Santa Fe Gold (SFEG) 10-Q 12 Aug 20 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2018	Aug. 10, 2020
Details
Registrant CIK	0000851726
Fiscal Year End	--06-30
Registrant Name	SANTA FE GOLD CORPORATION
SEC Form	10-Q
Period End date	Sep. 30, 2018
Tax Identification Number (TIN)	84-1094315
Number of common stock shares outstanding		422,670,880
Filer Category	Non-accelerated Filer
Current with reporting	Yes
Interactive Data Current	Yes
Shell Company	false
Small Business	true
Emerging Growth Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-12974
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	3544 Rio Grande Blvd. NW
Entity Address, City or Town	Albuquerque
Entity Address, State or Province	NM
Entity Address, Postal Zip Code	87107
Entity Address, Address Description	Address of Principal Executive Offices
City Area Code	505
Local Phone Number	255-4852
Phone Fax Number Description	Registrant’s telephone number, including area code
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Sep. 30, 2018	Jun. 30, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 331,332	$ 18,897
Prepaid expenses and other current assets	17,533	11,680
Total current assets	348,865	30,577
Total Assets	3,083,981	2,765,693
OTHER ASSETS:
Deposit on mineral property	2,500,000	2,500,000
Deposit on mineral leases	210,116	210,116
Deposit in joint venture	25,000	25,000
Current liabilities:
Accounts payable	3,094,904	3,061,976
Accrued liabilities	6,828,198	6,906,930
Subscribed capital	2,989,991	2,772,191
Notes payable	2,326,407	2,326,407
Completion guarantee payable	3,359,873	3,359,873
Total Current Liabilities	18,599,373	18,427,377
STOCKHOLDERS' DEFICIT:
Common shares	600,000	600,000
Additional paid-in capital	84,455,690	84,113,690
Accumulated deficit	(101,867,082)	(102,013,374)
Total Stockholders' Deficit	(16,811,392)	(17,299,684)
Total Liabilities and Stockholders' Deficit	3,083,981	2,765,693
LONG TERM LIABILTY:
Shares subject to mandatory redemption by related party	1,296,000	1,638,000
Liabilities	$ 19,895,373	$ 20,065,377

Consolidated Balance Sheets - P

Consolidated Balance Sheets - Parenthetical - $ / shares	Sep. 30, 2018	Jun. 30, 2018
Details
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	300,000,000	300,000,000
Common Stock, Shares, Outstanding	300,000,000	300,000,000

Consolidated Statement of Opera

Consolidated Statement of Operations - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Details
REVENUES	$ 0	$ 0
OPERATING EXPENSES:
Exploration and other mine related costs	6,076	31,981
General and administrative expenses	294,326	461,956
Total Operating Expenses	300,402	493,937
LOSS FROM OPERATIONS	(300,402)	(493,937)
Other Nonoperating Income (Expense)
Recovery (misappropriation) of funds	378,060	(5,754)
Financing costs- commodity supply agreements	234,417	(151,518)
Interest on mandatory redemption shares by related party	0	(37,800)
Interest expense	(165,783)	(176,661)
Total Other Income (Expense)	446,694	(371,733)
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES	146,292	(865,670)
PROVISION FOR INCOME TAXES	0	0
NET INCOME (LOSS)	$ 146,292	$ (865,670)
Basic and Diluted Per Share Data:
Net Income (Loss) - Basic	$ 0	$ 0
Net Income (Loss) - Diluted	$ 0	$ 0
Diluted weighted-average common shares outstanding
Basic weighted-average common shares outstanding	300,000,000	293,511,979
Diluted weighted-average common shares outstanding	300,100,000	293,511,979

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Net Cash Provided by (Used in) Operating Activities
Net income (loss)	$ 146,292	$ (865,670)
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities
Stock-based compensation	17,800	0
Non-cash interest on mandatory redemption shares by related party	0	37,800
Financing costs - commodity supply agreements	(234,417)	151,518
Net change in operating assets and liabilities:
Prepaid expenses and other current assets	(5,853)	(2,158)
Increase (Decrease) in Accounts Payable and Accrued Liabilities	188,613	(1,058)
Net Cash Provided by (Used in) Operating Activities, Continuing Operations	112,435	(679,568)
Net Cash Provided by (Used in) Investing Activities
Payment on mineral property acquisition	0	(1,500,000)
Deposit in joint venture	0	(25,000)
Net Cash Provided by (Used in) Investing Activities	0	(1,525,000)
Net Cash Provided by (Used in) Financing Activities
Proceeds from common stock purchases	200,000	895,933
Proceeds from exercise of warrants	0	895,933
Proceeds from stock subscriptions not issued	0	753,360
Net Cash Provided by (Used in) Financing Activities	200,000	2,545,226
Cash and Cash Equivalents, Period Increase (Decrease)	312,435	340,658
Cash and Cash Equivalents, at Carrying Value, Beginning Balance	18,897	392,375
Cash and Cash Equivalents, at Carrying Value, Ending Balance	331,332	733,033
Supplemental Cash Flow Information
Interest Paid, Including Capitalized Interest, Operating and Investing Activities	0	0
Income Taxes Paid, Net	0	0
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Common stock returned and cancelled	$ 0	$ 36,000

NOTE 1 - COMPANY AND NATURE OF

NOTE 1 - COMPANY AND NATURE OF OPERATIONS	3 Months Ended
	Sep. 30, 2018
Notes
NOTE 1 - COMPANY AND NATURE OF OPERATIONS	NOTE 1 – COMPANY AND NATURE OF OPERATIONS Santa Fe Gold Corporation, a Delaware corporation (the "Santa Fe”, "Company", “our” or “we”) 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 September 30, 2018 and June 30, 2018 (Audited), the consolidated results of operations for the three months ended September 30, 2018 and 2017, consolidated cash flows for the three months ended September 30, 2018 and 2017. 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 months ended September 30, 2018, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2019. 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, 2019. These interim financial statements and notes thereto should be read in conjunction with the consolidated financial statements presented in the Company’s 2019 Annual Report on Form 10-K filed on July 15, 2020. Nature of Operations Santa Fe Gold Corporation 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. Upon the Company emerging from the bankruptcy with a management team of two and no assets, we developed a business plan to raise 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. On August 18, 2017, the Company signed the Bullard’s Peak Agreement and delivered $100,000 towards the purchase price. The Agreement is to purchase Bullard’s Peak Corporation and Black Hawk Consolidated Mines Company and 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 with installments stated in the Bullard’s Peak Agreement.

NOTE 2 - SUMMARY OF SIGNIFICANT

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Sep. 30, 2018
Notes
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 recorded net income of $146,292 for the three months ended September 30, 2018, and has a total accumulated deficit of $101,867,082 and a working capital deficit at September 30, 2018 of $18,250,508. 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. At September 30, 2018, the Company was in defaults on payments of approximately $7.38 million under a gold stream agreement (the “Gold Stream Agreement”) with Sandstorm Gold Ltd. (“Sandstorm”), other notes payable principle aggregating approximating $2.33 million, accrued liabilities of approximately $2.81 million and accounts payable approximating $3.03 million. 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. On July 19, 2016 a new company was formed, Santa Fe Acquisition LLC (“SFA”) with Tom Laws, our CEO, as the signer, for the sole purpose of acquiring assets for Santa Fe Gold (“SFG”). On September 25, 2017, with an effective date of July 23, 2016, the CEO assigned ownership of SFA to Santa Fe Gold whereby SFG became to sole member of SFA resulting in SFA becoming a wholly owned subsidiary of SFG. All major purchases were made through the SFA Company for the benefit of SFG, with the funding provided by SFG. 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 September 30, 2018, and June 30, 2018, 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. 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. The Company has no financial derivative instruments in the current reporting periods. 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 September 302017, the impact of outstanding stock equivalents has not been included as they would be anti-dilutive. A reconciliation of the weighted average shares outstanding used in the basic and diluted earnings per share (“EPS”) computation is as follows for the three months ended September 30, 2018: Net Income (Numerator) Weighted Average Common Shares (Denominator) Per Share Amount For the three months ended September 30, 2018 Basic EPS Income available to common stockholders $ 146,292 300,000,000 $ 0.00 Diluted EPS Dilutive shares from options and warrants — 100,000 Income available to common stockholders plus assumed conversions $ 146,292 300,100,000 $ 0.00 The number of stock options excluded from the calculation of diluted earnings per share for the three months ended September 30, 2018 was 100,000 and excluded warrants was 4,320,000, 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. The Company had stock-based compensation of $17,800 in the three months ending September 30, 2018, and none for the three months ended September 30, 2017. Accounting Standards to be Adopted in Future Periods In May 2014, the FASB issued ASC updated No. 2014-09, Revenue from Contracts with Customers (Topic 606 (ASU 2014-09) In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. In February 2016, the FASB issued ASU “Leases (Topic 842),” which requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with a term of more than one year. Accounting by lessors will remain similar to existing U.S. GAAP. Subsequent accounting standards updates have been issued, which amend and/or clarify the application of ASU The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company has not adopted Topic 842 as of the filing of this 10-Q and at this time In November 2016, the FASB has issued ASU No. 2016-18 , Statement of Cash Flows (Topic 230) In May 2017, FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, which amends the scope of modification accounting surrounding share-based payment arrangements as issued in ASU 2016-09 by providing guidance on the various types of changes which would trigger modification accounting for share-based payment awards. ASU 2017-09 is effective for annual periods beginning after December 15, 2017. The new standard was adopted by the Company in the quarter ended September 30, 2018, and the Company does not expect the adoption of ASU 2017-09 to have a material effect on its business or on its financial position, results of operations or cash flows. In August 2018, ASU No. 2018-13 was issued to modify and enhance the disclosure requirements for fair value measurements. This update is effective in fiscal years, including interim periods, beginning after December 1, 2020, and early adoption is permitted. The Company is currently evaluating this guidance and the impact on its Consolidated Financial Statements. Other 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 - DEPOSIT ON MINERAL PRO

