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What changed in Idaho Strategic Resources, Inc.'s 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of Idaho Strategic Resources, Inc.'s 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+282 added−268 removedSource: 10-K (2024-03-25) vs 10-K (2023-03-31)

Top changes in Idaho Strategic Resources, Inc.'s 2023 10-K

282 paragraphs added · 268 removed · 230 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

36 edited+1 added−4 removed17 unchanged
Biggest changeProjects include; o Lemhi Pass-Significant land package with high value REE potential–USGS also recognized as the #1 thorium prospect in the U.S. o Diamond Creek - One of the top rare earth prospects in the US o Roberts - Higher grade REE property in the northern portion of the Idaho REE-Th Belt · A significant portfolio of early-stage exploration properties in Central Idaho, primarily in the Elk City area. 6 Table of contents In addition to its portfolio of exploration, pre-development, and producing properties, the Company is also the manager and majority-owner of the New Jersey Mill, which currently processes ore from the Golden Chest Mine.
Biggest changeProjects include; o Lemhi Pass – Significant land package with high value REE potential–USGS also recognized as the #1 thorium prospect in the U.S. o Diamond Creek – Nationally recognized rare earth prospects in the US o Mineral Hill – Nationally recognized and high grade REE property in the northern portion of the Idaho REE-Th Belt · A significant portfolio of early-stage exploration properties in Central Idaho, primarily in the Elk City area.
Its portfolio of mineral properties includes: · The Golden Chest Mine, a producing gold mine located in the Murray Gold Belt (MGB) of North Idaho; · Approximately 1,500 acres of patented mineral property and over 5,000 acres of nearby and adjacent un-patented mineral property.
Its portfolio of mineral properties includes: · The Golden Chest Mine, a producing gold mine located in the Murray Gold Belt of North Idaho; · Approximately 1,500 acres of patented mineral property and over 5,000 acres of nearby and adjacent un-patented mineral property.
The Company could conceivably be required to conduct cleanup operations at its own expense; however, the Environmental Protection Agency’s (EPA) Record of Decision for the Bunker Hill Mining and Metallurgical Complex Operating Unit 3 does not include any cleanup activities at the Company’s projects.
The Company could conceivably be required to conduct cleanup operations at its own expense; however, the Environmental Protection Agency’s (“EPA”) Record of Decision for the Bunker Hill Mining and Metallurgical Complex Operating Unit 3 does not include any cleanup activities at the Company’s projects.
This plan also calls for the grading of steep fill slopes and re-vegetation of disturbed land as well as erosion control measures utilizing best practices. Surface water monitoring is also performed at the Golden Chest and results are reported to the Idaho DEQ on a quarterly basis. The Company estimates the cost of this water monitoring at $6,000 annually.
This plan also calls for the grading of steep fill slopes and re-vegetation of disturbed land as well as erosion control measures utilizing best practices. Surface water monitoring is also performed at the Golden Chest and results are reported to IDEQ on a quarterly basis. The Company estimates the cost of this water monitoring at $6,000 annually.
The Company believes that such permitting delays are caused by insufficient manpower, complicated regulations, competing priorities, and sympathy for environmental groups who oppose all mining projects. The Company is also subject to the rules of the U.S. Department of Labor, Mine Safety and Health Administration (MSHA) for the New Jersey and Golden Chest operations.
The Company believes that such permitting delays are caused by insufficient manpower, complicated regulations, competing priorities, and sympathy for environmental groups who oppose all mining projects. The Company is also subject to the rules of the U.S. Department of Labor, Mine Safety and Health Administration (“MSHA”) for the New Jersey Mill and Golden Chest Mine operations.
The plan calls for grading of steep fill slopes and planting of vegetation on the area disturbed by the open pit mine. IDR pays an annual reclamation fee of $133 to the Idaho Department of Lands for surface disturbance associated with the New Jersey Mine open pit.
The plan calls for grading of steep fill slopes and planting of vegetation on the area disturbed by the open pit mine. IDR pays an annual reclamation fee of $133 to IDL for surface disturbance associated with the New Jersey Mine open pit.
These holdings are considered early-stage exploration properties and located within the MGB, many of which include historic gold mines and known gold mineralization; · Rare Earth Element Projects–located in the Idaho REE-Th Belt near Salmon, Idaho.
These holdings are considered early-stage exploration properties and located within the MGB, many of which include historic gold mines and known gold mineralization; · REE Projects–located in the Idaho Rare Earth Element-Thorium (“REE-Th”) Belt near Salmon, Idaho.
The Golden Chest Mine also has an EPA general stormwater permit. 8 Table of contents When the Company plans an exploration drilling program on public lands, it must submit a POO to either the BLM or USFS.
The Golden Chest Mine also has an EPA general stormwater permit. When the Company plans an exploration drilling program on public lands, it must submit a POO to either the BLM or USFS.
The Company ships its gold concentrate overseas to a smelter in Japan and the global shipping challenges due to Covid-19 were largely remedied in 2022 and the Company was able to ship a substantial portion of its concentrate inventory reducing the amount of inventory stored at the New Jersey Mill, returning inventory to near pre-pandemic levels.
The global shipping challenges due to Covid-19 were largely remedied in 2022 and the Company was able to ship a substantial portion of its concentrate inventory reducing the amount of inventory stored at the New Jersey Mill, returning inventory to near pre-pandemic levels.
Compilation of the plan can take several weeks of professional time and a reclamation bond is usually required to start drilling once the plan is approved. Bond costs vary directly with surface disturbance area.
Compilation of the plan can take as much as several months of professional time and a reclamation bond is usually required to start drilling once the plan is approved. Bond costs vary directly with surface disturbance area.
IDR estimates the cost of water-monitoring associated with the CLP to be approximately $10,000 per year. The New Jersey Mill also has an EPA general stormwater permit. The Idaho Department of Lands (IDL) approved a surface mining reclamation plan for the New Jersey Mine in 1993.
IDR estimates the cost of water-monitoring associated with the concentrate leach plant to be approximately $10,000 per year. The New Jersey Mill also has an EPA general stormwater permit. The Idaho Department of Lands (“IDL”) approved a surface mining reclamation plan for the New Jersey Mine in 1993.
The Company has estimated its costs to reclaim the New Jersey Mine and Mill site to be $96,600. The Company submitted a reclamation plan to the IDL for its current open pit mining operation at the Golden Chest Mine. The plan was approved, and the Company was required to post a reclamation bond of $103,320.
The Company has estimated its costs to reclaim the New Jersey Mine and Mill site to be $117,000. The Company submitted a reclamation plan to IDL for its past open pit mining operation at the Golden Chest Mine. The plan was approved, and the Company was required to post a reclamation bond of $103,320.
Idaho Strategic Resources produces gold at the Golden Chest Mine located in the Murray Gold Belt (MGB) area of the world-class Coeur d’Alene Mining District, north of the prolific Silver Valley.
General Description of the Business Idaho Strategic produces gold at the Golden Chest Mine located in the Murray Gold Belt (“MGB”) area of the world-class Coeur d’Alene Mining District, north of the prolific Silver Valley.
IDR has focused its gold operations at and near the Golden Chest Mine, however if it chose to expand to other geographic areas it may compete with other mining companies for exploration properties and/or mining assets.
The Company competes with other junior mining companies for the capital necessary to sustain its exploration and development programs. IDR has focused its gold operations at and near the Golden Chest Mine, however if it chose to expand to other geographic areas it may compete with other mining companies for exploration properties and/or mining assets.
Customer Dependence and Product Distribution The Company sold all its flotation gold concentrate to H&H Metals Corporation of New York, NY which accounted for 97% of gold sales in 2022. The remaining gold sales were gold dore’ which was sold to a western U.S. refinery. H&H Metals is also an IDR shareholder.
Customer Dependence and Product Distribution The Company sold all its flotation gold concentrate to H&H Metals Corporation (“H&H Metals” or “H&H”) of New York, NY which accounted for 99% of gold sales in 2023. The remaining gold sales were gold doré which was sold to a western U.S. refinery. H&H Metals is also an IDR shareholder.
There is no known evidence that previous operations at the New Jersey Mine (prior to 1910) caused any groundwater or surface water pollution or discharged any tailings into the South Fork of the Coeur d'Alene River; however, it is possible that such evidence could surface.
Current plans for expanded cleanup do not include any IDR projects. There is no known evidence that previous operations at the New Jersey Mine (prior to 1910) caused any groundwater or surface water pollution or discharged any tailings into the South Fork of the Coeur d’Alene River; however, it is possible that such evidence could surface.
The first is a permit for its tailings storage facility (TSF) with the Idaho Department of Water Resources (IDWR). The Company submitted an engineered design for the TSF and constructed a buttress and Phase 5 lift in 2022. IDWR inspected and approved the TSF for tailings disposal in Phase 5.
The first is a permit for its tailings storage facility with the Idaho Department of Water Resources (“IDWR”). The Company submitted an engineered design for the tailings storage facility and constructed a buttress and Phase 5 lift in 2022, and the Phase 6 lift in 2023.
Idaho Strategic Resources (IDR) is one of the few resource-based companies (public or private) possessing the combination of officially recognized U.S. domestic rare earth element properties (in Idaho) and Idaho-based gold production located in an established mining community.
IDR is one of the few resource-based companies (public or private) possessing the combination of officially recognized U.S. domestic rare earth element properties (in Idaho) and Idaho-based gold production located in an established mining community. Any Bankruptcy, Receivership or Similar Proceedings There have been no bankruptcy, receivership, or similar proceedings.
(formerly New Jersey Mining Company (NJMC)) was incorporated in the State of Idaho on July 18, 1996. On December 6, 2021, The Company changed its name to Idaho Strategic Resources, Inc. (IDR) to better reflect its corporate focus, Idaho-based operations and being domiciled in Idaho.
On December 6, 2021, the Company changed its name to Idaho Strategic Resources, Inc. (formerly New Jersey Mining Company (“NJMC”)) to better reflect its corporate focus, Idaho-based operations and being domiciled in Idaho.
Although not expected, if H&H Metals could not purchase the gold concentrate, it is anticipated another customer could be found readily as the floatation gold concentrate is a high value concentrate with minor deleterious element content.
Although not expected, if H&H Metals could not purchase the gold concentrate, it is anticipated another customer could be found readily as the flotation gold concentrate is a high value concentrate with minor deleterious element content. The Company ships its gold concentrate overseas to smelters in South Korea and Japan.
To the extent that the Company becomes subject to environmental liabilities, the satisfaction of any such liabilities would reduce funds otherwise available to the Company and could have a material adverse effect on the Company.
To the extent that the Company becomes subject to environmental liabilities, the satisfaction of any such liabilities would reduce funds otherwise available to the Company and could have a material adverse effect on the Company. Laws and regulations intended to ensure the protection of the environment are constantly changing and are generally becoming more restrictive.
Laws and regulations intended to ensure the protection of the environment are constantly changing and are generally becoming more restrictive. 7 Table of contents All operating and exploration plans have been made in consideration of existing governmental regulations. Regulations that most affect operations are related to surface water quality and access to public lands.
All operating and exploration plans have been made in consideration of existing governmental regulations. Regulations that most affect operations are related to surface water quality and access to public lands.
The Company maintains a website where recent press releases and other information can be found. A link to the Company’s filings with the SEC is provided on the Company’s website www.idahostrategic.com.
The SEC maintains an Internet site (http://www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the Commission and SEC. The Company maintains a website where recent press releases and other information can be found. A link to the Company’s filings with the SEC is provided on the Company’s website www.idahostrategic.com.
An approved plan of operations (POO) and a financial bond are usually required before exploration or mining activities can be conducted on public land that is administered by the United States Bureau of Land Management (BLM) or United States Forest Service (USFS).
An approved plan of operations (“POO”) and a financial bond are usually required before exploration or mining activities can be conducted on public land that is administered by the United States Bureau of Land Management (“BLM”) or United States Forest Service (“USFS”). 7 Table of Contents The New Jersey Mine, Golden Chest Mine, and other nearby properties are part of the expanded Bunker Hill Superfund Site.
In 2022 the Company submitted a Closure Plan for the cyanidation permit since it no longer uses the cyanidation process. The plan is under review the by the Idaho DEQ. The plan calls for continued surface and groundwater monitoring for as long as tailings are deposited in the TSF and for a post-closure period of five years.
The plan is under review the by the Idaho Department of Environmental Quality (“IDEQ”). The plan calls for continued surface and groundwater monitoring for as long as tailings are deposited in the tailings storage facility and for a post-closure period of five years.
Coeur d’Alene, ID 83814. Any Bankruptcy, Receivership or Similar Proceedings There have been no bankruptcy, receivership, or similar proceedings. Any Material Reclassification, Merger, Consolidation, or Purchase or Sale of a Significant Amount of Assets Not in the Ordinary Course of Business.
Any Material Reclassification, Merger, Consolidation, or Purchase or Sale of a Significant Amount of Assets Not in the Ordinary Course of Business. There have been no material reclassifications, mergers, consolidations, purchases, or sales not in the ordinary course of business for the past three years.
The Company is an established gold producer, with surface and underground mining operations at its 100-percent owned Golden Chest Mine and conducts milling operations at its majority-owned New Jersey Mill. The Company also has an expanded focus on identifying and exploring Critical Minerals (Rare Earth Minerals).
The Company is an established gold producer, with surface and underground mining operations at its 100-percent owned Golden Chest Mine and conducts milling operations at its majority-owned New Jersey Mill. In addition to gold and gold production, the Company maintains an important strategic presence in the U.S. Critical Minerals sector, specifically focused on the more “at-risk” rare earth elements (“REE”).
The Company posted a reclamation bond of $107,000 for the TSF. An Idaho Cyanidation Permit was granted for the New Jersey Mill on October 10, 1995 [No. CN-000027]. Construction of the Concentrate Leach Plant (CLP) at the New Jersey Mill was completed in November of 2007. The Idaho Cyanidation permit requires quarterly surface water and groundwater monitoring.
Construction of the concentrate leach plant at the New Jersey Mill was completed in November of 2007. The Idaho Cyanidation permit requires quarterly surface water and groundwater monitoring. In 2022 the Company submitted a Closure Plan for the cyanidation permit since it no longer uses the cyanidation process.
The Company is also pursuing a Rare Earth Element (REE) exploration strategy and has acquired REE properties in Idaho. Idaho Strategic Resources, Inc. (“the Company” or “IDR”) was incorporated under the laws of the State of Idaho on July 18, 1996. The Company’s head office and registered records office is located at 201 N. 3 rd St.
ITEM 1. DESCRIPTION OF THE BUSINESS History and Organization Idaho Strategic Resources, Inc. (“the Company”, “Idaho Strategic”, “IDR”, “our”, “us”, or “we”) was incorporated under the laws of the State of Idaho on July 18, 1996. The Company’s head office and registered records office is located at 201 N. 3 rd St. Coeur d’Alene, ID 83814.
The Company complies with local building codes and ordinances as required by law. Number of Total Employees and Number of Full Time Employees The Company's total number of full-time employees is 40. REPORTS TO SECURITY HOLDERS The Company is not required to deliver an annual report to shareholders; however, it plans to deliver an annual report to shareholders in 2023.
The Company complies with local building codes and ordinances as required by law. 8 Table of Contents Number of Total Employees and Number of Full Time Employees The Company’s total number of full-time employees is 42.
Competitive Business Conditions While there has been a market for gold and precious metals historically, the Company competes on several different fronts within the minerals exploration industry. The Company competes with other junior mining companies for the capital necessary to sustain its exploration and development programs.
This progress, combined with the existing infrastructure and development, has created a solid foundation of real estate holdings, and a tangible base of value regardless of market cycles. 6 Table of Contents Competitive Business Conditions While there has been a market for gold and precious metals historically, the Company competes on several different fronts within the minerals exploration industry.
The Company focuses its exploration and production efforts in historical mining districts located within the state of Idaho.
