Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 15, 2023 | |
Document Information Line Items | ||
Entity Registrant Name | Desert Hawk Gold Corp. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 26,831,603 | |
Amendment Flag | false | |
Entity Central Index Key | 0001168081 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 333-169701 | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 82-0230997 | |
Entity Address, Address Line One | 1290 Holcomb Ave | |
Entity Address, City or Town | Reno | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89502 | |
City Area Code | (775) | |
Local Phone Number | 337-8057 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | None |
Condensed Interim Balance Sheet
Condensed Interim Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 470,868 | $ 581,022 |
Inventories (NOTE 4) | 2,804,734 | 3,544,071 |
Prepaid expenses and other current assets | 47,575 | 50,523 |
TOTAL CURRENT ASSETS | 3,323,177 | 4,175,616 |
INVENTORIES (NOTE 4) | 194,798 | |
PROPERTY AND EQUIPMENT, net (NOTE 5) | 4,322,411 | 4,368,398 |
MINERAL PROPERTIES AND INTERESTS, net (NOTE 6) | 3,638,671 | 3,616,493 |
RECLAMATION BONDS (NOTE 3) | 1,592,936 | 1,591,547 |
TOTAL ASSETS | 13,071,993 | 13,752,054 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued liabilities | 361,794 | 159,741 |
Royalties and upside participation payable (NOTE 7) | 3,049,930 | 2,843,091 |
Accrued interest, prepaid forward gold contract (NOTE 7) | 925,358 | 640,742 |
Accrued liabilities – officers and other wages (NOTES 11 and 12) | 142,159 | 137,159 |
Notes payable, current portion (NOTE 8) | 58,061 | |
Settlement of consulting contract payable (NOTE 10) | 200,000 | 200,000 |
Prepaid forward gold contract liability (NOTE 7) | 4,630,717 | 5,841,383 |
Due in lieu of gold deliveries (NOTE 7) | 15,513,500 | 13,419,500 |
TOTAL CURRENT LIABILITIES | 24,823,458 | 23,299,677 |
LONG-TERM LIABILITIES | ||
Asset retirement obligation (NOTE 9) | 1,556,021 | 1,496,434 |
TOTAL LONG-TERM LIABILITIES | 1,556,021 | 1,496,434 |
TOTAL LIABILITIES | 26,379,479 | 24,796,111 |
COMMITMENTS AND CONTINGENCIES (NOTES 3, 6 AND 12) | ||
STOCKHOLDERS’ EQUITY (DEFICIT) | ||
Preferred Stock, $.001 par value; 10,000,000 shares authorized, none issued or outstanding | ||
Common Stock, $.001 par value; 100,000,000 shares authorized; 26,831,603 and 26,831,603 shares issued and outstanding, respectively | 26,833 | 26,833 |
Additional paid-in capital | 9,666,275 | 9,666,275 |
Accumulated deficit | (23,000,594) | (20,737,165) |
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) | (13,307,486) | (11,044,057) |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | $ 13,071,993 | $ 13,752,054 |
Condensed Interim Balance She_2
Condensed Interim Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued | ||
Preferred Stock, shares outstanding | ||
Common Stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, shares issued | 26,831,603 | 26,831,603 |
Common Stock, shares outstanding | 26,831,603 | 26,831,603 |
Condensed Interim Statements of
Condensed Interim Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
REVENUE | ||
Concentrate sales | $ 738,283 | $ 792,934 |
Contract processing income | 474,188 | |
Total revenue | 738,283 | 1,267,122 |
OPERATING EXPENSES | ||
General production and project costs | 1,380,782 | 1,227,726 |
Contract processing costs | 40,705 | |
Depreciation and amortization | 163,184 | 314,688 |
Other operating costs | 66,484 | 114,915 |
Legal and professional | 66,610 | 67,771 |
Officers and directors’ fees | 92,023 | 87,889 |
General and administrative | 70,283 | 111,780 |
Gain on disposal of equipment | (5,669) | |
Forward gold contract expense (NOTE 7) | 883,334 | 576,444 |
TOTAL OPERATING EXPENSES | 2,717,031 | 2,541,918 |
LOSS FROM OPERATIONS | (1,978,748) | (1,274,796) |
OTHER INCOME (EXPENSE) | ||
Interest and other income | 1,390 | 26 |
Interest expense – equipment financing | (1,399) | (6,291) |
Interest expense - other | (284,672) | (56,166) |
TOTAL OTHER INCOME (EXPENSE) | (284,681) | (62,431) |
NET LOSS BEFORE INCOME TAX | (2,263,429) | (1,337,227) |
Provision (benefit) for income tax | ||
NET LOSS | $ (2,263,429) | $ (1,337,227) |
Basic and diluted loss per share (in Dollars per share) | $ (0.08) | $ (0.05) |
Basic and diluted weighted average number of shares outstanding (in Shares) | 26,831,603 | 26,831,603 |
Condensed Interim Statements _2
Condensed Interim Statements of Operations (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Basic and diluted loss per share (in Dollars per share) | $ (0.08) | $ (0.05) |
Basic and diluted weighted average number of shares outstanding (in Shares) | 26,831,603 | 26,831,603 |
Condensed Interim Statement of
Condensed Interim Statement of Changes in Stockholders’ Equity (Deficit) (Unaudited) - USD ($) | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
BALANCE at Dec. 31, 2021 | $ 26,833 | $ 9,666,275 | $ (14,247,760) | $ (4,554,652) |
BALANCE (in Shares) at Dec. 31, 2021 | 26,831,603 | |||
Net loss | (1,337,227) | (1,337,227) | ||
BALANCE at Mar. 31, 2022 | $ 26,833 | 9,666,275 | (15,584,987) | (5,891,879) |
BALANCE (in Shares) at Mar. 31, 2022 | 26,831,603 | |||
BALANCE at Dec. 31, 2022 | $ 26,833 | 9,666,275 | (20,737,165) | (11,044,057) |
BALANCE (in Shares) at Dec. 31, 2022 | 26,831,603 | |||
Net loss | (2,263,429) | (2,263,429) | ||
BALANCE at Mar. 31, 2023 | $ 26,833 | $ 9,666,275 | $ (23,000,594) | $ (13,307,486) |
BALANCE (in Shares) at Mar. 31, 2023 | 26,831,603 |
Condensed Interim Statements _3
Condensed Interim Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (2,263,429) | $ (1,337,227) |
Adjustments to reconcile net loss to net cash provided (used) by operating activities | ||
Depreciation and amortization | 163,184 | 314,689 |
Accretion of asset retirement obligation | 37,409 | 33,536 |
Write down of inventory to net realizable value | 680,319 | |
Gain on disposal of equipment | (5,669) | |
Forward gold contract expense (NOTE 7) | 883,334 | 576,444 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 254,024 | |
