Mines Management 10-K 30 Mar 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Mar. 29, 2016	Jun. 30, 2015
Document and Entity Information
Entity Registrant Name	MINES MANAGEMENT INC
Entity Central Index Key	66,649
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 13.5
Entity Common Stock, Shares Outstanding		30,893,704
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2015	Dec. 31, 2014
CURRENT ASSETS:
Cash and cash equivalents	$ 1,203,048	$ 3,862,462
Interest receivable	4,459	4,484
Prepaid expenses and deposits	335,201	307,951
Total current assets	1,542,708	4,174,897
PROPERTY AND EQUIPMENT:
Buildings and leasehold improvements	836,454	836,454
Equipment	1,922,038	6,361,318
Office equipment	344,657	343,897
Total property and equipment, gross	3,103,149	7,541,669
Less accumulated depreciation	2,627,864	6,997,153
Total property and equipment, net	475,285	544,516
OTHER ASSETS:
Available-for-sale securities	975	2,467
Reclamation deposits	1,184,966	1,184,966
Total other assets	1,185,941	1,187,433
Total assets	3,203,934	5,906,846
CURRENT LIABILITIES:
Accounts payable	389,973	326,570
Payroll and payroll taxes payable	13,756	18,141
Dividends payable	52,890	52,890
Total current liabilities	456,619	397,601
LONG-TERM LIABILITIES:
Asset retirement obligation	528,250	503,279
Total liabilities	$ 984,869	$ 900,880
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred shares — 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; 00 shares issued and outstanding	29,814	29,814
Additional paid-in capital	87,949,096	87,685,232
Accumulated deficit	(89,275,655)	(86,226,382)
Accumulated other comprehensive losses	(10,190)	(8,698)
Total stockholders' equity	2,219,065	5,005,966
Total liabilities and stockholders' equity	$ 3,203,934	$ 5,906,846

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
CONDENSED CONSOLIDATED BALANCE SHEETS
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)	$ 0.001	$ 0.001
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 STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
REVENUE:
Royalties		$ 19,566
OPERATING EXPENSES:
General and administrative	$ 1,833,201	2,404,660
Technical services	1,524,774	2,027,758
Depreciation	69,992	760,930
Legal, accounting, and consulting	1,065,560	1,194,789
Fees, filing, and licenses	188,940	216,113
Total operating expenses	4,682,467	6,604,250
LOSS FROM OPERATIONS	(4,682,467)	(6,584,684)
OTHER INCOME:
Gain from sale of property and equipment	1,850,000	122,600
Interest income (expense), net	(5,246)	11,856
Total other income	1,844,754	134,456
NET LOSS	(2,837,713)	(6,450,228)
CUMULATIVE PREFERRED STOCK DIVIDENDS	(211,560)	(89,455)
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	$ (3,049,273)	$ (6,539,683)
NET LOSS PER SHARE (basic and diluted) (in dollars per share)	$ (0.10)	$ (0.22)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (basic and diluted)	29,814,040	29,398,634

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net loss	$ (2,837,713)	$ (6,450,228)
Adjustment to net unrealized loss on marketable securities	(1,492)	(11,707)
COMPREHENSIVE LOSS	$ (2,839,205)	$ (6,461,935)

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income	Total
BALANCES at Dec. 31, 2013		$ 29,000	$ 87,230,381	$ (79,686,699)	$ 3,009	$ 7,575,691
BALANCES (in shares) at Dec. 31, 2013		28,999,752
Increase (Decrease) in Stockholders' Equity
Exercise of stock options		$ 212	177,538			177,750
Exercise of stock options (in shares)		211,696
Stock-based compensation			309,839			309,839
Preferred stock issued for cash	$ 4,000,000		(505,924)			3,494,076
Preferred stock issued for cash (in shares)	4,000
Preferred shares converted to common shares	$ (474,000)	$ 602	473,398
Preferred stock converted to common stock (in shares)	(474)	602,592
Preferred stock dividends				(89,455)		(89,455)
Adjustment to net unrealized loss on marketable securities					(11,707)	(11,707)
Net loss				(6,450,228)		(6,450,228)
BALANCES at Dec. 31, 2014	$ 3,526,000	$ 29,814	87,685,232	(86,226,382)	(8,698)	5,005,966
BALANCES (in shares) at Dec. 31, 2014	3,526	29,814,040
Increase (Decrease) in Stockholders' Equity
Stock-based compensation			263,864			263,864
Preferred stock dividends				(211,560)		(211,560)
Adjustment to net unrealized loss on marketable securities					(1,492)	(1,492)
Net loss				(2,837,713)		(2,837,713)
BALANCES at Dec. 31, 2015	$ 3,526,000	$ 29,814	$ 87,949,096	$ (89,275,655)	$ (10,190)	$ 2,219,065
BALANCES (in shares) at Dec. 31, 2015	3,526	29,814,040