Both projects are in central Idaho and participating in the USGS Earth MRI program, with the Diamond Creek Project also participating in the Idaho Department of Commerce’s Idaho Global Entrepreneurial Mission (“IGEM”) program. The Company focuses its exploration and production efforts in historical mining districts located within the state of Idaho.
With all debt associated with the start-up of operations behind it, the Company significantly increased its exploration and expansion activities in the Murray Gold Belt. This progress, combined with the existing infrastructure and development, has created a solid foundation of real estate holdings, and a tangible base of value regardless of market cycles.
The Company has focused its efforts on expanding underground development and production at the Golden Chest Mine and assembled its extensive land holdings within the MGB area. With all debt associated with the start-up of operations behind it, the Company significantly increased its exploration and expansion activities in the Murray Gold Belt.
The Company’s Diamond Creek and Roberts REE properties are included the U.S. national REE inventory as listed in USGS, IGS and DOE publications. Both projects are in central Idaho and participating in the USGS Earth MRI program, with the Diamond Creek Project also participating in the Idaho Department of Commerce’s IGEM program.
The Company’s Diamond Creek and Mineral Hill REE properties are included the U.S. national REE inventory as listed in United States Geologic Survey (“USGS”), Idaho Geologic Survey (“IGS”) and Department of Energy (“DOE”) publications.
The New Jersey Mill can process gold and silver ore through a 360-tonne per day flotation plant. The Company has focused its efforts on expanding underground development and production at the Golden Chest Mine and assembled its extensive land holdings within the Murray Gold Belt.
In addition to its portfolio of exploration, pre-development, and producing properties, the Company is also the manager and majority-owner of the New Jersey Mill, which currently processes ore from the Golden Chest Mine. The New Jersey Mill can process gold and silver ore through a 360-tonne per day flotation plant.
The annual report will contain audited financial statements. The Company may also rely on the Internet to deliver annual reports to shareholders. The SEC maintains an Internet site (http://www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the Commission and SEC.
REPORTS TO SECURITY HOLDERS The Company is not required to deliver an annual report to shareholders; however, it plans to deliver an annual report to shareholders in 2024. The annual report will contain audited financial statements. The Company may also rely on the Internet to deliver annual reports to shareholders.
Removed
ITEM 1. DESCRIPTION OF THE BUSINESS Business Idaho Strategic Resources, Inc. (“the Company” or “IDR”) is a gold producer with an established base in three historic mining districts in the Western United States. The Company’s primary source of revenue comes from its operating gold mine, the Golden Chest Mine located in the Murray Gold Belt of northern Idaho.
Added
IDWR inspected and approved the tailings storage facility for tailings disposal in Phase 5 and Phase 6. The Company posted a reclamation bond of $107,000 for the tailings storage facility. An Idaho Cyanidation Permit was granted for the New Jersey Mill on October 10, 1995 [No. CN-000027].
Removed
There have been no material reclassifications, mergers, consolidations, purchases, or sales not in the ordinary course of business for the past three years. BUSINESS OF THE COMPANY General Description of the Business Domiciled in Idaho and headquartered in the Panhandle of northern Idaho, Idaho Strategic Resources, Inc.
Removed
Its business strategy is to grow its asset base and mineral production over time while advancing its Rare Earth Element projects. In addition to gold and gold production, the Company maintains an important strategic presence in the U.S. Critical Minerals sector, specifically focused on the more “at-risk” Rare Earth Elements (REE’s).
Removed
The New Jersey Mine, Golden Chest Mine, and other nearby properties are part of the expanded Bunker Hill Superfund Site. Current plans for expanded cleanup do not include any IDR projects.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

51 edited+20 added−3 removed114 unchanged
Biggest changeRisks Related to Our Company The cost of our exploration, development and acquisition activities is substantial, and there is no assurance that the quantities of minerals and metals we discover, acquire or recover will justify commercial operations or replace reserves.
Biggest changeA failure to meet our climate strategy commitments and/or societal or investor expectations could also result in damage to our reputation, decreased investor confidence and challenges in maintaining positive community relations, which can pose additional obstacles to our ability to conduct our operations and develop our projects, which may result in a material adverse impact on our business, financial position, results of operations and growth prospects. 13 Table of Contents Risks Related to Our Company The cost of our exploration, development and acquisition activities is substantial, and there is no assurance that the quantities of minerals and metals we discover, acquire or recover will justify commercial operations or replace reserves.
While we anticipate taking all measures which we deem reasonable and prudent in connection with the production phase, there is no assurance that the risks described above will not cause delays or cost overruns in connection with such development, production, or operation.
While we anticipate taking all measures that we deem reasonable and prudent in connection with the production phase, there is no assurance that the risks described above will not cause delays or cost overruns in connection with such development, production, or operation.
If we are unable to effectively develop, mine, recover and sell adequate quantities of gold or generate cash flows from our other diversified precious and strategic metals production and processing activities (including, but not limited to, metals exploration, engineering, resource development, economic feasibility assessments, mineral production, metal processing and related ventures), it is unlikely that the cash generated from our internal operations will suffice as a source of the liquidity necessary for anticipated working capital requirements.
If we are unable to effectively develop, mine, recover and sell adequate quantities of gold or generate cash flows from our other diversified precious and strategic metals properties (including, but not limited to, metals exploration, engineering, resource development, economic feasibility assessments, mineral production, metal processing and related ventures), it is unlikely that the cash generated from our internal operations will suffice as a source of the liquidity necessary for anticipated working capital requirements.
If we are unsuccessful, our business will fail, and investors may lose all of their investment in our Company. We will not be successful unless we recover precious or strategic metals and sell them for a profit.
If we are unsuccessful, our business will fail, and investors may lose all their investment in our Company. We will not be successful unless we recover precious or strategic metals and sell them for a profit.
Certain events or changes in the market or our industries generally are beyond our control. 18 Table of contents In addition to the other risk factors contained or incorporated by reference herein, factors that could impact our trading price include: · our actual or anticipated operating and financial results, including how those results vary from the expectations of management, securities analysts and investors; · changes in financial estimates or publication of research reports and recommendations by financial analysts or actions taken by rating agencies with respect to us or other industry participants; · reports in the press or investment community generally or relating to our reputation or the financial services industry; · developments in our business or operations or our industry sectors generally; · any future offerings by us of our common stock; · any coordinated trading activities or large derivative positions in our common stock, for example, a “short squeeze” (a short squeeze occurs when a number of investors take a short position in a stock and have to buy the borrowed securities to close out the position at a time that other short sellers of the same security also want to close out their positions, resulting in surges in stock prices, i.e., demand is greater than supply for the stock shorted); · legislative or regulatory changes affecting our industry generally or our business and operations specifically; · the operating and stock price performance of companies that investors consider to be comparable to us; · announcements of strategic developments, acquisitions, restructurings, dispositions, financings and other material events by us or our competitors; · expectations of (or actual) equity dilution, including the actual or expected dilution to various financial measures, including earnings per share, that may be caused by equity offerings; · actions by our current shareholders, including future sales of common shares by existing shareholders, including our directors and executive officers; · proposed or final regulatory changes or developments; · anticipated or pending regulatory investigations, proceedings, or litigation that may involve or affect us; and · other changes in U.S. or global financial markets, global economies and general market conditions, such as interest or foreign exchange rates, stock, commodity prices, credit or asset valuations or volatility.
In addition to the other risk factors contained or incorporated by reference herein, factors that could impact our trading price include: · our actual or anticipated operating and financial results, including how those results vary from the expectations of management, securities analysts and investors; · changes in financial estimates or publication of research reports and recommendations by financial analysts or actions taken by rating agencies with respect to us or other industry participants; 19 Table of Contents · reports in the press or investment community generally or relating to our reputation or the financial services industry; · developments in our business or operations or our industry sectors generally; · any future offerings by us of our common stock; · any coordinated trading activities or large derivative positions in our common stock, for example, a “short squeeze” (a short squeeze occurs when a number of investors take a short position in a stock and have to buy the borrowed securities to close out the position at a time that other short sellers of the same security also want to close out their positions, resulting in surges in stock prices, i.e., demand is greater than supply for the stock shorted); · legislative or regulatory changes affecting our industry generally or our business and operations specifically; · the operating and stock price performance of companies that investors consider to be comparable to us; · announcements of strategic developments, acquisitions, restructurings, dispositions, financings and other material events by us or our competitors; · expectations of (or actual) equity dilution, including the actual or expected dilution to various financial measures, including earnings per share, that may be caused by equity offerings; · actions by our current shareholders, including future sales of common shares by existing shareholders, including our directors and executive officers; · proposed or final regulatory changes or developments; · anticipated or pending regulatory investigations, proceedings, or litigation that may involve or affect us; and · other changes in U.S. or global financial markets, global economies and general market conditions, such as interest or foreign exchange rates, stock, commodity prices, credit or asset valuations or volatility.
Any material change in the quantity of mineral resources, mineral reserves, mineralization, grade or stripping ratio may affect the economic viability of our properties. In addition, we can provide no assurance that gold recoveries or other metal recoveries experienced in small-scale laboratory tests will be duplicated in larger scale tests under on-site conditions or during production.
Any material changes in the quantity of mineral resources, mineral reserves, mineralization, grade or stripping ratio may affect the economic viability of our properties. In addition, we can provide no assurance that gold recoveries or other metal recoveries experienced in small-scale laboratory tests will be duplicated in larger scale tests under on-site conditions or during production.
These laws and regulations may, among other things: · Require that the Company obtain permits before commencing mining work and to comply with ongoing permit requirements; · Restrict the substances that can be released into the environment in connection with mining work and require remediation of substances that are released; 15 Table of contents · Impose obligations to reclaim land in order to minimize long term effects of land disturbance; and · Limit or prohibit mining work on protected areas.
These laws and regulations may, among other things: · Require that the Company obtain permits before commencing mining work and to comply with ongoing permit requirements; · Restrict the substances that can be released into the environment in connection with mining work and require remediation of substances that are released; · Impose obligations to reclaim land in order to minimize long term effects of land disturbance; and · Limit or prohibit mining work on protected areas.
It is also possible that the liabilities and hazards might not be insurable, or we could elect not to insure ourselves against such liabilities because of the high premium costs, in which event, we could incur significant costs that could have a material adverse effect on our financial condition. Our insurance and surety bonds for environmental-related issues are limited.
It is also possible that the liabilities and hazards might not be insurable, or we could elect not to insure ourselves against such liabilities because of the high premium costs, in which event, we could incur significant costs that could have a material adverse effect on our financial condition. 17 Table of Contents Our insurance and surety bonds for environmental-related issues are limited.
These risks include potential delays, cost overruns, shortages of material or labor, construction defects, and injuries to persons and property. We expect to engage or hire on employees in order to continue the development of our claims.
These risks include potential delays, cost overruns, shortages of material or labor, construction defects, and injuries to persons and property. We expect to engage or hire on employees in order to continue the development of our mines.
Therefore, we will likely be able to sell any gold or mineral products that we identify and produce; however, such sales are subject to market fluctuations that may materially and adversely affect the Company’s future cash flows and results of operations. 11 Table of contents Many of our competitors have greater financial resources and technical facilities.
Therefore, we will likely be able to sell any gold or mineral products that we identify and produce; however, such sales are subject to market fluctuations that may materially and adversely affect the Company’s future cash flows and results of operations. Many of our competitors have greater financial resources and technical facilities.
Any changes to these laws and regulations could have a negative impact on our financial performance and results of operations by, for example, requiring changes to operating constraints, technical criteria, fees or surety requirements. It is possible that future changes in these laws or regulations could increase operating costs or require capital expenditures in order to remain in compliance.
Any changes to these laws and regulations could have a negative impact on our financial performance and results of operations by, for example, requiring changes to operating constraints, technical criteria, fees or surety requirements. 16 Table of Contents It is possible that future changes in these laws or regulations could increase operating costs or require capital expenditures in order to remain in compliance.
Such occurrences could result in damage to mineral properties or production facilities, personal injury or death, environmental damage to our properties or the property of others, delays in construction or mining, monetary losses, and possible legal liability. 16 Table of contents The nature of these risks is such that liabilities might exceed any applicable liability insurance policy limits.
Such occurrences could result in damage to mineral properties or production facilities, personal injury or death, environmental damage to our properties or the property of others, delays in construction or mining, monetary losses, and possible legal liability. The nature of these risks is such that liabilities might exceed any applicable liability insurance policy limits.
The Company’s production, development and exploratory mining operations are subject to numerous federal, state and local laws and regulations governing the operations, discharge, emission, or release of materials into the environment and the protection of the environment and human health and safety, including the Federal Clean Water Act (“ CWA ”), Clean Air Act (“ CAA ”), Endangered Species Act, Safe Drinking Water Act, Migratory Bird Treaty Act, National Environmental Policy Act, Resource Conservation and Recovery Act (“ RCRA ”), and Comprehensive Environmental Response, Compensation and Liability Act (“ CERCLA ”).
The Company’s production, development and exploratory mining operations are subject to numerous federal, state and local laws and regulations governing the operations, discharge, emission, or release of materials into the environment and the protection of the environment and human health and safety, including the Federal Clean Water Act (“ CWA ”), Clean Air Act (“ CAA ”), Endangered Species Act (“ ESA ”), Safe Drinking Water Act (“ SDWA ”), Migratory Bird Treaty Act (“ MBTA ”), National Environmental Policy Act (“ NEPA ”, Resource Conservation and Recovery Act (“ RCRA ”), and Comprehensive Environmental Response, Compensation and Liability Act (“ CERCLA ”).
Resource and other mineralized material statements are estimates only, and are subject to uncertainty due to factors including metal prices, inherent variability of the mineralized material and recoverability of metal in the mining and beneficiation processes.
Resource and other mineralized material statements are estimates only and are subject to uncertainty due to factors including metal prices, inherent variability of the mineral deposits and recoverability of metal in the mining and beneficiation processes.
Compliance with environmental laws and regulations and future changes in these laws and regulations may require significant capital outlays, cause material changes or delays in the Company’s current and planned operations and future activities and reduce the profitability of operations. At the state level, surface mining operations in Idaho are regulated by the Idaho Department of Lands (“ IDL ”).
Compliance with environmental laws and regulations and future changes in these laws and regulations may require significant capital outlays, cause material changes or delays in the Company’s current and planned operations and future activities and reduce the profitability of operations. At the state level, surface mining operations in Idaho are regulated by IDL.
We may also encounter difficulty integrating the operations, personnel and financial and operating systems of an acquired business into our current business. We may need to raise additional debt funding or sell additional equity securities to enter into such joint ventures or make such acquisitions.
We may also encounter difficulty integrating the operations, personnel, and financial and operating systems of an acquired business into our current business. 15 Table of Contents We may need to raise additional debt funding or sell additional equity securities to enter into such joint ventures or make such acquisitions.
Investors seeking cash dividends in the foreseeable future should not purchase our common stock. 19 Table of contents The Company may issue additional common stock or other equity securities in the future that could dilute the ownership interest of existing shareholders.
Investors seeking cash dividends in the foreseeable future should not purchase our common stock. The Company may issue additional common stock or other equity securities in the future that could dilute the ownership interest of existing shareholders.
We recognize that if we are unable to generate significant revenues from the exploration and exploitation of our mineral reserves or our other diversified precious and strategic metals production and processing activities in the future, we will not be able to earn profits or continue operations.
We recognize that if we are unable to generate significant revenues from the exploration and exploitation of our mineral reserves or our other diversified precious and strategic metals properties in the future, we will not be able to earn profits or continue operations.
If the gold price falls below that committed price, we may experience losses if a hedge counterparty defaults under a contract when the contract price exceeds the gold price. 13 Table of contents Competition from other mineral exploration and mining companies with greater resources may impact us.
If the gold price falls below that committed price, we may experience losses if a hedge counterparty defaults under a contract when the contract price exceeds the gold price. Competition from other mineral exploration and mining companies with greater resources may impact us.