NOTE 3 - DEPOSIT ON MINERAL PROPERTY	3 Months Ended
	Sep. 30, 2018
Notes
NOTE 3 - DEPOSIT ON MINERAL PROPERTY	NOTE 3 – MINERAL PROPERTIES Acquisition of Bullard’s Peak Corporation and Black Hawk Consolidated Mines Company On August 18, 2017, the Company signed the Bullard’s Peak Agreement and delivered $100,000 towards the purchase price. The Agreement is to purchase Bullard’s Peak Corporation and Black Hawk Consolidated Mines Company and acquire 100% of the issued and outstanding capital stock for an initial cash purchase price of $3,000,000, to be paid with installments stated in the Bullard’s Peak Agreement. Title to the claims and capital stock will be transferred upon receipt by seller of the full purchase price. Additional installments were made as follows through the end of the current reporting period towards the purchase price: - August 30, 2017, the Company delivered $900,000; - September 8, 2017, the Company delivered $500,000; - October 13, 2017, the Company delivered $500,000 and - January 2, 2018, the Company delivered $500,000. Acquisition British Columbia Properties British Columbia Properties On November 30, 2017, the Company entered into substantially identical agreements with Fortune Graphite, Inc. and Worldwide Graphite Producers, Ltd. to acquire a total of four placer claims for aggregate consideration of Can$400,000 and the issuance of 10,000,000 shares of Company common stock. Title to these claims remained in trust with the sellers until payment in full. To date, the Company has paid to the sellers’ consideration of Can$205,000 and US$210,116. The Company disclosed in a Form 8-K filing on November 20, 2018 that it had been notified that it was in default with respect to these two November 2017 agreements and that the sellers threatened legal action. The Company has engaged British Columbia counsel to review the two November 2017 agreements and has concluded that there were false representations made by the sellers and that certain conditions precedent of sellers were not satisfied. As a result, the Company’s position is that these two November 2017 agreements are not and were never binding and have requested sellers to refund the Can$205,000. The Company so informed sellers on March 4, 2019. The Company continues to evaluate its rights and remedies in connection with this matter. As a result, the Company does not own any rights to the four placer claims located in the Vernon mining district of British Columbia, Canada (which property is more fully set forth in the Form 8-K filing dated November 20, 2018). At the date of this report the agreements are being scheduled for arbitration by the Company attorney.

NOTE 4 - ACCRUED LIABILITIES

NOTE 4 - ACCRUED LIABILITIES	3 Months Ended
	Sep. 30, 2018
Notes
NOTE 4 - ACCRUED LIABILITIES	NOTE 4 – ACCRUED LIABILITIES Accrued liabilities consist of the following at September 30, 2018 and June 30, 2018: September 30, June 30, 2018 2018 Interest $ 3,197,460 $ 3,031,677 Vacation 15,770 15,770 Payroll 124,620 134,718 Franchise taxes 8,697 8,697 Merger costs, net 269,986 269,986 Other 19,579 19,579 Audit 18,557 18,557 Commodity supply agreement 2,920,006 3,154,423 Property taxes 253,523 253,523 $ 6,828,198 $ 6,906,930

NOTE 5 - COMPLETION GUARANTEE P

NOTE 5 - COMPLETION GUARANTEE PAYABLE	3 Months Ended
	Sep. 30, 2018
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 under the Gold Stream Agreement with Sandstorm. See NOTE 9- CONTINGENCIES AND COMMITMENTS, Commodity Supply Agreement.

NOTE 6 - SHARES SUBJECT TO MAND

NOTE 6 - SHARES SUBJECT TO MANDATORY REDEMPTION BY RELATED PARTY	3 Months Ended
	Sep. 30, 2018
Notes
NOTE 6 - SHARES SUBJECT TO MANDATORY REDEMPTION BY RELATED PARTY	NOTE 6 - SHARES SUBJECT TO MANDATORY REDEMPTION BY RELATED PARTY On August 9, 2017, a related party returned a certificate for 20,000,000 shares of common stock and was issued a new certificate for 2,000,000 shares on the same date. The related party loaned the 18,000,000 shares to the Company to raise additional working capital until the Company increased the authorized common shares of the Company. The related party has set no specified return date after the increased share authorization and may make the election at their discretion. The value of the 18,000,000 shares is determined according to ASC 480, “ Distinguishing Liabilities from Equity”. Upon return of the loaned shares to the related party, the obligation of associated theses shares will be eliminated and a corresponding entry made to Common Stock and Additional Paid in Capital.

NOTE 7 - NOTES PAYABLE

NOTE 7 - NOTES PAYABLE	3 Months Ended
	Sep. 30, 2018
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 an initial compounded rate of 1% a month and was 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 the accrued compounded interest at that date was added to the principle and the interest rate was increased to 14% per annum on the outstanding balance per the Share Exchange Agreement. The principal and accrued interest outstanding at September 30, 2018, is in past due and in default. The principle balance and merger advance outstanding at September 30, 2018 and June 30, 2018 was $182,522, respectively. Accrued interest on note at September 30, 2018 and June 30, 2018 was $97,397 and $91,662, respectively. Interest expense for the three months ended September 30, 2018 and 2017 was $5,735 and $7,500, respectively. A forbearance agreement by and among Santa Fe and Canarc Resource Corp. (“Canarc”) was entered into and effective as of February 12, 2018. Canarc loaned/advanced Santa Fe $220,000 in 2014. The funding requirements were not attained and the loan became due on January 15, 2015. The Company agreed with Canarc to make four installment payments as follows: (i) $25,000 on February 14, 2018; (ii) $25,000 on June 30, 2018; (iii) $85,000 on October 1, 2018; and (iv) $85,000 on December 31, 2018. All payments were made on a timely basis. With the final payment completed, Canarc forgave $12,522 of principal and accrued interest on the note payable of approximately $107,974 per the terms of the agreement and the Company recorded a gain on debt extinguishment of approximately $120,496 in the quarter ended December 31, 2018. 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 September 30, 2018 and June 30, 2018 and had an accrued interest of $93,420 and $87,687, 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 and this amount was recorded as a gain on trust debt forgiveness. 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 September 30, 2018. Interest expense for the three months ended September 30, 2018 and 2017 was $5,733, respectively. 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 June 30, 2017 and 2016. This amount is net of a break fee of $300,000 due to the Company from Tyhee. Accrued interest on note at September 30, 2018 and June 30, 2018, was $1,842,079 and $1,736,513 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 and recorded as a gain on trust debt forgiveness. Interest expense for the three months ended September 30, 2018 and 2017 was $105,566 and $114,679, respectively. The following summarizes notes payable: September 30, June 30, 2018 2018 Working capital advances, interest at 1% per month, due January 15, 2015 $ 162,522 $ 162,522 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 notes 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 $ 2,326,407 $ 2,326,407

NOTE 8 - FAIR VALUE MEASUREMENT

NOTE 8 - FAIR VALUE MEASUREMENTS	3 Months Ended
	Sep. 30, 2018
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 September 30, 2018 and June 30, 2018 are as follows: September 30, 2018 Level 1 Level 2 Level 3 Total Assets: None $ — $ — $ — $ — Liabilities: Share redemption to related party $ — $ 1,296,000 $ — $ 1,296,000 June 30, 2018 Level 1 Level 2 Level 3 Total Assets: None $ — $ — $ — $ — Liabilities: Share redemption to related party $ — $ 1,638,000 $ — $ 1,638,000