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (2,837,713)	$ (6,450,228)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	263,864	309,839
Depreciation	69,992	760,930
Accretion of asset retirement obligation	24,971	23,791
Gain on sale of property and equipment	(1,850,000)	(122,600)
Changes in assets and liabilities:
Interest receivable	25	2,504
Prepaid expenses and deposits	(27,250)	(70,665)
Accounts payable	63,403	(54,735)
Payroll and payroll taxes payable	(4,385)	(5,217)
Net cash used in operating activities	(4,297,093)	(5,606,381)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(761)
Proceeds from disposition of property and equipment	1,850,000	122,913
Proceeds from certificates of deposit		1,565,577
Net cash provided by (used in) investing activities	1,849,239	1,688,490
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from sale of preferred stock		3,494,076
Net proceeds from sales of common stock		177,750
Cumulative preferred stock dividends	(211,560)	(36,565)
Net cash provided by (used in) financing activities	(211,560)	3,635,261
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(2,659,414)	(282,630)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	3,862,462	4,145,092
CASH AND CASH EQUIVALENTS, END OF PERIOD	1,203,048	3,862,462
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest	11,535
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITIES:
Accrual of cumulative preferred stock dividends	$ 52,890	52,890
Preferred Stock
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITIES:
Preferred shares converted to common shares		$ 474,000

ORGANIZATION AND SUMMARY OF SIG

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 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 Organization: Mines Management, Inc. (the “Company”) is a publicly held Idaho corporation incorporated in 1947. The Company acquires, explores, and develops mineral properties in North and South America. Summary of Significant Accounting Policies: 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 does not have sufficient cash to fund normal operations beyond April 2016 without raising additional funds. 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. 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. Principles of consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of Mines Management, Inc., and its wholly ‑owned subsidiaries, Newhi, Inc., Montanore Minerals Corp., Montmin Resources Corp., and Minera Montanore Peru, SAC. Intercompany balances and transactions have been eliminated. c. Exploration stage enterprise The Company is in the exploration stage of operation and devotes substantially all of its efforts to acquiring and exploring mining interests that management believes should eventually provide sufficient net profits to sustain the Company’s existence. Until such interests are engaged in commercial production, the Company will continue to seek additional funding to support the completion of its exploration and development activities. The Company’s activities are subject to significant risks and uncertainties, including its ability to secure sufficient funding to continue operations, to obtain proven and probable reserves, to comply with industry regulations and obtain permits necessary for development of the Montanore project, as well as environmental risks and market conditions. d. Cash and cash equivalents Cash and cash equivalents include cash on hand, cash in banks, investments in certificates of deposit with original maturities of 90 days or less, and money market funds. e. Available for sale securities Available ‑for ‑sale securities are recorded at fair value, with unrealized gains or losses recorded as a component of equity, unless a decline in value of the security is considered other than temporary. Realized gains and losses and other than temporary impairments are recorded in the statement of operations. f. Property and equipment Property and equipment are stated at cost less accumulated depreciation. Buildings and leasehold improvements are depreciated on the straight ‑line basis over an estimated useful life of 39 years. Plant and equipment and office equipment are generally depreciated on a straight ‑line basis over estimated useful lives ranging from 5 to 10 years. When assets are retired or sold, the costs and related allowances for depreciation are eliminated from the accounts and any resulting gain or loss is reflected in the statement of operations. g. Mining properties, exploration and development costs All exploration expenditures, including costs to acquire stationary equipment for use in exploration activities that have no significant alternative future use, 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, 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. h. Asset impairment The Company evaluates its long ‑lived assets for impairment when events or changes in circumstances indicate that the related carrying amount may not be recoverable. If the sum of estimated future net cash flows on an undiscounted basis is less than the carrying amount of the related asset grouping, asset impairment is considered to exist. The related impairment loss is measured as the amount by which the carrying amount of the asset exceeds its fair value. Changes in significant assumptions underlying future cash flow estimates may have a material effect on the Company’s financial position and results of operations. i. 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. j. Asset retirement obligations A liability is recognized for the present value of estimated environmental remediation (asset retirement obligation), in the period in which the liability is incurred if a reasonable estimate of fair value can be made. The offsetting balance is charged to expense as an exploration cost if the liability is incurred during the exploration stage of the related mining project or as an asset if the related mining project is in production. Adjustments are made to the liability for changes resulting from passage of time and changes to either the timing or amount of the original present value estimate underlying the obligation. The Company has an asset retirement obligation associated with its underground evaluation program at the Montanore Project, described more fully in note 6. k. Deferred income taxes Deferred income tax is provided for differences between the basis of assets and liabilities for financial and income tax reporting. A deferred tax asset, subject to a valuation allowance, is recognized for estimated future tax benefits of tax ‑basis operating losses being carried forward. Uncertain tax positions are evaluated in a two ‑step process, whereby (1) it is determined whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more ‑likely ‑than ‑not recognition threshold, the largest amount of tax benefit that is greater than fifty percent likely to be realized upon ultimate settlement with the related tax authority would be recognized. If income tax related interest and penalties were to be assessed, the Company would charge interest to interest expense, and penalties to general and administrative expense. l. Stock based 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. m. 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 and convertible preferred stock. 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 years ended December 31, 2015 and 2014. n. Assumptions and use of estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the 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. Significant areas requiring the use of management assumptions and estimates relate to asset impairments, including long ‑lived assets and investments, asset retirement obligations, and valuation of stock based compensation and warrant derivatives. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company’s 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. o. Recent accounting pronouncements 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 not anticipated to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued a new standard, Leases (ASC 842) . Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than twelve months and to disclose key information about leasing arrangements. This guidance is effective for fiscal years beginning after December 15, 2018. The Company is not able to reasonably estimate the impact on the Company’s consolidated financial statements at this time. p. Subsequent events The Company evaluated events and transactions subsequent to the balance sheet date of December 31, 2015, for potential recognition or disclosure in the consolidated financial statements.