Inventories | 544,539 | (396,976) |
Prepaid expenses and other current assets | 2,948 | 3,128 |
Accounts payable and accrued liabilities | 202,053 | 93,700 |
Royalties and upside participation payable (NOTE 7) | 206,839 | 208,998 |
Accrued interest, prepaid forward gold contract (NOTE 7) | 284,616 | 56,166 |
Accrued liabilities – officer and other wages | 5,000 | 6,000 |
Net cash provided by operating activities | 60,824 | 492,801 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to property and equipment | (122,528) | (65,013) |
Proceeds from sale of equipment | 11,000 | |
Increase in reclamation bonds | (1,389) | (89,026) |
Net cash used by investing activities | (112,917) | (154,039) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payment of notes payable | (58,061) | (168,895) |
Net cash used by financing activities | (58,061) | (168,895) |
Net increase (decrease) in cash and cash equivalents | (110,154) | 169,867 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 581,022 | 424,629 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 470,868 | $ 594,496 |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2023 | |
Organization and Description of Business [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS Desert Hawk Gold Corp. (the “Company”), a Nevada Corporation, was incorporated on November 5, 1957. The Company commenced its current mining activities on May 1, 2009. During the year ended December 31, 2009, the Company entered into Joint Venture Agreements with the Clifton Mining Company (“Clifton”), the Woodman Mining Company and the Moeller Family Trust for the lease of certain of their property interests in the Gold Hill Mining District of Utah. In 2011, the Company entered into an agreement with DMRJ Group, (a Platinum Partners related entity), which allowed for long term funding of the Kiewit project and helped to provide cash flow for operations during the period from 2009 until 2014 while the permitting process was ongoing. The final permit needed to begin development of the Kiewit property was received in January 2014 and development began in February 2014. Construction at the site was substantially complete on September 30, 2014. Revenue from the heap leach operation began in October 2014 with the first sales of gold concentrate. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES In the opinion of management, the accompanying unaudited condensed financial statements contain all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the interim periods reported. The condensed balance sheet at December 31, 2022 was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. Operating results for the three-month period ended March 31, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2023. These unaudited condensed interim financial statements have been prepared by management in accordance with generally accepted accounting principles used in the United States of America (“U.S. GAAP”). These unaudited condensed interim financial statements should be read in conjunction with the annual audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission on March 31, 2023. This summary of significant accounting policies of the Company is presented to assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These accounting policies conform to U.S. GAAP and have been consistently applied in the preparation of the financial statements. Reclassifications Certain reclassifications have been made to conform prior periods’ amounts to the current presentation. These reclassifications have no effect on the results of operations, stockholders’ equity (deficit), and cash flows as previously reported. Earnings (Loss) Per Share Basic earnings (loss) per share includes no dilution and is computed by dividing net earnings (loss) available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of the Company. For the three months ended March 31, 2023 and 2022, common stock equivalents of nil Going Concern As shown in the accompanying financial statements, the Company had an accumulated deficit of $23,000,594 through March 31, 2023 and net loss of $2,263,429 for the three-month period ended March 31, 2023, along with negative working capital of $21,500,281 which raises substantial doubt about the Company’s ability to continue as a going concern. In addition, the Company has not delivered gold ounces as scheduled on its prepaid forward gold contract and could be subject to default provisions within the related agreement (see Note 7). The condensed interim financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue in existence. Although production restarted in 2019, it has not yet reached optimum levels. The timing and amount of capital requirements will depend on a number of factors, including demand for products, metals market pricing, and the availability of opportunities for expansion through affiliations and other business relationships. Management continues to seek new capital from equity securities issuances or other business arrangements to provide funds needed to increase liquidity, fund internal growth, and fully implement its business plan. The ability of the Company to continue as a going concern is dependent on the Company’s ability to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they are due. New Accounting Pronouncements Accounting standards that have been issued or proposed by the Financial Accounting Standards Board (“FASB”) that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. |
Reclamation Bonds
Reclamation Bonds | 3 Months Ended |
Mar. 31, 2023 | |
Reclamation Bonds [Abstract] | |
RECLAMATION BONDS | NOTE 3 – RECLAMATION BONDS At March 31, 2023 and December 31, 2022, reclamation bonds totaled $1,592,936 and $1,591,547, respectively, associated with estimated reclamation costs for its mineral properties. The totals in both years include a surety bond of $674,000 with a bonding company for reclamation of its mineral property. This escrowed amount is held at Bank of New York, Mellon for the Company’s benefit. It may not be released to the Company without the prior consent of the surety bondholder. The escrowed amount does not earn interest. The remaining balances of $918,936 and $917,547, respectively, are held as certificate of deposits by the Utah Department of Natural Resources. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2023 | |