NOTE 9 - CONTINGENCIES AND COMM

NOTE 9 - CONTINGENCIES AND COMMITMENTS	3 Months Ended
	Sep. 30, 2018
Notes
NOTE 9 - CONTINGENCIES AND COMMITMENTS	NOTE 9 – CONTINGENCIES AND COMMITMENTS Commodity Supply Agreement In December 2009, the Company entered into a definitive gold stream agreement (the “Gold Stream Agreement”) with Sandstorm to deliver a portion of the life-of-mine gold production (excluding all silver production) from the Company’s Summit silver-gold mine. Under the agreement the Company received advances of $4,000,000 as an upfront deposit, plus continue to receive future ongoing payments equal to the lesser of: $400 per ounce or the prevailing market price, (the “Fixed Price”) for each ounce of gold delivered pursuant to the agreement for the life of the mine. The Company purchases and delivers refined gold in order to satisfy the requirements of the Gold Stream Agreement and receives the Fixed Price per ounce in cash from Sandstorm. The difference between the prevailing market price and the Fixed Price per ounce for gold delivered is credited against the upfront deposit of $4,000,000 until the obligation is reduced to zero. Future ongoing payments for gold deliveries will continue at the Fixed Price per ounce with no additional credits or advances to be received from Sandstorm. In certain circumstances, including failure to meet minimum production rates, interruption in production due to permitting issues and customary events of default, the agreement may be terminated. In such event, the Company may be required to return to Sandstorm any remaining uncredited balance of the original $4,000,000 upfront deposit. See NOTE 5 - COMPLETION GUARANTY PAYABLE Under the Gold Stream Agreement, the Company has a recorded obligation at September 30, 2018 and June 30, 2018, of 3,709 ounces of undelivered gold valued at approximately $2.9 and $3.15 million, respectively, in accrued liabilities net of the Fixed Price of $400 per ounce to be received upon delivery. The Summit silver-gold mine property referred to in this Gold Stream Agreement was sold in the 363 Asset Sale as of the asset transfer on February 26, 2016. Share Obligation to Related Party On August 9, 2017, a related party returned a certificate for 20,000,000 shares of common stock and was issued a new certificate for 2,000,000 shares on the same date. The related party loaned the 18,000,000 shares to the Company to raise additional working capital until the Company increased the authorized common shares of the Company. The related party has set no specified return date after the increased share authorization and may make the election at their discretion. See NOTE 6 SHARE OBLIGATION TO RELATED PARTY Office and Real Property Leases On August 1, 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 $1,500 for the three months ended September 30, 2017 and 2016, 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	3 Months Ended
	Sep. 30, 2018
Notes
NOTE 10- STOCKHOLDERS' DEFICIT	NOTE 10- STOCKHOLDERS' DEFICIT Subscribed Capital During the three months ended September 30, 2018, the Company accepted stock subscription payments of $200,000 for an aggregate of 2,500,000 shares of restricted common stock in excess of authorized capital. The Company also approved the issuance of 200,000 shares of restricted stock for consulting fees with a value of $17,800 on the date of grant. The Company received authorization by the shareholders to increase Company’s authorized capital to 550,000,000 common shares on January 11, 2019 and the subscribed and granted shares were issued. Issuance of Warrants and Expiration During the three months ended September 30, 2018, the Company issued no new warrants and no warrants expired. Stock Options and the Amended and Restated Equity Incentive Plan During three months ended September 30, 2018, no options were granted and no options expired. Stock option and warrant activity, both within the 2007 EIP Amended, the Restated Equity Incentive Plan and outside of these plans, for the three months ended September 30, 2018, are as follows: Stock Options Stock Warrants Weighted Weighted Average Exercise Shares Price Shares Price Outstanding at June 30, 2018 200,000 $0.075 4,420,000 $0.15 Granted — — — — Canceled — — — — Expired — — — — Exercised — — — — Outstanding at September 30, 2018 200,000 $0.075 4,320,000 $0.15 Stock options and warrants outstanding and exercisable at September 30, 2018 are as follows: Outstanding and Exercisable Options Outstanding 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 $0.07 100,000 100,000 1.26 $ 0.07 $ 0.15 4,320,000 4,320,000 .48 $ 0.15 $0.08 100,000 100,000 .26 $ 0.08 — — — — — 200,000 200,000 4,320,000 4,320,000 Outstanding Options .76 $ 0.075 Outstanding Warrants .48 $ 0.15 Exercisable Options .76 $ 0.075 Exercisable Warrants .48 $ 0.15 As of September 30, 2018, the aggregate intrinsic value of all stock options and warrants vested was $200. 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 $0.072 closing stock price of the common stock on September 30, 2018. The total intrinsic value associated with options exercised during the three months ended September 30, 2018, 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	3 Months Ended
	Sep. 30, 2018
Notes
NOTE 11 - RELATED PARTY TRANSACTIONS	NOTE 11 – RELATED PARTY TRANSACTIONS On August 1, 2015, the Company leased a home office space from the Company’s CFO for $500 a month for the corporate administrative office in Albuquerque, NM until such time growth requires a larger corporate administrative office. The board authorized on June 16, 2016, the hiring of Nataliia Mueller, wife of the Company’s CFO, with an annual wage of $48,500 as an assistant to the CFO. In order to expedite purchases of equipment and associated expenses in Silver City on behalf of the Company, SFG deposited funds into Mr. Laws certified public accounting practice account until a new bank account was opened at Wells Fargo. Company expenses and purchases of equipment were done in that account. During the fiscal year 2017 an aggregate of $926,000 was deposited to Mr. Laws account or was paid out of the corporate account at Mr. Law’s direction. At the end of the 2017 fiscal year Mr. Laws submitted expenditures on behalf of the Company totaling $1,009,099. Subsequent to the 2017 fiscal year ended, the board directors of the Company appointed a special committee which determined the funds expended by Mr. Laws were misappropriated in the amount of $971,099 and a deposit of $38,000 was valid and refunded to the Company in a subsequent period. Of this amount, the $500,000 deposit that was to be made on the Alhambra Acquisition was subsequently determined never made the sellers. See NOTE 13 - Subsequent Events Misappropriated Funds and Entry into a Material Definitive Agreement. As disclosed in the Company’s Form 8-K filed on October 1, 2018, a director and former chief executive officer of the Company, Mr. Thomas H. Laws, entered into a secured promissory note and security agreement in the principal amount of $930,000 in favor of the Company on September 19, 2018, bearing interest at the annual rate of 4% and maturing September 30, 2018 (“Secured Promissory Note”). The Company requested the former chief executive to execute the Secured Promissory Note and security agreement as a result of the matters discussed below, prior to the completion of the special committee investigation. The security interests include certain real estate and a Cessna model 182G airplane. The Secured Promissory Note also contains late fee and default provisions under the deeds of trust, Security Agreement and other agreements. The board of directors formed a special committee on September 26, 2018 to investigate and analyze certain financial transactions in the aggregate amount of approximately $1 million that occurred primarily between July 2016 and March 2018 involving Mr. Laws. The special committee investigation determined initially that Mr. Laws owes the Company $1,197,198, excluding penalty, accrued interest and additional associated costs. At the time of filing this Form 10-Q total costs associated with Mr. Laws is $1,651,263, including the additional incurred associated costs, of which $485,966 has been recovered by the Company from Mr. Laws. The Company does not anticipate collecting a material amount due from Mr. Laws and will be determined by the bankruptcy court. The Company is in process of restating the previously issued consolidated financial statements for, and financial information relating to, the fiscal year ended June 30, 2017. Subsequent review of these transactions for the fiscal year ended June 30, 2017, resulted in a restatement of assets and operating costs in the amount of $971,099 and charged to the former chief executive officer. Mr. Laws was terminated as the at-will chief executive officer of the Company on September 24, 2018. Currently no interim chief executive officer has been named to replace Mr. Laws. In November 2018, Santa Fe filed a complaint in Luna County District Court, State of New Mexico, requesting a $930,000 money judgment against Mr. and Mrs. Laws, in addition to foreclosing on the mortgage Mr. and Ms. Laws granted to Santa Fe on real property to secure the promissory note located in Luna County, New Mexico. In November 2018, Santa Fe filed a similar complaint in Grant County District Court, State of New Mexico, as Mr. and Mrs. Laws and XYZ Ranch Estates, LLC granted Santa Fe a deed of trust and a mortgage, respectively, on several pieces of real property in Grant County, New Mexico. Mr. Laws also granted Santa Fe a security agreement on an airplane located in Grant County, New Mexico. The complaint in Grant County requested a money judgment in the amount of $930,000 against Mr. and Mrs. Laws, in addition to a request to foreclose on the assets pledged to us located in Grant County, New Mexico. As of the filing of this report, Mr. Laws has pleaded guilty to various charges brought against him by government officials, which include the Company allegations. Mr. Laws is currently awaiting sentencing on the pleaded to charges. The Company attorneys have filed all required documents for future monetary settlements to be determined by the court. An individual consultant, who is instrumentally helpful to the Company in raising funds and is compensated on consulting basis, as disclosed in NOTE 13 – SUBSEQUENT EVENTS, Recent Issuances of Unregistered Securities 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	3 Months Ended
	Sep. 30, 2018
Notes
NOTE 12 - LEGAL PROCEEDINGS	NOTE 12 – LEGAL PROCEEDINGS All legal proceedings were stayed with the filing of Chapter 11 bankruptcy. Boart Long year Company v. Lordsburg Mining Company Boart Longyear Company v. Lordsburg Mining Company Boart Longyear Company v. Lordsburg Mining Company Wagner Equipment Co. v. Lordsburg Mining Company The bankruptcy court set up a Trust fund that will be funded by the activities of the Summit mine for five (5) years for five years from reopening of the mine 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. The Department of Justice (“DOJ”) and the U.S. Securities and Exchange Commission (“SEC”) have each initiated investigation into the Company and certain other individuals, resulting from the Laws transactions and related misappropriation of funds described herein. The SEC has obtained a formal order to investigate the Company. The DOJ investigation is still preliminary. These types of investigations are expensive, time-consuming for management, and unpredictable – often resulting in other aspects of the Company’s operations becoming subject to regulatory scrutiny. These investigations are ongoing and no prediction can be made regarding the timing or outcome of such matters including remedial action pursued against the Company and others, including its officers and directors. 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 September 30, 2018, 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	3 Months Ended
	Sep. 30, 2018
Notes
