Santa Fe Gold (SFEG) 10-Q 25 Jan 18 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2016	Jan. 19, 2018
Details
Registrant Name	SANTA FE GOLD CORPORATION
Registrant CIK	851,726
SEC Form	10-Q
Period End date	Dec. 31, 2016
Fiscal Year End	--06-30
Trading Symbol	SFEG
Tax Identification Number (TIN)	841,094,315
Number of common stock shares outstanding		271,936,273
Filer Category	Smaller Reporting Company
Current with reporting	Yes
Voluntary filer	No
Well-known Seasoned Issuer	No
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Contained File Information, File Number	001-12974
Entity Incorporation, State Country Name	Delaware
Entity Address, Address Line One	PO Box 25201
Entity Address, City or Town	Albuquerque
Entity Address, State or Province	NM
Entity Address, Postal Zip Code	87,125

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2016	Jun. 30, 2016
CURRENT ASSETS:
Cash and cash equivalents	$ 3,218	$ 2,815
Prepaid expenses and other current assets	7,694	4,475
Total Current Assets	10,912	7,290
Mine equipment, net of accumulated depreciation of $962	10,578	0
Total Assets	21,490	7,290
CURRENT LIABILITIES:
Accounts payable	3,596,435	3,710,931
Accrued liabilities	6,269,206	6,793,984
Derivative instrument liabilities	360,725	306,488
Senior subordinated convertible notes payable, net of unamortized discount of $45,699 and $161,814, respectively	3,305,813	3,392,435
Notes payable, current portion	2,363,885	2,363,885
Completion guarantee payable	3,359,873	3,359,873
Total Current Liabilities	19,255,937	19,927,596
STOCKHOLDERS' DEFICIT:
Common stock, $.002 par value, 300,000,000 shares authorized; 245,976,024 and 221,799,662 shares issued and outstanding, respectively	491,951	443,599
Additional paid-in capital	80,899,159	80,033,944
Accumulated deficit	(100,625,557)	(100,397,849)
Total Stockholders' Deficit	(19,234,447)	(19,920,306)
Total Liabilities and Stockholders' Deficit	$ 21,490	$ 7,290

CONSOLIDATED BALANCE SHEETS - P

CONSOLIDATED BALANCE SHEETS - Parenthetical - USD ($)	Dec. 31, 2016	Jun. 30, 2016
Details
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	$ 962
Debt Instrument, Unamortized Discount, Current	$ 45,699	$ 161,814
Common Stock, Par or Stated Value Per Share	$ 0.002	$ 0.002
Common Stock, Shares Authorized	300,000,000	300,000,000
Common Stock, Shares, Issued	245,976,024	221,799,662
Common Stock, Shares, Outstanding	245,976,024	221,799,662

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Details
SALES, net	$ 0	$ 4,235	$ 0	$ 6,250
OPERATING COSTS AND EXPENSES:
Exploration and other mine related costs	39,974	188,293	57,397	302,751
General and administrative	467,746	241,768	801,539	551,402
Depreciation and amortization	577	431,408	962	875,279
Reorganization costs	0	538,390	0	755,593
Total Operating Costs and Expenses	508,297	1,399,859	859,898	2,485,025
LOSS FROM OPERATIONS	(508,297)	(1,395,624)	(859,898)	(2,478,775)
OTHER INCOME (EXPENSE):
Gain on trust debt extinguishment	472,831	0	472,831	0
Gain on debt extinguishment	0	0	14,599	0
Foreign currency translation (loss) gain	210,695	(125,313)	101,554	162,772
Gain (loss) on derivative instrument liabilities	326,994	3,196	(54,237)	1,161,769
Financing costs - commodity supply agreements	655,031	209,779	648,540	432,482
Finance charges	0	0	0	(74,458)
Interest expense	(254,588)	(751,758)	(551,097)	(1,564,579)
Total Other Income (Expense)	1,410,963	(664,096)	632,190	117,986
GAIN (LOSS) BEFORE PROVISION FOR INCOME TAXES	902,666	(2,059,720)	(227,708)	(2,360,789)
PROVISION FOR INCOME TAXES	0	0	0	0
Net loss	$ 902,666	$ (2,059,720)	$ (227,708)	$ (2,360,789)
Basic and Diluted Per Share Data
Net income (loss) - basic	$ 0	$ (0.01)	$ 0	$ (0.01)
Net Income (loss) - diluted	$ 0	$ (0.01)	$ 0	$ (0.01)
Weighted Average Common Shares Outstanding:
Basic	257,870,297	189,842,914	234,829,423	173,456,332
Diluted	317,948,027	189,842,914	234,829,423	173,456,332

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (227,708)	$ (2,360,789)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	962	875,279
Stock issued for services	464,587	66,400
Amortization of discount on notes payable	116,115	176,101
Financing costs - commodity supply agreements	(648,540)	(432,482)
Non-cash financing costs	0	74,458
(Gain) loss on derivative instrument liabilities	54,237	(1,161,769)
(Gain) on debt extinguishment	(14,599)	0
Gain on trust debt extinguishment	(472,831)	0
Foreign currency translation	(101,554)	(162,772)
Net change in operating assets and liabilities:
Accounts receivable	0	34,833
Prepaid expenses and other current assets	(3,219)	(48,822)
Accounts payable and accrued liabilities	498,513	1,600,077
Net Cash Used in Operating Activities	(334,037)	(1,339,486)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment	(11,540)	0
Cash Used Investing Activities	(11,540)	0
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from DIP funding	0	1,713,184
Proceeds from common stock purchases	224,490	0
Proceeds from exercise of warrants	224,490	0
Payment of DIP funding	0	(283,363)
Payments on convertible debt	(103,000)	0
Net Cash Provided by Financing Activities	345,980	1,429,821
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	403	90,335
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	2,815	69,305
CASH AND CASH EQUIVALENTS, END OF PERIOD	3,218	159,640
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	0	0
Cash paid for income taxes	$ 0	$ 0
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Common stock issued for convertible notes and accrued interest conversion	0	146,848
Discount on note payable	$ 0	$ 98,091
Resolution of derivative liability upon conversion	0	90,081
Common stock returned and cancelled	$ 45,828	$ 0

NOTE 1 - BASIS OF PRESENTATION

NOTE 1 - BASIS OF PRESENTATION AND GOING CONCERN	6 Months Ended
	Dec. 31, 2016
Notes
NOTE 1 - BASIS OF PRESENTATION AND GOING CONCERN	NOTE 1 - Basis of Presentation and GOING CONCERN Santa Fe Gold Corporation, a Delaware corporation (the "Santa Fe" or "Company") is a U.S. copper, silver and gold exploration and mining company. The accompanying unaudited financial statements and related notes present the Company’s consolidated financial position as of December 31, 2016 and June 30, 2016, the consolidated results of operations for the three and six months ended December 31, 2016 and 2015, consolidated cash flows for the six months ended December 31, 2016 and 2015. The unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended December 31, 2016, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2017. The accounting policies followed by the Company are set forth in Note 2 to the Company’s financial statements included in Form 10-K for the fiscal year ended June 30, 2016. These interim financial statements and notes thereto should be read in conjunction with the consolidated financial statements presented in the Company’s 2016 Annual Report on Form 10-K filed on November 14, 2017. Nature of Operations Santa Fe Gold Corporation (the “Company”, “our” or “we”) is a U.S. mining company incorporated in Delaware in August 1991. Our general business strategy is to acquire, explore, develop and mine mineral properties. The Company elected on August 26, 2015, to file for Chapter 11 Bankruptcy protection, Case # 15-11761 (MFW) and that case was dismissed on June 15, 2016. The Summit Silver-Gold Project, the Lordsburg Copper Project, Black Canyon Mica Project, Planet MIO Project, all claims and other assets were lost in the process. As the Company emerged from the bankruptcy we had a management team of two with no assets. The Company is in the process of raising equity funds to acquire new mining claims, a potential processing plant or arrangements with a processing plant in an acceptable geographic location to potential new mining claims. Basis of Presentation and Going Concern The financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. Should the Company be unable to continue as a going concern, it may be unable to realize the carrying value of its assets and to meet its liabilities as they become due. The Company has incurred a loss of $227,708 for the six months ended December 31, 2016, and has a total accumulated deficit of $100,625,557 and a working capital deficit at December 31, 2016 of $19,256,388. The Company currently has no source of generating revenue. On August 26, 2015 Santa Fe filed for Chapter 11 Bankruptcy protection, Case # 15-11761 (MFW) in Delaware. With the dismissal of our bankruptcy case in June 15, 2016, all assets of the Company were sold. These conditions raise substantial doubt regarding the Company’s ability to continue as a going concern. To continue as a going concern, the Company is dependent on continued capital financing for project development, repayment of various debt facilities and payment of current operating expenses until the Company has acquired new mining claims and an acceptable source to process the mineralized ore to generate revenue. We have no commitment from any party to provide additional working capital and there is no assurance that any funding will be available as required, or if available, that its terms will be favorable or acceptable to the Company. On December 31, 2016, the Company was in default on payments of approximately $6.92 million under a gold stream agreement (the “Gold Stream Agreement”) with Sandstorm Gold Ltd. (“Sandstorm”).