Inventories [Abstract] | |
INVENTORIES | NOTE 4 – INVENTORIES Inventories at March 31, 2023 and December 31, 2022 consists of the following: March 31, December 31, 2023 2022 Ore on leach pad $ 2,628,409 $ 3,266,091 Carbon column in process 231,685 163,619 Finished goods 139,438 114,361 2,999,532 3,544,071 Less long-term portion (194,798 ) - Total $ 2,804,734 $ 3,544,071 Inventories at March 31, 2023 and December 31, 2022 were valued at net realizable value because production costs were greater than the amount the Company expected to receive on the sale of the estimated gold ounces contained in inventories. The adjustment to inventory, which is included in general production and project costs on the statements of operations, was $ nil |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2023 | |
Property and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 5 - PROPERTY AND EQUIPMENT The following is a summary of property and equipment at March 31, 2023 and December 31, 2022: March 31, December 31, 2023 2022 Equipment $ 6,561,569 $ 6,528,497 Furniture and fixtures 6,981 6,981 Electronic and computer equipment 50,587 50,587 Vehicles 417,667 369,595 Buildings 100,000 100,000 Land and improvements 105,299 105,299 7,242,103 7,160,959 Less accumulated depreciation (4,528,821 ) (4,401,690 ) 2,713,282 2,759,269 Kiewit property facilities 2,497,436 2,497,436 Less accumulated amortization (888,307 ) (888,307 ) 1,609,129 1,609,129 Total $ 4,322,411 $ 4,368,398 For the Kiewit property facilities, amortization based on total units of production was $ Nil Depreciation expense on property and equipment for the three months ended March 31, 2023 and 2022 was $163,184 and $193,210 respectively. |
Mineral Properties and Interest
Mineral Properties and Interests | 3 Months Ended |
Mar. 31, 2023 | |
Mineral Properties and Interests [Abstract] | |
MINERAL PROPERTIES AND INTERESTS | NOTE 6 – MINERAL PROPERTIES AND INTERESTS Mineral properties and interests as of March 31, 2023 and December 31, 2022 are as follows: March 31, December 31, 2023 2022 Kiewit and all other sites $ 3,700,000 $ 3,700,000 JJS property 250,000 250,000 3,950,000 3,950,000 Less accumulated amortization (852,000 ) (852,000 ) 3,098,000 3,098,000 Asset retirement obligation assets Kiewit Site 747,300 725,122 Kiewit Exploration 28,377 28,377 JJS property 31,016 31,016 Total 806,693 784,515 Less accumulated amortization (266,022 ) (266,022 ) 540,671 518,493 Total $ 3,638,671 $ 3,616,493 Amortization of the mineral properties and interests based on total units of production was $ Nil The Company is required to pay a 4% net smelter royalty (“NSR”) to Qenta, Inc. (“Qenta”) on revenues of gold and silver from the Kiewit gold property and the JJS properties. See Note 7. |
Prepaid Forward Gold Contract L
Prepaid Forward Gold Contract Liability | 3 Months Ended |
Mar. 31, 2023 | |
Prepaid Forward Gold Contract Liability [Abstract] | |
PREPAID FORWARD GOLD CONTRACT LIABILITY | NOTE 7 – PREPAID FORWARD GOLD CONTRACT LIABILITY In 2019, the Company entered into and closed a Pre-Paid Forward Gold Purchase Agreement (the “Purchase Agreement”) with PDK Utah Holdings, LP (“PDK”) for the sale and purchase by PDK of gold produced from the Company’s mining property. Under the terms of the Purchase Agreement, as amended, PDK agreed to purchase a total of 47,045 ounces of gold from the Company. The Company agreed to deliver ounces of gold produced from the Kiewit property to PDK and the Company would then receive proceeds from PDK at the then current spot price less a discount specified in the Purchase Agreement. The Company has the option of paying cash for the number of ounces scheduled to be delivered each month at a rate of $500 per ounce. The Company received a net amount of $13,600,000 in 2019 for the future delivery of these gold ounces. In February 2023, PDK sold their ownership position in the Purchase Agreement to Qenta, Inc. (“Qenta”) Under the terms of the Purchase Agreement, as amended, the Company is obligated to deliver gold in the following quantities: Months Gold Ounces Total Gold Ounces December 2020 655 655 January 2021 to March 2021 896 2,688 April 2021 to March 2022 911 10,932 April 2022 to March 2023 1,396 16,752 April 2023 to December 2023 1,753 15,777 January 2024 241 241 47,045 In addition, under the Purchase Agreement, Qenta may reduce the required number of ounces to be sold in exchange for up to 8,000 common shares of the Company. To date, this option has not been elected. As security for the obligations of the Company under the Purchase Agreement, the Company has granted a security interest in all of the assets of the Company. The Purchase Agreement contains representations and warranties, as well as affirmative and negative covenants customary to a transaction of this nature. To date, no gold has been delivered under the contract. As of March 31, 2023 and December 31, 2022, a cumulative of 31,027 and 26,839 ounces, respectively, were scheduled to be delivered under the terms of the Purchase Agreement. The ounces due but unpaid at March 31, 2023 and December 31, 2022 have been reflected in “Due in lieu of gold deliveries” on the balance sheet based on the Company’s option to pay cash in lieu of delivery at $500 per ounce. The forward gold contract balance as of March 31, 2023 and December 31, 2022 is as follows: March 31, December 31, 2023 2022 Total ounces to be delivered 31,027 26,839 Contractual payment per ounce in lieu of delivery $ 500 $ 500 Amount due in lieu of gold deliveries $ 15,513,500 $ 13,419,500 For the three months ended March 31, 2023 and 2022, the activity related to the forward gold contract is as