NOTE 13 - SUBSEQUENT EVENTS	NOTE 13 – SUBSEQUENT EVENTS Recent Issuances of Unregistered Securities During the period October 1, 2018 through August 11, 2020, ten current accredited shareholders purchased and aggregate of 50,209,243 restricted common shares for $3,151,980. In addition, our chairman purchased 11,642,858 restricted common shares for $775,000. The issuance of the restricted common shares, were exempt from registration requirements of the Security Act of 1933, as amended, pursuant to Section 4(a)2, thereof because such issuance did not involve a public offering. In connection with the placements, the Company incurred no consulting fees. During the period October 1, 2018 through August 11, 2020, 3,836,018 restricted shares of common stock for consulting services at an aggregated market value of $351,794 on the date of issuance. The issuance of the restricted common shares, were exempt from registration requirements of the Security Act of 1933, as amended, pursuant to Section 4(a)2, thereof because such issuance did not involve a public offering. In the period from March 2020 through August 11, 2020, the Company issued warrants to existing accredited investors aggregating 4,500,000, and 2,250,000 warrants to the chairman of the board that were attached to restricted stock purchases. The warrants were vested at issuance, have a three-year life and an exercise price of $0.05 and $0.07 per share On March 20, 2019, the Company granted our Chairman of the Board of Directors and our Chief Financial Officer each 15,000,000 cashless five-year options at a strike price of $0.05, the market price on the date of the grant, for their efforts on reviving the Company. On April 10, 2020 , the Company converted $100,000 of accrued salary for the Company CFO into 2,000,000 shares of restricted common stock at a market value of $117,000 on the date on grant and recorded a loss on debt conversion of $17,000. Warrants issued in conjunction with the conversion were 1,000,000 vested three-year warrants and have an exercise price of $0.050 per share. On June 30, 2020 , the Company converted a note payable with the Company CFO consisting of principal and interest of $42,037 and $6,178, respectively, into 964,299 shares of restricted common stock at $0.05 per share. The market value on the date of conversion was $67,501 and on the date of conversion the Company recorded a loss on debt conversion of $19,286. In conjunction with the conversion 482,149 vested three-year warrants were granted and have an exercise price of $0.05 per share. Alhambra Acquisition Pursuant to a stock purchase agreement dated August 2017, the Company will acquire all the capital stock of Bullard’s Peak Corporation (which owns five patented claims and 82 unpatented claims in the Black Hawk district of New Mexico) from Black Hawk Consolidated Mines Company for a purchase price of $3,000,000, and the capital stock of Bullard’s Peak Corporation and the mining claims collateralize the full purchase price payment. The Company granted the seller a 2% net smelter return in perpetuity. The net smelter return is the greater of (i) all monies the Company receives for or from any and all ore removed from the property comprising the mining claims whether for exploration, mining operations or any other reason, and (ii) the fair market value of removed ore from the property comprising the mining claims. Title to the claims will be transferred upon receipt by seller of the full purchase price. In August 2018, the Company was informed that the seller terminated the stock purchase agreement. Pursuant to an amendment to the stock purchase agreement in October 2018, the Company paid the seller $100,000 and the seller rescinded the August 2018 election to terminate the stock purchase agreement and waived all then existing events of default and any additional interest, late fees, and other damage claims due to the Company’s prior breaches of the stock purchase agreement. On October 31, 2018, the Company paid the seller an additional $100,000. The balance of the purchase price of $350,365 (which includes $50,365 of expenses that the Company agreed to reimburse seller) is required to be paid: (i) $100,000 on or before November 30, 2018 and (ii) $250,365 on or before December 31, 2018. If any payment is not timely paid, all rights of the Company under the stock purchase agreement shall become automatically null and void and seller shall retain all monies paid as liquidated damages for the Company’s breach, and seller shall have no further obligations to the Company, including but not limited to, any obligation to transfer the capital stock of Bullard’s Peak Corporation to the Company pursuant to the terms of the stock purchase agreement. We paid $100,000 in November 2018 with respect to the Alhambra Silver Mine acquisition and owed a balance of approximately $250,000 on December 31, 2018, to complete the acquisition. Lack of funding on December 31, 2018 resulted in us entering into a third amendment pursuant to which we paid $65,000 on January 2, 2019, a late fee payment on February 1, 2019 of $50,000, a $100,000 on February 28, 2019, and the final payment of $100,365 was paid on April 2, 2019, for the total acquisition cost of $3,115,365. In February 2018, the Company filed for a permit to start operations at the Bullard’s Peak property. The permit was awarded on March 7, 2018. As of the filing of this report, no operations have commenced. British Columbia Properties On November 30, 2017, the Company entered into substantially identical agreements with Fortune Graphite, Inc. and Worldwide Graphite Producers, Ltd. to acquire a total of four placer claims for aggregate consideration of Can$400,000 and the issuance of 10,000,000 shares of Company common stock. Title to these claims remained in trust with the sellers until payment in full. To date, the Company has paid to the sellers’ consideration of Can$205,000. The Company disclosed in a Form 8-K filing on November 20, 2018 that it had been notified that it was in default with respect to these two November 2017 agreements and that the sellers threatened legal action. The Company has engaged British Columbia counsel to review the two November 2017 agreements and has concluded that there were false representations made by the sellers and that certain conditions precedent of sellers were not satisfied. As a result, the Company’s position is that these two November 2017 agreements are not and were never binding and have requested sellers to refund the Can$205,000. The Company so informed sellers on March 4, 2019. The Company continues to evaluate its rights and remedies in connection with this matter. As a result, the Company does not own any rights to the four placer claims located in the Vernon mining district of British Columbia, Canada (which property is more fully set forth in the Form 8-K filing dated November 20, 2018. The Company position subsequently is to void the transaction based upon the questionable claim activity and due to the uncertainty of the outcome has provided an impairment of the amount at June 30, 2019, in the amount of US$210,116. Billali Mine and the Jim Crow Imperial Mine Mineral Interest In January 2019 the Company has acquired rights to two properties in western New Mexico, consisting of eight (8) patented claims and two unpatented claims, all located in the Steeple Rock Mining District, Grant County, New Mexico and a related water rights lease agreement. The Company entered into a purchase agreement with a mining operator in January 2019 to purchase two properties in western New Mexico, the Billali Mine, and the Jim Crow Imperial Mine. The purchase price for all rights and interests to be conveyed is $2,500,000 for the Billali Mine and $7,500,000 for the Jim Crow Imperial Mine, with aggregate consideration for both definitive agreements payable as follows per Amendment Three that is effective as of May 1, 2020: * * * * * The Agreement has a 5% net smelter return (NSR) royalty on the nine patented Lode Claims with a royalty limit up to $650,000, and a 3% NSR thereafter. Title and all rights and interest in the properties will be conveyed under the agreements upon completion of the payments of the purchase prices of the properties. Canarc Agreement A forbearance agreement by and among Santa Fe and Canarc Resource Corp. (“Canarc”) was entered into and effective as of February 12, 2018. Canarc loaned Santa Fe $220,000 in 2014. The funding requirements were not attained and the loan became due on January 15, 2015. The Company agreed with Canarc to make four installment payments as follows: (i) $25,000 on February 14, 2018; (ii) $25,000 on June 30, 2018; (iii) $85,000 on October 1, 2018; and (iv) $85,000 on December 31, 2018. All payments were made on a timely basis. With the final payment completed, Canarc forgave $12,522 of principal and accrued interest on the note payable of approximately $107,974 per the terms of the agreement and the Company recorded a gain on debt extinguishment of approximately $120,496 in the quarter ended December 31, 2018. Miscellaneous During the period October 2018 and June 30, 2020, the CFO of the Company and an outside party, loaned the Company an aggregate of $381,787, evidenced by demand unsecured notes payable at an annual rate of interest of 6% and have no stated due dates. As of the date of filing this report, $80,000 has been repaid to the outside party and the CFO has converted his outstanding note balance and accrued interest into restricted common stock. On December 18, 2019, Mr. Daniel Gorski, our consultant geologist, was appointed to our board of directors. Engagement of Mining Consultant The Company has entered into an at-will consulting agreement with Daniel E. Gorski in November 2018 to provide consulting services to the Company with respect to its proposed mining operations, at the rate of $5,000 per month in cash and $5,000 per month in Company common stock. Mr. Gorski is owed an additional $30,000 from work performed for the Company during the period March 2018 through August 2018 prior to his engagement. Items Voted upon at the Company Shareholders Meeting The Company held a shareholder meeting on January 11, 2019, in Albuquerque, New Mexico, and a majority of our shareholders voted to (i) amend our certificate of incorporation to increase the authorized shares of common stock that we have authority to issue from 300,000,000 shares to 550,000,000 shares and (ii) remove Thomas Laws as a director. Resignation of Board members Longtime Board member Erich Hofer resigned effective December 28, 2018, and Tom Laws resigned effective January 9, 2019 (just prior to the shareholder meeting on January 11, 2019 in which the shareholders voted to remove him as a director). Misappropriation of Funds and Entry into a Material Definitive Agreement As disclosed in the Company’s Form 8-K filed on October 1, 2018, a director and former chief executive officer of the Company, Mr. Thomas H. Laws, entered into a secured promissory note and security agreement in the principal amount of $930,000 in favor of the Company on September 19, 2018, bearing interest at the annual rate of 4% and maturing September 30, 2018 (“Secured Promissory Note”). The Company requested the former chief executive to execute the Secured Promissory Note and security agreement as a result of the matters discussed below, prior to the completion of the special committee investigation. The security interests include certain real estate and a Cessna model 182G airplane. The Secured Promissory Note also contains late fee and default provisions under the deeds of trust, Security Agreement and other agreements. The board of directors formed a special committee on September 26, 2018 to investigate and analyze certain financial transactions in the aggregate amount of approximately $1 million that occurred primarily between July 2016 and March 2018 involving Mr. Laws. The special committee investigation determined initially that Mr. Laws owes the Company $1,197,198, excluding penalty, accrued interest and additional associated costs. At the time of filing this Form 10-Q total costs associated with Mr. Laws is $1,651,263 of which $485,966 has been recovered by the Company. The Company does not anticipate collecting a material amount due from Mr. Laws and will be determined by the bankruptcy court The Company is in process of restating the previously issued consolidated financial statements for, and financial information relating to, the fiscal year ended June 30, 2017. Subsequent review of these transactions for the fiscal year ended June 30, 2017, resulted in a restatement of assets and operating costs in the amount of $971,099 and charged to the former chief executive officer. Mr. Laws was terminated as the at-will chief executive officer of the Company on September 24, 2018. Currently no interim chief executive officer has been named to replace Mr. Laws. In November 2018, Santa Fe filed a complaint in Luna County District Court, State of New Mexico, requesting a $930,000 money judgment against Mr. and Mrs. Laws, in addition to foreclosing on the mortgage Mr. and Ms. Laws granted to Santa Fe on real property to secure the promissory note located in Luna County, New Mexico. In November 2018, Santa Fe filed a similar complaint in Grant County District Court, State of New Mexico, as Mr. and Mrs. Laws and XYZ Ranch Estates, LLC granted Santa Fe a deed of trust and a mortgage, respectively, on several pieces of real property in Grant County, New Mexico. Mr. Laws also granted Santa Fe a security agreement on an airplane located in Grant County, New Mexico. The complaint in Grant County requested a money judgment in the amount of $930,000 against Mr. and Mrs. Laws, in addition to a request to foreclose on the assets pledged to us located in Grant County, New Mexico. As of the filing of this report, Mr. Laws has pleaded guilty to various charges brought against him by government officials, which include the Company allegations. Mr. Laws is currently awaiting sentencing on the pleaded to charges. The Company attorneys have filed all required documents for future monetary settlements to be determined by the court. Extinguishment of Debt Based upon a legal opinion from our British Columbia legal consul, the Company at June 30, 2019, wrote off of two financing facilities under British Columbia law where the statute of limitations had run out pursuant to the Limitations Act Merger Agreement, loan balance $ 1,745,092 Merger Agreement, loan accrued interest 2,155,335 Merger Agreement accrued fees 269,986 Goldstream loan balance 3,742,505 Completion Guaranty accrued interest 1,234,749 Completion Guaranty Payable 3,359,873 Forbearance Agreement 112,625 Total Debt Extinguishment $ 12,620,165