These factors include, but are not limited to: · environmental hazards, including discharge of metals, concentrates, pollutants or hazardous chemicals; · industrial accidents, including in connection with the operation of mining transportation equipment, milling equipment and/or conveyor systems, and accidents associated with the preparation and ignition of large-scale blasting operations, milling, processing and transportation of chemicals, explosives or other materials; · surface or underground fires or floods; · unexpected geological formations or conditions (whether in mineral or gaseous form); · ground and water conditions; · fall-of-ground accidents in underground operations; · failure of mining pit slopes and tailings dam walls; · seismic activity; and · other natural phenomena, such as lightning, severe rain or snowstorms, floods, or other inclement weather conditions. 12 Table of contents Climate Change could negatively impact our operations and financial performance.
These factors include, but are not limited to: · environmental hazards, including discharge of metals, concentrates, pollutants or hazardous chemicals; · industrial accidents, including in connection with the operation of mining transportation equipment, milling equipment and/or conveyor systems, and accidents associated with the preparation and ignition of large-scale blasting operations, milling, processing and transportation of chemicals, explosives or other materials; · surface or underground fires or floods; · unexpected geological formations or conditions (whether in mineral or gaseous form); · ground and water conditions; · fall-of-ground accidents in underground operations; · failure of mining pit slopes and tailings dam walls; · seismic activity; and · other natural phenomena, such as lightning, severe rain or snowstorms, floods, or other inclement weather conditions.
There are a number of factors that can affect costs and construction schedules, including, among others: · availability of labor, energy, transportation, equipment, and infrastructure; · changes in input commodity prices and labor costs; · fluctuations in currency exchange rates; · availability and terms of financing; · changes in anticipated tonnage, grade and metallurgical characteristics of the mineralized material to be mined and processed; · recovery rates of gold and other metals from mineralized materials; · difficulty of estimating construction costs over a period of a year; · delays in completing any environmental review or in obtaining environmental or other government permits; · weather and severe climate impacts; and · potential delays related to health, social, political and community issues. 10 Table of contents Our ability to execute our strategic plan depends on many factors, some of which are beyond our control.
There are a number of factors that can affect costs and construction schedules, including, among others: · availability of labor, energy, transportation, equipment, and infrastructure; · changes in input commodity prices and labor costs; · fluctuations in currency exchange rates; · availability and terms of financing; · changes in anticipated tonnage, grade and metallurgical characteristics of the mineralized material to be mined and processed; · recovery rates of gold and other metals from mineralized materials; · difficulty of estimating construction costs over a period of a year; · delays in completing any environmental review or in obtaining environmental or other government permits; · weather and severe climate impacts; and · potential delays related to health, social, political and community issues.
Governments and their central banks have reacted with significant fiscal and monetary interventions designed to mitigate the impacts and stabilize economic conditions. 17 Table of contents Attempts to mitigate global health, economic and market risks of natural disasters may result in decreased economic activity which would adversely affect the broader global economy.
Global equity markets have experienced significant volatility and weakness. Governments and their central banks have reacted with significant fiscal and monetary interventions designed to mitigate the impacts and stabilize economic conditions. Attempts to mitigate global health, economic and market risks of natural disasters may result in decreased economic activity which would adversely affect the broader global economy.
We have yet to generate positive operating income and there can be no assurance that we will ever operate profitably. There is no history upon which to base any assumption as to the likelihood that we will prove successful, and we can provide no assurance that we will generate significant revenues or ever achieve profitability.
We have begun to generate positive operating income; however, there can be no assurance that this will continue. There is no history upon which to base any assumption as to the likelihood that we will prove successful, and we can provide no assurance that we will generate significant revenues or ever achieve profitability.
In addition, we are required to hold Idaho reclamation permits required under Idaho law. These permits mandate concurrent and post-mining reclamation of mines and require the posting of reclamation bonds sufficient to guarantee the cost of mine reclamation. Other Idaho regulations govern operating and design standards for the construction and operation of any source of air contamination and landfill operations.
These permits mandate concurrent and post-mining reclamation of mines and require the posting of reclamation bonds sufficient to guarantee the cost of mine reclamation. Other Idaho regulations govern operating and design standards for the construction and operation of any source of air contamination and landfill operations.
The Company is currently authorized to issue 200,000,000 shares of common stock, of which 12,098,070 shares were issued and outstanding as of December 31, 2022, and 1,000,000 shares of preferred stock, of which no Preferred Shares are outstanding as of December 31, 2022.
The Company is currently authorized to issue 200,000,000 shares of common stock, of which 12,397,615 shares were issued and outstanding as of December 31, 2023, and 1,000,000 shares of preferred stock, of which no Preferred Shares are outstanding as of December 31, 2023.
The more significant areas requiring the use of management assumptions and estimates relate to: · mineral reserves, resources, and exploration targets that are the basis for future income and cash flow estimates and units-of-production depreciation, depletion and amortization calculations; · future ore grades, throughput and recoveries; · future metals prices; · future capital and operating costs; · environmental, reclamation and closure obligations; · permitting and other regulatory considerations; · asset impairments; · valuation of business combinations; · future foreign exchange rates, inflation rates and applicable tax rates; · reserves for contingencies and litigation; and · deferred tax asset valuation allowance. 9 Table of contents Future estimates and actual results may differ materially from these estimates as a result of using different assumptions or conditions.
The more significant areas requiring the use of management assumptions and estimates relate to: · mineral reserves, resources, and exploration targets that are the basis for future income and cash flow estimates and units-of-production depreciation, depletion and amortization calculations; · •future ore grades, throughput and recoveries; · future metals prices; · future capital and operating costs; · environmental, reclamation and closure obligations; · permitting and other regulatory considerations; · asset impairments; · valuation of business combinations; · future foreign exchange rates, inflation rates and applicable tax rates; · reserves for contingencies and litigation; and · deferred tax asset valuation allowance.
The surface mining regulations require water monitoring to protect surface and ground water and results are submitted to the Idaho Department of Environmental Quality (IDEQ). If any degradation of existing water quality is found, regulations require the Company to work with the state regulators to mitigate any impacts on water quality.
The surface mining regulations require water monitoring to protect surface and ground water and results are submitted to IDEQ. If any degradation of existing water quality is found, regulations require the Company to work with the state regulators to mitigate any impacts on water quality. In addition, we are required to hold Idaho reclamation permits required under Idaho law.
Climate change is expected to create more extreme weather patterns that can increase frequency of droughts and increase the amount of rainfall, circumstances that require careful water management.
Climate Change could negatively or positively impact our operations and financial performance. Climate change is expected to create more extreme weather patterns that can increase the frequency of droughts and increase the amount of rainfall, circumstances that require careful water management.
Any delays would postpone our anticipated receipt of revenue and adversely affect our operations, which in turn may adversely affect the price of our stock. Our business requires substantial capital investment and we may be unable to raise additional funding on favorable terms. The construction and operation of potential future projects and various exploration projects will require significant funding.
Any delays would postpone our anticipated receipt of revenue and adversely affect our operations, which in turn may adversely affect the price of our stock. 14 Table of Contents Our business requires substantial capital investment and we may be unable to raise additional funding on favorable terms.
We have identified opportunities and risks with the advent of technologies that support decarbonization and renewable energy sources, such as: electric vehicles and energy storage that may require the metals we produce seek to produce in the future.
Warmer winters may make it easier to operate mine in the winter and extend the exploration drilling season. We have identified opportunities and risks with the advent of technologies that support decarbonization and renewable energy sources, such as: electric vehicles and energy storage that may require the metals we produce seek to produce in the future.
Our strategic plan is focused on high-value, cash-generating, precious metal-based activities, including, but not limited to, precious-metal exploration, resource development, economic feasibility assessments and cash-generating mineral production. Many of the factors that impact our ability to execute our strategic plan, such as the advancement of certain technologies, legal and regulatory obstacles and general economic conditions, are beyond our control.
Our ability to execute our strategic plan depends on many factors, some of which are beyond our control. Our strategic plan is focused on high-value, cash-generating, precious and strategic metal-based activities, including, but not limited to, precious and strategic metal exploration, resource development, economic feasibility assessments and cash-generating mineral production.
We continually evaluate and explore strategic opportunities as they arise, including product, technology, business or asset transactions. Such undertakings may not be successful or may take a substantially longer period than initially expected to become successful, and we may never recover our investments or achieve desired synergies or economies from these undertakings.
Such undertakings may not be successful or may take a substantially longer period than initially expected to become successful, and we may never recover our investments or achieve desired synergies or economies from these undertakings.
Also, final payment is determined by sampling of the concentrate at the smelter which could lead to variations from provisional sampling at the mill facility. Sampling procedures at the mill have been modified to try to increase correlation with smelter samples such as by increasing the sample mass collected for the provisional sample at the mill.
Sampling procedures at the mill have been modified to try to increase correlation with smelter samples such as by increasing the sample mass collected for the provisional sample at the mill.
Our operating cash flow and other sources of funding may become insufficient to meet all of these requirements, depending on the timing and costs of development of these and other projects. As a result, new sources of capital may be needed to meet the funding requirements of these investments and fund our ongoing business activities.
As a result, new sources of capital may be needed to meet the funding requirements of these investments and fund our ongoing business activities.
In the event of insolvency, liquidation, reorganization, dissolution or other winding up of the Company, the Company’s creditors would be entitled to payment in full out of the Company’s assets before holders of common stock would be entitled to any payment, and the claims on such assets may exceed the value of such assets.
In the event of insolvency, liquidation, reorganization, dissolution or other winding up of the Company, the Company’s creditors would be entitled to payment in full out of the Company’s assets before holders of common stock would be entitled to any payment, and the claims on such assets may exceed the value of such assets. 9 Table of Contents Because we may never earn significant revenues from our mine operations or our other diversified precious metal-based and strategic metal properties, our business may fail.
Accordingly, we will attempt to compete primarily through the knowledge and experience of our management. This competition could adversely affect our ability to acquire suitable prospects for exploration in the future. Accordingly, there can be no assurance that we will acquire any interest in additional mineral properties that might yield reserves or result in commercial mining operations.
Accordingly, we will attempt to compete primarily through the knowledge and experience of our management. This competition could adversely affect our ability to acquire suitable prospects for exploration in the future.
We also cannot predict the length of time needed to find a willing buyer and to the close the sale of an asset.
We also cannot predict the length of time needed to find a willing buyer and to the close the sale of an asset. The real estate market is affected by many factors that are beyond our control.
Uncertainties regarding the global economic and financial environment could lead to an extended national or global economic recession. A slowdown in economic activity caused by a recession would likely reduce demand for assets that we hold for sale and result in lower commodity prices for long periods of time.
A slowdown in economic activity caused by a recession would likely reduce demand for assets that we hold for sale and result in lower commodity prices for long periods of time. Mineral operations are subject to applicable law and government regulation.
The price of our common stock has been, and may continue to be, highly volatile.
The price of our common stock has been, and may continue to be, highly volatile. Certain events or changes in the market or our industries generally are beyond our control.
If we cannot exploit any mineral reserve that we might discover on our properties, our business may fail and you may lose your investment.
Even if we discover a mineral reserve in a commercially exploitable quantity, these laws and regulations could restrict or prohibit the exploitation of that mineral reserve. If we cannot exploit any mineral reserve that we might discover on our properties, our business may fail and you may lose your investment.
Changes in value or a lack of demand for the sale of non-core assets would negatively affect the Company’s financial condition and performance. Our inability to identify successful joint venture candidates and to complete joint ventures or strategic alliances as planned or to realize expected synergies and strategic benefits could impact our financial condition and performance.
Our inability to identify successful joint venture candidates and to complete joint ventures or strategic alliances as planned or to realize expected synergies and strategic benefits could impact our financial condition and performance. Our inability to deploy capital to maximize shareholder value could impact our financial performance.
Participation in exploration drilling activities involves numerous risks, including the significant risk that no commercially marketable minerals will be discovered.
The Company’s future success will largely depend on the success of the exploration drilling programs at the Golden Chest Mine, adjacent properties, and other exploration properties. Participation in exploration drilling activities involves numerous risks, including the significant risk that no commercially marketable minerals will be discovered.
Ore is crushed, ground and valuable minerals are separated using the flotation process which is longstanding and well understood metallurgical process. However, our estimates of gold recovery can vary from actual gold recovery because of several factors such as oxidation, hardness of the ore, deleterious mineralogy, and gold grade estimation errors due to the nugget effect.
However, our estimates of gold recovery can vary from actual gold recovery because of several factors such as oxidation, hardness of the ore, deleterious mineralogy, and gold grade estimation errors due to the nugget effect. Also, final payment is determined by sampling of the concentrate at the smelter which could lead to variations from provisional sampling at the mill facility.
Pandemics or other significant public health events will most likely have a material adverse effect on our business and results of operations. It is not currently possible to reliably estimate the length and severity of the impact on the Company’s financial condition, and that of its subsidiaries and partners in future periods.
Pandemics or other significant public health events will most likely have a material adverse effect on our business and results of operations.
In addition, these sales could also impair our ability to raise capital through the sale of additional common stock in the capital markets. 20 Table of contents
In addition, these sales could also impair our ability to raise capital through the sale of additional common stock in the capital markets. 20 Table of Contents Risks Related to Cybersecurity Our information technology systems may be vulnerable to cyber-attack or other disruption, which could place our systems at risk for data loss, operational failure, or compromise of confidential information.
These technologies may not have the same reliability as conventional technologies and costs may increase to produce such technologies, which could negatively impact our financial performance.
These technologies may not have the same reliability as conventional technologies and costs may increase to produce such technologies, which could negatively impact our financial performance. 12 Table of Contents Our operations are subject to a range of risks related to climate change and transitioning the business to meet regulatory, societal and investor expectations for operating in a low-carbon economy.
Our inability to deploy capital to maximize shareholder value could impact our financial performance. We cannot give assurance that we will be able to execute any or all of our strategic plan. Failure to execute any or all of our strategic plan could have a material adverse effect on our financial condition, results of operations, and cash flows.
We cannot give assurance that we will be able to execute any or all of our strategic plan.
The real estate market is affected by many factors that are beyond our control. 14 Table of contents We may undertake joint ventures, investments, joint projects and other strategic alliances and such undertakings may be unsuccessful and may have an adverse effect on our business.
We may undertake joint ventures, investments, joint projects and other strategic alliances and such undertakings may be unsuccessful and may have an adverse effect on our business. We continually evaluate and explore strategic opportunities as they arise, including product, technology, business or asset transactions.
The estimation of the ultimate recovery of gold and other metals is subjective. Actual recoveries may vary from our estimates. We utilize a conventional flotation process to produce a bulk sulfide flotation concentrate that is sold to smelters in Asia.
We utilize a conventional flotation process to produce a bulk sulfide flotation concentrate that is sold to smelters in Asia. Ore is crushed, ground and valuable minerals are separated using the flotation process which is longstanding and well understood metallurgical process.
Risks Associated with Mining Operations, Development, Exploration and Acquisition Portion of Our Business Exploration activities involve a high degree of risk, and exploratory drilling activities may not be successful. The Company’s future success will largely depend on the success of the exploration drilling programs at the Golden Chest Mine, adjacent properties, and other exploration properties.
Failure to execute any or all of our strategic plan could have a material adverse effect on our financial condition, results of operations, and cash flows. 10 Table of Contents Risks Associated with Operations, Climate, Development, Exploration, and Acquisition Risks Exploration activities involve a high degree of risk, and exploratory drilling activities may not be successful.
You may lose all or part of your investment.
Future estimates and actual results may differ materially from these estimates as a result of using different assumptions or conditions. You may lose all or part of your investment.
Removed
Because we may never earn significant revenues from our mine operations or our other diversified precious metal-based and strategic metals production and processing activities, our business may fail.
Added
Many of the factors that impact our ability to execute our strategic plan, such as the advancement of certain technologies, legal and regulatory obstacles and general economic conditions, are beyond our control. Changes in value or a lack of demand for the sale of non-core assets would negatively affect the Company’s financial condition and performance.
Removed
Global equity markets have experienced significant volatility and weakness.