MINING PROPERTIES

MINING PROPERTIES	12 Months Ended
	Dec. 31, 2015
MINING PROPERTIES
MINING PROPERTIES	NOTE 2—MINING PROPERTIES Montanore: The Montanore property is located in northwestern Montana and includes 10 patented mining claims and 861 unpatented mining claims. In August 2002, the Company acquired a controlling interest in the Montanore silver and copper deposit in Sanders and Lincoln Counties, Montana. The Company received a quitclaim deed from Noranda Mineral Corp. (“Noranda”) when Noranda elected to withdraw from the project. In December 2002, the Company received a quitclaim deed to all intellectual property connected with studies that Noranda carried out on the project. Advance and Iroquois: The Advance and Iroquois properties are located in northern Washington State. The Advance property consists of 720 acres of patented mineral rights. Although the Company does not own the overlying surface rights to its patented mineral rights, it does have right of access to explore and mine. The Iroquois property consists of 62 acres of patented mineral and surface rights.

CERTIFICATES OF DEPOSIT

CERTIFICATES OF DEPOSIT	12 Months Ended
	Dec. 31, 2015
CERTIFICATES OF DEPOSIT
CERTIFICATES OF DEPOSIT	NOTE 3—CERTIFICATES OF DEPOSIT The Company has a certificate of deposit 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 of deposit was in the amount of $1,124,055 as of December 31, 2015 and 2014, respectively. It bore interest at the rate of 0.40% as of December 31, 2015 and had a maturity date of January 3, 2016. This certificate of deposit renews automatically each year and is included with reclamation deposits on the Consolidated Balance Sheets for the years ended December 31, 2015 and 2014. The certificate was renewed on January 3, 2016 in the amount of $1,124,055 bearing interest at the rate of 0.15% and expires on January 3, 2017.

AVAILABLE-FOR-SALE SECURITIES

AVAILABLE-FOR-SALE SECURITIES	12 Months Ended
	Dec. 31, 2015
AVAILABLE-FOR-SALE SECURITIES.
AVAILABLE-FOR-SALE SECURITIES	NOTE 4—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: December 31, December 31, 2015 2014 Cost $ $ Unrealized Losses Fair Market Value $ $

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
	Dec. 31, 2015
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	NOTE 5—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 December 31, 2015 and 2014, 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. Balance at Balance at Input December 31, December 31, Hierarchy 2015 2014 Level Assets: Available-for-sale securities $ $ Level 1 Liabilities: Asset retirement obligation $ $ Level 3 The following table presents the fair value reconciliation of Level 3 liabilities measured at fair value during the year ended December 31, 2015: Asset Retirement Obligation Balance January 1, 2015 $ Accretion expense Balance December 31, 2015 $

ASSET RETIREMENT OBLIGATIONS

ASSET RETIREMENT OBLIGATIONS	12 Months Ended
	Dec. 31, 2015
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS	NOTE 6—ASSET RETIREMENT OBLIGATIONS The Company has an asset retirement obligation (“ARO”) associated with its underground evaluation program at the Montanore Project. The ARO resulted from the reclamation and remediation requirements of the Montana Department of Environmental Quality as outlined in the Company’s permit to carry out the evaluation program. Estimated reclamation costs were discounted using a credit adjusted risk ‑free interest rate of 4.78% from the time the Company expects to pay the retirement obligation to the time it incurred the obligation, which is estimated at 25 years. The following table summarizes activity in the Company’s ARO. Year Ended Year Ended December 31, December 31, 2015 2014 Balance January 1, $ $ Accretion expense Balance December 31, $ $ The Company has a certificate of deposit which is 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 which is discussed further in note 3.

CONCENTRATION OF CREDIT RISK

CONCENTRATION OF CREDIT RISK	12 Months Ended
	Dec. 31, 2015
CONCENTRATION OF CREDIT RISK.
CONCENTRATION OF CREDIT RISK	NOTE 7—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 Company’s total uninsured bank deposit balance totaled approximately $2,200,000 as of December 31, 2015.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2015
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	NOTE 8—STOCKHOLDERS’ EQUITY Preferred Shares: During July 2014, the Company sold to one investor 4,000 units consisting of one share of the Company’s Series B 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 December 31, 2015, 474 shares of the Series B convertible preferred stock had been converted into 602,592 shares of common stock. Upon the occurrence of certain events that 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 at an exercise price of $1.0816 per share 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 December 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. Common Shares: During 2007, the Company sold 2,500,000 common shares in a private placement to one investor. In connection with the stock sale, the Company entered into a Right of First Refusal agreement (the “ROFR”) which grants a twenty -year right of first proposal and a right to match third-party proposals, to purchase all or any portion of silver mined, produced or recovered by the Company in the State of Montana. The ROFR does not apply to trade sales and spot sales in the ordinary course of business or to forward sales, in each case, for which no upfront payment is received by the Company.