follows: Three months ended 2023 2022 Prepaid forward gold contract liability balance at beginning of period $ 5,841,383 $ 10,263,438 Forward gold contract balance associated with ounces to be delivered during period 883,334 576,444 Reduction in prepaid forward gold contract liability balance (2,094,000 ) (1,366,500 ) Prepaid forward gold contract liability balance at end of period $ 4,630,717 $ 9,473,382 As of March 31, 2023, and through the issuance of these financial statements, the Company has received invoices for the deliveries and payments due. The failure to make gold deliveries and make additional payments as described below provides Qenta with certain remedies, including termination of the agreement, demand for early payment of the entire delivery obligations, and enforcement of foreclosure rights against the assets pledged as security under the agreement. Due to the delinquent status of the deliveries and Qenta’s rights under the default provisions of the Purchase Agreement, the Company has classified the entire liability balance owing as current on the balance sheets. The Company’s management has been in discussions with Qenta regarding the status of the Purchase Agreement. To date, Qenta has not exercised its rights of default as defined in the agreement nor has it indicated plans to do so. In addition to the delivery of gold ounces, the Purchase Agreement contains a royalty provision whereby royalties of 4% are due on gold and silver recovered from mining operations at the Kiewit site and sold by the Company to a third party. Under the Purchase Agreement, the Company also accrues a 5% withholding tax to the state of Utah on the royalty payments. Royalties are payable within 30 days following the end of each fiscal quarter. To date, none of the royalty has been paid. The Purchase Agreement contains a participation payment whereby Qenta receives a portion of the proceeds from gold sold by the Company to a third party. The payment due is based upon a percentage of proceeds over a set gold price per ounce. The upside participation amounts are payable within four days following each sale. To date, none has been paid. The Purchase Agreement provides for the Company to pay default interest (calculated at the rate of LIBOR plus 2%) on outstanding amounts due. To date, none has been paid. The following is a summary of royalties, upside participation and interest payable: March 31, December 31, 2023 2022 Royalties payable $ 625,370 $ 585,536 Royalties withholding payable 32,917 30,820 Upside participation payable 2,391,643 2,226,735 Subtotal 3,049,930 2,843,091 Accrued interest, prepaid forward gold contract 925,358 640,742 Total $ 3,975,288 $ 3,483,833 |
Notes Payable
Notes Payable | 3 Months Ended |
Mar. 31, 2023 | |
Notes Payable [Abstract] | |
NOTES PAYABLE | NOTE 8 – NOTES PAYABLE The following is a summary of the notes payable: March 31, December 31, 2023 2022 Note payable to Epiroc, collateralized by a used Epiroc drill due in 36 monthly payments of $14,679 including interest at 5.2%. - 58,061 - 58,061 Current portion - (58,061 ) Long term portion $ - $ - During the three months ended March 31, 2023, the Company paid the remaining note payable balance of $58,061. |
Asset Retirement Obligation
Asset Retirement Obligation | 3 Months Ended |
Mar. 31, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATION | NOTE 9 –ASSET RETIREMENT OBLIGATION Changes in the asset retirement obligation for the three months ended March 31, 2023 and 2022 are as follows: Three months ended 2023 2022 Asset retirement obligation, beginning of period $ 1,496,434 $ 1,362,294 Increase due to change in estimated costs 22,178 - Accretion expense 37,409 33,536 Asset retirement obligation, end of period $ 1,556,021 $ 1,395,830 In the first quarter of 2023, the Company updated its estimate for reclamation and closure costs of the mine at the end of its life based on an expanded permit and bonding requirement finalized in December 31, 2022. The updated estimate was $2,557,553 on an undiscounted cash flow basis, an increase of $1,020,553 from the previous plan. The estimated reclamation costs were discounted using credit adjusted, risk-free interest rate of 11% from the time we incurred the obligation to the time we expect to pay the retirement obligation. During the quarter ended March 31, 2023, asset retirement obligation and the associated retirement asset of $22,178 was recognized for the disturbance that occurred in that period. |
Settlement of Consulting Contra
Settlement of Consulting Contract | 3 Months Ended |
Mar. 31, 2023 | |
Settlement of Consulting Contract [Abstract] | |
SETTLEMENT OF CONSULTING CONTRACT | NOTE 10 – SETTLEMENT OF CONSULTING CONTRACT On March 29, 2018, the Company entered into a five-year Agency Agreement (the “Agency Agreement”) with H&H Metals Corp., a New York corporation (“H&H”). Under the terms of the Agency Agreement, H&H agreed to provide certain advisory services in regard to natural resources activities and to assist in securing purchasers for minerals produced from its mining properties. The Company negotiated a settlement in 2019 with H&H resulting in the Company owing a balance of $200,000 due in July 2020 to H&H. This payment has not yet been paid and is classified as a current liability at both March 31, 2023 and December 31, 2022. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 11 – RELATED PARTY TRANSACTIONS The Company has a month-to-month lease agreement for its office space with RMH Overhead, LLC (“RMH”), a company owned by Rick Havenstrite, the Company’s President and a director. The Company recognized rent expense of $4,500 and $4,500 for three months ended March 31, 2023 and 2022. The Company rents a haul truck from RMH at a current rate of $7,500 per month on a month-to-month basis. Rent expense of $22,500 and $30,000 was recognized during the three months ended March 31, 2023 and 2022, respectively. At March 31, 2023 and December 31, 2022, $7,500 and $ Nil Employment Agreements The Company has an employment agreement with Mr. Havenstrite as President of the Company, which is ongoing. The agreement, as amended, requires Mr. Havenstrite to meet certain time requirements and limits the number of other board member obligations in which he can participate. The agreement allows for a base annual salary of $144,000 plus an auto allowance and certain performance compensation upon fulfillment of established goals. The agreement allows the board of directors to terminate Mr. Havenstrite’s employment at any time, providing for a severance payment upon termination without cause. The amounts accrued at March 31, 2023 and December 31, 2022 is due to the officers of the Company as follows: March 31, December 31, 2023 2022 Rick Havenstrite, President $ 37,697 $ 37,697 Marianne Havenstrite, Treasurer and Principal Financial Officer 18,462 18,462 Total $ 56,159 $ 56,159 Directors’ fees The Company compensates independent directors for their contributions to the management of the Company, with one director receiving fees of $6,000 per month and another director receiving $5,000 per quarter. At March 31, 2023 and December 31, 2022, accrued compensation due to directors was $86,000 and $81,000 respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 12– COMMITMENTS AND CONTINGENCIES In addition to commitments disclosed in Notes 3, 7 and 12, the Company had the following commitments and contingencies. Personal property tax and other accrued liabilities Personal property tax for Tooele County, Utah, is billed and becomes due on November 30 of each year. At March 31, 2023 and December 31, 2022, the amount due to Tooele County is $34,667 and $33,027, respectively and this amount is included in accounts payable. Mining Leases Annual claim fees are currently $165 per claim plus administrative and school trust land fees. For the three months ended March 31, 2023 and 2022, claims’ fees paid were $ Nil Nil |
Capital Stock
Capital Stock | 3 Months Ended |
Mar. 31, 2023 | |
Capital Stock [Abstract] | |
CAPITAL STOCK | NOTE 13 – CAPITAL STOCK Common Stock The Company is authorized to issue 100,000,000 shares of common stock. All shares have equal voting rights and have one vote per share. Voting rights are not cumulative and, therefore, the holders of more than 50% of the common stock could, if they choose to do so, elect all of the directors of the Company. During the three months ended March 31, 2023 and 2022, the Company had no transactions relating to common stock. Preferred Stock The Company’s Articles of Incorporation authorized 10,000,000 shares of $0.001 par value Preferred Stock available for issuance with such rights and preferences, including liquidation, dividend, conversion, and voting rights, as the Board of Directors may determine. |
Stock Options
Stock Options | 3 Months Ended |
Mar. 31, 2023 | |
Stock Options [Abstract] | |
STOCK OPTIONS | NOTE 14 – STOCK OPTIONS The Company has reserved 2,400,000 shares under its 2018 Stock Incentive Plan (the “Plan”). The Plan was adopted by the board of directors on March 28, 2018, retroactive to February 23, 2018, as a vehicle for the recruitment and retention of qualified employees, officers, directors, consultants, and other service providers. The Plan is administered by the Board of Directors. The Company may issue, to eligible persons, restricted common stock, incentive and non-statutory options, stock appreciation rights and restricted stock units. The terms and conditions of awards under the Plan will be determined by the Board of Directors. Outstanding and vested options at March 31, 2023 and December 31, 2022 were Nil |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2023 | |
Revenue [Abstract] | |
REVENUE | NOTE 15 – REVENUE Product sales for three months ended March 31, 2023 and 2022, are shown below: Three months ended 2023 2022 Concentrate sales $ $ Gold 979,197 1,043,929 Silver 16,667 14,128 Total concentrate sales 995,864 1,058,057 Deductions to concentrate sales Royalties (41,931 ) (44,550 ) Upside participation payments (164,907 ) (166,612 ) Outside processing (50,743 ) (53,961 ) Subtotal – deductions to concentrate sales (257,581 ) (265,123 ) Net concentrate sales 738,283 792,934 Net processing income - 474,188 TOTAL REVENUE $ 738,283 $ 1,267,122 For the three months ended March 31, 2023 and 2022, all revenues from concentrate sale was from concentrated sold to Asahi Refining. Contract processing income is proceeds received for ore processed for another company. The contract agreement with the outside company for which we were processing material was terminated in October 2022. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Reclassifications | Reclassifications Certain reclassifications have been made to conform prior periods’ amounts to the current presentation. These reclassifications have no effect on the results of operations, stockholders’ equity (deficit), and cash flows as previously reported. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share includes no dilution and is computed by dividing net earnings (loss) available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of the Company. For the three months ended March 31, 2023 and 2022, common stock equivalents of nil |
Going Concern | Going Concern As shown in the accompanying financial statements, the Company had an accumulated deficit of $23,000,594 through March 31, 2023 and net loss of $2,263,429 for the three-month period ended March 31, 2023, along with negative working capital of $21,500,281 which raises substantial doubt about the Company’s ability to continue as a going concern. In addition, the Company has not delivered gold ounces as scheduled on its prepaid forward gold contract and could be subject to default provisions within the related agreement (see Note 7). The condensed interim financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue in existence. Although production restarted in 2019, it has not yet reached optimum levels. The timing and amount of capital requirements will depend on a number of factors, including demand for products, metals market pricing, and the availability of opportunities for expansion through affiliations and other business relationships. Management continues to seek new capital from equity securities issuances or other business arrangements to provide funds needed to increase liquidity, fund internal growth, and fully implement its business plan. The ability of the Company to continue as a going concern is dependent on the Company’s ability to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they are due. |