NOTE 2 - SUMMARY OF SIGNIFICA_2

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basis of Presentation and Going Concern (Policies)	3 Months Ended
	Sep. 30, 2018
Policies
Basis of Presentation and Going Concern	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 recorded net income of $146,292 for the three months ended September 30, 2018, and has a total accumulated deficit of $101,867,082 and a working capital deficit at September 30, 2018 of $18,250,508. 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. At September 30, 2018, the Company was in defaults on payments of approximately $7.38 million under a gold stream agreement (the “Gold Stream Agreement”) with Sandstorm Gold Ltd. (“Sandstorm”), other notes payable principle aggregating approximating $2.33 million, accrued liabilities of approximately $2.81 million and accounts payable approximating $3.03 million.

NOTE 2 - SUMMARY OF SIGNIFICA_3

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Principles of Consolidation (Policies)	3 Months Ended
	Sep. 30, 2018
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. On July 19, 2016 a new company was formed, Santa Fe Acquisition LLC (“SFA”) with Tom Laws, our CEO, as the signer, for the sole purpose of acquiring assets for Santa Fe Gold (“SFG”). On September 25, 2017, with an effective date of July 23, 2016, the CEO assigned ownership of SFA to Santa Fe Gold whereby SFG became to sole member of SFA resulting in SFA becoming a wholly owned subsidiary of SFG. All major purchases were made through the SFA Company for the benefit of SFG, with the funding provided by SFG.

NOTE 2 - SUMMARY OF SIGNIFICA_4

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Estimates (Policies)	3 Months Ended
	Sep. 30, 2018
Policies
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.

NOTE 2 - SUMMARY OF SIGNIFICA_5

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Fair Value Measurements (Policies)	3 Months Ended
	Sep. 30, 2018
Policies
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 September 30, 2018, and June 30, 2018, 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.

NOTE 2 - SUMMARY OF SIGNIFICA_6

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Cash and Cash Equivalents (Policies)	3 Months Ended
	Sep. 30, 2018
Policies
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.

NOTE 2 - SUMMARY OF SIGNIFICA_7

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Derivative Financial Instruments (Policies)	3 Months Ended
	Sep. 30, 2018
Policies
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. 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. The Company has no financial derivative instruments in the current reporting periods.

NOTE 2 - SUMMARY OF SIGNIFICA_8

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Net Income (Loss) Per Share (Policies)	3 Months Ended
	Sep. 30, 2018
Policies
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 September 302017, the impact of outstanding stock equivalents has not been included as they would be anti-dilutive. A reconciliation of the weighted average shares outstanding used in the basic and diluted earnings per share (“EPS”) computation is as follows for the three months ended September 30, 2018: Net Income (Numerator) Weighted Average Common Shares (Denominator) Per Share Amount For the three months ended September 30, 2018 Basic EPS Income available to common stockholders $ 146,292 300,000,000 $ 0.00 Diluted EPS Dilutive shares from options and warrants — 100,000 Income available to common stockholders plus assumed conversions $ 146,292 300,100,000 $ 0.00 The number of stock options excluded from the calculation of diluted earnings per share for the three months ended September 30, 2018 was 100,000 and excluded warrants was 4,320,000, because their inclusion would have been anti-dilutive.