NOTE 2 - SUMMARY OF SIGNIFICANT

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Dec. 31, 2016
Notes
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries AZCO Mica, Inc., a Delaware corporation, The Lordsburg Mining Company, a New Mexico corporation, and Santa Fe Gold Barbados Corporation, a Barbados corporation and Santa Fe Acquisitions Company, a New Mexico Limited Liability Company. All significant inter-company accounts and transactions have been eliminated in consolidation Reclassifications Certain items in these consolidated financial statements have been reclassified to conform to the current year's presentation. Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates under different assumptions or conditions. Significant estimates are used when accounting for the Company's carrying value of mineral properties, fixed assets, depreciation and amortization, accruals, derivative instrument liabilities, taxes and contingencies, and stock-based compensation which are discussed in the respective notes to the consolidated financial statements. Fair Value Measurements The carrying values of cash and cash equivalents, accounts payable and accrued liabilities approximated their related fair values as of December 31, 2016, and June 30, 2016, due to the relatively short-term nature of these instruments. The carrying value of the Company's convertible notes payable approximates the fair value based on the terms at which the Company could obtain similar financing and the short-term nature of these instruments. Cash and Cash Equivalents The Company considers all liquid investments purchased with an initial maturity of three months or less to be cash equivalents. The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash balances. Derivative Financial Instruments The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company reviews the terms of convertible debt, equity instruments and other financing arrangements to determine whether there are embedded derivative instruments, including embedded conversion options that are required to be bifurcated and accounted for separately as a derivative financial instrument. Also, in connection with the issuance of financing instruments, the Company may issue freestanding options or warrants that may, depending on their terms, be accounted for as derivative instrument liabilities, rather than as equity. The Company may also issue options or warrants to non-employees in connection with consulting or other services. Derivative financial instruments are initially measured at their fair value. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported as charges or credits to income. To the extent that the initial fair values of the freestanding and/or bifurcated derivative instrument liabilities exceed the total proceeds received, an immediate charge to income is recognized as a one day derivative loss, in order to initially record the derivative instrument liabilities at their fair value. The discount from the face value of the convertible debt or equity instruments resulting from allocating some or all of the proceeds to the derivative instruments, together with the stated interest on the instrument, is amortized over the life of the instrument through periodic charges to income, using the effective interest method. When required to arrive at the fair value of derivatives associated with the convertible note and warrants, a Monte Carlo model is utilized that values the Convertible Note and Warrant based on average discounted cash flow factoring in the various potential outcomes by a Chartered Financial Analyst (‘CFA”). In determining the fair value of the derivatives the CFA assumed that the Company’s business would be conducted as a going concern. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is reassessed at the end of each reporting period. If reclassification is required, the fair value of the derivative instrument, as of the determination date, is reclassified. Any previous charges or credits to income for changes in the fair value of the derivative instrument are not reversed. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within twelve months of the balance sheet date. Net Income (Loss) Per Share Basic earnings (loss) per share are calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings per share are calculated by dividing net income (loss) by the weighted average number of common shares and dilutive common stock equivalents outstanding. During the periods when they are anti-dilutive, common stock equivalents, if any, are not considered in the computation. For the three months ended December 31, 2015 and six months ended December 31, 2016 and 2015, the impact of outstanding stock equivalents has not been included as they would be anti-dilutive. For the three months ended December 31, 2016, diluted earnings per share is disclosed below: A reconciliation of the weighted average shares outstanding used in the basic and diluted earnings per share (“EPS”) computation is as follows: Net Income (Numerator) Weighted Average Common Shares (Denominator) Per Share Amount For the three months ended December 31, 2016 Basic EPS Income available to common stockholders $ 902,666 257,870,297 $ 0.00 Diluted EPS Gain on derivatives (81,996 ) Gain on foreign currency translation (210,695 ) Interest expense on convertible notes 115,506 Dilutive effect of convertible notes - 60,077,730 Income available to common stockholders plus assumed conversions $ 725,481 317,948,027 $ 0.00 Dilutive potential common shares consist convertible notes. The number of stock options excluded from the calculation of diluted earnings per share for the three months ended December 31, 2016 was 475,000 and excluded warrants was 9,693,464, because their inclusion would have been anti-dilutive. Stock-Based Compensation In connection with terms of employment with the Company’s executives and employees, the Company occasionally issues options to acquire its common stock. Awards are made at the discretion of the Board of Directors. Such options may be exercisable at varying exercise prices and generally vest over a period of six months to a year. The Company accounts for share based compensation on the grant date fair value of the award. The Company estimates the fair value of the award using the Black-Scholes option pricing model for valuation of the share-based payments. The Company believes this model provides the best estimate of fair value due to its ability to incorporate inputs that change over time, such as volatility and interest rates, and to allow for actual exercise behavior of option holders. The compensation cost is recognized over the expected vesting period. Share based payments to nonemployees are valued at the earlier or a commitment date or completion of services. Accounting Standards to be Adopted in Future Periods Recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the SEC did not, or are not believed by management to, have a material impact on the Company's present or future financial position, results of operations or cash flows.

NOTE 3 - ACCRUED LIABILITIES

NOTE 3 - ACCRUED LIABILITIES	6 Months Ended
	Dec. 31, 2016
Notes
NOTE 3 - ACCRUED LIABILITIES	Note 3 - Accrued liabilities consist of the following at December 31, 2016 and June 30, 2016: December 31, June 30, 2016 2016 Interest $ 2,692,892 $ 2,589,993 Vacation 15,771 15,771 Deferred and accrued payroll burden 223,569 239,262 Franchise taxes 8,695 8,695 Merger costs, net 269,986 269,986 Other 18,135 19,578 Audit 20,000 20,000 Commodity supply agreement 2,766,635 3,415,175 Property taxes 253,523 215,524 $ 6,269,206 $ 6,793,984

NOTE 4 - DERIVATIVE INSTRUMENT

NOTE 4 - DERIVATIVE INSTRUMENT LIABILITIES	6 Months Ended
	Dec. 31, 2016
Notes
NOTE 4 - DERIVATIVE INSTRUMENT LIABILITIES	NOTE 4 - DERIVATIVE INSTRUMENT LIABILITIES The fair market value of the derivative instruments liabilities were determined utilizing the Black-Scholes option pricing model for warrants and certain convertible notes and to arrive at the fair value of derivatives associated with certain other convertible notes, a Monte Carlo model was utilized that values the Convertible Notes based on average discounted cash flow factoring in the various potential outcomes. In determining the fair value of the derivatives it was assumed that the Company’s business would be conducted as a going concern at December 31, 2016. Utilizing the two methods, the aggregate fair value of the derivative instruments liability was determined to be $360,725 as of December 31, 2016. The following assumptions were utilized in the Black-Scholes option pricing model: (1) risk free interest rate of 0.1631% to 1.27%, (2) remaining contractual life of 0.03 to 2.26 years, (3) expected stock price volatility of 104% to 463%, and (4) expected dividend yield of zero. The following assumptions were utilized in the Monte Carlo model: (1) features in the note that were analyzed and incorporated into the model included the conversion feature with the reset provisions, (2) redemption provisions and the default provisions, (3) there are four primary events that can occur; payments are made in cash; payments are made with stock; the Holder converts the note; or the Company defaults on the note,(4) stock price of $0.0009 to $0.176 was utilized, (5) notes convert with variable conversion prices based on the lesser range from of $0.0425 or $0.125 or a fixed rate of 60% or 65% of either the low 20 or 25 TD, depending on the lender and (6) annual volatility for each valuation period was based on the historic volatility of the Company of 93%-99%. Based upon the change in fair value, the Company has recorded a non-cash loss on derivative instruments for the six months ended December 31, 2016, of $54,237. The table below shows the loss on the derivative instruments liability for the six months ended December 31, 2016. Derivative Derivative Valuation Change Liability as of Liability as of for the six months ended June 30, 2016 December 31, 2016 December 31, 2016 Purchase Agreement Warrants and Convertible Debt $ 306,488 $ 360,725 $ (54,237) Loss on Derivatives $ (54,237) The entire amount of derivative instrument liabilities are classified as current due to the fact that settlement of the derivative instruments could be required within twelve months of the balance sheet date.

NOTE 5 - COMPLETION GUARANTEE P

NOTE 5 - COMPLETION GUARANTEE PAYABLE	6 Months Ended
	Dec. 31, 2016
Notes
NOTE 5 - COMPLETION GUARANTEE PAYABLE	Note 5 - COMPLETION GUARANTEE PAYABLE At June 30, 2012, the Company calculated the completion guarantee payable provided by Amendment 1 noted on the Company’s June 30, 2016 10-K. Based upon the provisions of the Agreement and the related completion guarantee test, incremental financing charges totaling $504,049 were recognized in Other Expenses and accrued at June 30, 2012. These accrued charges, combined with the remaining uncredited liability totaled $3,359,873 at December 31, 2016 and June 30, 2016, respectively, and are reported as completion guarantee payable and is due and in default due to the bankruptcy.