Added
Accordingly, there can be no assurance that we will acquire any interest in additional mineral properties that might yield reserves or result in commercial mining operations. 11 Table of Contents The estimation of the ultimate recovery of gold and other metals is subjective. Actual recoveries may vary from our estimates.
Removed
Costs of exploration, development and production have not yet adjusted to current economic conditions, or in proportion to the significant reduction in product prices. Mineral operations are subject to applicable law and government regulation. Even if we discover a mineral reserve in a commercially exploitable quantity, these laws and regulations could restrict or prohibit the exploitation of that mineral reserve.
Added
Climate change is expected to create more extreme weather patterns that can increase the frequency or severity of forest and droughts and sudden heavy rainfall. These latter two events require careful water management.
Added
Potential key material physical risks to the Company from climate change include, but are not limited to: · increased volumes of mine contact water requiring storage and treatment; · increased design requirements for stormwater diversion and associated water management systems; · reduced freshwater availability due to potential drought conditions; · damage to roads and other infrastructure at our sites due to extreme weather events, including intense rainfalls and related events such as landslides; and · unpermitted or otherwise non-compliant discharge of wastewater due to an increased frequency of extreme weather events exceeding the design capacity of existing tailings storage facilities and other stormwater management infrastructure.
Added
Such events can temporarily slow or halt operations due to physical damage to assets, reduced worker productivity for safety protocols on-site related to extreme weather events, worker aviation, and transport to or from the site, and local or global supply route disruptions that may limit the transport of essential materials and supplies.
Added
Additional financial impacts could include increased capital or operating costs to increase water storage and treatment capacity, obtain or develop maintenance and monitoring technologies, increase resiliency of facilities and establish supplier climate resiliency and contingency plans.
Added
The occurrence of weather and climate events have in the past and could in the future cause us to incur unplanned costs, which may be material, to address or prevent resulting damage. In addition, we have identified opportunities and potential risks for the Company as we shift toward a low-carbon economy.
Added
Technologies that support decarbonization include renewable energy sources, electric vehicles, and energy storage, all of which require the metals we produce. However, renewable energies currently may not have the same reliability as conventional energy sources.
Added
Thus, as we transition toward renewable energy sources, we could experience a possible curtailment of our energy supply, and these new energy sources may cost more in the future than our current supplies, which could negatively impact our financial performance.
Added
Further, transitioning to a lower-carbon economy will require significant investment and may entail extensive policy, legal, technology, and market changes to address mitigation and adaptation requirements related to climate change. Depending on the nature, speed, focus, and jurisdiction of these changes, transition risks may pose varying levels of financial and reputational risk to our business.
Added
Policy and regulatory risk related to actual and proposed changes in climate and water-related laws, regulations and taxes developed to regulate the transition to a low-carbon economy may result in increased costs for our operations, third-party smelters and refiners, and our suppliers, including increased energy, capital equipment, environmental monitoring and reporting and other costs to comply with such regulations.
Added
Regulatory uncertainty may cause higher costs and lower economic returns than originally estimated for new development projects and operations, including closure reclamation and remediation obligations.
Added
The development and deployment of technological improvements or innovations will be required to support the transition to a low-carbon economy, which could result in write-offs and early retirement of existing assets, increased costs to adopt and deploy new practices and processing including planning and design for mines, development of alternative power sources, site level efficiencies and other capital investments.
Added
The construction and operation of potential future projects and various exploration projects will require significant funding. Our operating cash flow and other sources of funding may become insufficient to meet all of these requirements, depending on the timing and costs of development of these and other projects.
Added
It is not currently possible to reliably estimate the length and severity of the impact on the Company’s financial condition, and that of its subsidiaries and partners in future periods. 18 Table of Contents Uncertainties regarding the global economic and financial environment could lead to an extended national or global economic recession.
Added
We rely on various information technology systems. These systems remain vulnerable to disruption, damage, or failure from a variety of sources, including, but not limited to, errors by employees or contractors, computer viruses, cyber-attacks, including phishing, ransomware, and similar malware, misappropriation of data by outside parties, and various other threats.
Added
Techniques used to obtain unauthorized access to or sabotage our systems are under continuous and rapid evolution, and we may be unable to detect efforts to disrupt our data and systems in advance.
Added
Breaches and unauthorized access carry the potential to cause losses of assets or production, operational delays, equipment failure that could cause other risks to be realized, inaccurate recordkeeping, or disclosure of confidential information, any of which could result in financial losses and regulatory or legal exposure and could have a material adverse effect on our business, financial condition, or results of operations.
Added
We may incur material losses relating to cyber-attacks or other information security breaches in the future. Our risk and exposure to these matters cannot be fully mitigated because of, among other things, the evolving nature of these threats.
Added
As such threats continue to evolve, we may be required to expend additional resources to modify or enhance any protective measures or to investigate and remediate any security vulnerabilities. ITEM 1B. UNRESOLVED STAFF COMMENTS None.

Item 2. Properties

Properties — owned and leased real estate

116 edited+14 added−10 removed41 unchanged
Biggest changeClassification Tonnes Gold Grade (grams gold per tonne) Cutoff (grams gold per tonne) Metallurgical Recovery Measured 403,724 4.57 2.0 93.0% Indicated 692,024 4.32 2.0 93.0% Measured + Indicated 1,095,748 4.41 2.0 93.0% Inferred 753,502 3.44 2.0 93.0% The year ending December 31, 2022 was the first year the Company calculated a mineral resource for the Golden Chest Mine.
Biggest changeClassification Year Tonnes Gold Grade (grams gold per tonne) Cutoff (grams gold per tonne) Metallurgical Recovery Measured 2022 403,724 4.57 2.0 93.0% Indicated 2022 692,024 4.32 2.0 93.0% Measured + Indicated 2022 1,095,748 4.41 2.0 93.0% Inferred 2022 753,502 3.44 2.0 93.0% Measured 2023 406,605 4.10 2.0 UG & 1.4 OP 93.0% UG 85% OP Indicated 2023 665,550 4.00 2.0 UG & 1.4 OP 93.0% UG 85% OP Measured + Indicated 2023 1,072,155 4.04 2.0 UG & 1.4 OP 93.0% UG 85% OP Inferred 2023 743,793 3.23 2.0 UG & 1.4 OP 93.0% UG 85% OP More information on the Company’s mineral reserves and resources is provided in Exhibit 96.1, the Technical Report Summary on the Golden Chest Mine, prepared by the Qualified Persons (“QP”) under Section 1300 of SEC Regulation S-K, Grant A.
Property State & County Ownership Claims Permit Conditions Stage Mine Type Commodity Mineralization Style Golden Chest Idaho, Shoshone 100% 86 patented claims (1,322 acres) and 217 unpatented claims (4,300 acres) Private land and public land administered by USFS and BLM. All permits required for production in place. Production Underground/Open Pit Au, Ag Orogenic gold, veins.
Property State & County Ownership Claims Permit Conditions Stage Mine Type Commodity Mineralization Style Golden Chest Mine Idaho, Shoshone 100% 86 patented claims (1,322 acres) and 217 unpatented claims (4,300 acres) Private land and public land administered by USFS and BLM. All permits required for production in place. Production Underground/Open Pit Au, Ag Orogenic gold, veins.
The Golden Chest Mine includes 86 patented mining claims (1,322 acres) and 217 unpatented claims (4,300 acres). The surface mine is permitted with the Idaho Department of Lands and has posted a reclamation bond for an approved reclamation plan. Surface water monitoring is completed as a condition of the permit.
The Golden Chest includes 86 patented mining claims (1,322 acres) and 217 unpatented claims (4,300 acres). The surface mine is permitted with the Idaho Department of Lands and has posted a reclamation bond for an approved reclamation plan. Surface water monitoring is completed as a condition of the permit.
Idaho Strategic has excluded exploration results from this report which either did not return the targeted mineralization, did not aid in providing a brief overview of the Project, or for which the Company has not received the results back from lab testing.
Idaho Strategic has excluded exploration results from this report which either did not return the targeted mineralization, did not aid in providing a brief overview of the Project, or for which the Company has not received the results back from lab testing.
The samples are identified by a “one-of-a-kind” label and bagged for secure “chain-of-command” transport to a certified assay laboratory. Idaho Strategic geologists use the assay results to interpret geologic mapping, geophysics and geochemistry in order to make an informed decision for targeting purposes. The samples that Company geologists determined warranted further analysis were sent for assay to ALS Minerals.
The samples are identified by a “one-of-a-kind” label and bagged for secure “chain-of-command” transport to a certified assay laboratory. Idaho Strategic geologists use the assay results to interpret geologic mapping, geophysics and geochemistry in order to make an informed decision for targeting purposes. The samples that Company geologists determined warranted further analysis were sent for assay to ALS Minerals.
Idaho Strategic has excluded exploration results from this report which either did not return the targeted mineralization, did not aid in providing a brief overview of the Project, or for which the Company has not received the results back from lab testing.
Idaho Strategic has excluded exploration results from this report which either did not return the targeted mineralization, did not aid in providing a brief overview of the Project, or for which the Company has not received the results back from lab testing.
The samples are identified by a “one-of-a-kind” label and bagged for secure “chain-of-command” transport to a certified assay laboratory. Idaho Strategic geologists use the assay results to interpret geologic mapping, geophysics and geochemistry in order to make an informed decision for targeting purposes. The samples that Company geologists determined warranted further analysis were sent for assay to ALS Minerals.
The samples are identified by a “one-of-a-kind” label and bagged for secure “chain-of-command” transport to a certified assay laboratory. Idaho Strategic geologists use the assay results to interpret geologic mapping, geophysics and geochemistry in order to make an informed decision for targeting purposes. The samples that Company geologists determined warranted further analysis were sent for assay to ALS Minerals.
ITEM 2. DESCRIPTION OF PROPERTIES Note on New SEC Mining Disclosure Rules Information concerning our mining properties in this Annual Report on Form 10-K/A has been prepared in accordance with the requirements of subpart 1300 of Regulation S-K, which first became applicable to us for the fiscal year ended December 31, 2021.
ITEM 2. DESCRIPTION OF PROPERTIES Note on New SEC Mining Disclosure Rules Information concerning our mining properties in this Annual Report on Form 10-K has been prepared in accordance with the requirements of subpart 1300 of Regulation S-K, which first became applicable to us for the fiscal year ended December 31, 2021.
REE and thorium mineralization at Lemhi Pass is found in the REE mineral monazite. Monazite is a phosphate mineral and most of the Company’s strongest REE values are associated with phosphorus. The monazite at Lemhi Pass occurs as opaque, subhedral, yellow-green to reddish-brown crystals which are mostly microscopic in size, making it hard to detect with the naked eye.
REE and thorium mineralization at Lemhi Pass is found primarily in the REE mineral monazite. Monazite is a phosphate mineral and most of the Company’s strongest REE values are associated with phosphorus. The monazite at Lemhi Pass occurs as opaque, subhedral, yellow-green to reddish-brown crystals which are mostly microscopic in size, making it hard to detect with the naked eye.
Quality Control Procedures The procedures taken to ensure quality and reliability of the Company’s samples and assays are as follows: Representative surface outcrop samples collected over time, in the normal course of business and reported by the company, come from favorable geologic outcrops identified during surface reconnaissance and are mapped/recorded by on-site professional geologist.
Quality Control Procedures The procedures taken to ensure quality and reliability of the Company’s samples and assays are as follows: Representative surface outcrop samples collected over time, in the normal course of business and reported by the company, come from geologic outcrops identified during surface reconnaissance and are mapped/recorded by on-site professional geologist.
Quality Control Procedures The procedures taken to ensure quality and reliability of the Company’s samples and assays are as follows: Representative surface outcrop samples collected over time, in the normal course of business and reported by the company, come from favorable geologic outcrops identified during surface reconnaissance and are mapped/recorded by on-site professional geologist.
Quality Control Procedures The procedures taken to ensure quality and reliability of the Company’s samples and assays are as follows: Representative surface outcrop samples collected over time, in the normal course of business and reported by the company, come from geologic outcrops identified during surface reconnaissance and are mapped/recorded by on-site professional geologist.
Quality Control Procedures The procedures taken to ensure quality and reliability of the Company’s samples and assays are as follows: Representative surface outcrop samples collected over time, in the normal course of business and reported by the company, come from favorable geologic outcrops identified during surface reconnaissance and are mapped/recorded by on-site professional geologist.
Quality Control Procedures The procedures taken to ensure quality and reliability of the Company’s samples and assays are as follows: Representative surface outcrop samples collected over time, in the normal course of business and reported by the company, come from geologic outcrops identified during surface reconnaissance and are mapped/recorded by on-site professional geologist.
Geology and Mineralization The REE mineralization at the Roberts property is associated with a unique group of igneous rocks known as carbonatites. Carbonatites are carbonate rocks sourced from magmatic origins, with primary carbonate compositions exceeding 50%. The Roberts property contains two of the eight known carbonatite occurrences within the Mineral Hill District.
Geology and Mineralization The REE mineralization at the Mineral Hill property is associated with a unique group of igneous rocks known as carbonatites. Carbonatites are carbonate rocks sourced from magmatic origins, with primary carbonate compositions exceeding 50%. The Mineral Hill property contains two of the eight known carbonatite occurrences within the Mineral Hill District.
Lemhi Pass is mentioned in numerous reports including the 2009 USGS Circular 1336 titled “ Thorium Deposits of the United States – Energy Resources for the Future? ” which features parts of the Company’s Lemhi Pass Project on its cover page. 35 Table of contents Geology and Mineralization The Company initially staked the Lemhi Pass Project to target an area with the greatest concentration of known veins where the Lemhi Pass, Dan Patch, and Bull Moose faults intersect or approach one another.
Lemhi Pass is mentioned in numerous reports including the 2009 USGS Circular 1336 titled “ Thorium Deposits of the United States – Energy Resources for the Future? ” which features parts of the Company’s Lemhi Pass Project on its cover page. 36 Table of Contents Geology and Mineralization The Company initially staked the Lemhi Pass Project to target an area with the greatest concentration of known veins where the Lemhi Pass, Dan Patch, and Bull Moose faults intersect or approach one another.
Therefore, Lemhi Pass does not show on the Company’s books and does not qualify as a material Property for financial purposes, rather the Company considers Lemhi Pass material to its business due to qualitative factors such as the potential for the company’s projects to be advanced toward future production on an unknown timeline, and the potential importance of rare earth elements and thorium in low-carbon technology, which could see increased demand in the future.
Therefore, Lemhi Pass does not show on the Company’s books and does not qualify as a material Property for financial purposes, rather the Company considers Lemhi Pass material to its business due to qualitative factors such as the potential for the company’s projects to be advanced toward future production on an unknown timeline, and the potential importance of rare earth elements and thorium in low-carbon technology and national defense technology, which could see increased demand in the future.
Therefore, Diamond Creek does not show on the Company’s books and does not qualify as a Material Property for financial purposes, rather the Company considers Diamond Creek material to its business due to qualitative factors such as the potential for the company’s projects to be advanced toward future production on an unknown timeline, and the potential importance of rare earth elements in low-carbon technology, which could see increased demand in the future.
Therefore, Diamond Creek does not show on the Company’s books and does not qualify as a Material Property for financial purposes, rather the Company considers Diamond Creek material to its business due to qualitative factors such as the potential for the company’s projects to be advanced toward future production on an unknown timeline, and the potential importance of rare earth elements in low-carbon technology and national defense technology, which could see increased demand in the future.
For more information concerning the Golden Chest Mine, please refer to the information set forth under the caption “Individual Properties-MATERIAL OPERATING PROPERTIES” and under the caption “Golden Chest Mine” in this Item 2.
For more information concerning the Golden Chest, please refer to the information set forth under the caption “Individual Properties-MATERIAL OPERATING PROPERTIES” and under the caption “Golden Chest Mine” in this Item 2.
Present Condition & Recent Activities To date, Idaho Strategic has conducted surface sampling programs and geologic mapping throughout its ownership of the mineral claims from 2021 to present.