NOTE 2 - SUMMARY OF SIGNIFICA_9

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Stock-Based Compensation (Policies)	3 Months Ended
	Sep. 30, 2018
Policies
Stock-Based Compensation	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. The Company had stock-based compensation of $17,800 in the three months ending September 30, 2018, and none for the three months ended September 30, 2017.

NOTE 2 - SUMMARY OF SIGNIFIC_10

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Accounting Standards to be Adopted in Future Periods (Policies)	3 Months Ended
	Sep. 30, 2018
Policies
Accounting Standards to be Adopted in Future Periods	Accounting Standards to be Adopted in Future Periods In May 2014, the FASB issued ASC updated No. 2014-09, Revenue from Contracts with Customers (Topic 606 (ASU 2014-09) In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. In February 2016, the FASB issued ASU “Leases (Topic 842),” which requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with a term of more than one year. Accounting by lessors will remain similar to existing U.S. GAAP. Subsequent accounting standards updates have been issued, which amend and/or clarify the application of ASU The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company has not adopted Topic 842 as of the filing of this 10-Q and at this time In November 2016, the FASB has issued ASU No. 2016-18 , Statement of Cash Flows (Topic 230) In May 2017, FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, which amends the scope of modification accounting surrounding share-based payment arrangements as issued in ASU 2016-09 by providing guidance on the various types of changes which would trigger modification accounting for share-based payment awards. ASU 2017-09 is effective for annual periods beginning after December 15, 2017. The new standard was adopted by the Company in the quarter ended September 30, 2018, and the Company does not expect the adoption of ASU 2017-09 to have a material effect on its business or on its financial position, results of operations or cash flows. In August 2018, ASU No. 2018-13 was issued to modify and enhance the disclosure requirements for fair value measurements. This update is effective in fiscal years, including interim periods, beginning after December 1, 2020, and early adoption is permitted. The Company is currently evaluating this guidance and the impact on its Consolidated Financial Statements. Other 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 2 - SUMMARY OF SIGNIFIC_11

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Net Income (Loss) Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables)	3 Months Ended
	Sep. 30, 2018
Tables/Schedules
Schedule of Earnings Per Share, Basic and Diluted	Net Income (Numerator) Weighted Average Common Shares (Denominator) Per Share Amount For the three months ended September 30, 2018 Basic EPS Income available to common stockholders $ 146,292 300,000,000 $ 0.00 Diluted EPS Dilutive shares from options and warrants — 100,000 Income available to common stockholders plus assumed conversions $ 146,292 300,100,000 $ 0.00

NOTE 4 - ACCRUED LIABILITIES_ S

NOTE 4 - ACCRUED LIABILITIES: Schedule of Accrued Liabilities (Tables)	3 Months Ended
	Sep. 30, 2018
Tables/Schedules
Schedule of Accrued Liabilities	September 30, June 30, 2018 2018 Interest $ 3,197,460 $ 3,031,677 Vacation 15,770 15,770 Payroll 124,620 134,718 Franchise taxes 8,697 8,697 Merger costs, net 269,986 269,986 Other 19,579 19,579 Audit 18,557 18,557 Commodity supply agreement 2,920,006 3,154,423 Property taxes 253,523 253,523 $ 6,828,198 $ 6,906,930

NOTE 7 - NOTES PAYABLE_ Schedul

NOTE 7 - NOTES PAYABLE: Schedule of Debt (Tables)	3 Months Ended
	Sep. 30, 2018
Tables/Schedules
Schedule of Debt	The following summarizes notes payable: September 30, June 30, 2018 2018 Working capital advances, interest at 1% per month, due January 15, 2015 $ 162,522 $ 162,522 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 notes 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 $ 2,326,407 $ 2,326,407

NOTE 8 - FAIR VALUE MEASUREME_2

NOTE 8 - FAIR VALUE MEASUREMENTS: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Tables)	3 Months Ended
	Sep. 30, 2018
Tables/Schedules
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	September 30, 2018 Level 1 Level 2 Level 3 Total Assets: None $ — $ — $ — $ — Liabilities: Share redemption to related party $ — $ 1,296,000 $ — $ 1,296,000 June 30, 2018 Level 1 Level 2 Level 3 Total Assets: None $ — $ — $ — $ — Liabilities: Share redemption to related party $ — $ 1,638,000 $ — $ 1,638,000

NOTE 10- STOCKHOLDERS' DEFICIT_

NOTE 10- STOCKHOLDERS' DEFICIT: Share-based Payment Arrangement, Option, Activity (Tables)	3 Months Ended
	Sep. 30, 2018
Tables/Schedules
Share-based Payment Arrangement, Option, Activity	Stock Options Stock Warrants Weighted Weighted Average Exercise Shares Price Shares Price Outstanding at June 30, 2018 200,000 $0.075 4,420,000 $0.15 Granted — — — — Canceled — — — — Expired — — — — Exercised — — — — Outstanding at September 30, 2018 200,000 $0.075 4,320,000 $0.15 Stock options and warrants outstanding and exercisable at September 30, 2018 are as follows: Outstanding and Exercisable Options Outstanding 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 $0.07 100,000 100,000 1.26 $ 0.07 $ 0.15 4,320,000 4,320,000 .48 $ 0.15 $0.08 100,000 100,000 .26 $ 0.08 — — — — — 200,000 200,000 4,320,000 4,320,000 Outstanding Options .76 $ 0.075 Outstanding Warrants .48 $ 0.15 Exercisable Options .76 $ 0.075 Exercisable Warrants .48 $ 0.15

NOTE 2 - SUMMARY OF SIGNIFIC_12

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basis of Presentation and Going Concern (Details) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2018
Details
Net income (loss)	$ 146,292	$ (865,670)
Accumulated deficit	101,867,082		$ 102,013,374
Working Capital Deficit	$ 18,250,508

NOTE 2 - SUMMARY OF SIGNIFIC_13

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Net Income (Loss) Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Net income (loss)	$ 146,292	$ (865,670)
Basic weighted-average common shares outstanding	300,000,000	293,511,979
Diluted weighted-average common shares outstanding	300,100,000	293,511,979
Basic Earnings Per Share
Net income (loss)	$ 146,292
Basic weighted-average common shares outstanding	300,000,000
Diluted Earnings Per Share
Dilutive shares from options and warrants	$ 100,000
Income available to common stockholders plus assumed conversions	$ 146,292
Diluted weighted-average common shares outstanding	300,100,000

NOTE 2 - SUMMARY OF SIGNIFIC_14

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Net Income (Loss) Per Share (Details)	3 Months Ended
	Sep. 30, 2018shares
Share-based Payment Arrangement
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	100,000
Warrant
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	4,320,000

NOTE 2 - SUMMARY OF SIGNIFIC_15

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Stock-Based Compensation (Details) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Details
Stock-based compensation	$ 17,800	$ 0

NOTE 3 - DEPOSIT ON MINERAL P_2

NOTE 3 - DEPOSIT ON MINERAL PROPERTY (Details) - USD ($)	3 Months Ended
	Sep. 30, 2018	Jan. 02, 2018	Oct. 13, 2017	Sep. 08, 2017	Aug. 30, 2017	Aug. 18, 2017
Operating Lease, Payments	$ 210,116
Bullard's Peak Corporation and Black Hawk Consolidated Mines Company
Installment Payment per terms of the Agreement		$ 500,000	$ 500,000	$ 500,000	$ 900,000	$ 100,000
Total Purchase Price						$ 3,000,000

NOTE 4 - ACCRUED LIABILITIES__2

NOTE 4 - ACCRUED LIABILITIES: Schedule of Accrued Liabilities (Details) - USD ($)	Sep. 30, 2018	Jun. 30, 2018
Details
Interest	$ 3,197,460	$ 3,031,677
Vacation	15,770	15,770
Payroll	124,620	134,718
Franchise taxes	8,697	8,697
Merger costs, net	269,986	269,986
Other	19,579	19,579
Audit	18,557	18,557
Commodity supply agreement	2,920,006	3,154,423
Property taxes	253,523	253,523
Accrued liabilities	$ 6,828,198	$ 6,906,930

