Note 3 - Summary of Significant Accounting Policies	12 Months Ended
Jun. 30, 2021
Notes to Financial Statements
Significant Accounting Policies [Text Block]	3. Summary of Significant Accounting Policies The Company's significant accounting policies are described below. Cash. Cash consist of all cash balances and highly liquid investments with an original maturity of three months or less. All cash is held in cash deposit accounts as of June 30, 2021, and 2020. Management Estimates. The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, 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. Stock-Based Compensation . The Company applies the fair value method of accounting for stock-based compensation. Under this method, compensation cost is measured at the grant date based on the fair value of the award and is recognized over the award vesting period. The Company classifies the benefits of tax deductions in excess of the compensation cost recognized for the options (excess tax benefit) as financing cash flows. The fair value of each option award is estimated as of the date of grant using the Black-Scholes option-pricing model. The fair value of each restricted stock award is equal to the Company's stock price on the date the award is granted. Income Taxes. The Company follows the liability method of accounting for income taxes under which deferred tax assets and liabilities are recognized for the future tax consequences of (i) temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements and (ii) operating loss and tax credit carry-forwards for tax purposes. Deferred tax assets are reduced by a valuation allowance when, based upon management's estimates, it is more likely than not that a portion of the deferred tax assets will not be realized in a future period. Investment in the Joint Venture Company. The Company's consolidated financial statements include the investment in the Joint Venture Company, which is accounted for under the equity method. The Company held a 30.0% membership interest in the Joint Venture Company on June 30, 2021 and designated one of the three members of the Management Committee. The Company recorded its investment at the historical cost of the assets contributed. The cumulative losses of the Joint Venture Company exceed the historical cost of the assets contributed to the Joint Venture Company; therefore, the Company's investment in the Joint Venture Company as of June 30, 2021 and June 30, 2020 is zero . The portion of the cumulative loss that exceeds the Company's investment will be suspended and recognized against earnings, if any, from the investment in the Joint Venture Company in future periods. Fair Value Measurement. Accounting guidelines for measuring fair value establish a three -level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. The three levels are defined as follows: Level 1 – Observable inputs such as quoted prices in active markets at the measurement date for identical, unrestricted assets or liabilities. Level 2 – Other inputs that are observable directly or indirectly, such as quoted prices in markets that are not active or inputs, which are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 – Unobservable inputs for which there are little or no market data and which the Company makes its own assumptions about how market participants would price the assets and liabilities. The Company received 809,744 shares of its Common Stock as part of the consideration received for the sale of a portion of its membership interest in the Joint Venture Company (See Note 8 for further discussion of the sale transaction with KG Mining). The value assigned to the Company's remaining 30.0% membership interest in the Joint Venture Company was determined using unobservable data and was a significant component used to determine the value of the shares. Due to the significance of the unobservable data used, the valuation of the shares were classified as a Level 3 valuation. Recently Issued Accounting Pronouncements. In February 2016, the Financial Accounting Standards Board “FASB” issued Accounting Standards Update “ASU” 2016 - 02, Leases (Topic 842 ) , which requires recognition of right-of-use assets and lease payment liabilities on the balance sheet by lessees for all leases with terms greater than twelve months. Classification of leases as either a finance or operating lease will determine the recognition, measurement and presentation of expenses. ASU 2016 - 02 also requires certain quantitative and qualitative disclosures about leasing arrangements. The Joint Venture Company owns the Tetlin Lease and any impact of the new standard related to that lease will be evaluated at the Joint Venture Company level. The new standard was adopted in July 2019. Adopting this standard did not have an impact on the Company's financials. In January 2020, the FASB issued ASU 2020 - 01, Investments — Equity Securities (Topic 321 ), Investments — Equity Method and Joint Ventures (Topic 323 ), and Derivatives and Hedging (Topic 815 ), which clarifies the interaction between the three standards. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company accounts for the Joint Venture Company under the equity method of accounting. The Company does not anticipate that this update will have a material impact on its financial statements. The Company has evaluated all other recent accounting pronouncements and believes that none of them will have a significant effect on the Company's consolidated financial statements.

Summary of Significant Accounting Policies

The Company's significant accounting policies are described below.

Cash.