Present Condition & Recent Activities To date, Idaho Strategic has conducted surface sampling, geologic mapping, and trenching programs throughout its ownership of the mineral claims from 2021 to present.
Diamond Creek is operated by IDR and consists of 244 unpatented lode mining claims situated in the Eureka Mining District Lemhi County, Idaho in Township 23N, Range 21E, Sections 2, 3, 10, 11, 14, 15, 23,25, 26, 27,34,35; Township 22N, Range 21E, Sections 1 and 2 (Boise Meridian) and makes up approximately 4,554 acres.
Diamond Creek is operated by IDR and consists of 244 unpatented lode mining claims situated in the Eureka Mining District Lemhi County, Idaho in Township 23N, Range 21E, Sections 2, 3, 10, 11, 14, 15, 23,25, 26, 27,34,35; Township 22N, Range 21E, Sections 1 and 2 (Boise Meridian) and makes up approximately 4,900 acres.
New Jersey Mill Idaho, Shoshone Joint Venture (65% Assets, 3,000 tonnes per month) Private land (35 acres) and 10 unpatented claims (50 acres). Private land, all permits required for production in place. Production Not Applicable (N/A) N/A N/A Diamond Creek Idaho, Lemhi 100% 244 unpatented claims (4,550 acres). Public land administered by USFS, Plan of Operations in place.
New Jersey Mill Idaho, Shoshone Joint Venture (65% Assets, 3,000 tonnes per month) Private land (35 acres) and 10 unpatented claims (50 acres). Private land, all permits required for production in place. Production Not Applicable (N/A) N/A N/A Diamond Creek Idaho, Lemhi 100% 244 unpatented claims (4,900 acres). Public land administered by USFS, Plan of Operations in place.
The table below summarizes the Company’s Mineral Reserves for the past three years. Note that proven and probable reserves were not reported separately for 2021 and 2020.
The table below summarizes the Company’s Mineral Reserves for the past three years. Note that proven and probable reserves were not reported separately for 2021.
Chain of custody procedures include filling out sample submittal forms that are sent to the laboratory with sample shipments to make certain that all samples are received by the laboratory. 36 Table of contents The sampling methods meet industry standard practices and are adequate for mineral resource and mineral reserve estimation and mine planning purposes.
Chain of custody procedures include filling out sample submittal forms that are sent to the laboratory with sample shipments to make certain that all samples are received by the laboratory. 37 Table of Contents The sampling methods meet industry standard practices and are adequate for mineral resource and mineral reserve estimation and mine planning purposes.
In the early 1950’s rare earth mineralization was discovered and documented by Abbott (1954) and Anderson (1958) from the Idaho Geological Survey and Kaiser (1956) with the US Geological Survey. Abbott (1954) reported cutting a 2.5-foot sample across the lode at the Robert Lode which returned 21.5% combined rare earth oxides and thoria.
In the early 1950’s rare earth mineralization was discovered and documented by Abbott (1954) and Anderson (1958) from the Idaho Geological Survey and Kaiser (1956) with the USGS. Abbott (1954) reported cutting a 2.5-foot sample across the lode at the Robert Lode which returned 21.5% combined rare earth oxides and thoria.
Classification of Mineral Reserves is in accordance with S-K 1300 classification system. 2. Mineral Reserves were estimated by Idaho Strategic Resources and reviewed and accepted by the QP. 3. Mineral Reserves are 100% attributable to Idaho Strategic Resources 4. Mineral Reserves are estimated at a cutoff of 2 Au PPM (grams/tonne) 5.
Classification of Mineral Reserves is in accordance with S-K 1300 classification system. 2. Mineral Reserves were estimated by Idaho Strategic Resources and reviewed and accepted by the QP’s. 3. Mineral Reserves are 100% attributable to Idaho Strategic Resources 4. Mineral Reserves are estimated at a cutoff of 3.2 Au PPM (grams/tonne) 5.
The Project consists of four distinct areas identified from north to south as: Contact, Lucky Gem, Simer, and Frank Burch. 31 Table of contents Samples taken by the USGS show total REE oxide contents ranging from 0.59% to 5.5%.
The Project consists of four distinct areas identified from north to south as: Contact, Lucky Gem, Simer, and Frank Burch. 32 Table of Contents Samples taken by the USGS show total REE oxide contents ranging from 0.59% to 5.5%.
For more information concerning the Diamond Creek, Roberts, and Lemhi Pass REE properties, please refer to the information set forth under the caption “Individual Properties-MATERIAL EXPLORATION PROPERTIES” and under their respective caption in this Item 2. 25 Table of contents Individual Properties – MATERIAL OPERATING PROPERTIES GOLDEN CHEST MINE Figure 3 - Golden Chest Mine Location Map Property and Location The Golden Chest Mine is a gold Production Stage property comprised of an underground mine, an open pit mine, and an exploration property located about 1.5 miles east of Murray, Idaho, and 115 km east of the city of Coeur d’Alene, Idaho at Latitude 47 o 37’14” North and Longitude 115 o 49’43” West.
For more information concerning the Diamond Creek, Mineral Hill, and Lemhi Pass REE properties, please refer to the information set forth under the caption “Individual Properties-MATERIAL EXPLORATION PROPERTIES” and under their respective caption in this Item 2. 26 Table of Contents Individual Properties – MATERIAL OPERATING PROPERTIES GOLDEN CHEST MINE Figure 3 - Golden Chest Mine Location Map Property and Location The Golden Chest is a gold Production Stage property comprised of an underground mine, an open pit mine, and an exploration property located about 1.5 miles east of Murray, Idaho, and 115 km east of the city of Coeur d’Alene, Idaho at Latitude 47 o 37’14” North and Longitude 115 o 49’43” West.
Moving forward, Idaho Strategic plans to advance the Roberts Project by developing drill targets aimed at verifying the extent and grade of the two carbonatites that the Company’s geologists have identified and mapped from the surface. There is no timeline for drill permit approval or projected timing of work.
Moving forward, Idaho Strategic plans to advance the Mineral Hill Project by developing drill targets aimed at verifying the extent and grade of the two carbonatites that the Company’s geologists have identified and mapped from the surface. There is no timeline for drill permit approval or projected timing of work.
The unpatented lode claims are wholly owned by IDR and there are no underlying royalties. The Roberts Project and the Mineral Hill district was historically prospected for gold and copper in the early 1900’s.
The unpatented lode claims are wholly owned by IDR and there are no underlying royalties. The Mineral Hill Project and the greater Mineral Hill district was historically prospected for gold and copper in the early 1900’s.
The unpatented lode claims are wholly owned by IDR and there are no underlying royalties on the unpatented lode claims. The Lemhi Pass mineral claims are located on Bureau of Land Management (“BLM”) land and require an annual maintenance fee of $165 per claim per year which must be paid to the BLM by September 1 of each year.
The unpatented lode claims are wholly owned by IDR and there are no underlying royalties on the unpatented lode claims. The Lemhi Pass mineral claims are located on BLM land and require an annual maintenance fee of $165 per claim per year which must be paid to the BLM by September 1 of each year.
A summary of the permits held by the Company are found in the following table: 29 Table of contents Permit Descriptions Permit Description Reference Idaho Surface Mine Reclamation Plan for Golden Chest Mine #S312900 Idaho Department of Lands US EPA Stormwater Pollution Prevention Plan For NJ Mill and Golden Chest Mine Multi-Sector General Permit Idaho Shallow Injection Well for Golden Chest Mine #S94X-0026-001 Idaho Department of Water Resources In 2022, MSHA did not issue any citations for Section 104 S&S violations associated with the Golden Chest Mine or New Jersey Mill.
A summary of the permits held by the Company are found in the following table: Permit Descriptions Permit Description Reference Idaho Surface Mine Reclamation Plan for Golden Chest #S312900 Idaho Department of Lands US EPA Stormwater Pollution Prevention Plan For New Jersey Mill and Golden Chest Mine Multi-Sector General Permit Idaho Shallow Injection Well for Golden Chest #S94X-0026-001 Idaho Department of Water Resources In 2023, MSHA did not issue any citations for Section 104 S&S violations associated with the Golden Chest Mine or New Jersey Mill.
While each of the three properties IDR controls are early-stage, the Company considers the properties material to its business due to qualitative factors such as the potential for the company’s properties to be advanced toward future production on an unknown timeline, and the potential importance of rare earth elements in low-carbon technology and national defense technologies, which could see increased demand in the future.
While each of the three properties IDR controls are early-stage, the Company considers the properties material to its business due to qualitative factors such as the potential for the company’s properties to be advanced toward future production on an unknown timeline, and the potential importance of REE’s in low-carbon technology and national defense technologies, which could see increased demand in the future.
To date, there has not been a technical report, feasibility study, or resource estimate conducted by Idaho Strategic. The Company has provided a summary of exploration activities in order to provide an overview of Roberts and why the Company views this project favorably.
To date, there has not been a technical report, feasibility study, or resource estimate conducted by Idaho Strategic. The Company has provided a summary of exploration activities in order to provide an overview of Mineral Hill and why the Company views this project favorably.
Surface mining permit with Idaho. Exploration Underground/Open Pit Au, Ag Orogenic gold, veins. Murray Area Idaho, Shoshone 100% Patented claims (590 acres) and 123 unpatented claims (2,460 acres). Private land and public land administered by the BLM and USFS. Exploration Underground Au, Ag Orogenic gold, veins. McKinley Idaho, Idaho 100% 28 unpatented claims (560 acres). Public land administered by USFS.
Private land and public land administered by the BLM. Surface mining permit with Idaho. Exploration Underground/Open Pit Au, Ag Orogenic gold, veins Murray Area Idaho, Shoshone 100% Patented claims (590 acres) and 123 unpatented claims (2,460 acres). Private land and public land administered by the BLM and USFS.
To date, Idaho Strategic has not established any known reserves on the Roberts property. Idaho Strategic initially staked the mining claims comprising the Roberts Project in early 2020. Throughout Idaho Strategic’s ownership of the Project, the Company has staked additional claims at its discretion based upon exploration conducted to date.
To date, Idaho Strategic has not established any known reserves on the Mineral Hill property. Idaho Strategic initially staked the mining claims comprising the Mineral Hill Project in early 2020. Throughout Idaho Strategic’s ownership of the Project, the Company has staked additional claims at its discretion based upon exploration conducted to date.
The claims fees necessary to obtain and hold the mineral rights at Roberts as well as the investments to explore the project are expensed each year that they are paid.
The claims fees necessary to obtain and hold the mineral rights at Mineral Hill as well as the investments to explore the project are expensed each year that they are paid.
The Company previously obtained all necessary permits to drill the Diamond Creek Project in 2022. After drilling, all reclamation was completed and the approved by the USFS. An additional drilling Plan of Operations (POO) has been submitted to the USFS for the 2023-2024 field year.
The Company previously obtained all necessary permits to drill the Diamond Creek Project in 2022. After drilling, all reclamation was completed and approved by the USFS. An additional drilling POO has been submitted to the USFS for the 2023-2024 field year.
Therefore, Roberts does not show on the Company’s books and does not qualify as a material Property for financial purposes, rather the Company considers Roberts material to its business due to qualitative factors such as the potential for the company’s projects to be advanced toward future production on an unknown timeline, and the potential importance of rare earth elements in low-carbon technology, which could see increased demand in the future.
Therefore, Mineral Hill does not show on the Company’s books and does not qualify as a material Property for financial purposes, rather the Company considers Mineral Hill material to its business due to qualitative factors such as the potential for the company’s projects to be advanced toward future production on an unknown timeline, and the potential importance of rare earth elements in low-carbon technology and national defense technology, which could see increased demand in the future.
The Golden Chest Mine includes 86 patented mining claims (1,322 acres) and 217 unpatented claims (4,300 acres). The open pit mine is permitted with the Idaho Department of Lands and the Company has posted a reclamation bond for an approved reclamation plan. IDR is the operator and owns 100% of the Golden Chest LLC (owner of the Golden Chest Mine).
The Golden Chest includes 86 patented mining claims (1,322 acres) and 217 unpatented claims (4,300 acres). The open pit mine is permitted with IDL and the Company has posted a reclamation bond for an approved reclamation plan. IDR is the operator and owns 100% of Golden Chest, LLC (owner of the Golden Chest).
Since restarting operations at the Golden Chest in October 2016, the Company has milled a total of 249,240 tonnes at the New Jersey Mill. The mill recycles process water and utilizes a paste tailings disposal process patented by IDR founder Fred Brackebusch to minimize impacts to the environment.
Since restarting operations at the Golden Chest in October 2016, the Company has milled a total of 289,368 tonnes at the New Jersey Mill. The New Jersey Mill recycles process water and utilizes a paste tailings disposal process patented by IDR founder Fred Brackebusch to minimize impacts to the environment.
IDR sampling in 2022 showed total rare earths assays up to 4.26% validating company belief that the Lemhi Pass District is largely underexplored for REE’s; since their discovery in the district was ancillary, to the government’s search for nuclear related fuels in the 1950’s. Infrastructure and Facilities The Lemhi Pass Project currently does not contain any facilities on-site.
IDR sampling in 2023 showed total rare earths assays up to 5% validating Company belief that the Lemhi Pass District is largely underexplored for REE’s; since their discovery in the district was ancillary, to the government’s search for nuclear related fuels in the 1950’s. Infrastructure and Facilities The Lemhi Pass Project currently does not contain any facilities on-site.
Production from the Golden Chest and an adjacent Area of Interest is subject a 2% NSR payable to Marathon Gold Corporation (Marathon). The mineralization occurs as gold-quartz veins associated with an orogenic deposit type. Ore from the Golden Chest Mine is processed off-site at the New Jersey Mill in Kellogg, Idaho.
Production from the Golden Chest and an adjacent Area of Interest is subject a 2% NSR payable to Calibre Mining Corporation (“Calibre” formerly Marathon Gold Corporation). The mineralization occurs as gold-quartz veins associated with an orogenic deposit type. Ore from the Golden Chest is processed off-site at the New Jersey Mill in Kellogg, Idaho.
Juniper began construction in Q3 2014, spending an estimated $7 to $9 million on mine development and infrastructure, building a modern gold mine that reached production in May 2015. Mining activities continued until September 2015 when Gold Hill ceased operations and terminated its lease, forfeiting the mine and infrastructure back to Golden Chest LLC.
Juniper began construction in Q3 2014, spending an estimated $7 to $9 million on mine development and infrastructure, building a modern gold mine that reached production in May 2015. Mining activities continued until September 2015 when Juniper ceased operations and terminated its lease, forfeiting the mine and infrastructure back to GCLLC.
As of December 31, 2022, the Company had a net capital cost of $3,704,977 associated with the New Jersey Mill. Permit Requirements The New Jersey Mill has all the required environmental permits to operate currently and into the foreseeable. Some permits may require modification if operating conditions change, but typically these changes can be completed without impeding the milling operation.
As of December 31, 2023, the Company had a net capital cost of $3,524,099 associated with the New Jersey Mill. Permit Requirements The New Jersey Mill has all the required environmental permits to operate currently and into the foreseeable. Some permits may require modification if operating conditions change, but typically these changes can be completed without impeding the milling operation.
Unpatented mill site claims are also part of the JV. 24 Table of contents Present Condition of Plant & Equipment Mill Expansion and Crescent Ore Processing The mill expansion was completed in 2012, rendering the mill capable of processing 360 tonnes of sulfide ore per day to produce a single flotation concentrate.
Unpatented mill site claims are also part of the JV. 25 Table of Contents Present Condition of Plant & Equipment Mill Expansion and Crescent Ore Processing The expansion of the New Jersey Mill was completed in 2012, rendering it capable of processing 360 tonnes of sulfide ore per day to produce a single flotation concentrate.