NOTE 5 - COMPLETION GUARANTEE_2

NOTE 5 - COMPLETION GUARANTEE PAYABLE (Details) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2018	Jun. 30, 2012
Details
Accrued Interest On Obligation	$ 1,102,455		$ 1,058,357	$ 504,049
Completion guarantee payable	3,359,873	$ 3,359,873	$ 3,359,873
Interest Expense, Related Party	$ 44,098	$ 44,098

NOTE 6 - SHARES SUBJECT TO MA_2

NOTE 6 - SHARES SUBJECT TO MANDATORY REDEMPTION BY RELATED PARTY (Details) - USD ($)	Aug. 09, 2017	Sep. 30, 2018	Jun. 30, 2018
Details
Common Stock Returned	20,000,000
Stock Issued During Period, Shares, New Issues	2,000,000
Additional Paid in Capital, Common Stock	$ 1,762,200	$ 1,296,000	$ 1,638,000

NOTE 7 - NOTES PAYABLE (Details

NOTE 7 - NOTES PAYABLE (Details) - USD ($)	Jul. 15, 2014	Jun. 01, 2012	Dec. 31, 2016	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2018	Jun. 30, 2014
Notes payable				$ 2,326,407		$ 2,326,407
Merger costs, net				269,986		269,986
Equipment
Debt Instrument, Face Amount		$ 593,657
Debt Instrument, Interest Rate, Stated Percentage		5.75%
Interest Payable, Current				93,420		87,687
Interest Expense, Debt				5,733	$ 5,733
Debt Instrument, Term		48 months
Notes payable				398,793		398,793
Gain on trust debt forgiveness			$ 17,412
Canarc Resource Corp.
Debt Instrument, Face Amount	$ 200,000			182,522		182,522
Proceeds from Other Short-term Debt	$ 20,000
Debt Instrument, Interest Rate, Stated Percentage	1.00%
Interest Payable, Current				97,397		91,662
Interest Expense, Debt				5,735	7,500
Tyhee
Debt Instrument, Face Amount							$ 1,745,092
Debt Instrument, Interest Rate, Stated Percentage							24.00%
Interest Payable, Current				1,842,079		1,736,513
Interest Expense, Debt				105,566	$ 114,679
Gain on trust debt forgiveness			$ 91,788
Merger costs, net				269,986		$ 269,986	$ 269,986
Break fee				$ 300,000

NOTE 7 - NOTES PAYABLE_ Sched_2

NOTE 7 - NOTES PAYABLE: Schedule of Debt (Details) - USD ($)	Sep. 30, 2018	Jun. 30, 2018
Notes payable	$ 2,326,407	$ 2,326,407
Notes Payable 1
Notes payable	162,522	162,522
Notes Payable 2
Notes payable	20,000	20,000
Notes Payable 3
Notes payable	398,793	398,793
Notes Payable 4
Notes payable	$ 1,745,092	$ 1,745,092

NOTE 8 - FAIR VALUE MEASUREME_3

NOTE 8 - FAIR VALUE MEASUREMENTS: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)	Sep. 30, 2018	Jun. 30, 2018
Shares subject to mandatory redemption by related party	$ 1,296,000	$ 1,638,000
Fair Value, Inputs, Level 2
Shares subject to mandatory redemption by related party	$ 1,296,000	$ 1,638,000

NOTE 9 - CONTINGENCIES AND CO_2

NOTE 9 - CONTINGENCIES AND COMMITMENTS (Details) - USD ($)	Aug. 09, 2017	Aug. 01, 2015	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2009
Common Stock Returned	20,000,000
Stock Issued During Period, Shares, New Issues	2,000,000
Operating Leases, Rent Expense			$ 1,500	$ 1,500
Office Lease
Debt Instrument, Periodic Payment		$ 500
Sandstorm
Customer Deposits, Current					$ 4,000,000
Loans And Leases Receivable Gross Consumer Installment, Other					$ 400
Completion Guaranty Payable Terms			Gold production subject to the agreement includes 50% of the first 10,000 ounces of gold produced, and 22% of the gold thereafter.

NOTE 10- STOCKHOLDERS' DEFICIT

NOTE 10- STOCKHOLDERS' DEFICIT (Details) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Details
Proceeds from common stock purchases	$ 200,000	$ 895,933
Common Stock Shares Subscriptions, shares	2,500,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value	$ 200
Share Price	$ 0.072
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	$ 0

NOTE 10- STOCKHOLDERS' DEFICI_2

NOTE 10- STOCKHOLDERS' DEFICIT: Share-based Payment Arrangement, Option, Activity (Details) - $ / shares	3 Months Ended
	Sep. 30, 2018	Jun. 30, 2017
Details
Stock Options Outstanding	200,000	200,000
Stock Options Outstanding, Weighted Average Exercise Price	$ 0.075	$ 0.075
Stock Warrants, outstanding	4,320,000	4,420,000
Stock Warrants, outstanding, weighted average price	$ 0.15	$ 0.15
Stock Warrants, grants in period	0
Stock Warrants granted, weighted average price granted	$ 0
Stock Options Canceled	0
Stock Options Canceled, Weighted Average Exercise Price	$ 0
Options expired	0
Options expired, Weighted Average Exercise Price	$ 0
Stock Warrants, expired	0
Stock Warrants expired, weighted average price	$ 0
Stock Warrants, exercised	0
Stock Warrants exercised, weighted average price	$ 0

NOTE 11 - RELATED PARTY TRANS_2

NOTE 11 - RELATED PARTY TRANSACTIONS (Details) - USD ($)	Jun. 16, 2016	Aug. 01, 2015	Jun. 30, 2017
Chief Financial Officer
Salary and Wage, NonOfficer, Excluding Cost of Good and Service Sold	$ 48,500
Chief Executive Officer
Payments to Acquire Property, Plant, and Equipment			$ 926,000
Payments to Acquire Machinery and Equipment			$ 1,009,099
Funds Expended Description			funds expended by Mr. Laws were misappropriated in the amount of $971,099 and a deposit of $38,000 was valid and refunded to the Company in a subsequent period. Of this amount, the $500,000 deposit that was to be made on the Alhambra Acquisition was subsequently determined never made the sellers.
Office Lease
Debt Instrument, Periodic Payment		$ 500

NOTE 12 - LEGAL PROCEEDINGS (De

NOTE 12 - LEGAL PROCEEDINGS (Details) - USD ($)	Dec. 31, 2016	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2018
Interest Expense		$ 165,783	$ 176,661
Boart Long year Company
Debt Instrument, Face Amount	$ 158,480
Debt Instrument, Interest Rate During Period	5.25%
Interest Payable, Current		22,116		$ 20,018
Interest Expense		2,097	2,097
Wagner Equipment
Debt Instrument, Face Amount	$ 115,789
Debt Instrument, Interest Rate During Period	8.75%
Interest Payable, Current		5,733		$ 5,733
Interest Expense		$ 70,490	$ 64,757