NOTE 6 - CONVERTIBLE NOTES PAYA

NOTE 6 - CONVERTIBLE NOTES PAYABLE	6 Months Ended
	Dec. 31, 2016
Notes
NOTE 6 - CONVERTIBLE NOTES PAYABLE	Note 6 - CONVERTIBLE NOTES PAYABLE Senior Subordinated Convertible Notes On October 30, 2007, the Company completed the placement of 10% Senior Subordinated Convertible Notes of $450,000. The notes were placed with three accredited investors for $150,000 each and bear interest at 10% per annum. The notes had term of 60 months at which time all remaining principal and interest was due. Interest accrued for 18 months from the date of closing. Interest on the outstanding principal balance was payable in quarterly installments commencing on the first day of the 19th month following the transaction closing. In connection with the transaction, the Company issued a five year warrant for each $2.50 invested, for a total of 180,000 warrants, each warrant giving the note holder the right to purchase one share of common stock at a price of $1.25 per share. All issued warrants have expired. At the option of the holders of the convertible notes, the outstanding principal and interest was convertible at any time into shares of the Company’s common stock at conversion price of $1.25 per share. The notes were to be automatically converted into common stock if the weighted average closing sales price of the stock exceeded $2.50 per share for ten consecutive trading days. The shares underlying the notes are to be registered on request of the note holders, provided the weighted average closing price of the stock exceeds $1.50 per share for ten consecutive trading days. On October 31, 2012, the notes with the three accredited investors became due and payable. On January 15, 2013, the maturity dates for the convertible senior subordinated notes aggregating $450,000 were extended for a period of two years from the original maturity date. Additionally, the convertible price of the notes was reduced to $0.40 and the automatic conversion price of $2.50 was reduced to $0.80. In connection with the extension of the notes, 562,500 warrants were issued with a strike price of $0.40 and term of two years from the original maturity dates and have expired. As of December 31 and June 30, 2016, the outstanding principal balance was $450,000 and accrued interest on the senior subordinated convertible notes, was $145,438 and $144,500, respectively and are in default. In December 2016 the court administered trust paid and aggregate $23,000 to the note holders and was applied against the accrued interest on the notes. In March 2017 the three accredited investors reached an agreement with the Company for an aggregate cash settlement of $13,500 on all the outstanding principles and accrued interest as payment in full. The settlement amount was paid by according to the terms of the settlement in April 2017. Convertible Secured Notes In October and November 2012, the Company received advances totaling A$3,900,000 (A$ - Australia dollars), representing cash proceeds of $3,985,000, from International Goldfields Limited (ASX: IGS) in fulfillment of an important condition of the Binding Heads of Agreement dated October 8, 2012 between the Company and IGS. The funds were advanced by way of two secured convertible notes. The convertible notes bear interest at a rate of 6% per annum, have a three-year term, and were secured by the Company’s contractual rights to the Mogollon property. The Company has the right to prepay the notes at any time without any premium or penalty. Should the Company fail to repay the notes on the maturity date or should an event of default occur, then IGS may choose to have the outstanding amounts repaid in the Company’s shares at a conversion rate equal to the daily volume weighted average sales price for the twenty trading days immediately preceding the date of conversion. The conversion price at December 31, 2016, was approximately $0.05 per share. On October 31, 2015, the note became convertible and the CFA computed an embedded conversion option and is separated from the Note and accounted for as a derivative instrument at fair value and discount to the Note and is expensed over the life of the Note under the effective interest method. The initial carrying value of the embedded conversion option was $98,091. During the year ended June 30, 2016, amortization of loan discount was recognized as interest expense of $48,251 and during the six months ended December 31, 2016, amortization of loan discount recognized as interest expense was $36,295 and unamortized discount balance was $13,545 at December 31, 2016.On December 31 and June 30, 2016, the total outstanding principal balance on the IGS Secured Convertible Note totaled $2,818,179 and $2,903,316, respectively, and accrued interest was $540,789 and $642,624, respectively. The note is currently due and in default at December 31, 2016. In December 2016 the court administered trust paid $174,507 to the note holder and was applied against the accrued interest on the note. IGS never submitted a conversion notice and in March 2017 reached an agreement with the Company for a cash settlement of $88,283 on the outstanding principle and accrued interest as payment in full. The settlement amount was paid by wire transfer in April 2017. Convertible Unsecured Notes On October 22, 2014, the Company signed a $500,000 Convertible Note with an accredited investor and received a consideration of net proceeds $75,000, net an original issue discount (“OID) of $8,333. The Consideration on the Note has a Maturity date of two years from the Effective Date and has a 10% OID component attached to it. The Company may repay the Consideration at any time on or before 120 days from the Effect Date and there would be no interest due on the Consideration. If the Company does not repay a Consideration on or before 120 days from its Effective Date, a one- time interest charge of 12% shall be applied to the principal sum. If the Company does not pay a Consideration prior to the 120-day period, the Company may not make further payments on this Note prior to Maturity Date without written approval from the Investor. The Investor may pay additional Consideration to the Company in such amounts and at such dates as the Investor may choose in its sole discretion. During the fiscal year ended June 30, 2015, the investor converted note principle of $68,900 into 1,800,000 shares of restricted common stock. During the fiscal year ended June 30, 2016, the investor converted the balance of the note principle and added interest charges of $24,433 into 916,078 shares of restricted common stock. The original consideration contains an embedded conversion option and is separated from the Note and accounted for as a derivative instrument at fair value and discount to the Note and is expensed over the life of the Note under the effective interest method. During the fiscal year ended June 30, 2016, amortization of loan discount was recognized as interest expense of $20,185. On February 25, 2015, a second consideration tranche of $50,000 was delivered under this Convertible Note under the same terms and conditions, net of and OID charge of $5,556. The tranche consideration contains an embedded conversion option and is separated from the Note and accounted for as a derivative instrument at fair value and discount to the Note and is expensed over the life of the Note under the effective interest method. During the fiscal year ended June 30, 2016, amortization of loan discount was recognized as interest expense of $60,973. During the fiscal year ended June 30, 2016, the investor converted principle and added interest charges aggregating $62,223 into 27,522,855 shares of restricted common stock. During the six months ended December 31, 2015, the Company recorded $90,081 as resolution of derivative liability upon note conversions back into Additional Paid In Capital. On June 24, 2015, a third Consideration tranche of $50,000 was delivered under this Convertible Note under the same terms and conditions, net of and OID charge of $5,556. The tranche consideration contains an embedded conversion option and is separated from the Note and accounted for as a derivative instrument at fair value and discount to the Note and is expensed over the life of the Note under the effective interest method. During the fiscal years ended June 30, 2016, $6,666 was added to the note principle and note discount and amortization of the loan discount was recognized as interest expense of $5,541 for the fiscal year ended June 30, 2016. No note conversions were made on the note during the fiscal years ended June 30, 2016 and 2015. During fiscal year ended June 30, 2016, $31,111 in default charges was added to the note balance. At December 31, 2016 and June 30, 2016 the note balance was $83,333 and $93,333 respectively, and amortization of the loan discount was recognized as interest expense of $23,934 for the six months ended December31, 2016 and the unamortized loan discount balance as of December 31 and June 30, 2016, was $32,154 and $56,088, respectively. The conversion price with this investor is the lesser of $0.0425 or 65% of the lowest trade price in the 25 trading days previous to the conversion date. At December 31, 2016, the third note tranche had a conversion price of $0.01625. Subsequent to December 31, 2016, the note was not converted and was retired for $80,000 in installments, the final installment made on January 25, 2017. On January 20, 2015 the Company signed a $250,000 Convertible Note with an accredited Investor and received on January 20, 2015, a consideration of net proceeds $50,000, net of an OID of $5,556. The consideration on the Note has a Maturity date of two years from payment of each consideration and has a 10% OID component attached to it. A one- time interest charge of 12% is applied to the principal sum on the on the date of the consideration. The Note principal and interest shall be paid at Maturity date or sooner as provided within the Note and conversion provisions. The Investor may pay additional consideration to the Company in such amounts and at such dates as the Investor may choose in its sole discretion. The tranche consideration contains an embedded conversion option and is separated from the Note and accounted for as a derivative instrument at fair value and discount to the Note and is expensed over the life of the Note under the effective interest method. On June 9, 2015, a second Consideration tranche of $50,000 was delivered under this Convertible Note under the same terms and conditions, net of an original issue discount (“OID) of $5,556. The tranche consideration contains an embedded conversion option and is separated from the Note and accounted for as a derivative instrument at fair value and discount to the Note and is expensed over the life of the Note under the effective interest method. During the fiscal year ended June 30, 2016, amortization of loan discounts on the two notes was recognized as interest expense of $66,388. During the fiscal year ended June 30, 2016, the investor converted the note principle and added interest charges of $60,192 under the first consideration into 18,007,333 shares of restricted common stock. During the fiscal year ended June 30, 2016, penalties and default charges of $43,347 were added to the two note balances. At December 31 and June 30, 2016, the note balances were $-0- and $107,599, respectively and the unamortized loan discounts were $0 and $55,445, respectively. During the six months ended December 31, 2016, amortization of the loan discount recognized as interest expense was $55,445. The conversion price with this investor is the lesser of $0.125 or 60% of the lowest trade price in the 25 trading days previous to the conversion date. At June 30, 2016, the two note tranches had aggregated outstanding principal $107,599 and had a conversion price of $0.0003. During the six months ended December 31, 2016, the note was not converted and was retired for $93,000 in installments, the final installment made on September 6, 2016. The transaction resulted in recognition of a gain on extinguishment of debt of $14,599. The components of the unsecured convertible notes payable are as follows: Principal Unamortized December 31, 2016: Amount Discount Net Current portion $ 3,551,512 $ (45,699) $ 3,305,813 Principal Unamortized June 30, 2016: Amount Discount Net Current portion $ 3,554,249 $ (161,814) $ 3,392,435

NOTE 7 - NOTES PAYABLE

NOTE 7 - NOTES PAYABLE	6 Months Ended
	Dec. 31, 2016
Notes
NOTE 7 - NOTES PAYABLE	NOTE 7 – NOTES PAYABLE Pursuant to Share Exchange Agreement (the "Share Exchange Agreement") with Canarc Resource Corp., a British Columbia, Canada corporation whose common shares are listed on the TSX Exchange under the symbol CCM ("Canarc") on July 15, 2014, the Company and Carnac entered into an interim financing facility pursuant to which Canarc advanced a $200,000 loan to the Company and a $20,000 merger advance. The loan bears interest at a rate of 1% a month and is due and payable upon the closing of a gold bond financing by the Company or January 15, 2015, if the financing does not close. The financing did not close under this Agreement and this amount is outstanding at December 31, 2016 and is in default. Accrued interest on note at December 31, and June 30, 2016 is $49,603 and $47,402, respectively. In December 2016 the court administered trust paid $9,897 to the note holder and was applied against the accrued interest on the note. On June 1, 2012, the Company entered into an installment sales contract for $593,657 to purchase certain equipment. The term of the agreement is for 48 months at an interest rate of 5.75%, with the equipment securing the loan. The balance owed on the note was $398,793 at December 31 and June 30, 2016 and accrued interest of $53,291 and $59,238, respectively. In December 2016 the court administered trust paid $17,412 to the note holder and was applied against the accrued interest on the note. The Company has been unable to make its monthly payments since November 2013, currently is due and in default and the equipment has been returned to the vendor for sale and remains unsold at December 31, 2016. In conjunction with the Merger Agreement, Tyhee and the Company entered into a Bridge Loan Agreement, pursuant to which Tyhee was obligated to advance up to $3 million to the Company in accordance with the terms thereof. Tyhee advanced the Company only $1,745,092 under the Bridge Loan as of June 30, 2014. The Bridge Loan bears an annual interest rate of 24%. At this time the Company and Tyhee are in disagreement as to the due date of the Bridge Loan. Tyhee has provided the Company with purported notice of default under the Bridge Loan Agreement. The Company has numerous claims against Tyhee resulting from the Merger Agreement, Tyhee’s failure to fund the total $3 million under the Bridge loan Agreement and Tyhee’s allocation of the proceeds from the Bridge Loan Agreement. At June 30, 2014, the Company recorded merger expenses that are due to Tyhee of $269,986 and is included in accrued liabilities at December 31 and June 30, 2016. This amount is net of a break fee of $300,000 due to the Company from Tyhee. Accrued interest on note at December 31 and June 30, 2016, was $1,110,001 and $990,657, respectively is due and in default. In December 2016 the court administered trust paid $91,788 to the note holder and was applied against the accrued interest on the note. The following summarizes notes payable: December 31, June 30, 2016 2016 Working capital advances, interest at 1% per month, due January 15, 2015 $ 200,000 $ 200,000 Merger advance 20,000 20,000 Installment sales contract on equipment, interest at 5.75%, payable in 48 monthly installments of $13,874, including interest through July 2016. 398,793 398,793 Unsecured bridge loan note payable, interest at 2% monthly, payable August 17, 2014, six months after the first advance on the bridge loan. 1,745,092 1,745,092 Notes payable - current $ 2,363,885 $ 2,363,885