STOCK OPTIONS

STOCK OPTIONS	12 Months Ended
	Dec. 31, 2015
STOCK OPTIONS
STOCK OPTIONS	NOTE 9—STOCK OPTIONS The Company had four equity incentive plans: the 2003 Stock Option Plan, the 2003 Consultant Stock Compensation Plan, the 2007 Equity Incentive Plan, and the 2012 Equity Incentive Plan (collectively, the “Plans”). Under all of the equity incentive plans, the option exercise price may not be less than 100% of the fair market value per share on the date of grant, the stock options are exercisable within ten years from the date of the grant of the option, and the vesting schedule of the options is at the discretion of the Board of Directors. Under the 2003 Stock Option Plan and Consultant Stock Compensation Plan, both of which expired in February 2014, the Company could grant options to purchase up to 3,000,000 shares and 700,000 shares of authorized and unissued common stock, respectively. The 2003 Stock Option Plan included both incentive stock options and nonqualified stock options. Under the 2007 Equity Incentive Plan (the “2007 Plan”), which provides for the issuance of both incentive stock options and nonqualified stock options and restricted shares to directors, employees and consultants of the Company, the Company may issue up to 3,000,000 shares of the Company’s authorized but unissued common stock. No participant is eligible to be granted more than 500,000 common shares during any calendar year. Under the 2012 Equity Incentive Plan (“2012 Plan”), the Company may grant options to purchase up to 3,000,000 shares of the Company’s authorized but unissued common stock, at the discretion of the Board. The 2012 Plan provides for the issuance of incentive stock options to employees and nonqualified stock options to directors, employees and consultants of the Company. No participant is eligible to be granted more than 200,000 common shares during any calendar year. A summary of the option activity under the Plans as of December 31, 2015, and changes during the year then ended, is presented below: Weighted- Weighted- Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Options Price Term Value Outstanding at January 1, 2015 $ Granted $ Forfeited or expired $ Outstanding at December 31, 2015 $ $ Exercisable at December 31, 2015 $ $ The fair value for each option award is estimated at the date of grant using the Black ‑Scholes option ‑pricing model using the assumptions noted in the following table. Volatility for the years presented is based on the historical volatility of the Company’s common stock 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 on common stock in the near term. Years Ended December 31, 2015 2014 Weighted average risk-free interest rate % % Weighted average volatility % % Expected dividend yield — — Weighted average expected life (in years) Weighted average grant-date fair value $ $ During the year ended December 31, 2015, there were no options exercised. During the year ended December 31, 2014, there were 237,000 options exercised with a weighted average exercise price of $0.90 . The total intrinsic value of the options exercised during the year ended December 31, 2014 was $88,724 . A summary of the status of the Company’s nonvested options as of December 31, 2015 and changes during the year then ended is presented below: Weighted-Average Number of Grant-Date Options Fair Value Nonvested at January 1, 2015 $ Issued $ Vested $ Nonvested at December 31, 2015 $ As of December 31, 2015, there was $46,545 of unrecognized compensation cost related to nonvested share ‑based compensation arrangements granted under the 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 $263,864 and $300,643 for the years ended December 31, 2015 and 2014, respectively. These costs were included in general and administrative and technical services expenses on the Consolidated Statements of Operations. Total costs recognized for stock ‑based compensation awards for services performed by outside parties were $0 and $9,196 for the years ended December 31, 2015 and 2014, respectively. Cash received from options exercised under all share ‑based payment arrangements for the years ended December 31, 2015 and 2014 was $0 and $177,750 , respectively.

DEFERRED INCOME TAX

DEFERRED INCOME TAX	12 Months Ended
	Dec. 31, 2015
DEFERRED INCOME TAX
DEFERRED INCOME TAX	NOTE 10—DEFERRED INCOME TAX As of December 31, 201 5 and 201 4 , the Company had net deferred tax assets that were fully reserved by valuation allowances. Following are the components of such assets and allowances: Years Ended December 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ $ Stock-based compensation Property and equipment Asset retirement obligation Total deferred tax assets Deferred tax liabilities: Property and equipment Net deferred tax asset before valuation allowance Less valuation allowance Net deferred tax assets $ — $ — For the periods presented, the effective income tax rate differed from the expected rate because of the effects of changes in the deferred tax asset valuation allowance. Changes in the deferred tax asset valuation allowance for the years ended December 31, 2015 and 2014 relate only to corresponding changes in deferred tax assets for those periods. As of December 31, 2015, the Company had federal tax ‑basis net operating loss carryforwards totaling approximately $74,200,000 which will expire in various amounts from 2020 through 2035. The Company is subject to examination of its income tax filings in the United States and various state jurisdictions for the 2012 through 2015 tax years. Within each of these jurisdictions the Company has examined its material tax positions and determined that they would more likely than not be sustained.