ALS Minerals utilized Ore Grade Rare Earth Element analysis (ME-MS81h). 34 Table of contents LEMHI PASS Overview & History The Lemhi Pass Project is a rare earth element (REE) and thorium Exploration Stage property located approximately 41 kilometers (25 miles) southeast of the town of Salmon, Idaho and stretches into Montana.
ALS Minerals utilized Ore Grade REE analysis (ME-MS81h). 35 Table of Contents LEMHI PASS Overview & History The Lemhi Pass Project is a REE and thorium Exploration Stage property located approximately 41 kilometers (25 miles) southeast of the town of Salmon, Idaho and stretches into Montana.
Approximately 407 (7,820 acres) unpatented lode claims are situated in Idaho, while the remaining 161 (3,040 acres) unpatented lode claims are situated in Montana. The claims fees and lease fees necessary to obtain and hold the mineral rights at Lemhi Pass as well as the investments to explore the project are expensed each year that they are paid.
Approximately 407 unpatented lode claims are situated in Idaho, while the remaining 161 unpatented lode claims are situated in Montana. The claims fees and lease fees necessary to obtain and hold the mineral rights at Lemhi Pass as well as the investments to explore the project are expensed each year that they are paid.
Reference is made to Exhibit 95 to this report. 30 Table of contents Individual Properties–MATERIAL EXPLORATION PROPERTIES DIAMOND CREEK Overview & History The Diamond Creek Project is a rare earth element (REE) Exploration Stage property located approximately 13 kilometers (8 miles) north-northwest of the town of Salmon, Idaho.
Reference is made to Exhibit 95 to this report. 31 Table of Contents Individual Properties–MATERIAL EXPLORATION PROPERTIES DIAMOND CREEK Overview & History The Diamond Creek Project is a REE Exploration Stage property located approximately 13 kilometers (8 miles) north-northwest of the town of Salmon, Idaho.
The core of the Golden Chest Mine is a contiguous group of 26 patented claims where all modern mining has taken place to date.
Property Ownership The core of the Golden Chest is a contiguous group of 26 patented claims where all modern mining has taken place to date.
Select Idaho Strategic sample results have revealed rare earth grades ranging from 0.67% TREO to 4.26% TREO from areas of the project that had not been well tested for rare earth elements in the past. Moving forward, Idaho Strategic will continue its surface exploration efforts in order to gather enough information to warrant a drill program.
Select Idaho Strategic sample and trench results have revealed rare earth grades ranging from 0.67% TREO to 5% TREO from areas of the project that had not been well tested for REE’s in the past. Moving forward, Idaho Strategic will continue its surface exploration efforts in order to gather enough information to warrant a drill program.
Butte Highlands Montana, Silver Bow 25% Joint Venture Interest Patented claims (135 acres) and unpatented claims. Private land with operating permits from Montana DEQ and USFS. Development Underground Au, Ag Orogenic gold, veins. New Jersey Mine Idaho, Shoshone 100% Private land (250 acres) and unpatented claims (130 acres). Private land and public land administered by the BLM.
Exploration Underground Au, Ag Orogenic gold, veins Butte Highlands Montana, Silver Bow 25% Joint Venture Interest Patented claims (135 acres) and unpatented claims. Private land with operating permits from Montana DEQ and USFS. Development Underground Au, Ag Orogenic gold, veins New Jersey Mine Idaho, Shoshone 100% Private land (250 acres) and unpatented claims (130 acres).
As part of the Company’s ongoing participation in the Idaho Global Entrepreneurial Mission (“IGEM”) Program, Idaho Strategic was able to provide approximately sixty 5-gallon buckets of surface material from its Diamond Creek drill pad reclamation efforts to the University of Idaho for their continued studies regarding alternative, environmentally friendly REE extraction and separation methods.
As part of the Company’s ongoing participation in the Idaho Department of Commerce’s IGEM Program, Idaho Strategic was able to provide approximately sixty 5-gallon buckets of surface material from its Diamond Creek drill pad reclamation efforts to the University of Idaho for their continued studies regarding alternative, environmentally friendly REE extraction and separation methods.
To date, Idaho Strategic has not established any known resources or reserves on its rare earth elements properties and plans to continue to advance the projects as funding and permitting allows.
To date, Idaho Strategic has not established any known resources or reserves on its REE properties and plans to continue to advance the projects as funding and permitting allows.
Exploration Underground Rare earth elements Vein Lemhi Pass Idaho, Lemhi & Montana, Beaverhead 100% State lease (565 acres) and 568 unpatented claims (11,425 acres). Public land administered by Idaho, BLM and USFS. Plan of Operations required. Exploration Underground/Open Pit Rare earth elements Vein Roberts Idaho, Lemhi 100% 109 unpatented claims (2,000 acres). Public land administered by USFS.
Exploration Underground Rare earth elements, Au Vein Lemhi Pass Idaho, Lemhi & Montana, Beaverhead 100% State lease (565 acres) and 568 unpatented claims (11,425 acres). Public land administered by Idaho, BLM and USFS. Plan of Operations required. Exploration Underground/Open Pit Rare earth elements Vein Mineral Hill (formerly Roberts) Idaho, Lemhi 100% 109 unpatented claims (2,200 acres).
The first carbonatite can be found in a northwest-trending seam which measures approximately 400 meters (1,300 feet) long and 90 meters (300 feet) wide; the second occurrence appears to be a smaller carbonatite plug, measuring about 200 meters in diameter. 33 Table of contents Infrastructure and Facilities The Roberts Project currently does not contain any facilities on-site.
The first carbonatite can be found in a northwest-trending seam which measures approximately 400 meters (1,300 feet) long and 90 meters (300 feet) wide; the second occurrence appears to be a smaller carbonatite plug, measuring about 200 meters in diameter. Infrastructure and Facilities The Mineral Hill Project currently does not contain any facilities on-site.
Roberts is operated by IDR and consists of 109 unpatented lode mining claims situated in the Mineral Hill district in Sections 3,4,9,10,11,13,14,15,16,22,23,24, Township 24 North, Range 19 East and makes up approximately 2,051 acres. The Project is located in the northern portion of the Idaho Rare Earth Element – Thorium (REE-Th) Belt.
Mineral Hill is operated by IDR and consists of 109 unpatented lode mining claims situated in the greater Mineral Hill district in Sections 3,4,9,10,11,13,14,15,16,22,23,24, Township 24 North, Range 19 East and makes up approximately 2,200 acres. The Project is located in the northern portion of the Idaho REE-Th Belt.
A summary of the permits held by the Company are found in following table: Permit Descriptions Permit Description Reference Idaho Cyanidation Permit for NJ Mill #CN-0026-001 Idaho Department of Environmental Quality Tailings Storage Facility (TSF) NJ Mill 94-7509 Idaho Department of Water Resources Air Quality Exemption (Crushing) for NJ Mill Idaho Department of Environmental Quality RARE EARTH OVERVIEW Idaho Strategic Resources controls and operates three rare earth elements properties known as Diamond Creek, Roberts, and Lemhi Pass.
A summary of the permits held by the Company are found in following table: Permit Descriptions Permit Description Reference Idaho Cyanidation Permit for New Jersey Mill #CN-0026-001 Idaho Department of Environmental Quality Tailings Storage Facility New Jersey Mill 94-7509 Idaho Department of Water Resources Air Quality Exemption (Crushing) for New Jersey Mill Idaho Department of Environmental Quality RARE EARTH OVERVIEW Idaho Strategic controls and operates three REE properties known as Diamond Creek, Mineral Hill (formerly Roberts), and Lemhi Pass.
The Lemhi Pass Project was historically prospected for gold and copper until 1949 when its unique geologic setting was recognized by the United States Geologic Survey (USGS) and the Idaho Geological Survey during the U.S. government sponsored country-wide exploration for raw materials related to nuclear power.
The Lemhi Pass Project was historically prospected for gold and copper until 1949 when its unique geologic setting was recognized by the USGS and the IGS during the U.S. government sponsored country-wide exploration for raw materials related to nuclear power.
The table below summarizes the Company’s mineral resources for the year ending December 31, 2022. Resources were not calculated by the Company for the prior two years. An historic resource report was completed by a third party in 2012, but it was not an SK-1300 compliant resource.
The table below summarizes the Company’s mineral resources for the year ending December 31, 2023. Resources were calculated by the Company starting on December 31, 2022. An historic resource report was completed by a third party in 2012, but it was not an SK-1300 compliant resource.
Present Condition, Work Completed, and Exploration Plans Current Underground Operations The Golden Chest underground mine is accessed by primary decline ramp (MAR) with a complimentary escape-way incline ramp, and a series of ventilation raises. The primary mining method is underhand drift-and-fill utilizing cemented rock-fill (CRF).
Present Condition, Work Completed, and Exploration Plans Current Underground Operations The Golden Chest underground mine is accessed by a primary decline or main access ramp (“MAR”) with a complimentary escape-way incline ramp, and a series of ventilation raises. The primary mining method is underhand drift-and-fill utilizing cemented rock-fill (“CRF”).
Additionally, IDR has a mineral lease for a 565-acre mineral lease with the State of Idaho for T19N, Range 25E, Section 16. The Project is located in the southern portion of the Idaho Rare Earth Element – Thorium (REE-Th) Belt and straddles the ID-MT border. The property package is mainly contiguous and makes up approximately 11,425 acres.
Additionally, IDR has a mineral lease on 565 acres with the State of Idaho for T19N, Range 25E, Section 16. The Project is located in the southern portion of the Idaho REE-Th Belt and straddles the ID-MT border. The property package is mainly contiguous and makes up approximately 11,990 acres.
Brackebusch, P.E., and Robert J. Morgan, PG, PLS. 22 Table of contents The table below summarizes the Company’s production and exploration-stage properties.
Brackebusch, P.E., Robert J. Morgan, PG, PLS., and Andrew A. Brackebusch, P.E. 23 Table of Contents The table below summarizes the Company’s production and exploration-stage properties.
Plan of Operations required. Exploration Underground Rare earth elements Vein Eastern Star Idaho, Idaho 100% 11 patented claims (220 acres) and 71 unpatented claims (1,420 acres). Private land and public land administered by USFS. Plan of Operations required. Exploration Underground Au, Ag Orogenic gold, veins.
Public land administered by USFS. Plan of Operations required. Exploration Underground Rare earth elements Vein Eastern Star Idaho, Idaho 100% 11 patented claims (220 acres) and 71 unpatented claims (1,420 acres). Private land and public land administered by BLM and USFS. Plan of Operations required.
In this scenario the mining cost is considered sunk and is omitted from Equation 1 as the cost was incurred regardless of the ore/waste determination at the face. Evaluating equation 1 omitting mining cost yields a value of 2.03 gpt which was rounded to 2.0 gpt.
In this scenario the mining cost is considered sunk and is omitted from Equation 1 as the cost was incurred regardless of the ore/waste determination at the face. Evaluating equation 1 omitting mining cost yields a value of 3.24 gpt which was rounded to 3.2 gpt for the Mineral Reserves.
Samples taken by the USGS of 31 vein samples, showed total REE-oxide contents ranging from 0.073% to 2.20% Staatz (1972a).
Samples taken by the USGS of 31 vein samples, showed TREO contents ranging from 0.073% to 2.20% Staatz (1972a).
Figure 1 - Property Location Map 21 Table of contents The following table summarizes our aggregate metal quantities produced and sold, which only includes the quantities produced and sold from the Golden Chest Mine (the Company’s only producing mine) for the last three years: Year Ended December 31, 2022 2021 2020 Gold - Ounces produced 6,103 4,826 3,755 Payable ounces sold 5,672 4,493 3,504 The following table summarizes the Company’s total in-situ proven and probable mineral reserves (the Golden Chest Mine is the Company’s only property with calculated reserves) as of December 31, for the last three years: Classification Year Tonnes Grade (grams gold per tonne) Cut-off (grams gold per tonne) Metallurgical Recovery Proven and Probable Reserves 2020 42,500 5.17 2.0 93% Proven and Probable Reserves 2021 38,700 4.87 2.0 93% Proven and Probable Reserves 2022 53,754 4.73 2.0 93% The following table summarizes the Company’s total in-situ mineral resources (the Golden Chest Mine is the Company’s only property with calculated mineral resources) as of December 31, 2022.
Figure 1 - Property Location Map 22 Table of Contents The following table summarizes our aggregate metal quantities produced and sold, which only includes the quantities produced and sold from the Golden Chest Mine (the Company’s only producing mine) for the last three years: Year Ended December 31, 2023 2022 2021 Gold - Ounces produced 8,247 6,103 4,826 Payable ounces sold 7,673 5,672 4,493 The following table summarizes the Company’s total in-situ proven and probable mineral reserves (the Golden Chest Mine is the Company’s only property with calculated reserves) as of December 31, for the last three years: Classification Year Tonnes Grade (grams gold per tonne) Cut-off (grams gold per tonne) Metallurgical Recovery Proven and Probable Reserves 2021 38,700 4.87 2.0 93 % Proven and Probable Reserves 2022 53,754 4.73 2.0 93 % Proven and Probable Reserves 2023 127,477 6.74 3.2 93 % The following table summarizes the Company’s total in-situ mineral resources (the Golden Chest Mine is the Company’s only property with calculated mineral resources) for the last two years as of December 31, 2023.
As of December 31, 2022, the Company had a capitalized development and investment cost of $5,810,490 associated with the Golden Chest. Geology & Mineralization Gold mineralization occurs in veins associated with multiple faulting and folding events in the Coeur d’Alene Mining District. The mineralization occurs as gold- quartz veins associated with an orogenic deposit type.
As of December 31, 2023, the Company had a capitalized development and investment cost of $7,005,353 associated with the Golden Chest. Geology & Mineralization Gold mineralization occurs in veins associated with multiple faulting and folding events in the Coeur d’Alene Mining District. The mineralization occurs as gold- quartz veins associated with an orogenic deposit type.
The Diamond Creek Project was historically prospected for gold, until the 1950’s when U.S. government sponsored country-wide exploration for raw materials related to nuclear power resulted in the discovery the unique thorium and REE mineralization at Diamond Creek by the United States Geologic Survey (USGS) and the Idaho Geological Survey.
The Diamond Creek Project was historically prospected for gold, until the 1950’s when U.S. government sponsored country-wide exploration for raw materials related to nuclear power resulted in the discovery of unique thorium and REE mineralization at Diamond Creek by the USGS and the IGS.
In 2010 and 2011, a joint venture between IDR and Marathon Gold drilled 18,300 meters of core and published a resource report in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101) . In September 2013, the Skookum Shoot portion of the Golden Chest property was leased to Juniper Mining Company.
In 2010 and 2011, a JV between IDR and Calibre drilled 18,300 meters of core and published a resource report in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101) . 27 Table of Contents In September 2013, the Skookum Shoot portion of the Golden Chest property was leased to Juniper Mining Company (“Juniper”).
They are then placed in the sample drying room and dried at 60°C. All drill samples are collected from the rig daily by Mine staff and transported to the locked and secure Mine Office/Core Shed building. Sample security has relied upon the fact that the samples were always attended or locked in appropriate sample storage areas.
All drill samples are collected from the rig daily by mine staff and transported to the locked and secure mine office/core shed building. Sample security has relied upon the fact that the samples were always attended or locked in appropriate sample storage areas.
IDR has completed numerous geologic mapping programs, surface sampling programs, and has completed one drill program to date on its rare earth elements land holdings.
IDR has completed numerous geologic mapping programs, surface sampling programs, and has completed one drill program and one trenching program to date on its REE land holdings.
ALS Minerals utilized Ore Grade Rare Earth Element analysis (ME-MS81h). 32 Table of contents Drill core samples at Diamond Creek were taken from the drill rig to a secure, Company-owned facility prior to logging by Company geologists.
ALS Minerals utilized Ore Grade REE analysis (ME-MS81h). Drill core samples at Diamond Creek were taken from the drill rig to a secure, Company-owned facility prior to logging by Company geologists.
The mine is along Forest Highway 9 and is accessible by several improved dirt roads from the paved highway. A three-phase power line was installed at the property in 2014 with power supplied by Avista Utilities. Property Ownership IDR owns 100% of the Golden Chest LLC (owner of the Golden Chest Mine).