NOTE 8 - FAIR VALUE MEASUREMENT

NOTE 8 - FAIR VALUE MEASUREMENTS	6 Months Ended
	Dec. 31, 2016
Notes
NOTE 8 - FAIR VALUE MEASUREMENTS	NOTE 8 - FAIR VALUE MEASUREMENTS The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in generally accepted accounting principles (“GAAP”), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Lev e Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally observable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. A slight change in unobservable inputs such as volatility can significantly have a significant impact on the fair value measurement of the derivatives liabilities. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amounts of the Company’s financial assets and liabilities, such as cash and accounts payable approximate their fair values because of the short maturity of these instruments. The Company’s financial instruments consist of derivative instruments which are measured at fair value on a recurring basis. The derivatives are measured on their respective origination dates, at the end of each reporting period and at other points in time when necessary, such as modifications, using Level 3 inputs in accordance with GAAP. The Company does not report any financial assets or liabilities that it measures using Level 1 or 2 inputs. The fair value measurement of financial instruments and other assets as of December 31 and June 30, 2016 are as follows: December 31, 2016 Level 1 Level 2 Level 3 Total Assets: None - - - - Liabilities: Derivative instruments - - $360,725 $360,725 June 30, 2016 Level 1 Level 2 Level 3 Total Assets: None - - - - Liabilities: Derivative instruments - - $306,488 $306,488

NOTE 9 - CONTINGENCIES AND COMM

NOTE 9 - CONTINGENCIES AND COMMITMENTS	6 Months Ended
	Dec. 31, 2016
Notes
NOTE 9 - CONTINGENCIES AND COMMITMENTS	NOTE 9 - CONTINGENCIES AND COMMITMENTS Chapter 11 Bankruptcy On August 26, 2015, the Company filed for Chapter 11 Bankruptcy protection in Delaware in order to secure the existing assets from creditor actions. Affidavit in Support of the first day motion After the dismissal of the bankruptcy case, the Company will have no assets, but is still liable for all commitments and debts outstanding. SFG Barbados, Lordsburg Mining Company and AZCO will be dormant and all the commitments and debts will stay with the respective companies and all debt is currently in default and due. The court set up a Trust fund that will be funded by the activities of the Summit mine for five (5) years and the trust funds will be distributed by an independent trustee to all credit holders on record. Upon receiving the Certification of Counsel Regarding Satisfaction of Conditions in Debtors’ Motion to dismiss Chapter 11 Cases, on June 15, 2016, the Company received the Court Order Dismissing the Chapter 11 Case under the Bankruptcy Code. In December 2016 the court administered trust paid $472,831to credit holders of the Company, and is recorded as a gain on trust debt extinguishment and payments were applied as follows: Accounts payable $146,947 Accrued compensation 8,775 Accrued liabilities 1,443 Note holders – accrued interest 315,666 Total $472,831 Office and Real Property Leases On August 01, 2015, the Company moved the office to a single room located in Albuquerque, NM, at the home of the CFO for a monthly rent of $500 until the Company is required to lease increased office space due to additional personnel requirements. Rental expense totaled $3,000 for the six months ended December 31, 2016 and 2015, respectively. Title to Mineral Properties Although the Company has taken steps, consistent with industry standards, to verify title to mineral properties in which it has an interest, these procedures do not guarantee the Company’s title. Such properties may be subject to prior agreements or transfers and title may be affected by undetected defects.

NOTE 10 - STOCKHOLDERS' DEFICIT

NOTE 10 - STOCKHOLDERS' DEFICIT	6 Months Ended
	Dec. 31, 2016
Notes
NOTE 10 - STOCKHOLDERS' DEFICIT	NOTE 10 STOCKHOLDERS' DEFICIT Stock Returned and Cancelled On August 1, 2016, a shareholder returned 6,956,750 common shares to the Company for no value received by the shareholder and the shares were recorded at Par Value of $13,914. On December 14, 2016, employees, a director and a consultant returned 15,956,748 shares to the Company in order to be able to raise more funds to acquire additional assets by the Company for no value received by the shareholders and the shares were recorded at Par Value of $31,914. Issuance of Stock During the six months ended December 31, 2016, the Company issued the following common stock: (i) Issued an aggregate of 9,165,360 shares of restricted common stock for consulting services at a value of $464,587 on the date of issuance; (ii) Sold an aggregate of 18,962,250 shares of restricted common stock to accredited investors for cash proceeds of $224,900; (iii) Issued an aggregate of 18,962,250 shares of restricted common stock for the exercise of warrants to accredited investors for cash proceeds of $224,900; The issuance of the restricted common shares during the six months ended December 31, 2016, were exempt from the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) thereof because such issuance did not involve a public offering. Issuance of Warrants and Expiration During the six months ending December 31, 2016, 18,962,250 warrants were issued and 750,000 warrants expired. Stock Options and the Amended and Restated Equity Incentive Plan During six months ending December 31, 2016, no options were granted and 2,900,000 options were cancelled. Stock option and warrant activity, both within the 2007 EIP Amended, the Restated Equity Incentive Plan and outside of these plans, for the six months ending December 31, 2016, are as follows: Stock Options Stock Warrants Weighted Weighted Average Exercise Shares Price Shares Price Outstanding at June 30, 2016 8,375,000 $0.02 10,443,434 $0.35 Granted - - 18,962,250 $0.01 Canceled (2,900,000) $0.02 - - Expired - - (750,000) $0.91 Exercised - - (18,962,250) $0.01 Outstanding at December 31, 2016 5,475,000 $0.02 9,693,434 $0.31 Stock options and warrants outstanding and exercisable at December 31, 2016 are as follows: Outstanding and Exercisable Options O utstanding and Exercisable Warrants Weighted Weighted Average Average Contractual Weighted Contractual Weighted Exercise Remaining Average Exercise Remaining Average Price Outstanding Exercisable Life Exercise Price Outstanding Exercisable Life Exercise Range Number Number (in Years) Price Range Number Number (in Years) Price $0.001 5,000,000 5,000,000 1.79 $ 0.001 $ 0.15 4,320,000 4,320,000 2.12 $ 0.15 $0.07 100,000 100,000 3.01 $ 0.07 $ 0.38 523,434 523,434 0.70 $ 0.38 $0.08 100,000 100,000 2.00 $ 0.08 $ 0.40 4,500,000 4,500,000 0.58 $ 0.40 $0.32 100,000 100,000 0.64 $ 0.32 $ 1.00 350,000 350,000 0.03 $ 100 $0.36 175,000 175,000 0.78 $ 0.36 - - - - - 5,475,000 5,475,000 9,693,434 9,693,434 Outstanding Options 1.77 $ 0.02 Outstanding Warrants 1.25 $ 0.31 Exercisable Options 1.77 $ 0.02 Exercisable Warrants 1.25 $ 0.31 As of December 31, 2016, the aggregate intrinsic value of all stock options and warrants vested and expected to vest was $240,000 and the aggregate intrinsic value of currently exercisable stock options and warrants was $240,000 . The intrinsic value of each option share is the difference between the fair market value of the common stock and the exercise price of such option or warrant share to the extent it is "in-the-money". Aggregate intrinsic value represents the value that would have been received by the holders of in-the­ money options had they exercised their options on the last trading day of the quarter and sold the underlying shares at the closing stock price on such day. The intrinsic value calculation is based on the $0.049 closing stock price of the common stock on December 31, 2016. The total intrinsic value associated with options exercised during the six months ended December 31, 2016, was $0. Intrinsic value of exercised shares is the total value of such shares on the date of exercise less the cash received from the option or warrant holder to exercise the options.

NOTE 11 - RELATED PARTY TRANSAC

NOTE 11 - RELATED PARTY TRANSACTIONS	6 Months Ended
	Dec. 31, 2016
Notes
NOTE 11 - RELATED PARTY TRANSACTIONS	NOTE 11 – RELATED PARTY TRANSACTIONS At December 31, 2016 and at June 30, 2016, the Company owed to related parties an aggregated amount of $269,787 respectively. On August 1, 2015, the Company leased a home office space from the Company CFO for $500 a month for the corporate administrative office in Albuquerque, NM until such time growth requires a larger corporate administrative office. Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated.