New Accounting Pronouncements | New Accounting Pronouncements Accounting standards that have been issued or proposed by the Financial Accounting Standards Board (“FASB”) that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Schedule of Inventories [Abstract] | |
Schedule of inventories | March 31, December 31, 2023 2022 Ore on leach pad $ 2,628,409 $ 3,266,091 Carbon column in process 231,685 163,619 Finished goods 139,438 114,361 2,999,532 3,544,071 Less long-term portion (194,798 ) - Total $ 2,804,734 $ 3,544,071 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property and Equipment [Abstract] | |
Schedule of property and equipment | March 31, December 31, 2023 2022 Equipment $ 6,561,569 $ 6,528,497 Furniture and fixtures 6,981 6,981 Electronic and computer equipment 50,587 50,587 Vehicles 417,667 369,595 Buildings 100,000 100,000 Land and improvements 105,299 105,299 7,242,103 7,160,959 Less accumulated depreciation (4,528,821 ) (4,401,690 ) 2,713,282 2,759,269 Kiewit property facilities 2,497,436 2,497,436 Less accumulated amortization (888,307 ) (888,307 ) 1,609,129 1,609,129 Total $ 4,322,411 $ 4,368,398 |
Mineral Properties and Intere_2
Mineral Properties and Interests (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Mineral Properties and Interests [Abstract] | |
Schedule of mineral properties and interests | March 31, December 31, 2023 2022 Kiewit and all other sites $ 3,700,000 $ 3,700,000 JJS property 250,000 250,000 3,950,000 3,950,000 Less accumulated amortization (852,000 ) (852,000 ) 3,098,000 3,098,000 Asset retirement obligation assets Kiewit Site 747,300 725,122 Kiewit Exploration 28,377 28,377 JJS property 31,016 31,016 Total 806,693 784,515 Less accumulated amortization (266,022 ) (266,022 ) 540,671 518,493 Total $ 3,638,671 $ 3,616,493 |
Prepaid Forward Gold Contract_2
Prepaid Forward Gold Contract Liability (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Prepaid Forward Gold Contract Liability [Abstract] | |
Schedule of company is obligated to deliver gold | Months Gold Ounces Total Gold Ounces December 2020 655 655 January 2021 to March 2021 896 2,688 April 2021 to March 2022 911 10,932 April 2022 to March 2023 1,396 16,752 April 2023 to December 2023 1,753 15,777 January 2024 241 241 47,045 |
Schedule of related contract expense | March 31, December 31, 2023 2022 Total ounces to be delivered 31,027 26,839 Contractual payment per ounce in lieu of delivery $ 500 $ 500 Amount due in lieu of gold deliveries $ 15,513,500 $ 13,419,500 Three months ended 2023 2022 Prepaid forward gold contract liability balance at beginning of period $ 5,841,383 $ 10,263,438 Forward gold contract balance associated with ounces to be delivered during period 883,334 576,444 Reduction in prepaid forward gold contract liability balance (2,094,000 ) (1,366,500 ) Prepaid forward gold contract liability balance at end of period $ 4,630,717 $ 9,473,382 |
Schedule of royalties, upside participation and interest payable | March 31, December 31, 2023 2022 Royalties payable $ 625,370 $ 585,536 Royalties withholding payable 32,917 30,820 Upside participation payable 2,391,643 2,226,735 Subtotal 3,049,930 2,843,091 Accrued interest, prepaid forward gold contract 925,358 640,742 Total $ 3,975,288 $ 3,483,833 |
Notes Payable (Tables)
Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Schedule of Notes Payable [Abstract] | |
Schedule of notes payable | March 31, December 31, 2023 2022 Note payable to Epiroc, collateralized by a used Epiroc drill due in 36 monthly payments of $14,679 including interest at 5.2%. - 58,061 - 58,061 Current portion - (58,061 ) Long term portion $ - $ - |
Asset Retirement Obligation (Ta
Asset Retirement Obligation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of asset retirement obligations | Three months ended 2023 2022 Asset retirement obligation, beginning of period $ 1,496,434 $ 1,362,294 Increase due to change in estimated costs 22,178 - Accretion expense 37,409 33,536 Asset retirement obligation, end of period $ 1,556,021 $ 1,395,830 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of amounts accrued | March 31, December 31, 2023 2022 Rick Havenstrite, President $ 37,697 $ 37,697 Marianne Havenstrite, Treasurer and Principal Financial Officer 18,462 18,462 Total $ 56,159 $ 56,159 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue [Abstract] | |
Schedule of product sales | Three months ended 2023 2022 Concentrate sales $ $ Gold 979,197 1,043,929 Silver 16,667 14,128 Total concentrate sales 995,864 1,058,057 Deductions to concentrate sales Royalties (41,931 ) (44,550 ) Upside participation payments (164,907 ) (166,612 ) Outside processing (50,743 ) (53,961 ) Subtotal – deductions to concentrate sales (257,581 ) (265,123 ) Net concentrate sales 738,283 792,934 Net processing income - 474,188 TOTAL REVENUE $ 738,283 $ 1,267,122 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accounting Policies [Abstract] | ||
Outstanding stock options were excluded (in Shares) | 2,400,000 | |
Accumulated deficit | $ 23,000,594 | |
Net loss | 2,263,429 | |
Working capital | $ 21,500,281 |
Reclamation Bonds (Details)
Reclamation Bonds (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Reclamation Bonds [Abstract] | ||
Reclamation cost | $ 1,592,936 | $ 1,591,547 |
Surety bond in escrow account | 674,000 | 674,000 |
Deposits | $ 918,936 | $ 917,547 |
Inventories (Details)
Inventories (Details) - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of Inventory Disclosure [Abstract] | ||
