of recognition of unrecognized compensation cost related to nonvested share-based compensation arrangements		1 year
Total compensation costs recognized for stock-based employee compensation awards		127,800	42,805
Costs recognized for stock-based compensation awards for services performed by outside parties		0	5,519
Cash received from options exercised		$0	$128,250