NOTE 12 - LEGAL PROCEEDINGS

NOTE 12 - LEGAL PROCEEDINGS	6 Months Ended
	Dec. 31, 2016
Notes
NOTE 12 - LEGAL PROCEEDINGS	Note 12 - LEGAL PROCEEDINGS All legal proceedings stayed with the filing of Chapter 11 bankruptcy. At the time of the bankruptcy filing several litigations were filed in several courts. Santa Fe believes that the following suits will be stayed pursuant to the Bankruptcy Code. After dismissal of the Chapter 11 filings, we have not been notified of any of the below cases if they will continue or not. Boart Long year Company v. Lordsburg Mining Company Boart Longyear Company v. Lordsburg Mining Company Boart Longyear Company v. Lordsburg Mining Company County of Quintero, NM. Series of collection cases by Boart Longyear Company, who obtained Utah judgment for equipment delivered to Lordsburg Mining Company Santa Fe Gold Corporation v. Tyhee Gold Corp Santa Fe is seeking damages for breach of the Confidentiality Agreement as well as for conversion of Santa Fe’s confidential information. Tyhee Gold Corp. has filed a counter-claim for tortuous interference with prospective contractual relationships with Koza Gold. At this time, there can be no determination of the outcome. Wagner Equipment Co . v. Lordsburg Mining Company Collection case by Wagner equipment, who obtained judgment for equipment delivered to Lordsburg Mining Company. In October 2013, Lone Mountain Ranch, LLC, owner of the surface estate overlying our Ortiz gold property, filed a lawsuit against the Company and our lessor, Ortiz Mines, Inc. The lawsuit seeks to clarify Lone Mountain Ranch's rights and obligations under the split estate regime. Specifically, Lone Mountain Ranch seeks a declaratory judgment that it may participate in permit hearings, agency proceedings, and private activities related to the permitting of the Ortiz project without being in violation of common law duties to not interfere with development of the mineral estate. The Company conducted a strategic evaluation as whether or not to continue with the Ortiz Gold Project. Given the public opposition to the Ortiz Gold Project, Santa Fe has decided not to further pursue the Ortiz Gold Project. Lone Mountain Ranch LLC sued Ortiz Mines Inc against any mining activities on the property, and Santa Fe Gold was only a co-defender. With the bankruptcy, we, SFG, were dismissed. We are in litigation with two vendors for claims for approximately $140,400 and $125,876, respectively against us. If the Company is unsuccessful in raising additional funding, we may not be able to pay resolve these lawsuits and our business may not continue as a going concern. In the event we cannot raise the necessary capital or we cannot restructure through negotiated modifications, we may be required to effect under court supervision pursuant to a voluntary bankruptcy filing under Chapter 11 or Chapter 7 of the U.S. Bankruptcy Code (“Chapter 11 or “Chapter 7”). See “Risk factors.” The claims were against Lordsburg Mining company, were stayed during the proceedings and all claims remained. At this time, there can be no determination of the outcome. The court set up a Trust fund that will be funded by the activities of the Summit mine for five (5) years and the trust funds will be distributed by an independent trustee to all credit holders on record. Currently all debts at the time of the bankruptcy are currently due and in default. None of the claims have been reopened since June 2016. In accordance with accounting standards regarding loss contingencies, the Company accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated, and the Company discloses the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for its financial statements not to be misleading. The Company does not record liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated, or when the liability is believed to be only reasonably possible or remote. We are subject from time to time to litigation, claims and suits arising in the ordinary course of business. Other than the above-described litigation, as of June 30, 2016, we were not a party to any material litigation, claim or suit whose outcome could have a material effect on our financial statements. Because litigation outcomes are inherently unpredictable, the Company’s evaluation of legal proceedings often involves a series of complex assessments by management about future events and can rely heavily on estimates and assumptions. If the assessments indicate that loss contingencies that could be material to any one of its financial statements are not probable, but are reasonably possible, or are probable, but cannot be estimated, then the Company discloses the nature of the loss contingencies, together with an estimate of the range of possible loss or a statement that such loss is not reasonably estimable. While the consequences of certain unresolved proceedings are not presently determinable, and an estimate of the probable and reasonably possible loss or range of loss in excess of amounts accrued for such proceedings cannot be reasonably made, an adverse outcome from such proceedings could have a material adverse effect on its financial statements in any given reporting period. However, in the opinion of Management, after consulting with legal counsel, the ultimate liability related to the current outstanding litigation is not expected to have a material adverse effect on its financial statements.

NOTE 13 - SUBSEQUENT EVENTS

NOTE 13 - SUBSEQUENT EVENTS	6 Months Ended
	Dec. 31, 2016
Notes
NOTE 13 - SUBSEQUENT EVENTS	NOTE 13 – SUBSEQUENT EVENTS Recent Issuances of Unregistered Securities In the period from January 2017 through December 22, 2017, the Company sold an aggregate of 21,882,118 units. Each unit consisted of one common share and one common stock warrant. The warrants had a term of 5 years and an exercise price ranging from $0.001 to $0.10. All warrants were immediately exercised resulting in the issuance of an additional 21,882,118 common shares. The Company received aggregate proceeds of $2,259,503 from these sales and warrant exercises. In connection with this offering, the Company incurred placement fees consisting of a cash fee of 10% of the full combined dollar amount of units placed in the offering plus warrants exercisable for 10% of the shares and warrants included in the units placed with exercise prices ranging from $0.001 to $0.10. To date, no placement agent fee warrants have been issued. The Company incurred a cash fee amounting to $225,950 in connection with this raise. In addition, between July 26, 2017 and January 12, 2018, the Company has raised an additional $3,721,781 for additional equity purchases from a private overseas investment company and a number of associated investors. The stock and warrant shares have not been issued at this time and the stock certificates and warrant shares (approximately 45,890,576 shares) will be issued at the same time at a varying price per share. In connection with this offering, the Company has incurred placement fees consisting of a cash fee of 10% of the full combined dollar amount of units placed in the offering plus warrants exercisable for 10% of the shares and warrants included in the units placed. To date, no placement agent fee warrants have been issued. The Company has incurred a cash fee amounting to $372,178 in connection with this raise. Other Events We contacted 19 creditors and note holders of the Santa Fe Gold and made an offer in compromise: “ the Company respectfully hereby offers a cash payment to you, in consideration of your discharge and release of any and all outstanding (non-trust) claims, in the amount of Three (3%) per cent of the present principal balance otherwise owed On October 22, 2014, the Company signed a $500,000 Convertible Note, from an accredited investor, from which we drew down tranches aggregating $175,000. The note holders converted a portion of the advances and default penalties to restricted common stock and at September 30, 2016, the notes and related default penalties had an aggregate outstanding balance of $93,333. In January 2017 the note holder agreed to cash settlement payment of $90,000 to satisfy the outstanding obligation and $3,333 was recorded as extinguishment of debt. On February 2, 2017, an investor returned 18,000,000 shares to the Company and were returned to the transfer agent and cancelled and are deducted from the outstanding shares. The shares are to be re-issued at a later time and the obligation will be accounted for as a derivative liability at the fair value of the shares and marked to market at each balance sheet date. On April 10, 2017 we reached a non-disclosure agreement with our prior CEO, Mr. Jordaan, about his outstanding back wages and amounts due for legal services rendered to the Company prior assuming the position of CEO. Mr. Jordaan resigned as CEO and from the board effective May 6, 2016. Between April 10, 2017 and December 28, 2017 Santa Fe Gold transferred $2.5 million to acquire properties for Santa Fe Gold and the staking of all the claims currently owned by Santa Fe Gold. The announcement was made on September 17, 2017 that we acquired 100% of Bullard’s Peak Corporation and Black Hawk Consolidated Mines Company, which includes formerly optioned AG1 Silver Mine and all lands surrounding the project to include potential Porphyry Silver Discovery and all rights to same. These transactions are summarized below: - On April 10, 2017, the Company delivered $500,000 to be held in escrow pending, and to be applied as part of the purchase price due under an agreement with Bullard’s Peak Corporation and Black Hawk Consolidated Mines Company to acquire 100% of the issued and outstanding capital stock for a cash purchase price in the aggregate amount of $3,000,000, to be paid over time as stated in the Bullard’s Peak agreement. - On August 18, 2017, the Company signed the Bullard’s Peak Agreement and delivered an additional $100,000 towards the purchase price. - On August 30, 2017, the Company delivered an additional $900,000 to Bullard’s Peak towards the purchase price under terms of the Agreement. - On September 08, 2017, the Company delivered $500,000 to Bullard’s Peak towards the purchase price under terms of the Agreement. - On September 14, 2017, the Company acquired 100% of Bullard’s Peak Corporation and Black Hawk Consolidated Mines Company, pending two more payment to be delivered at the end October and November 2017. - On October 13, 2017, the Company delivered $500,000 to Bullard’s Peak towards the purchase price under terms of the Agreement. - On July 26, 2017 the board changed the price for 5,000,000 options from $.001 (Board meeting May 5, 2016) to $.002. - On January 2, 2018 we made the final payment of $500,000 to purchase the Bullard’s Peak Corporation.

NOTE 2 - SUMMARY OF SIGNIFICA19

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Dec. 31, 2016
Policies
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries AZCO Mica, Inc., a Delaware corporation, The Lordsburg Mining Company, a New Mexico corporation, and Santa Fe Gold Barbados Corporation, a Barbados corporation and Santa Fe Acquisitions Company, a New Mexico Limited Liability Company. All significant inter-company accounts and transactions have been eliminated in consolidation
Reclassifications	Reclassifications Certain items in these consolidated financial statements have been reclassified to conform to the current year's presentation.
Estimates	Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates under different assumptions or conditions. Significant estimates are used when accounting for the Company's carrying value of mineral properties, fixed assets, depreciation and amortization, accruals, derivative instrument liabilities, taxes and contingencies, and stock-based compensation which are discussed in the respective notes to the consolidated financial statements.
Fair Value Measurements	Fair Value Measurements The carrying values of cash and cash equivalents, accounts payable and accrued liabilities approximated their related fair values as of December 31, 2016, and June 30, 2016, due to the relatively short-term nature of these instruments. The carrying value of the Company's convertible notes payable approximates the fair value based on the terms at which the Company could obtain similar financing and the short-term nature of these instruments.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all liquid investments purchased with an initial maturity of three months or less to be cash equivalents. The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash balances.
Derivative Financial Instruments	Derivative Financial Instruments The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company reviews the terms of convertible debt, equity instruments and other financing arrangements to determine whether there are embedded derivative instruments, including embedded conversion options that are required to be bifurcated and accounted for separately as a derivative financial instrument. Also, in connection with the issuance of financing instruments, the Company may issue freestanding options or warrants that may, depending on their terms, be accounted for as derivative instrument liabilities, rather than as equity. The Company may also issue options or warrants to non-employees in connection with consulting or other services. Derivative financial instruments are initially measured at their fair value. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported as charges or credits to income. To the extent that the initial fair values of the freestanding and/or bifurcated derivative instrument liabilities exceed the total proceeds received, an immediate charge to income is recognized as a one day derivative loss, in order to initially record the derivative instrument liabilities at their fair value. The discount from the face value of the convertible debt or equity instruments resulting from allocating some or all of the proceeds to the derivative instruments, together with the stated interest on the instrument, is amortized over the life of the instrument through periodic charges to income, using the effective interest method. When required to arrive at the fair value of derivatives associated with the convertible note and warrants, a Monte Carlo model is utilized that values the Convertible Note and Warrant based on average discounted cash flow factoring in the various potential outcomes by a Chartered Financial Analyst (‘CFA”). In determining the fair value of the derivatives the CFA assumed that the Company’s business would be conducted as a going concern. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is reassessed at the end of each reporting period. If reclassification is required, the fair value of the derivative instrument, as of the determination date, is reclassified. Any previous charges or credits to income for changes in the fair value of the derivative instrument are not reversed. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within twelve months of the balance sheet date.
Net Income (Loss) Per Share	Net Income (Loss) Per Share Basic earnings (loss) per share are calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings per share are calculated by dividing net income (loss) by the weighted average number of common shares and dilutive common stock equivalents outstanding. During the periods when they are anti-dilutive, common stock equivalents, if any, are not considered in the computation. For the three months ended December 31, 2015 and six months ended December 31, 2016 and 2015, the impact of outstanding stock equivalents has not been included as they would be anti-dilutive. For the three months ended December 31, 2016, diluted earnings per share is disclosed below: A reconciliation of the weighted average shares outstanding used in the basic and diluted earnings per share (“EPS”) computation is as follows: Net Income (Numerator) Weighted Average Common Shares (Denominator) Per Share Amount For the three months ended December 31, 2016 Basic EPS Income available to common stockholders $ 902,666 257,870,297 $ 0.00 Diluted EPS Gain on derivatives (81,996 ) Gain on foreign currency translation (210,695 ) Interest expense on convertible notes 115,506 Dilutive effect of convertible notes - 60,077,730 Income available to common stockholders plus assumed conversions $ 725,481 317,948,027 $ 0.00 Dilutive potential common shares consist convertible notes. The number of stock options excluded from the calculation of diluted earnings per share for the three months ended December 31, 2016 was 475,000 and excluded warrants was 9,693,464, because their inclusion would have been anti-dilutive. Stock-Based Compensation In connection with terms of employment with the Company’s executives and employees, the Company occasionally issues options to acquire its common stock. Awards are made at the discretion of the Board of Directors. Such options may be exercisable at varying exercise prices and generally vest over a period of six months to a year. The Company accounts for share based compensation on the grant date fair value of the award. The Company estimates the fair value of the award using the Black-Scholes option pricing model for valuation of the share-based payments. The Company believes this model provides the best estimate of fair value due to its ability to incorporate inputs that change over time, such as volatility and interest rates, and to allow for actual exercise behavior of option holders. The compensation cost is recognized over the expected vesting period. Share based payments to nonemployees are valued at the earlier or a commitment date or completion of services.
Accounting Standards to be Adopted in Future Periods	Accounting Standards to be Adopted in Future Periods Recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the SEC did not, or are not believed by management to, have a material impact on the Company's present or future financial position, results of operations or cash flows.

