XML 26 R12.htm IDEA: XBRL DOCUMENT

6. Mineral Properties

12 Months Ended

Dec. 31, 2020

6. Mineral Properties

6. Mineral Properties

Mineral properties at December 31, 2020 and 2019 are as follows:

		2020		2019
Golden Chest
Mineral Property	$	1,539,001	$	1,524,002
Infrastructure		468,669		153,970
Total Golden Chest		2,007,670		1,677,972
New Jersey		248,289		248,289
McKinley-Monarch		200,000		200,000
Butte Potosi		274,440		274,440
Alder Gulch		773,101		-
Less accumulated amortization		(48,267)		(37,683)
Total	$	3,455,233	$	2,363,018

Golden Chest

The Golden Chest is an open pit and underground mine project currently producing for the Company located near Murray, Idaho consisting of 25 patented and 70 unpatented mining claims. A 2% Net Smelter Royalty is payable on production at the Golden Chest to a former joint venture partner. Royalty expense of $114,204 and $118,223 was recognized as costs of sales and other direct production costs in the years ended December 31, 2020 and 2019, respectively.

New Jersey

The Coleman property is located at the New Jersey Mine area of interest and consists of 62 acres of patented mining claims, mineral rights to 108 acres of fee land, 80 acres of land for which the Company owns the surface but not the mineral rights, and approximately 130 acres of unpatented mining claims.

McKinley-Monarch

The McKinley-Monarch project is located near the town of Lucille, Idaho. The Company started exploring the property in 2013. In the third quarter of 2019, a $50,000 non-refundable deposit was received from PM&G Company along with a letter of intent contemplating purchase of the McKinley-Monarch project from the Company. The carrying value of the McKinley-Monarch project was reduced by $50,000 in 2019 reflecting receipt of this payment. The Company does not anticipate PM&G Company to continue with its purchase of the project.

Butte Potosi

In 2018, the Company purchased the Butte Potosi property near its Golden Chest mine for $250,440 and a 2% net smelter return on all ores mined and shipped from the property. Also in 2018 the Company incurred an additional $24,000 to improve access to the property. This property consists of patented mining claims some of which include both the surface and mineral rights and some of which include only the mineral rights.

Alder Gulch

In February 2020, the Company purchased property located in Alder Gulch just north of Murray in Shoshone County, Idaho which consists of 368 acres of real property, including patented mining claims with both surface and mineral rights. The Company started exploring the property in 2020.

Crown Point

On March 2, 2018, the Company entered into an agreement with J-J Farms LLC and Achievement Holdings LLC (“Crown Point”) to lease a group of patented and unpatented mining claims. The initial payment was 1,333,333 shares of the Company’s restricted common stock valued at $0.175/share for a fair value of $233,333. An additional payment was made in September of 2018 for $100,000 in cash. Per the agreement, future payments for the mineral property were as follows:

·1,333,333 shares of the Company’s common stock on September 30, 2019.

·Cash payments of $100,000 and $200,000 on September 30, 2019 and 2020, respectively.

The Company made no payments under this agreement in 2019. In December of 2019, the Company abandoned the property and recognized a loss of $333,333.