COMMITMENTS

COMMITMENTS	12 Months Ended
	Dec. 31, 2015
COMMITMENTS
COMMITMENTS	NOTE 11—COMMITMENTS Operating Leases: The Company leases office space and equipment under operating leases. As a result, the Company recognized rental expense of $53,104 and $52,186 for the years ending December 31, 2015 and 2014, respectively. The following is a schedule by years of future minimum rental payments required under operating leases that have initial or remaining noncancelable lease terms in excess of one year as of December 31, 2015. Years ending December 31: 2016 $ 2017 2018 Total minimum payments required $ Employment Agreements: The Company has employment agreements with certain executives. The agreements include a provision for severance pay equal to a multiple of each executive’s salary. To receive severance, termination must be without cause and cannot be a result of death or disability. Additionally, severance must be paid if the executive resigns for good reason within one year following a change in control of the Company. As of December 31, 2015, the potential aggregate liability for severance pay under the agreements is $2,075,000 . Royalties on Patented Mining Claims: Two of the Company’s patented mining claims, which cover the Montanore deposit, are burdened by a production payment obligation of $0.20 per ton of ore extracted and milled therefrom. The calculation and timing of the production payment are specifically defined by a Purchase and Sale Agreement.

ORGANIZATION AND SUMMARY OF S19

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 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 does not have sufficient cash to fund normal operations beyond April 2016 without raising additional funds. 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. 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.
Principles of consolidation	b. Principles of consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of Mines Management, Inc., and its wholly ‑owned subsidiaries, Newhi, Inc., Montanore Minerals Corp., Montmin Resources Corp., and Minera Montanore Peru, SAC. Intercompany balances and transactions have been eliminated.
Exploration stage enterprise	c. Exploration stage enterprise The Company is in the exploration stage of operation and devotes substantially all of its efforts to acquiring and exploring mining interests that management believes should eventually provide sufficient net profits to sustain the Company’s existence. Until such interests are engaged in commercial production, the Company will continue to seek additional funding to support the completion of its exploration and development activities. The Company’s activities are subject to significant risks and uncertainties, including its ability to secure sufficient funding to continue operations, to obtain proven and probable reserves, to comply with industry regulations and obtain permits necessary for development of the Montanore project, as well as environmental risks and market conditions.
Cash and cash equivalents	d. Cash and cash equivalents Cash and cash equivalents include cash on hand, cash in banks, investments in certificates of deposit with original maturities of 90 days or less, and money market funds.
Available for sale securities	e. Available for sale securities Available ‑for ‑sale securities are recorded at fair value, with unrealized gains or losses recorded as a component of equity, unless a decline in value of the security is considered other than temporary. Realized gains and losses and other than temporary impairments are recorded in the statement of operations.
Property and equipment	f. Property and equipment Property and equipment are stated at cost less accumulated depreciation. Buildings and leasehold improvements are depreciated on the straight ‑line basis over an estimated useful life of 39 years. Plant and equipment and office equipment are generally depreciated on a straight ‑line basis over estimated useful lives ranging from 5 to 10 years. When assets are retired or sold, the costs and related allowances for depreciation are eliminated from the accounts and any resulting gain or loss is reflected in the statement of operations.
Mining properties, exploration and development costs	g. Mining properties, exploration and development costs All exploration expenditures, including costs to acquire stationary equipment for use in exploration activities that have no significant alternative future use, 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, 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.
Asset impairment	h. Asset impairment The Company evaluates its long ‑lived assets for impairment when events or changes in circumstances indicate that the related carrying amount may not be recoverable. If the sum of estimated future net cash flows on an undiscounted basis is less than the carrying amount of the related asset grouping, asset impairment is considered to exist. The related impairment loss is measured as the amount by which the carrying amount of the asset exceeds its fair value. Changes in significant assumptions underlying future cash flow estimates may have a material effect on the Company’s financial position and results of operations.
Fair value measurements	i. 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.
Asset retirement obligations	j. Asset retirement obligations A liability is recognized for the present value of estimated environmental remediation (asset retirement obligation), in the period in which the liability is incurred if a reasonable estimate of fair value can be made. The offsetting balance is charged to expense as an exploration cost if the liability is incurred during the exploration stage of the related mining project or as an asset if the related mining project is in production. Adjustments are made to the liability for changes resulting from passage of time and changes to either the timing or amount of the original present value estimate underlying the obligation. The Company has an asset retirement obligation associated with its underground evaluation program at the Montanore Project, described more fully in note 6.
Deferred income taxes	k. Deferred income taxes Deferred income tax is provided for differences between the basis of assets and liabilities for financial and income tax reporting. A deferred tax asset, subject to a valuation allowance, is recognized for estimated future tax benefits of tax ‑basis operating losses being carried forward. Uncertain tax positions are evaluated in a two ‑step process, whereby (1) it is determined whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more ‑likely ‑than ‑not recognition threshold, the largest amount of tax benefit that is greater than fifty percent likely to be realized upon ultimate settlement with the related tax authority would be recognized. If income tax related interest and penalties were to be assessed, the Company would charge interest to interest expense, and penalties to general and administrative expense.
Stock based compensation	l. Stock based 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	m. 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 and convertible preferred stock. 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 years ended December 31, 2015 and 2014.
Assumptions and use of estimates	n. Assumptions and use of estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the 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. Significant areas requiring the use of management assumptions and estimates relate to asset impairments, including long ‑lived assets and investments, asset retirement obligations, and valuation of stock based compensation and warrant derivatives. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company’s 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.
Recent accounting pronouncements	o. Recent accounting pronouncements 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 not anticipated to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued a new standard, Leases (ASC 842) . Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than twelve months and to disclose key information about leasing arrangements. This guidance is effective for fiscal years beginning after December 15, 2018. The Company is not able to reasonably estimate the impact on the Company’s consolidated financial statements at this time.
Subsequent events	p. Subsequent events The Company evaluated events and transactions subsequent to the balance sheet date of December 31, 2015, for potential recognition or disclosure in the consolidated financial statements.