NOTE 3 - ACCRUED LIABILITIES (T

NOTE 3 - ACCRUED LIABILITIES (Tables)	6 Months Ended
	Dec. 31, 2016
Tables/Schedules
Schedule Of Accrued Liabilities	Accrued liabilities consist of the following at December 31, 2016 and June 30, 2016: December 31, June 30, 2016 2016 Interest $ 2,692,892 $ 2,589,993 Vacation 15,771 15,771 Deferred and accrued payroll burden 223,569 239,262 Franchise taxes 8,695 8,695 Merger costs, net 269,986 269,986 Other 18,135 19,578 Audit 20,000 20,000 Commodity supply agreement 2,766,635 3,415,175 Property taxes 253,523 215,524 $ 6,269,206 $ 6,793,984

NOTE 4 - DERIVATIVE INSTRUMEN21

NOTE 4 - DERIVATIVE INSTRUMENT LIABILITIES (Tables)	6 Months Ended
	Dec. 31, 2016
Tables/Schedules
Schedule Of Derivative Liabilities	The table below shows the loss on the derivative instruments liability for the six months ended December 31, 2016. Derivative Derivative Valuation Change Liability as of Liability as of for the six months ended June 30, 2016 December 31, 2016 December 31, 2016 Purchase Agreement Warrants and Convertible Debt $ 306,488 $ 360,725 $ (54,237) Loss on Derivatives $ (54,237)

NOTE 6 - CONVERTIBLE NOTES PA22

NOTE 6 - CONVERTIBLE NOTES PAYABLE (Tables)	6 Months Ended
	Dec. 31, 2016
Tables/Schedules
Schedule Of Convertible Notes Payable	The components of the unsecured convertible notes payable are as follows: Principal Unamortized December 31, 2016: Amount Discount Net Current portion $ 3,551,512 $ (45,699) $ 3,305,813 Principal Unamortized June 30, 2016: Amount Discount Net Current portion $ 3,554,249 $ (161,814) $ 3,392,435

NOTE 7 - NOTES PAYABLE (Tables)

NOTE 7 - NOTES PAYABLE (Tables)	6 Months Ended
	Dec. 31, 2016
Tables/Schedules
Schedule Of Debt	The following summarizes notes payable: December 31, June 30, 2016 2016 Working capital advances, interest at 1% per month, due January 15, 2015 $ 200,000 $ 200,000 Merger advance 20,000 20,000 Installment sales contract on equipment, interest at 5.75%, payable in 48 monthly installments of $13,874, including interest through July 2016. 398,793 398,793 Unsecured bridge loan note payable, interest at 2% monthly, payable August 17, 2014, six months after the first advance on the bridge loan. 1,745,092 1,745,092 Notes payable - current $ 2,363,885 $ 2,363,885

NOTE 8 - FAIR VALUE MEASUREME24

NOTE 8 - FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Dec. 31, 2016
Tables/Schedules
Schedule Of Fair Value Assets And Liabilities	December 31, 2016 Level 1 Level 2 Level 3 Total Assets: None - - - - Liabilities: Derivative instruments - - $360,725 $360,725 June 30, 2016 Level 1 Level 2 Level 3 Total Assets: None - - - - Liabilities: Derivative instruments - - $306,488 $306,488

NOTE 10 - STOCKHOLDERS' DEFIC25

NOTE 10 - STOCKHOLDERS' DEFICIT (Tables)	6 Months Ended
	Dec. 31, 2016
Tables/Schedules
Schedule Of Stock Options	Stock Options Stock Warrants Weighted Weighted Average Exercise Shares Price Shares Price Outstanding at June 30, 2016 8,375,000 $0.02 10,443,434 $0.35 Granted - - 18,962,250 $0.01 Canceled (2,900,000) $0.02 - - Expired - - (750,000) $0.91 Exercised - - (18,962,250) $0.01 Outstanding at December 31, 2016 5,475,000 $0.02 9,693,434 $0.31 Stock options and warrants outstanding and exercisable at December 31, 2016 are as follows: Outstanding and Exercisable Options O utstanding and Exercisable Warrants Weighted Weighted Average Average Contractual Weighted Contractual Weighted Exercise Remaining Average Exercise Remaining Average Price Outstanding Exercisable Life Exercise Price Outstanding Exercisable Life Exercise Range Number Number (in Years) Price Range Number Number (in Years) Price $0.001 5,000,000 5,000,000 1.79 $ 0.001 $ 0.15 4,320,000 4,320,000 2.12 $ 0.15 $0.07 100,000 100,000 3.01 $ 0.07 $ 0.38 523,434 523,434 0.70 $ 0.38 $0.08 100,000 100,000 2.00 $ 0.08 $ 0.40 4,500,000 4,500,000 0.58 $ 0.40 $0.32 100,000 100,000 0.64 $ 0.32 $ 1.00 350,000 350,000 0.03 $ 100 $0.36 175,000 175,000 0.78 $ 0.36 - - - - - 5,475,000 5,475,000 9,693,434 9,693,434 Outstanding Options 1.77 $ 0.02 Outstanding Warrants 1.25 $ 0.31 Exercisable Options 1.77 $ 0.02 Exercisable Warrants 1.25 $ 0.31

NOTE 1 - BASIS OF PRESENTATIO26

NOTE 1 - BASIS OF PRESENTATION AND GOING CONCERN (Details)	6 Months Ended
	Dec. 31, 2016USD ($)
Details
Net Income (Loss) Attributable to Parent	$ (227,708)
Working Capital Deficit	(19,256,388)
Debt Default, Short-term Debt, Amount	$ 6,920,000

NOTE 2 - SUMMARY OF SIGNIFICA27

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Net Income (Loss) Per Share (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Net loss		$ 902,666	$ (2,059,720)	$ (227,708)	$ (2,360,789)
Basic	257,870,297	257,870,297	189,842,914	234,829,423	173,456,332
Net income (loss) - basic		$ 0	$ (0.01)	$ 0	$ (0.01)
Derivative, Gain on Derivative		$ (81,996)
Foreign Currency Transaction Gain (Loss), Realized		(210,695)
Interest Expense, Debt		115,506
Dilutive Securities, Effect on Basic Earnings Per Share		$ 0
Weighted Average Number Diluted Shares Outstanding Adjustment		60,077,730
Net Income (Loss) Attributable to Parent, Diluted		$ 725,481
Weighted Average Number of Shares Outstanding, Diluted		317,948,027
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Convertible Securities		$ 0
Convertible Note
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		475,000
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		9,693,464

NOTE 3 - ACCRUED LIABILITIES_ S

NOTE 3 - ACCRUED LIABILITIES: Schedule Of Accrued Liabilities (Details) - USD ($)	Dec. 31, 2016	Jun. 30, 2016
Details
Interest	$ 2,692,892	$ 2,589,993
Vacation	15,771	15,771
Deferred and accrued payroll burden	223,569	239,262
Franchise taxes	8,695	8,695
Merger costs, net	269,986	269,986
Other	18,135	19,578
Audit	20,000	20,000
Commodity supply agreement	2,766,635	3,415,175
Property taxes	253,523	215,524
Accrued liabilities	$ 6,269,206	$ 6,793,984

NOTE 4 - DERIVATIVE INSTRUMEN29

NOTE 4 - DERIVATIVE INSTRUMENT LIABILITIES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Jun. 30, 2016
Derivative instrument liabilities	$ 360,725		$ 360,725		$ 306,488
(Gain) loss on derivative instrument liabilities	$ (326,994)	$ (3,196)	$ 54,237	$ (1,161,769)
Warrants
Fair Value, Option, Methodology and Assumptions			Black-Scholes option pricing model
Fair Value Assumptions, Expected Dividend Rate			0.00%
Warrants | Minimum
Fair Value Assumptions, Risk Free Interest Rate			0.16%
Fair Value Assumptions, Expected Term			11 days
Fair Value Assumptions, Expected Volatility Rate			104.00%
Warrants | Maximum
Fair Value Assumptions, Risk Free Interest Rate			1.27%
Fair Value Assumptions, Expected Term			2 years 3 months 4 days
Fair Value Assumptions, Expected Volatility Rate			463.00%
Convertible Note
Fair Value, Option, Methodology and Assumptions			Monte Carlo model
Convertible Note | Minimum
Fair Value Assumptions, Expected Volatility Rate			93.00%
Share Price	$ 0.0009		$ 0.0009
Debt Instrument, Convertible, Conversion Price	0.125		$ 0.125
Convertible Note | Maximum
Fair Value Assumptions, Expected Volatility Rate			99.00%
Share Price	0.176		$ 0.176
Debt Instrument, Convertible, Conversion Price	$ 0.0425		$ 0.0425
Notes in compromise
Derivative instrument liabilities	$ 360,725		$ 360,725