The mine is along Forest Highway 9 and is accessible by several improved dirt roads from the paved highway. A three-phase power line was installed at the property in 2014 with power supplied by Avista Utilities.
NEW JERSEY MILL Property Location The New Jersey Mill is a fully permitted, 360-tonne per day, flotation mill and concentrate leach plant (“CLP”) located two miles east of Kellogg, Idaho, in the Coeur d’Alene Mining District. The CLP is permitted with Idaho Department of Environmental Quality (IDEQ).
NEW JERSEY MILL Property Location The New Jersey Mill is a fully permitted, 360-tonne per day, flotation mill and concentrate leach plant (“CLP”) located two miles east of Kellogg, Idaho, in the Coeur d’Alene Mining District. The CLP is permitted with IDEQ. The mill is located on the same property as the New Jersey Mine, adjacent to U.S.
ALS Minerals utilized Ore Grade Rare Earth Element analysis (ME-MS81h). Internal Controls Exploration and development drilling programs are performed using industry standard quality control methods for drilling, logging, sampling, and analytical procedures. The laboratory used by IDR for sample preparation and analyses is: American Analytical Services, Inc. (AAS), 59148 Silver Valley Rd, Osburn, ID 83849.
ALS Minerals utilized Ore Grade REE analysis (ME-MS81h). Internal Controls on Exploration and Development Drilling Programs Exploration and development drilling programs are performed using industry standard quality control methods for drilling, logging, sampling, and analytical procedures. The laboratory used by IDR for sample preparation and analyses is: American Analytical Services, Inc.
The three properties together make up approximately 18,030 acres of unpatented lode mining claims, and one State of Idaho mineral lease, within Idaho’s 70-mile long Rare Earth Elements–Thorium (REE-Th) Belt. All three of Idaho Strategic’s properties have seen substantive historic exploration conducted by the United States Geological Survey in the 1950s, and more recently by the Idaho Geological Survey.
The three properties together make up approximately 19,090 acres of unpatented lode mining claims, and one State of Idaho mineral lease, within Idaho’s 70-mile long REE-Th Belt. All three of Idaho Strategic’s properties have seen substantive historic exploration conducted by the USGS in the 1950s, and more recently by the IGS.
The orogenic system at the Golden Chest appears to have an association with igneous rock activity. Hence, the vein deposits may be described as intrusion-related orogenic gold.
The orogenic system at the Golden Chest appears to have an association with igneous rock activity. Hence, the vein deposits may be described as intrusion-related orogenic gold. The principal vein exploited at the Golden Chest in the recent past has been the Skookum Shoot.
Additional development by IDR in the MAR has been completed recently. There are several metal buildings on the mine surface constructed from 2012 through 2021 including a core shed with offices, a mine shop, and associated mine dry and warehouse. The mine electrical service is a three-phase, 500 kVA installation supplied by Avista Utilities.
There are several metal buildings on the mine surface constructed from 2012 through 2021 including a core shed with offices, a mine shop, and associated mine dry and warehouse. The mine electrical service is a three-phase, 500 kilo-volt-ampere installation supplied by Avista Utilities.
The land stewardship in the Lemhi Pass District has areas under both BLM, USFS and State jurisdiction. The Company in is the process of permitting trenching and drilling work on BLM lands in 2023 and on the USFS lands in 2024. To date, there has not been a technical report, feasibility study, or resource estimate conducted by Idaho Strategic.
The land stewardship in the Lemhi Pass District has areas under both BLM, USFS and State jurisdiction. To date, there has not been a technical report, feasibility study, or resource estimate conducted by Idaho Strategic.
The total patented claim position covers 1,322 acres. As these patented claims are considered private lots, legal access is allowed. Property taxes on patented claims are assessed by Shoshone County each year and IDR has paid the taxes in full. IDR currently maintains 217 unpatented mining claims covering 4,300 acres.
As these patented claims are considered private lots, legal access is allowed. Property taxes on patented claims are assessed by Shoshone County each year and IDR has paid the taxes in full. IDR currently maintains 217 unpatented mining claims covering 4,300 acres. The claims have been filed with the BLM agency and at the Shoshone County Courthouse.
For more information, see Section 12-2 of Exhibit 96.1, the Technical Report Summary on the Golden Chest Mine, Idaho, prepared for the Company by the Qualified Persons under Section 1300 of SEC Regulation S-K (QP), Grant Brackebusch, P.E. and Robert J. Morgan, PG, PLS.
Numbers may not add due to rounding. 30 Table of Contents For more information, see Section 12 of Exhibit 96.1, the Technical Report Summary on the Golden Chest, Idaho, prepared for the Company by the Qualified Persons under Section 1300 of SEC Regulation S-K, Grant A. Brackebusch, P.E., Robert J. Morgan, PG, PLS, and Andrew A. Brackebusch, P.E.

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Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeITEM 3. LEGAL PROCEEDINGS 37 ITEM 4. MINE SAFETY DISCLOSURES 37 PART II ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS 38 ITEM 6. SELECTED FINANCIAL DATA 39 ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 40 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKE RISK 42 ITEM 8.
Biggest changeITEM 3. LEGAL PROCEEDINGS 38 ITEM 4. MINE SAFETY DISCLOSURES 38 PART II ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS 39 ITEM 6. [RESERVED] 40 ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 41

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeITEM 4. MINE SAFETY DISCLOSURES The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in exhibit 95 to this report. 37 Table of contents PART II
Biggest changeITEM 4. MINE SAFETY DISCLOSURES The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95 to this report. 38 Table of Contents PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeEquity Compensation Plan Information Plan Category Number of securities to be issued upon exercise of outstanding options, warrants and rights Weighted-average exercise price of outstanding options, warrants and rights Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (a) (b) (c) Equity compensation plans approved by the board 535,953 $5.47 0 Equity compensation plans not approved by the board 0 0 0 Total 535,953 $5.47 0 Recent Sales of Unregistered Securities Occasionally, the Company pays for goods and services with restricted common stock.
Biggest changeEquity Compensation Plan Information Plan Category Number of securities to be issued upon exercise of outstanding options, warrants and rights Weighted-average exercise price of outstanding options, warrants and rights Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (a) (b) (c) 2014 Equity Incentive Compensation Plan approved by the board 477,449 $ 5.47 0 2023 Equity Incentive Compensation Plan approved by the board and shareholders 0 0 1,225,600 Equity compensation plans not approved by the board 0 0 0 Total 477,449 $ 5.47 1,225,600 39 Table of Contents Recent Sales of Unregistered Securities In the event that the Company pays for goods and services with restricted common stock the policy is to determine the fair value of the goods or services to determine the number of corresponding shares to be issued.
ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS Market Information The Company's Common Stock currently trades on the American tier of the NYSE Market under the symbol "IDR". As of March 1, 2023, there were approximately 1,200 shareholders of record of the Company's Common Stock.
ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS Market Information The Company’s Common Stock currently trades on the American tier of the NYSE Market under the symbol “IDR”. As of March 1, 2024, there were approximately 1,200 shareholders of record of the Company’s Common Stock.
In 2022, the Company issued 67,355 shares of its common stock in exchange for 116,078 outstanding options in a cashless option exercise to non-management employees with a fair value at the time of exercise of $677,928. The Company closed a private placement in October 2021.
In 2022, the Company issued 67,355 shares of its common stock in exchange for 116,078 outstanding options in a cashless option exercise to non-management employees with a fair value at the time of exercise of $677,928.
In the second quarter of 2022, 70,919 shares were issued in exchange for outstanding warrants for net proceeds of $397,147. In the third quarter of 2022, 100,893 shares were issued in exchange for outstanding warrants for net proceeds of $565,005.
In the first quarter of 2022, 23,057 shares were issued in exchange for outstanding warrants for net proceeds of $68,006. In the second quarter of 2022, 70,919 shares were issued in exchange for outstanding warrants for net proceeds of $397,147. In the third quarter of 2022, 100,893 shares were issued in exchange for outstanding warrants for net proceeds of $565,005.
Transfer Agent The transfer agent for the Company's Common Stock is Nevada Agency Trust 50 West Liberty, Suite 880 Reno, Nevada 89501. Securities Authorized for Issuance Under Equity Compensation Plans In April 2014 the Board of Directors of the Company established a stock option plan to authorize the granting of stock options to officers and employees.
Securities Authorized for Issuance Under Equity Compensation Plans In April 2014 the Board of Directors of the Company established a stock option plan (“2014 Equity Incentive Compensation Plan”) to authorize the granting of stock options to officers and employees. Upon exercise of the options, shares are issued from the available authorized shares of the Company.
Upon exercise of the options shares are issued from the available authorized shares of the Company. No additional fees are paid for attendance at Board of Directors’ meetings, committee membership or committee chairmanship.
As of December 31, 2023, there have been no awards made under this new plan. No additional fees are paid for attendance at Board of Directors’ meetings, committee membership or committee chairmanship.
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Our policy is to determine the fair value of the goods or services, and then issue the number of corresponding shares using an agreed upon price for our common stock that considers the bid/offer price as quoted by the NYSE-American. In the first quarter of 2022, 23,057 shares were issued in exchange for outstanding warrants for net proceeds of $68,006.
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Transfer Agent The transfer agent for the Company’s Common Stock is Equinity Trust Company, LLC: 48 Wall Street, Floor 23, New York, NY 10005.
Removed
Under the private placement, the Company sold 471,436 units at $4.20 per unit for net proceeds of $1,980,000. Each unit consisted of one share of the Company’s stock and one half of one stock purchase warrant with each whole warrant exercisable for one share of the Company’s stock at $5.60 for 24 months.
Added
In May 2023, a new equity incentive plan (“2023 Equity Incentive Compensation Plan”) was voted on, and approved, by the shareholders of the Company.
Removed
The Company closed a private placement in November 2021. Under the private placement, the Company sold 107,143 units at $5.60 per unit for net proceeds of $600,000.
Added
This plan allows for the issuance of up to 1,225,600 shares of the Company’s common stock in the form of stock options (which may be incentive stock options or nonqualified stock options) or other stock-based awards, such as stock appreciation rights, restricted stock, restricted stock units and performance shares.
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Each unit consisted of one share of the Company’s stock and one half of one stock purchase warrant with each whole warrant exercisable for one share of the Company’s stock at $7.00 for 24 months. The transactions were strictly limited to persons who met certain minimum financial (accredited investors) or sophistication requirements.
Added
When applicable, an agreed upon price for our common stock is used that considers the bid/offer price as quoted by the NYSE-American. The Company closed a private placement in February 2023. Under the private placement, the Company sold 123,365 shares at $5.50 per share and 35,088 shares at $5.70 per share for net proceeds of $878,503.
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In management’s opinion, the securities were issued pursuant to exemption from registration under Section 4(2) of the Securities Act of 1933, as amended. 38 Table of contents In June of 2021, 291,667 shares of the Company’s stock were issued to holders of convertible debt at a rate of $2.52 per share in exchange for $735,000 in debt.
Removed
In July of 2021, 39,682 shares of the Company’s stock were issued to holders of convertible debt at a rate of $2.52 per share in exchange for $100,000 in debt. In the second quarter of 2021, 19,841 shares were issued in exchange for outstanding warrants for net proceeds of $50,000.
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In the third quarter of 2021, 26,786 shares were issued in exchange for outstanding warrants for net proceeds of $67,500. In the first quarter of 2021, the Company issued 28,195 shares of its common stock in exchange for 44,643 outstanding options in a cashless option exercise to non-management employees.
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In the second quarter of 2021, the Company issued 3,572 shares of its common stock in exchange for 7,143 outstanding options in a cashless option exercise to non-management employees.
Removed
In the fourth quarter of 2021, the Company issued 38,958 shares of its commons stock in exchange for 50,000 outstanding options in a cashless option exercise, of these 29,048 shares with a fair value at the time of exercise of $217,862 were issued to management and the remaining 9,910 shares with a fair value at the time of exercise of $63,428 were issued to other employees.
Removed
In the first quarter of 2021 the Company issued 715 shares of the Company’s common stock valued at $3.22 per share for services received of $2,300. In the second quarter of 2021 the Company issued 1,072 shares of the Company’s common stock valued at $3.92 per share for services received of $4,200.
Removed
In the fourth quarter of 2021 the Company issued 2,749 shares of the Company’s common stock valued at $6.09 per share for services received of $16,748. In the fourth quarter of 2021 the Company issued 6,190 shares of the Company’s common stock valued at $7.50 per share for services received of $46,425.
Removed
In the third quarter of 2021 the Company issued 45,940 shares of the Company’s common stock for 22% of Buckskin Gold and Silver with a fair market value at the time of purchase of $192,946.
Removed
In the fourth quarter of 2021 the Company issued 30,358 shares of the Company’s common stock for an additional 15% of Buckskin Gold and Silver with a fair market value at the time of purchase of $136,000.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changePart of the increase was due to $473,144 less stock-based compensation in Q4 2022 versus Q4 2021. · The consolidated net loss included non-cash charges of $1,633,492 ($1,977,841 in 2021) as follows: depreciation and amortization of $984,083 ($814,422 in 2021), accretion of asset retirement obligation of $12,691 ($9,953 in 2021), stock based compensation of $547,275 ($1,087,575 in 2021), stock issued for services of $32,326 ($69,673 in 2021), loss on write off of equipment $68,641 (none in 2021), equity income on investment in Buckskin $1,524 ($3,782 in 2021), gain on forgiveness of SBA loan of $10,000 (none in 2021). · Net loss attributable to Idaho Strategic Resources, Inc. was $2,535,429 and $3,160,169 in the years ended December 31, 2022, and 2021, respectively. · Gold sales receivable increased to $909,997 from $408,187 at December 31, 2022 compared to 2021 as a result of shipping delays related to the global shipping situation and higher estimated future gold prices expected on unsettled ounces at year end.
Biggest changeThe change from net loss to net profit was primarily due to the increased gross profit during the year. · The consolidated net profit (loss) included non-cash charges of $1,470,563 ($1,633,492 in 2022) as follows: depreciation and amortization of $1,466,703 ($984,083 in 2022), accretion of asset retirement obligation of $15,952 ($12,691 in 2022), stock based compensation, none in 2023, ($547,275 in 2022), stock issued for services, none in 2023, ($32,326 in 2022), gain on disposal of equipment of $13,026 (loss of $68,641 in 2022), equity income on investment in Buckskin Gold and Silver, Inc. $4,517 ($1,524 in 2022), gain on forgiveness of Small Business Administration (“SBA”) loan, none in 2023, ($10,000 in 2022). · Net income (loss) attributable to Idaho Strategic Resources, Inc. was $1,157,746 and ($2,535,429) in the years ended December 31, 2023, and 2022, respectively. · Gold sales receivable increased to $1,038,867 from $909,997 at December 31, 2023 compared to 2022 as a result of increased gold sales. · The Company saw a decrease in exploration expenses for 2023 largely due to less drilling being done on the Company’s gold properties in 2023, as well as capitalizing a portion of the 2023 drilling that was incorporated into the Mineral Reserve.
We base our estimates on past experience and on various other assumptions our management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources.
We base our estimates on experience and on various other assumptions our management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources.
The table below presents reconciliations between the most comparable GAAP measure of cost of sales and other direct production costs and depreciation, depletion, and amortization to the non-GAAP measures of cash cost per ounce produced and all in sustaining costs per ounce produced for the Company’s gold production for the years ended December 31, 2022, and 2021.
The table below presents reconciliations between the most comparable GAAP measure of cost of sales and other direct production costs and depreciation, depletion, and amortization to the non-GAAP measures of cash cost per ounce produced and all in sustaining costs per ounce produced for the Company’s gold production for the years ended December 31, 2023, and 2022.
The cost per ounce calculations are based on ounces produced. Upon sale, the Company typically receives payment at an average rate of 87% of ounces produced after smelting and refining charges are deducted. Cash cost per ounce is an important operating measure that we utilize to measure operating performance.