General production and project costs | $ 680,319 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Inventories [Abstract] | ||
Ore on leach pad | $ 2,628,409 | $ 3,266,091 |
Carbon column in process | 231,685 | 163,619 |
Finished goods | 139,438 | 114,361 |
Inventory gross | 2,999,532 | 3,544,071 |
Less long-term portion | (194,798) | |
Total | $ 2,804,734 | $ 3,544,071 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Property and Equipment [Abstract] | ||
Amortization expense | $ 70,864 | |
Depreciation expense | $ 163,184 | $ 193,210 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of property and equipment - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Member] | ||
Schedule of Property and Equipment [Abstract] | ||
Property and equipment, Gross | $ 7,242,103 | $ 7,160,959 |
Less accumulated amortization | (4,528,821) | (4,401,690) |
Property and equipment, Total | 2,713,282 | 2,759,269 |
Equipment [Member] | Property, Plant and Equipment [Member] | ||
Schedule of Property and Equipment [Abstract] | ||
Property and equipment, Gross | 6,561,569 | 6,528,497 |
Furniture and fixtures [Member] | Property, Plant and Equipment [Member] | ||
Schedule of Property and Equipment [Abstract] | ||
Property and equipment, Gross | 6,981 | 6,981 |
Electronic and computer equipment [Member] | Property, Plant and Equipment [Member] | ||
Schedule of Property and Equipment [Abstract] | ||
Property and equipment, Gross | 50,587 | 50,587 |
Vehicles [Member] | Property, Plant and Equipment [Member] | ||
Schedule of Property and Equipment [Abstract] | ||
Property and equipment, Gross | 417,667 | 369,595 |
Buildings [Member] | Property, Plant and Equipment [Member] | ||
Schedule of Property and Equipment [Abstract] | ||
Property and equipment, Gross | 100,000 | 100,000 |
Land and improvements [Member] | Property, Plant and Equipment [Member] | ||
Schedule of Property and Equipment [Abstract] | ||
Property and equipment, Gross | 105,299 | 105,299 |
Kiewit property facilities [Member] | Property, Plant and Equipment [Member] | ||
Schedule of Property and Equipment [Abstract] | ||
Property and equipment, Gross | 2,497,436 | 2,497,436 |
Less accumulated amortization | (888,307) | (888,307) |
Property and equipment, Total | 4,322,411 | 4,368,398 |
Kiewit property facilities [Member] | Total [Member] | ||
Schedule of Property and Equipment [Abstract] | ||
Property and equipment, Total | $ 1,609,129 | $ 1,609,129 |
Mineral Properties and Intere_3
Mineral Properties and Interests (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Mineral Properties and Interests [Abstract] | ||
Amortization of the mineral properties | $ 50,615 |
Mineral Properties and Intere_4
Mineral Properties and Interests (Details) - Schedule of mineral properties and interests - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Mineral Properties and Interests [Abstract] | ||
Kiewit and all other sites | $ 3,700,000 | $ 3,700,000 |
JJS property | 250,000 | 250,000 |
Total | 3,950,000 | 3,950,000 |
Less accumulated amortization | (852,000) | (852,000) |
Total | 3,098,000 | 3,098,000 |
Asset retirement obligation assets | ||
Kiewit Site | 747,300 | 725,122 |
Kiewit Exploration | 28,377 | 28,377 |
JJS property | 31,016 | 31,016 |
Total | 806,693 | 784,515 |
Less accumulated amortization | (266,022) | (266,022) |
Mineral properties after accumulated depletion | 540,671 | 518,493 |
Total | $ 3,638,671 | $ 3,616,493 |
Prepaid Forward Gold Contract_3
Prepaid Forward Gold Contract Liability (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 31, 2023 | Dec. 31, 2022 | |
Prepaid Forward Gold Contract Liability (Details) [Line Items] | |||
Purchase of shares | 47,045 | ||
Per month ounce rate | $ 500 | $ 500 | |
Common shares | 8,000 | ||
Cumulative | 31,027 | 26,839 | |
Amounts payable | 4 days | ||
PDK [Member] | |||
Prepaid Forward Gold Contract Liability (Details) [Line Items] | |||
Per month ounce rate | $ 500 | ||
Debt received net amount | $ 13,600,000 | ||
Purchase agreement, description | the Purchase Agreement contains a royalty provision whereby royalties of 4% are due on gold and silver recovered from mining operations at the Kiewit site and sold by the Company to a third party. Under the Purchase Agreement, the Company also accrues a 5% withholding tax to the state of Utah on the royalty payments. Royalties are payable within 30 days following the end of each fiscal quarter. |
Prepaid Forward Gold Contract_4
Prepaid Forward Gold Contract Liability (Details) - Schedule of company is obligated to deliver gold | Mar. 31, 2023 |
Prepaid Forward Gold Contract Liability (Details) - Schedule of company is obligated to deliver gold [Line Items] | |
Total Gold Ounces | 47,045 |
December 2020 [Member] | |
Prepaid Forward Gold Contract Liability (Details) - Schedule of company is obligated to deliver gold [Line Items] | |
Gold Ounces per Month | 655 |
Total Gold Ounces | 655 |
January 2021 to March 2021 [Member] | |
Prepaid Forward Gold Contract Liability (Details) - Schedule of company is obligated to deliver gold [Line Items] | |
Gold Ounces per Month | 896 |
Total Gold Ounces | 2,688 |
April 2021 to March 2022 [Member] | |
Prepaid Forward Gold Contract Liability (Details) - Schedule of company is obligated to deliver gold [Line Items] | |
Gold Ounces per Month | 911 |
Total Gold Ounces | 10,932 |
April 2022 to March 2023 [Member] | |
Prepaid Forward Gold Contract Liability (Details) - Schedule of company is obligated to deliver gold [Line Items] | |
Gold Ounces per Month | 1,396 |
Total Gold Ounces | 16,752 |
April 2023 to December 2023 [Member] | |
Prepaid Forward Gold Contract Liability (Details) - Schedule of company is obligated to deliver gold [Line Items] | |
Gold Ounces per Month | 1,753 |
Total Gold Ounces | 15,777 |
January 2024 [Member] | |
Prepaid Forward Gold Contract Liability (Details) - Schedule of company is obligated to deliver gold [Line Items] | |
Gold Ounces per Month | 241 |
Total Gold Ounces | 241 |
Prepaid Forward Gold Contract_5