NOTE 4 - DERIVATIVE INSTRUMEN30

NOTE 4 - DERIVATIVE INSTRUMENT LIABILITIES: Schedule Of Derivative Liabilities (Details) - USD ($)	6 Months Ended
	Dec. 31, 2016	Jun. 30, 2016
Derivative instrument liabilities	$ 360,725	$ 306,488
Increase (Decrease) in Derivative Assets and Liabilities	(54,237)
Gain (Loss) on Derivative Instruments, Net, Pretax	(54,237)
Notes in compromise
Derivative instrument liabilities	$ 360,725

NOTE 5 - COMPLETION GUARANTEE31

NOTE 5 - COMPLETION GUARANTEE PAYABLE (Details) - USD ($)	Dec. 31, 2016	Jun. 30, 2016	Jun. 30, 2012
Completion guarantee payable
Accrued Liabilities and Other Liabilities	$ 3,359,873	$ 3,359,873	$ 504,049

NOTE 6 - CONVERTIBLE NOTES PA32

NOTE 6 - CONVERTIBLE NOTES PAYABLE (Details) - USD ($)	Jan. 20, 2015	Oct. 22, 2014	Jan. 15, 2013	Oct. 30, 2007	Mar. 31, 2017	Jan. 25, 2017	Dec. 31, 2016	Nov. 30, 2012	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Jun. 30, 2015	Jun. 30, 2016	Oct. 31, 2015	Jun. 24, 2015	Jun. 09, 2015	Feb. 25, 2015	Oct. 31, 2012
Class of Warrant or Right, Outstanding							9,693,434		9,693,434		9,693,434			10,443,434
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value							$ 240,000		$ 240,000		$ 240,000
Amortization of discount on notes payable											116,115	$ 176,101
Resolution of derivative liability upon conversion											0	90,081
Debt Default, Short-term Debt, Amount							6,920,000		6,920,000		6,920,000
Gain on debt extinguishment									0	$ 0	$ 14,599	0
Senior Subordinated convertible note 1
Debt Instrument, Face Amount			$ 450,000	$ 450,000
Debt Instrument, Interest Rate, Stated Percentage				10.00%
Debt Instrument, Term											60 months
Dollar amount of stock subscribed for equivalent to one warrant				$ 2.50
Class of Warrant or Right, Outstanding			562,500	180,000
Exercise Price of Warrants				$ 1.25
Convertible Preferred Stock, Terms of Conversion				At the option of the holders of the convertible notes, the outstanding principal and interest was convertible at any time into shares of the Company’s common stock at conversion price of $1.25 per share. The notes were to be automatically converted into common stock if the weighted average closing sales price of the stock exceeded $2.50 per share for ten consecutive trading days.
Share Price				$ 1.50
Debt Instrument, Convertible, Conversion Price			$ 0.40
Debt Instrument, automatic conversion price			$ 0.80
Long-term Debt, Gross							450,000		450,000		$ 450,000			$ 450,000
Interest Payable, Current							145,438		$ 145,438		$ 145,438			144,500
Repayments of Debt					$ 13,500		$ 23,000
Convertible secured note 1
Debt Instrument, Interest Rate, Stated Percentage																			6.00%
Debt Instrument, Convertible, Conversion Price							$ 0.05		$ 0.05		$ 0.05
Proceeds from Notes Payable								$ 3,985,000
Convertible secured note 1 | Australia dollars
Debt Instrument, Face Amount																			$ 3,900,000
IGS note
Long-term Debt, Gross							$ 2,818,179		$ 2,818,179		$ 2,818,179			2,903,316
Interest Payable, Current							540,789		540,789		540,789			642,624
Repayments of Debt					$ 88,283				174,507
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value															$ 98,091
Amortization of discount on notes payable											36,295			48,251
Debt Instrument, Unamortized Discount							$ 13,545		$ 13,545		$ 13,545
Resolution of derivative liability upon conversion												$ 90,081
Convertible unsecured note 1
Debt Instrument, Face Amount		$ 500,000
Debt Instrument, Interest Rate, Stated Percentage		12.00%
Proceeds from Notes Payable		$ 75,000
Amortization of discount on notes payable														20,185
Debt Instrument, Unamortized Discount		$ 8,333
Stock Issued During Period, Value, Conversion of Convertible Securities													$ 68,900	$ 24,433
Convertible unsecured note 1 | Common Stock
Stock Issued During Period, Shares, Conversion of Convertible Securities													1,800,000	916,078
Convertible unsecured note 2
Debt Instrument, Face Amount																		$ 50,000
Amortization of discount on notes payable														$ 60,973
Debt Instrument, Unamortized Discount																		$ 5,556
Stock Issued During Period, Value, Conversion of Convertible Securities														62,223
Convertible unsecured note 2 | Common Stock
Stock Issued During Period, Shares, Conversion of Convertible Securities											27,522,855
Convertible unsecured note 3
Debt Instrument, Face Amount																$ 50,000
Debt Instrument, Convertible, Conversion Price							$ 0.01625		$ 0.01625		$ 0.01625
Long-term Debt, Gross							$ 83,333		$ 83,333		$ 83,333			93,333
Repayments of Debt						$ 80,000
Amortization of discount on notes payable											23,934			5,541
Debt Instrument, Unamortized Discount							32,154		32,154		$ 32,154			56,088		$ 5,556
Debt Instrument, Increase, Accrued Interest														6,666
Debt Default, Short-term Debt, Amount														$ 31,111
Debt Instrument, Convertible, Terms of Conversion Feature											The conversion price with this investor is the lesser of $0.0425 or 65% of the lowest trade price in the 25 trading days previous to the conversion date
Convertible unsecured note 4
Debt Instrument, Face Amount	$ 250,000
Debt Instrument, Interest Rate, Stated Percentage	12.00%
Proceeds from Notes Payable	$ 50,000
Debt Instrument, Unamortized Discount	$ 5,556
Convertible unsecured note 5
Debt Instrument, Face Amount																	$ 50,000
Debt Instrument, Convertible, Conversion Price														$ 0.0003
Long-term Debt, Gross							0		0		$ 0			$ 107,599
Repayments of Debt											93,000
Amortization of discount on notes payable											55,445			66,388
Debt Instrument, Unamortized Discount							$ 0		$ 0		$ 0			55,445			$ 5,556
Stock Issued During Period, Value, Conversion of Convertible Securities														60,192
Debt Instrument, Increase, Accrued Interest														$ 43,347
Debt Instrument, Convertible, Terms of Conversion Feature											The conversion price with this investor is the lesser of $0.125 or 60% of the lowest trade price in the 25 trading days previous to the conversion date.
Gain on debt extinguishment											$ 14,599
Convertible unsecured note 5 | Common Stock
Stock Issued During Period, Shares, Conversion of Convertible Securities														18,007,333

NOTE 6 - CONVERTIBLE NOTES PA33

NOTE 6 - CONVERTIBLE NOTES PAYABLE: Schedule Of Convertible Notes Payable (Details) - Convertible Debt Securities - USD ($)	Dec. 31, 2016	Jun. 30, 2016
Long-term Debt, Gross	$ 3,551,512
Debt Instrument, Unamortized Discount	(45,699)	$ (161,814)
Convertible Debt, Current	$ 3,305,813	3,392,435
Principal
Convertible Debt, Current		$ 3,554,249

NOTE 7 - NOTES PAYABLE (Details

NOTE 7 - NOTES PAYABLE (Details) - USD ($)	Jun. 30, 2016	Jul. 15, 2014	Jun. 30, 2014	Jun. 01, 2012	Dec. 31, 2016	Dec. 31, 2016
Notes payable, current portion	$ 2,363,885				$ 2,363,885	$ 2,363,885
Merger costs, net	269,986				$ 269,986	$ 269,986
Equipment
Debt Instrument, Interest Rate, Stated Percentage				5.75%	5.75%	5.75%
Interest Payable, Current	59,238				$ 53,291	$ 53,291
Repayments of Debt					17,412
Liabilities Subject to Compromise				$ 593,657
Debt Instrument, Term				48 months		48 months
Notes payable, current portion	398,793				398,793	$ 398,793
Canarc
Debt Instrument, Face Amount	200,000	$ 200,000			$ 200,000	200,000
Proceeds from Other Short-term Debt	20,000	$ 20,000				$ 20,000
Debt Instrument, Interest Rate, Stated Percentage		1.00%			1.00%	1.00%
Interest Payable, Current	47,402				$ 49,603	$ 49,603
Repayments of Debt					9,897
Tyhee
Debt Instrument, Face Amount	1,745,092		$ 1,745,092		$ 1,745,092	$ 1,745,092
Debt Instrument, Interest Rate, Stated Percentage			24.00%		2.00%	2.00%
Interest Payable, Current	$ 990,657				$ 1,110,001	$ 1,110,001
Repayments of Debt					$ 91,788
Merger costs, net			$ 269,986
break fee			$ 300,000

NOTE 7 - NOTES PAYABLE_ Schedul

NOTE 7 - NOTES PAYABLE: Schedule Of Debt (Details) - USD ($)	Jun. 30, 2016	Jul. 15, 2014	Jun. 01, 2012	Dec. 31, 2016	Jun. 30, 2014
Notes payable, current portion	$ 2,363,885			$ 2,363,885
Equipment
Debt Instrument, Interest Rate, Stated Percentage			5.75%	5.75%
Debt Instrument, Term			48 months	48 months
Debt Instrument, Periodic Payment				$ 13,874
Notes payable, current portion	398,793			$ 398,793
Canarc
Debt Instrument, Interest Rate, Stated Percentage		1.00%		1.00%
Debt Instrument, Face Amount	200,000	$ 200,000		$ 200,000
Proceeds from Other Short-term Debt	20,000	$ 20,000		$ 20,000
Tyhee
Debt Instrument, Interest Rate, Stated Percentage				2.00%	24.00%
Debt Instrument, Face Amount	$ 1,745,092			$ 1,745,092	$ 1,745,092
Debt Instrument, Maturity Date				Aug. 17, 2014