AVAILABLE-FOR-SALE SECURITIES (

AVAILABLE-FOR-SALE SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2015
AVAILABLE-FOR-SALE SECURITIES.
Schedule of the Company's available-for-sale securities	December 31, December 31, 2015 2014 Cost $ $ Unrealized Losses Fair Market Value $ $

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Dec. 31, 2015
FAIR VALUE MEASUREMENTS
Schedule of financial assets and liabilities accounted for at fair value on a recurring basis	Balance at Balance at Input December 31, December 31, Hierarchy 2015 2014 Level Assets: Available-for-sale securities $ $ Level 1 Liabilities: Asset retirement obligation $ $ Level 3
Schedule of fair value reconciliation of level 3 liabilities measured at fair value	Asset Retirement Obligation Balance January 1, 2015 $ Accretion expense Balance December 31, 2015 $

ASSET RETIREMENT OBLIGATIONS (T

ASSET RETIREMENT OBLIGATIONS (Tables)	12 Months Ended
	Dec. 31, 2015
ASSET RETIREMENT OBLIGATIONS
Summary of activity in the Company's ARO	Year Ended Year Ended December 31, December 31, 2015 2014 Balance January 1, $ $ Accretion expense Balance December 31, $ $

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 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)	12 Months Ended
	Dec. 31, 2015
STOCK OPTIONS
Summary of stock option activity	Weighted- Weighted- Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Options Price Term Value Outstanding at January 1, 2015 $ Granted $ Forfeited or expired $ Outstanding at December 31, 2015 $ $ Exercisable at December 31, 2015 $ $
Schedule of assumptions used to estimate the fair value of stock options	Years Ended December 31, 2015 2014 Weighted average risk-free interest rate % % Weighted average volatility % % Expected dividend yield — — Weighted average expected life (in years) Weighted average grant-date fair value $ $
Summary of nonvested stock options	Weighted-Average Number of Grant-Date Options Fair Value Nonvested at January 1, 2015 $ Issued $ Vested $ Nonvested at December 31, 2015 $

DEFERRED INCOME TAX (Tables)

DEFERRED INCOME TAX (Tables)	12 Months Ended
	Dec. 31, 2015
DEFERRED INCOME TAX
Schedule of components of net deferred tax assets fully reserved by valuation allowances	Years Ended December 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ $ Stock-based compensation Property and equipment Asset retirement obligation Total deferred tax assets Deferred tax liabilities: Property and equipment Net deferred tax asset before valuation allowance Less valuation allowance Net deferred tax assets $ — $ —

COMMITMENTS (Tables)

COMMITMENTS (Tables)	12 Months Ended
	Dec. 31, 2015
COMMITMENTS
Schedule by years of future minimum rental payments required under operating leases	Years ending December 31: 2016 $ 2017 2018 Total minimum payments required $

ORGANIZATION AND SUMMARY OF S27

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	12 Months Ended
	Dec. 31, 2015
Building and leasehold improvements
Property and equipment
Estimated useful lives	39 years
Plant and equipment and office equipment | Minimum
Property and equipment
Estimated useful lives	5 years
Plant and equipment and office equipment | Maximum
Property and equipment
Estimated useful lives	10 years

MINING PROPERTIES (Details)

MINING PROPERTIES (Details)	12 Months Ended
	Dec. 31, 2015aitem
Montanore
MINING PROPERTIES
Number of patented mining properties | item	10
Number of unpatented mining properties | item	861
Advance
MINING PROPERTIES
Area of property (in acres) | a	720
Iroquois
MINING PROPERTIES
Patented area of property (in acres) | a	62