Prepaid Forward Gold Contract Liability (Details) - Schedule of related contract expense - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of Related Contract Expense [Abstract] | ||
Total ounces to be delivered | $ 31,027 | $ 26,839 |
Contractual payment per ounce in lieu of delivery | 500 | 500 |
Amount due in lieu of gold deliveries | 15,513,500 | 13,419,500 |
Prepaid forward gold contract liability balance at beginning of period | 5,841,383 | 10,263,438 |
Forward gold contract balance associated with ounces to be delivered during period | 883,334 | 576,444 |
Reduction in prepaid forward gold contract liability balance | (2,094,000) | (1,366,500) |
Prepaid forward gold contract liability balance at end of period | $ 4,630,717 | $ 9,473,382 |
Prepaid Forward Gold Contract_6
Prepaid Forward Gold Contract Liability (Details) - Schedule of royalties, upside participation and interest payable - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Schedule of Royalties Upside Participation And Interest Payable [Abstract] | ||
Royalties payable | $ 625,370 | $ 585,536 |
Royalties withholding payable | 32,917 | 30,820 |
Upside participation payable | 2,391,643 | 2,226,735 |
Subtotal | 3,049,930 | 2,843,091 |
Accrued interest, prepaid forward gold contract | 925,358 | 640,742 |
Total | $ 3,975,288 | $ 3,483,833 |
Notes Payable (Details)
Notes Payable (Details) | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Schedule of Notes Payable [Abstract] | |
Note payable | $ 58,061 |
Notes Payable (Details) - Sched
Notes Payable (Details) - Schedule of notes payable - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of notes payable [Abstract] | ||
Note payable to Epiroc, collateralized by a used Epiroc drill due in 36 monthly payments of $14,679 including interest at 5.2%. | $ 58,061 | |
Total Principal amount | 58,061 | |
Current portion | (58,061) | |
Long term portion |
Notes Payable (Details) - Sch_2
Notes Payable (Details) - Schedule of notes payable (Parentheticals) | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Schedule of notes payable [Abstract] | |
Number of installments | Installments | 36 |
Installments amount (in Dollars) | $ 14,679 |
Interest rate percentage | 5.20% |
Asset Retirement Obligation (De
Asset Retirement Obligation (Details) | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Asset Retirement Obligation Disclosure [Abstract] | |
Estimate value | $ 2,557,553 |
Increase estimate value | $ 1,020,553 |
Risk-free interest rate | 11% |
Associated retirement asset | $ 22,178 |
Asset Retirement Obligation (_2
Asset Retirement Obligation (Details) - Schedule of asset retirement obligations - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of Asset Retirement Obligations [Abstract] | ||
Asset retirement obligation, beginning of period | $ 1,496,434 | $ 1,362,294 |
Increase due to change in estimated costs | 22,178 | |
Accretion expense | 37,409 | 33,536 |
Asset retirement obligation, end of period | $ 1,556,021 | $ 1,395,830 |
Settlement of Consulting Cont_2
Settlement of Consulting Contract (Details) | Mar. 29, 2018 USD ($) |
Schedule of Settlement of Consulting Contract [Abstract] | |
Owing balance | $ 200,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Related Party Transactions (Details) [Line Items] | |||
Rent expense | $ 4,500 | $ 4,500 | |
Rate | 7,500 | ||
Compensation expense | 22,500 | $ 30,000 | |
Payments of employees | 144,000 | ||
LLC [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Accrued expenses | 7,500 | ||
Accounts payable | |||
One Director [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Fees received | 6,000 | ||
Another Director [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Fees received | 5,000 | ||
Director [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Accrued compensation | $ 86,000 | $ 81,000 |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of amounts accrued - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Schedule of Amounts Accrued [Abstract] | ||
Rick Havenstrite, President | $ 37,697 | $ 37,697 |
Marianne Havenstrite, Treasurer and Principal Financial Officer | 18,462 | 18,462 |
Total | $ 56,159 | $ 56,159 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Commitments and Contingencies (Details) [Line Items] | |||
Amount due | $ 34,667 | $ 33,027 | |
Claim fees | |||
Mining Lease [Member] | |||
Commitments and Contingencies (Details) [Line Items] | |||
Annual claims fees | $ 165 |
Capital Stock (Details)
Capital Stock (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Capital Stock [Abstract] | ||
Common stock shares, authorized | 100,000,000 | 100,000,000 |
Common stock, voting rights | All shares have equal voting rights and have one vote per share | |
Percentage of common stock | 50% | |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Stock Options (Details)
Stock Options (Details) - $ / shares | 3 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2018 | |
Stock Options (Details) [Line Items] | |||
Outstanding and vested options | 2,400,000 | ||
Exercise price (in Dollars per share) | $ 0.4 | ||
Remaining life of options | 1 month 24 days | ||
Stock options expired | 2,400,000 | ||
Stock Incentive Plan [Member] | |||
Stock Options (Details) [Line Items] | |||
Reserved shares | 2,400,000 |
Revenue (Details) - Schedule of
Revenue (Details) - Schedule of product sales - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Concentrate sales | ||
Total concentrate sales | $ 995,864 | $ 1,058,057 |
Deductions to concentrate sales | ||
Royalties | (41,931) | (44,550) |
Upside participation payments | (164,907) | (166,612) |
Outside processing | (50,743) | (53,961) |
Subtotal – deductions to concentrate sales | (257,581) | (265,123) |
Net concentrate sales | 738,283 | 792,934 |
Net processing income | 474,188 | |
TOTAL REVENUE | 738,283 | 1,267,122 |
Gold [Member] | ||
Concentrate sales | ||
Total concentrate sales | 979,197 | 1,043,929 |
Silver [Member] | ||
Concentrate sales | ||
Total concentrate sales | $ 16,667 | $ 14,128 |