NOTE 8 - FAIR VALUE MEASUREME36

NOTE 8 - FAIR VALUE MEASUREMENTS: Schedule Of Fair Value Assets And Liabilities (Details) - USD ($)	Dec. 31, 2016	Jun. 30, 2016
Fair value, assets	$ 0	$ 0
Derivative instruments liabilities
Fair value, liabilities	360,725	306,488
Level 1
Fair value, assets	0	0
Fair value, liabilities	0	0
Level 2
Fair value, assets	0	0
Fair value, liabilities	0	0
Level 3
Fair value, assets	0	0
Fair value, liabilities	$ 360,725	$ 306,488

NOTE 9 - CONTINGENCIES AND CO37

NOTE 9 - CONTINGENCIES AND COMMITMENTS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Gain on trust debt extinguishment	$ 472,831	$ 0	$ 472,831	$ 0
Operating Leases, Rent Expense			3,000
Office Lease
Debt Instrument, Periodic Payment			$ 500
Accounts payable
Gain on trust debt extinguishment	146,947
Accrued compensation
Gain on trust debt extinguishment	8,775
Accrued liabilities
Gain on trust debt extinguishment	1,443
accrued interest
Gain on trust debt extinguishment	$ 315,666

NOTE 10 - STOCKHOLDERS' DEFIC38

NOTE 10 - STOCKHOLDERS' DEFICIT (Details) - USD ($)	Dec. 14, 2016	Aug. 01, 2016	Dec. 31, 2016
Options expired			0
Intrinsic value of options and warrants			$ 240,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value			240,000
Intrinsic value of options and warrants exercised			$ 0
Exercisable Warrants
Share Price			$ 0.049
Common Stock
Options expired			2,900,000
Warrant
Warrants issued			18,962,250
Warrants expired			750,000
Investor 2
Stock returned		6,956,750
Stock returned		$ 13,914
Consultant
Stock Issued During Period, Shares, Issued for Services			9,165,360
Stock Issued During Period, Value, Issued for Services			$ 464,587
Consultant | Officer
Stock returned	15,956,748
Stock returned	$ 31,914
Note holder 1
Debt Conversion, Original Debt, Amount			$ 224,900
Note holder 1 | Common Stock
Debt Conversion, Converted Instrument, Shares Issued			18,962,250
Note holder 2
Debt Conversion, Original Debt, Amount			$ 224,900
Note holder 2 | Common Stock
Debt Conversion, Converted Instrument, Shares Issued			18,962,250

NOTE 10 - STOCKHOLDERS' DEFIC39

NOTE 10 - STOCKHOLDERS' DEFICIT: Schedule Of Stock Options (Details) - $ / shares	6 Months Ended
	Dec. 31, 2016	Jun. 30, 2016
Outstanding	5,475,000	8,375,000
Outstanding, weighted average exercise price	$ 0.02	$ 0.02
Warrants, outstanding, beginning balance	10,443,434
Warrant, outstanding, weighted average exercise price, beginning balance	$ 0.35
Options granted	0
Stock options weighted average price granted	$ 0
Warrants, granted	18,962,250
Warrants granted, weighted average price granted	$ 0.01
Options cancelled	(2,900,000)
Options cancelled weighted average price	$ 0.02
Warrants, canceled	0
Warrants canceled, weighted average price	$ 0
Options expired	0
Warrants expired weighted average price	$ 0
Warrants, expired	(750,000)
Warrants expired, weighted average price	$ 0.91
Options exercised	0
Options exercised weighted average price	$ 0
Warrants, exercised	(18,962,250)
Warrants, exercised, weighted average price	$ 0.01
Warrants, outstanding, ending balance	9,693,434
Warrant, outstanding, weighted average exercise price, ending balance	$ 0.31
Warrant
Outstanding	9,693,434
Outstanding, weighted average exercise price	$ 0.31
Exercisable	9,693,434
Outstanding, weighted average contractual remaining life (in Years)	1 year 3 months
Exercisable, weighted average contractual remaining life (in Years)	1 year 3 months
Exercisable, weighted average exercise price	$ 0.31
$0.15 | Warrant
Outstanding	4,320,000
Outstanding, weighted average exercise price	$ 0.15
Exercisable	4,320,000
Outstanding, weighted average contractual remaining life (in Years)	2 years 1 month 13 days
$0.38 | Warrant
Outstanding	523,434
Outstanding, weighted average exercise price	$ 0.38
Exercisable	523,434
Outstanding, weighted average contractual remaining life (in Years)	8 months 12 days
$0.40 | Warrant
Outstanding	4,500,000
Outstanding, weighted average exercise price	$ 0.40
Exercisable	4,500,000
Outstanding, weighted average contractual remaining life (in Years)	6 months 29 days
$1.00 | Warrant
Outstanding	350,000
Outstanding, weighted average exercise price	$ 100
Exercisable	350,000
Outstanding, weighted average contractual remaining life (in Years)	11 days
Employee Stock Option
Outstanding	5,475,000
Outstanding, weighted average exercise price	$ 0.02
Exercisable	5,475,000
Outstanding, weighted average contractual remaining life (in Years)	1 year 9 months 7 days
Exercisable, weighted average contractual remaining life (in Years)	1 year 9 months 7 days
Exercisable, weighted average exercise price	$ 0.02
Employee Stock Option | $0.001
Outstanding	5,000,000
Outstanding, weighted average exercise price	$ 0.001
Exercisable	5,000,000
Outstanding, weighted average contractual remaining life (in Years)	1 year 9 months 14 days
Employee Stock Option | $0.07
Outstanding	100,000
Outstanding, weighted average exercise price	$ 0.07
Exercisable	100,000
Outstanding, weighted average contractual remaining life (in Years)	3 years 4 days
Employee Stock Option | $0.08
Outstanding	100,000
Outstanding, weighted average exercise price	$ 0.08
Exercisable	100,000
Outstanding, weighted average contractual remaining life (in Years)	2 years
Employee Stock Option | $0.32
Outstanding	100,000
Outstanding, weighted average exercise price	$ 0.32
Exercisable	100,000
Outstanding, weighted average contractual remaining life (in Years)	7 months 20 days
Employee Stock Option | $0.36
Outstanding	175,000
Outstanding, weighted average exercise price	$ 0.36
Exercisable	175,000
Outstanding, weighted average contractual remaining life (in Years)	9 months 11 days

NOTE 11 - RELATED PARTY TRANS40

NOTE 11 - RELATED PARTY TRANSACTIONS (Details) - USD ($)	6 Months Ended
	Dec. 31, 2016	Jun. 30, 2016
Accounts Payable, Related Parties, Current	$ 269,787	$ 269,787
Officer
Debt Instrument, Periodic Payment	$ 500

NOTE 13 - SUBSEQUENT EVENTS (De

NOTE 13 - SUBSEQUENT EVENTS (Details) - USD ($)	Jan. 02, 2018	Oct. 13, 2017	Sep. 08, 2017	Aug. 30, 2017	Aug. 18, 2017	Apr. 10, 2017	Apr. 01, 2017	Feb. 02, 2017	Jan. 31, 2017	Oct. 22, 2014	Mar. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Jan. 12, 2018	Dec. 31, 2016	Dec. 31, 2015	Dec. 28, 2017	Dec. 22, 2017	Jun. 01, 2017	Sep. 14, 2017	Jul. 31, 2017	Sep. 30, 2016	Jun. 30, 2016
Gain on debt extinguishment												$ 0	$ 0		$ 14,599	$ 0
Outstanding, weighted average exercise price												$ 0.02			$ 0.02								$ 0.02
Employee Stock Option
Outstanding, weighted average exercise price												$ 0.02			$ 0.02
IGS note
Repayments of Debt											$ 88,283	$ 174,507
Long-term Debt, Gross												$ 2,818,179			$ 2,818,179								$ 2,903,316
Convertible unsecured note 1
Debt Instrument, Face Amount										$ 500,000
Proceeds from Notes Payable										75,000
Subsequent Event
Stock Issued During Period, Shares, Conversion of Units														45,890,576
Stock Issued During Period, Value, Conversion of Units														$ 3,721,781
Placement fee rate														10.00%
Payments for Other Fees														$ 372,178
Debt Conversion, Original Debt, Amount															4,511,252
Extinguishment of Debt, Amount															4,398,735
Repayments of Debt															$ 112,516
Subsequent Event | Employee Stock Option
Outstanding, weighted average exercise price												$ 0.001			$ 0.001						$ 0.002
Subsequent Event | IGS note
Debt Conversion, Original Debt, Amount															$ 3,563,662
Extinguishment of Debt, Amount															88,282
Subsequent Event | Convertible unsecured note 1
Repayments of Debt									$ 90,000
Debt Instrument, Face Amount										500,000
Proceeds from Notes Payable										$ 175,000
Long-term Debt, Gross																						$ 93,333
Gain on debt extinguishment									$ 3,333
Subsequent Event | 19 creditors
Debt Conversion, Original Debt, Amount															343,902
Extinguishment of Debt, Amount															10,734
Subsequent Event | 3 note holders
Debt Conversion, Original Debt, Amount															153,688
Extinguishment of Debt, Amount															$ 13,500
Subsequent Event | An investor
Stock returned								18,000,000
Subsequent Event | Santa Fe Acquisitions, LLC
Stock Issued During Period, Shares, Purchase of Assets																	2,500,000
Subsequent Event | Bullards Peak
Equity Method Investment, Ownership Percentage						100.00%														100.00%
Payments to Acquire Businesses and Interest in Affiliates	$ 500,000	$ 500,000	$ 500,000	$ 900,000	$ 100,000	$ 500,000
Payments to Acquire Businesses, Gross							$ 3,000,000
Subsequent Event | Warrants
Stock Issued During Period, Shares, Conversion of Units																		21,882,118
Warrant terms																		Each unit consisted of one common share and one common stock warrant. The warrants had a term of 5 years and an exercise price ranging from $0.001 to $0.10.
Stock Issued During Period, Value, Conversion of Units																		$ 2,259,503
Placement fee rate																		10.00%
Payments for Other Fees																			$ 225,950