CERTIFICATES OF DEPOSIT (Detail

CERTIFICATES OF DEPOSIT (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
CERTIFICATES OF DEPOSIT:
Reclamation deposits	$ 1,184,966	$ 1,184,966
Certificates of deposit renewed and maturing on January 3, 2014
CERTIFICATES OF DEPOSIT:
Reclamation deposits		1,124,055
Certificates of deposit renewed and maturing on January 3, 2017
CERTIFICATES OF DEPOSIT:
Certificate of deposit value	$ 1,124,055
Interest rate (as a percent)	0.15%
Certificates of deposit maturing on January 3, 2016
CERTIFICATES OF DEPOSIT:
Certificate of deposit value	$ 1,124,055	$ 1,124,055
Interest rate (as a percent)	0.40%

AVAILABLE-FOR-SALE SECURITIES30

AVAILABLE-FOR-SALE SECURITIES (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
AVAILABLE-FOR-SALE SECURITIES.
Cost	$ 11,165	$ 11,165
Unrealized Losses	(10,190)	(8,698)
Fair Market Value	$ 975	$ 2,467

FAIR VALUE MEASUREMENTS - fair

FAIR VALUE MEASUREMENTS - fair value on a recurring basis (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
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	975	$ 2,467
Liabilities:
Asset retirement obligation	528,250	503,279	$ 479,488
Recurring basis | Level 1
Assets:
Available-for-sale securities	975	2,467
Recurring basis | Level 3
Liabilities:
Asset retirement obligation	$ 528,250	$ 503,279

FAIR VALUE MEASUREMENTS - fai32

FAIR VALUE MEASUREMENTS - fair value reconciliation of Level 3 liabilities (Details) - Asset Retirement Obligation	12 Months Ended
	Dec. 31, 2015USD ($)
Fair value reconciliation of level 3 liabilities measured at fair value
Balance at the beginning of the period	$ 503,279
Accretion expense	24,971
Balance at the end of the period	$ 528,250

ASSET RETIREMENT OBLIGATIONS (D

ASSET RETIREMENT OBLIGATIONS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
ASSET RETIREMENT OBLIGATIONS
Credit adjusted risk-free interest rate used to discount estimated reclamation costs (as a percent)	4.78%
Estimated retirement obligation term	25 years
Summary of activity in the ARO
Balance at the beginning of the period	$ 503,279	$ 479,488
Accretion expense	24,971	23,791
Balance at the end of the period	$ 528,250	$ 503,279

CONCENTRATION OF CREDIT RISK (D

CONCENTRATION OF CREDIT RISK (Details) - Cash and cash equivalents - Concentration of credit risk	12 Months Ended
	Dec. 31, 2015USD ($)item
CONCENTRATION OF CREDIT RISK:
Number of financial institutions | item	1
Uninsured bank deposit balance | $	$ 2,200,000

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details)	Nov. 02, 2007USD ($)itemshares	Jul. 31, 2014USD ($)item$ / sharesshares	Dec. 31, 2015$ / sharesshares	Dec. 31, 2014$ / sharesshares	Dec. 31, 2013$ / shares	Dec. 31, 2012$ / shares
Preferred Stock and Common Shares:
Common stock, par value (in dollars per share) | $ / shares			$ 0.001	$ 0.001
Preferred Shares:
Preferred stock, dividend rate (as a percent)			6.00%	6.00%
Authorized preferred shares			10,000,000	10,000,000
Preferred stock, stated value (in dollars per share) | $ / shares			$ 1,000	$ 1,000
Number of units sold or outstanding			3,526	3,526
Maximum
Preferred Shares:
Preferred stock, dividend rate (as a percent)			18.00%
Convertible Preferred Stock
Preferred Stock and Common Shares:
Issue price (in dollars per share) | $ / shares		$ 1,000
Common stock issued at conversion of preferred stock, shares			474
Preferred Shares:
Number of investor | item		1
Preferred stock, par value (in dollars per share) | $ / shares					$ 0	$ 0
Number of units sold or outstanding		4,000
Issue price (in dollars per share) | $ / shares		$ 1,000
Gross proceeds before offering expenses | $		$ 4,000,000
Net proceeds after deducting other offering expenses | $		$ 3,500,000
Warrants
Warrants:
Number of shares of common stock that can be purchased on exercise of each warrant			636
Number of shares associated with a specific exercise price per share and expiration date			4,000
Exercise Price (in dollars per share) | $ / shares			$ 1.0816
Common Stock
Preferred Stock and Common Shares:
Common stock issued at conversion of preferred stock, shares		1,271	602,592
Conversion price per share of common stock (in dollars per share) | $ / shares		$ 0.7866
Private placement 2007 transaction | Common Stock
Preferred Stock and Common Shares:
Number of shares issued or sold	2,500,000
Number of investors | item	1
Period time of right of first proposal and a right to match third-party proposals	20 years
Upfront payments received for ROFR not applying to trade sales and spot sales | $	$ 0

STOCK OPTIONS (Details)