Cash consist of all cash balances and highly liquid investments with an original maturity of

three

months or less. All cash is held in cash deposit accounts as of

June 30, 2021,

and

2020.

Management Estimates.

The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, 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.

Stock-Based Compensation

. The Company applies the fair value method of accounting for stock-based compensation. Under this method, compensation cost is measured at the grant date based on the fair value of the award and is recognized over the award vesting period. The Company classifies the benefits of tax deductions in excess of the compensation cost recognized for the options (excess tax benefit) as financing cash flows. The fair value of each option award is estimated as of the date of grant using the Black-Scholes option-pricing model. The fair value of each restricted stock award is equal to the Company's stock price on the date the award is granted.

Income Taxes.

The Company follows the liability method of accounting for income taxes under which deferred tax assets and liabilities are recognized for the future tax consequences of (i) temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements and (ii) operating loss and tax credit carry-forwards for tax purposes. Deferred tax assets are reduced by a valuation allowance when, based upon management's estimates, it is more likely than

not

that a portion of the deferred tax assets will

not

be realized in a future period.

Investment in the Joint Venture Company.

The Company's consolidated financial statements include the investment in the Joint Venture Company, which is accounted for under the equity method. The Company held a

30.0%

membership interest in the Joint Venture Company on

June 30, 2021

and designated

one

of the

three

members of the Management Committee. The Company recorded its investment at the historical cost of the assets contributed. The cumulative losses of the Joint Venture Company exceed the historical cost of the assets contributed to the Joint Venture Company; therefore, the Company's investment in the Joint Venture Company as of

June 30, 2021

and

June 30, 2020

zero

. The portion of the cumulative loss that exceeds the Company's investment will be suspended and recognized against earnings, if any, from the investment in the Joint Venture Company in future periods.

Fair Value Measurement.

Accounting guidelines for measuring fair value establish a

three

-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into

one

three

different levels depending on the observability of the inputs employed in the measurement.

The

three

levels are defined as follows:

Level

– Observable inputs such as quoted prices in active markets at the measurement date for identical, unrestricted assets or liabilities.

Level

– Other inputs that are observable directly or indirectly, such as quoted prices in markets that are

not

active or inputs, which are observable, either directly or indirectly, for substantially the full term of the asset or liability.

Level

– Unobservable inputs for which there are little or

market data and which the Company makes its own assumptions about how market participants would price the assets and liabilities.

The Company received

809,744

shares of its Common Stock as part of the consideration received for the sale of a portion of its membership interest in the Joint Venture Company (See Note

for further discussion of the sale transaction with KG Mining). The value assigned to the Company's remaining

30.0%

membership interest in the Joint Venture Company was determined using unobservable data and was a significant component used to determine the value of the shares. Due to the significance of the unobservable data used, the valuation of the shares were classified as a Level

valuation.

Recently Issued Accounting Pronouncements.

February 2016,

the Financial Accounting Standards Board “FASB” issued Accounting Standards Update “ASU”

2016

02,

Leases (Topic

842

)

, which requires recognition of right-of-use assets and lease payment liabilities on the balance sheet by lessees for all leases with terms greater than

twelve

months. Classification of leases as either a finance or operating lease will determine the recognition, measurement and presentation of expenses. ASU

2016

also requires certain quantitative and qualitative disclosures about leasing arrangements. The Joint Venture Company owns the Tetlin Lease and any impact of the new standard related to that lease will be evaluated at the Joint Venture Company level. The new standard was adopted in

July 2019.

Adopting this standard did

not

have an impact on the Company's financials.

January 2020,

the FASB issued ASU

2020

01,

Investments

—

Equity Securities (Topic

321

), Investments

—

Equity Method and Joint Ventures (Topic

323

), and Derivatives and Hedging (Topic

815

which clarifies

the interaction between the

three

standards.

For public business entities, the amendments in this update are effective for fiscal years beginning after

December 15, 2020,

and interim periods within those fiscal years. The Company accounts for the Joint Venture Company under the equity method of accounting. The Company does

not

anticipate that this update will have a material impact on its financial statements.

The Company has evaluated all other recent accounting pronouncements and believes that

none

of them will have a significant effect on the Company's consolidated financial statements.