NOTE 13 - SUBSEQUENT EVENTS (De

NOTE 13 - SUBSEQUENT EVENTS (Details)	3 Months Ended
	Sep. 30, 2018
Subsequent Event 1
Subsequent Event, Description	During the period October 1, 2018 through August 11, 2020, ten current accredited shareholders purchased and aggregate of 50,209,243 restricted common shares for $3,151,980. In addition, our chairman purchased 11,642,858 restricted common shares for $775,000. The issuance of the restricted common shares, were exempt from registration requirements of the Security Act of 1933, as amended, pursuant to Section 4(a)2, thereof because such issuance did not involve a public offering. In connection with the placements, the Company incurred no consulting fees.
Subsequent Event 2
Subsequent Event, Description	During the period October 1, 2018 through August 11, 2020, 3,836,018 restricted shares of common stock for consulting services at an aggregated market value of $351,794 on the date of issuance. The issuance of the restricted common shares, were exempt from registration requirements of the Security Act of 1933, as amended, pursuant to Section 4(a)2, thereof because such issuance did not involve a public offering.
Subsequent Event 3
Subsequent Event, Description	In the period from March 2020 through August 11, 2020, the Company issued warrants to existing accredited investors aggregating 4,500,000, and 2,250,000 warrants to the chairman of the board that were attached to restricted stock purchases. The warrants were vested at issuance, have a three-year life and an exercise price of $0.05 and $0.07 per share
Subsequent Event 4
Subsequent Event, Description	On March 20, 2019, the Company granted our Chairman of the Board of Directors and our Chief Financial Officer each 15,000,000 cashless five-year options at a strike price of $0.05, the market price on the date of the grant, for their efforts on reviving the Company.
Subsequent Event 5
Subsequent Event, Description	On April 10, 2020 , the Company converted $100,000 of accrued salary for the Company CFO into 2,000,000 shares of restricted common stock at a market value of $117,000 on the date on grant and recorded a loss on debt conversion of $17,000. Warrants issued in conjunction with the conversion were 1,000,000 vested three-year warrants and have an exercise price of $0.050 per share.
Subsequent Event 6
Subsequent Event, Description	On June 30, 2020 , the Company converted a note payable with the Company CFO consisting of principal and interest of $42,037 and $6,178, respectively, into 964,299 shares of restricted common stock at $0.05 per share. The market value on the date of conversion was $67,501 and on the date of conversion the Company recorded a loss on debt conversion of $19,286. In conjunction with the conversion 482,149 vested three-year warrants were granted and have an exercise price of $0.05 per share.
Subsequent Event 7
Subsequent Event, Description	Pursuant to a stock purchase agreement dated August 2017, the Company will acquire all the capital stock of Bullard’s Peak Corporation (which owns five patented claims and 82 unpatented claims in the Black Hawk district of New Mexico) from Black Hawk Consolidated Mines Company for a purchase price of $3,000,000, and the capital stock of Bullard’s Peak Corporation and the mining claims collateralize the full purchase price payment. The Company granted the seller a 2% net smelter return in perpetuity. The net smelter return is the greater of (i) all monies the Company receives for or from any and all ore removed from the property comprising the mining claims whether for exploration, mining operations or any other reason, and (ii) the fair market value of removed ore from the property comprising the mining claims. Title to the claims will be transferred upon receipt by seller of the full purchase price. In August 2018, the Company was informed that the seller terminated the stock purchase agreement. Pursuant to an amendment to the stock purchase agreement in October 2018, the Company paid the seller $100,000 and the seller rescinded the August 2018 election to terminate the stock purchase agreement and waived all then existing events of default and any additional interest, late fees, and other damage claims due to the Company’s prior breaches of the stock purchase agreement. On October 31, 2018, the Company paid the seller an additional $100,000. The balance of the purchase price of $350,365 (which includes $50,365 of expenses that the Company agreed to reimburse seller) is required to be paid: (i) $100,000 on or before November 30, 2018 and (ii) $250,365 on or before December 31, 2018. If any payment is not timely paid, all rights of the Company under the stock purchase agreement shall become automatically null and void and seller shall retain all monies paid as liquidated damages for the Company’s breach, and seller shall have no further obligations to the Company, including but not limited to, any obligation to transfer the capital stock of Bullard’s Peak Corporation to the Company pursuant to the terms of the stock purchase agreement. We paid $100,000 in November 2018 with respect to the Alhambra Silver Mine acquisition and owed a balance of approximately $250,000 on December 31, 2018, to complete the acquisition. Lack of funding on December 31, 2018 resulted in us entering into a third amendment pursuant to which we paid $65,000 on January 2, 2019, a late fee payment on February 1, 2019 of $50,000, a $100,000 on February 28, 2019, and the final payment of $100,365 was paid on April 2, 2019, for the total acquisition cost of $3,115,365.
Subsequent Event 8
Subsequent Event, Description	In February 2018, the Company filed for a permit to start operations at the Bullard’s Peak property. The permit was awarded on March 7, 2018. As of the filing of this report, no operations have commenced.
Subsequent Event 9
Subsequent Event, Description	On November 30, 2017, the Company entered into substantially identical agreements with Fortune Graphite, Inc. and Worldwide Graphite Producers, Ltd. to acquire a total of four placer claims for aggregate consideration of Can$400,000 and the issuance of 10,000,000 shares of Company common stock. Title to these claims remained in trust with the sellers until payment in full. To date, the Company has paid to the sellers’ consideration of Can$205,000. The Company disclosed in a Form 8-K filing on November 20, 2018 that it had been notified that it was in default with respect to these two November 2017 agreements and that the sellers threatened legal action. The Company has engaged British Columbia counsel to review the two November 2017 agreements and has concluded that there were false representations made by the sellers and that certain conditions precedent of sellers were not satisfied. As a result, the Company’s position is that these two November 2017 agreements are not and were never binding and have requested sellers to refund the Can$205,000. The Company so informed sellers on March 4, 2019. The Company continues to evaluate its rights and remedies in connection with this matter. As a result, the Company does not own any rights to the four placer claims located in the Vernon mining district of British Columbia, Canada (which property is more fully set forth in the Form 8-K filing dated November 20, 2018. The Company position subsequently is to void the transaction based upon the questionable claim activity and due to the uncertainty of the outcome has provided an impairment of the amount at June 30, 2019, in the amount of US$210,116.
Subsequent Event 10
Subsequent Event, Description	In January 2019 the Company has acquired rights to two properties in western New Mexico, consisting of eight (8) patented claims and two unpatented claims, all located in the Steeple Rock Mining District, Grant County, New Mexico and a related water rights lease agreement.
Subsequent Event 11
Subsequent Event, Description	The Company entered into a purchase agreement with a mining operator in January 2019 to purchase two properties in western New Mexico, the Billali Mine, and the Jim Crow Imperial Mine. The purchase price for all rights and interests to be conveyed is $2,500,000 for the Billali Mine and $7,500,000 for the Jim Crow Imperial Mine
Subsequent Event 12
Subsequent Event, Description	A forbearance agreement by and among Santa Fe and Canarc Resource Corp. (“Canarc”) was entered into and effective as of February 12, 2018. Canarc loaned Santa Fe $220,000 in 2014. The funding requirements were not attained and the loan became due on January 15, 2015. The Company agreed with Canarc to make four installment payments as follows: (i) $25,000 on February 14, 2018; (ii) $25,000 on June 30, 2018; (iii) $85,000 on October 1, 2018; and (iv) $85,000 on December 31, 2018. All payments were made on a timely basis. With the final payment completed, Canarc forgave $12,522 of principal and accrued interest on the note payable of approximately $107,974 per the terms of the agreement and the Company recorded a gain on debt extinguishment of approximately $120,496 in the quarter ended December 31, 2018.
Subsequent Event 13
Subsequent Event, Description	During the period October 2018 and June 30, 2020, the CFO of the Company and an outside party, loaned the Company an aggregate of $381,787, evidenced by demand unsecured notes payable at an annual rate of interest of 6% and have no stated due dates. As of the date of filing this report, $80,000 has been repaid to the outside party and the CFO has converted his outstanding note balance and accrued interest into restricted common stock.
Subsequent Event 14
Subsequent Event, Description	On December 18, 2019, Mr. Daniel Gorski, our consultant geologist, was appointed to our board of directors.
Subsequent Event 15
Subsequent Event, Description	The Company has entered into an at-will consulting agreement with Daniel E. Gorski in November 2018 to provide consulting services to the Company with respect to its proposed mining operations, at the rate of $5,000 per month in cash and $5,000 per month in Company common stock. Mr. Gorski is owed an additional $30,000 from work performed for the Company during the period March 2018 through August 2018 prior to his engagement.
Subsequent Event 16
Subsequent Event, Description	The Company held a shareholder meeting on January 11, 2019, in Albuquerque, New Mexico, and a majority of our shareholders voted to (i) amend our certificate of incorporation to increase the authorized shares of common stock that we have authority to issue from 300,000,000 shares to 550,000,000 shares and (ii) remove Thomas Laws as a director.
Subsequent Event 17
Subsequent Event, Description	Longtime Board member Erich Hofer resigned effective December 28, 2018, and Tom Laws resigned effective January 9, 2019 (just prior to the shareholder meeting on January 11, 2019 in which the shareholders voted to remove him as a director).
Subsequent Event 18
Subsequent Event, Description	As disclosed in the Company’s Form 8-K filed on October 1, 2018, a director and former chief executive officer of the Company, Mr. Thomas H. Laws, entered into a secured promissory note and security agreement in the principal amount of $930,000 in favor of the Company on September 19, 2018, bearing interest at the annual rate of 4% and maturing September 30, 2018 (“Secured Promissory Note”). The Company requested the former chief executive to execute the Secured Promissory Note and security agreement as a result of the matters discussed below, prior to the completion of the special committee investigation. The security interests include certain real estate and a Cessna model 182G airplane. The Secured Promissory Note also contains late fee and default provisions under the deeds of trust, Security Agreement and other agreements
Subsequent Event 19
Subsequent Event, Description	Based upon a legal opinion from our British Columbia legal consul, the Company at June 30, 2019, wrote off of two financing facilities under British Columbia law where the statute of limitations had run out pursuant to the Limitations Act (British Columbia) and that no future claims can be commenced in the Providence of British Columbia and the Company has no outstanding legal obligation on the finance facilities