STOCK OPTIONS (Details)	12 Months Ended
	Dec. 31, 2015USD ($)item$ / sharesshares	Dec. 31, 2014USD ($)$ / sharesshares
Stock options
Number of equity incentive plans | item	4
Number of Options
Outstanding at the beginning of the period (in shares)	4,876,000
Granted (in shares)	770,000
Forfeited or expired (in shares)	(539,000)
Outstanding at the end of the period (in shares)	5,107,000	4,876,000
Exercisable at the end of the period (in shares)	4,117,000
Weighted-Average Exercise Price
Outstanding at the beginning of the period (in dollars per share) | $ / shares	$ 1.31
Granted (in dollars per share) | $ / shares	0.28
Forfeited or expired (in dollars per share) | $ / shares	2.48
Outstanding at the end of the period (in dollars per share) | $ / shares	0.57	$ 1.31
Expired (in dollars per share) | $ / shares		$ 0.90
Outstanding and exercisable at the end of the period (in dollars per share) | $ / shares	$ 0.61
Weighted-Average Remaining Contractual Term
Outstanding at the end of the period	2 years 9 months 4 days
Exercisable at the end of the period	2 years 2 months 23 days
Aggregate Intrinsic Value
Outstanding at the end of the period | $	$ 701,320
Exercisable at the end of the period | $	$ 325,120
Assumptions used to estimate the fair value of stock options
Weighted average risk-free interest rate (as a percent)	0.65%	0.95%
Weighted average volatility (as a percent)	80.88%	69.00%
Weighted average expected life (in years)	2 years	3 years
Weighted-average grant-date fair value (in dollars per share) | $ / shares	$ 0.12	$ 0.32
Granted (in shares)	770,000
Exercised (in shares)	0	237,000
Total intrinsic value | $		$ 88,724
Number of Options
Nonvested at the beginning of the period (in shares)	900,000
Issued (in shares)	640,000
Vested (in shares)	(550,000)
Nonvested at the end of the period (in shares)	990,000	900,000
Weighted-Average Grant-Date Fair Value
Nonvested at the beginning of the period (in dollars per share) | $ / shares	$ 0.28
Vested (in dollars per share) | $ / shares	0.31
Issued (in dollars per share) | $ / shares	0.12
Nonvested at the end of the period (in dollars per share) | $ / shares	$ 0.16	$ 0.28
Disclosures for share-based compensation cost
Unrecognized compensation expense related to nonvested share-based compensation arrangements | $	$ 46,545
Total compensation costs recognized for stock-based employee compensation awards | $	263,864	$ 300,643
Costs recognized for stock-based compensation awards for services performed by outside parties | $	0	9,196
Cash received from options exercised | $	$ 0	$ 177,750
Maximum
Stock options
Contractual term	10 years
Disclosures for share-based compensation cost
Expected weighted-average period of recognition of unrecognized compensation cost related to nonvested share-based compensation arrangements	1 year
Minimum
Stock options
Option exercise price as percentage of fair market value per share on the date of grant	100.00%
2012 Plan
Stock options
Shares authorized for grant under the plans	3,000,000
Number of participants eligible to be granted more than 200,000 common shares during any calendar year | item	0
Maximum number of shares to grant a participant in a calendar year	200,000
2003 Stock Option Plan
Stock options
Shares authorized for grant under the plans	3,000,000
Unissued shares of common stock	700,000
2007 Plan
Stock options
Shares authorized for grant under the plans	3,000,000
Maximum number of shares to grant a participant in a calendar year	500,000

DEFERRED INCOME TAX - component

DEFERRED INCOME TAX - components of deferred tax assets and liabilities (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Deferred tax assets:
Net operating loss carryforwards	$ 25,220,000	$ 24,270,000
Stock-based compensation	390,000	480,000
Property and equipment	1,250,000	1,250,000
Asset retirement obligation	180,000	170,000
Total deferred tax assets	27,040,000	26,170,000
Deferred tax liabilities:
Property, plant and equipment	240,000	210,000
Net deferred tax asset before valuation allowance	26,800,000	25,960,000
Less valuation allowance	$ (26,800,000)	$ (25,960,000)

DEFERRED INCOME TAX - net opera

DEFERRED INCOME TAX - net operating loss carryforwards (Details)	Dec. 31, 2015USD ($)
Federal
Operating loss carryforwards
Net operating loss carryforwards	$ 74,200,000

COMMITMENTS (Details)

COMMITMENTS (Details)	12 Months Ended
	Dec. 31, 2015USD ($)item$ / item
Operating Leases
2,016	$ 11,500
2,017	3,100
2,018	1,600
Total minimum payments required	16,200
Employment Agreements | Executive officers
Loss Contingencies [Line Items]
Potential aggregate liability for severance pay	$ 2,075,000
Employment Agreements | Executive officers | Maximum
Loss Contingencies [Line Items]
Resignation period following a change in control of the company resulting in additional severance payment	1 year
Royalties on patented mining claims | Montanore
Loss Contingencies [Line Items]
Number of patented mining claims burdened by a production payment obligation | item	2
Production payment obligation per ton of ore extracted and milled therefrom (in dollars per ton) | $ / item	0.20