The cost per ounce calculations are based on ounces produced. Upon sale, the Company typically receives payment at an average rate of 88% of ounces produced after smelting and refining charges are deducted. Cash cost per ounce is an important operating measure that we utilize to measure operating performance.
However, we are able to reasonably estimate the transaction price for the concentrate sales at the time of shipment using forward prices for the estimated month of settlement, and previously recorded sales and accounts receivable are adjusted to estimated settlement metals prices until final settlement for financial reporting purposes.
However, we can reasonably estimate the transaction price for the concentrate sales at the time of shipment using forward prices for the estimated month of settlement, and previously recorded sales and accounts receivable are adjusted to estimated settlement metals prices until final settlement for financial reporting purposes.
The SEC has indicated that a “critical accounting policy” is one which is both important to the representation of the registrant’s financial condition and results and requires management’s most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain.
The SEC has indicated that a “critical accounting policy” is one which is both important to the representation of the registrant’s financial condition and results and requires management’s most difficult, subjective, or complex judgments, often because of the need to make estimates about the effect of matters that are inherently uncertain.
At December 31, 2022, we made an estimate that the cost of the machine and man hours probable to be needed to put our properties in the condition required by our permits once we cease operations would be $103,906 for the Golden Chest property and $203,600 for the New Jersey Mine and Mill.
At December 31, 2023, we made an estimate that the cost of the machine and man hours probable to be needed to put our properties in the condition required by our permits once we cease operations would be $104,000 for the Golden Chest property and $224,000 for the New Jersey Mine and Mill.
At December 31, 2022, metals that had been sold but not final settled included 5,361 ounces of gold of which 2,500 ounces were sold at a predetermined price with the remaining 2,861 ounces exposed to future price changes. The Company has received provisional payments on the sale of these ounces with the remaining amount due reflected in gold sales receivable.
At December 31, 2023, metals that had been sold but not final settled included 5,176 ounces of gold of which 3,320 ounces were sold at a predetermined price with the remaining 1,856 ounces exposed to future price changes. The Company has received provisional payments on the sale of these ounces with the remaining amount due reflected in gold sales receivable.
Planned production for the next 18 months indicates a positive cash flow from operations will be renewed as underground mining overtakes the open pit as the primary source of mineralized material. In prior years, the Company has been successful in raising required funds for ongoing operations from sale of its common stock or borrowing.
Planned production for the next 18 months indicates a positive cash flow from operations will continue as underground mining of the H-Vein remains the primary source of ore feed for the mill. In prior years, the Company has been successful in raising required funds for ongoing operations from sale of its common stock or borrowing.
The Company’s working capital at December 31, 2022 is $1,729,983. The Company is currently producing from the open-pit and underground at the Golden Chest. During 2022, production generated negative cash flow from operations of $1,817,090 compared to a negative cash flow used in operations of $1,351,027 in 2021.
The Company’s working capital at December 31, 2023 is $2,717,976. The Company is currently producing from underground at the Golden Chest. During 2023, production generated positive cash flow from operations of $2,104,009 compared to a negative cash flow from operations of $1,817,090 in 2022.
The increase was due to 1,179 more ounces of gold sold during the year, as well as higher gold prices recognized on concentrate sales. Another contributing factor to the increase was the higher ratio of underground to open pit ore processed during the year.
The increase was due to 2,001 more ounces of gold sold during the year, as well as higher gold prices recognized on concentrate sales. Another contributing factor to the increase was that a majority of ore processed during the year came from underground in the H-vein, whereas in 2022, ore was sourced from a combination of open pit and underground.
This increase is attributable to the higher head grade processed at the Company’s New Jersey Mill, as well as higher gold prices recognized on concentrate sales. · Gross profit for the 4 th quarter 2022 increased by $1,550,060 from a gross loss of $80,978 in Q4 2021 to a gross profit of $1,469,082. · Net loss for the year ended December 31, 2022 was $2,631,092 compared to a net loss of $3,260,361 for the same period in 2021.
This increase is attributable to the higher head grade including H-Vein ore processed at the Company’s New Jersey Mill, as well as higher gold prices recognized on concentrate sales. · Net income for the year ended December 31, 2023 was $1,073,449 compared to a net loss for the year ended December 31, 2022 of $2,631,092.
Management believes it has the ability to meet its contractual obligations with continuing cash flows from operations, existing cash, and potential financings for the next 18 months.
Management believes it can meet its contractual obligations with continuing cash flows from operations, existing cash, and potential financings for the next 18 months. ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Not required for smaller reporting companies.
December 31, 2022 2021 Cost of sales and other direct production costs and depreciation, depletion, and amortization $ 8,026,268 $ 7,142,539 Depreciation, depletion, and amortization (984,083 ) (814,422 ) Change in concentrate inventory (404,591 ) 188,815 Cash Cost $ 6,637,594 $ 6,516,932 Exploration 2,110,137 1,417,605 Sustaining capital 1,517,984 676,340 General and administrative 1,229,603 1,319,145 Less stock-based compensation and other non-cash items (649,409 ) (1,153,466 ) All in sustaining costs $ 10,845,909 $ 8,776,556 Divided by ounces produced 6,103 4,827 Cash cost per ounce $ 1,087.60 $ 1,350.10 All in sustaining cost (AISC) per ounce $ 1,777.14 $ 1,818.22 Financial Condition and Liquidity For the Years Ended December 31, Net cash provided (used) by: 2022 2021 Operating activities $ (1,817,090 ) $ (1,351,027 ) Investing activities (2,368,225 ) (3,090,946 ) Financing activities 3,846,828 3,878,546 Net change in cash and cash equivalents (338,487 ) (563,427 ) Cash and cash equivalents, beginning of period 1,976,518 2,539,945 Cash and cash equivalents, end of period $ 1,638,031 $ 1,976,518 The Company has accumulated deficit of approximately $18.4 million at December 31, 2022 and incurred a consolidated net loss in 2022 of $2,631,092.
December 31, 2023 2022 Cost of sales and other direct production costs and depreciation, depletion, and amortization $ 9,691,697 $ 8,026,268 Depreciation, depletion, and amortization (1,466,703 ) (984,083 ) Change in concentrate inventory (258,368 ) (404,591 ) Cash Cost $ 7,966,626 $ 6,637,594 Exploration 1,523,221 2,110,137 Less REE exploration costs (613,883 ) (536,460 ) Sustaining capital 1,048,824 1,517,984 General and administrative 630,126 1,229,603 Less stock-based compensation and other non-cash items (3,860 ) (649,409 ) AISC $ 10,551,054 $ 10,309,449 Divided by ounces produced 8,247 6,103 Cash cost per ounce $ 966.00 $ 1,087.60 AISC per ounce $ 1,279.38 $ 1,689.24 Financial Condition and Liquidity For the Years Ended December 31, Net cash provided (used) by: 2023 2022 Operating activities $ 2,104,009 $ (1,817,090 ) Investing activities (2,102,235 ) (2,368,225 ) Financing activities 647,194 3,846,828 Net change in cash and cash equivalents 648,968 (338,487 ) Cash and cash equivalents, beginning of period 1,638,031 1,976,518 Cash and cash equivalents, end of period $ 2,286,999 $ 1,638,031 The Company has accumulated deficit of approximately $17.2 million at December 31, 2023 and incurred a consolidated net profit in 2023 of $1,073,449.
The Argus is located about 2.8 kilometers northwest of the active mining area at Golden Chest. Results of Operations Our financial performance for the years ended December 31, 2022, and 2021 is summarized below: · Revenue from gold concentrate sales was $9,580,189 for the year ending December 31, 2022, compared to $7,630,416 for the comparable period in 2021.
Results of Operations Our financial performance for the years ended December 31, 2023, and 2022 is summarized below: · Revenue from concentrate sales increased 42.6% to $13,656,733 for the year ending December 31, 2023, compared to $9,580,189 for the comparable period in 2022.
The Company’s plan of operation is to generate positive cash flow, increase its gold production and asset base over time while being mindful of corporate overhead.
The Company’s plan of operation is to generate positive cash flow, increase its gold production and asset base over time while being mindful of corporate overhead. The Company’s management is focused on utilizing its in-house technical and operating skills to build a portfolio of producing mines and milling operations with a focus on gold production and exploration for REEs.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Plan of Operation Idaho Strategic Resources, Inc. is a gold producer focused on diversifying and building its asset base and cash flows through a portfolio of mineral properties located in historic producing gold districts in Idaho and Montana.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Plan of Operation Idaho Strategic is a gold producer and critical minerals/REE exploration company focused on a diversified asset base and cash flows from operations.
At this time, we think that an adjustment in our asset recovery obligation is not required, and an adjustment in future periods would not have a material impact in the year of adjustment but would change the amount of the annual accretion and amortization costs charged to our expenses by an undetermined amount.
At this time, we think that an adjustment in our asset recovery obligation is not required, and an adjustment in future periods would not have a material impact in the year of adjustment but would change the amount of the annual accretion and amortization costs charged to our expenses by an undetermined amount. 41 Table of Contents Golden Chest Highlights for 2023 include: · Produced a total of 8,247 ounces of gold contained in concentrates and doré. · Commenced mining of the high-grade H-Vein at the Golden Chest mine. · Mined 37,780 tonnes of ore from underground at the Golden Chest Mine at an average grade of 6.36 gpt gold and completed 135 meters of development to the MAR and 100 meters of associated sumps, muck-bays, and raises.
This resulted in an increase in gross profit as a percentage of sales from 6.4% in 2021 to 16.2% in 2022.
We anticipate ore from the H-vein to be the primary source of ore for 2024. · Gross profit for the year ended December 31, 2023 was $3,965,036 compared to a gross profit of $1,553,921 in 2022. This resulted in an increase in gross profit as a percentage of sales from 16.2% in 2022 to 29.0% in 2023.
Removed
The Company’s management is focused on utilizing its in-house technical and operating skills to build a portfolio of producing mines and milling operations with a focus on gold and exploration for Rare Earth elements (REE). The Company’s properties include: the Golden Chest Mine (currently in production), and the New Jersey Mill (majority ownership interest).
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Its portfolio of mineral properties are located in the historic producing silver and gold districts of the Coeur d’Alene Mining region of north Idaho and the Elk City region of north-central Idaho, as well as the historic REE-Th Belt located near the city of Salmon in central Idaho.
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Recently, the Company added three rare earth element properties in Idaho to its portfolio of exploration properties in an effort to diversify its holdings towards the anticipated demand for these elements in the electrification of motorized vehicles. Critical Accounting Estimates The SEC has requested that all registrants address their most critical accounting policies.
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The Company’s gold properties include: the Golden Chest (currently in production), and the New Jersey Mill (majority ownership interest), as well as the Eastern Star exploration property and other less advanced properties.
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Highlights for 2022 include: · Up listed onto the New York Stock Exchange American, rang the opening bell of the NYSE from underground at the Golden Chest Mine-a first in recorded history. · Increased rare earth elements land position in central Idaho; all three properties combined makeup approximately 18,030 acres. · Completed initial drill program at Diamond Creek which returned 11.3 meters of 1.3% total rare earth oxide (TREO) and 10.1 meters of 0.7% niobium. · Completed a 32-meter trench at Diamond Creek which returned 32 continuous meters of REE mineralization at the surface averaging 1.28% TREO and included 12 meters of greater than 0.5% niobium. · Surface sampling program at Lemhi Pass returned 7 samples with TREO grades ranging from 0.67% to 4.26% with neodymium alone accounting for more than half of the TREO of each sample. 40 Table of contents · Provided REE mineralized material to the University of Idaho as part of IDR’s involvement in the IGEM Program to develop environmentally friendly extraction technology for rare earth elements. · For the year ending December 31, 2022, the Company processed 42,260 dry metric tonnes (dmt) at the Company’s New Jersey Mill with an average gold head grade of 4.33 grams per tonne gold (gpt) with gold recovery of 89.8%. · IDR produced a total of 6,103 ounces of gold contained in concentrates and dore’. · Mined 8,400 tonnes of ore from the open pit at an average grade of 4.55 gpt gold with an average stripping ratio of 9.5 and an average daily mining rate of 922 tonnes per day (tpd). · Mined 25,000 tonnes of ore from the underground mine at an average grade of 5.35 gpt gold and completed 175 meters of development related to the Main Access Ramp (MAR) to access new stopes.
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The Company’s primary focus as it relates to its gold properties is to continue to grow production at the Golden Chest Mine and look to reinvest the cash flow into both the Golden Chest, the New Jersey Mill, and furthering its exploration efforts near the Golden Chest, as well as at its REE properties.
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A new ventilation raise was completed by IDR miners as well. · Completed 6,353 meters of core drilling at the Klondike, Paymaster, Skookum, Argus, Evans, Ida, and Badger areas.
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In addition to its gold properties, Idaho Strategic has three REE exploration properties in Idaho known as Lemhi Pass, Diamond Creek, and Mineral Hill.
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Highlights of the 2022 drilling included drillhole GC 22-212 which intersected 8.77 gpt gold over 9.2 meters in the Klondike area, and GC 22-223 which intersected 16.6 gpt gold over 1.23 meters in the Paymaster area. · A highlight of drilling at the Argus prospect was the discovery of a broad, low-grade zone where AG 22-2 assayed 0.56 gpt gold over 24 meters.
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The Company’s expansion into REE’s came about in an effort to diversify its holdings towards the anticipated demand for these elements in the electrification of motorized vehicles and a renewed focus on the United States’ domestic critical minerals supply chain security.
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We are anticipating this higher underground ore ratio to continue for the foreseeable future. · Compared to the fourth quarter of 2021, revenue was up 94.5% from $1,764,708 to $3,432,002 in the fourth quarter of 2022. · Gross profit for the year ended December 31, 2021 was $487,877 compared to a gross profit of $1,553,921 in 2022.
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To date, Idaho Strategic has conducted numerous exploration programs on its REE properties which include drilling, trenching, sampling, and mapping of certain areas within the Company’s 19,090-acre landholdings.
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The decrease in net loss was primarily due to the increased gross profit during the year. · Idaho Strategic realized a net profit for the 4 th quarter 2022 of $603,650 compared to a net loss of $1,219,518 for the 4 th quarter 2021.
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Idaho Strategic has been able to leverage its track record of operations and experience in mining, milling, and exploring at the Golden Chest to develop relationships with different state government agencies, universities, national labs, and other government and non-government entities to advance its REE exploration activities on multiple fronts.
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The backlog of shipping has been largely rectified going into the first quarter of 2023. · The Company saw an increase in exploration expenses for 2022 largely due to the drilling of its Diamond Creek property for REE’s as well as increased drilling near the Golden Chest with the Company owned drilling rig. · All in sustaining cost (AISC) decreased from $1,818.22 in 2021, to $1,777.14 in 2022 from producing 1,276 more ounces of gold in 2022 along with increased efficiencies seen at the Golden Chest mine from new equipment put into service during the year. 41 Table of contents Cash Costs and All In Sustaining Costs Reconciliation to GAAP Reconciliation of cost of sales and other direct production costs and depreciation, depletion, and amortization (GAAP) to cash cost per ounce and all-in sustaining costs (AISC) per ounce (non-GAAP).
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Idaho Strategic plans to continue to look for additional partnerships to find mutually beneficial solutions to advance the U.S.’ domestic REE supply chain. Critical Accounting Estimates The SEC has requested that all registrants address their most critical accounting policies.
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Additionally, 435 meters of stope access ramps were completed during the year. · Mined 2,350 tonnes of ore from the Jumbo pit at an average grade of 12.40 gpt gold. · Processed 40,130 dry metric tonnes at the Company’s New Jersey Mill with an average gold head grade of 6.71 gpt and gold recovery of 92%. · Completed approximately 3,740 meters of core drilling at the Golden Chest to convert H-Vein Mineral Resources to Mineral Reserves. · A highlight of the core drilling was GC-22-233 which intercepted 18.7 gpt gold over 2.24 meters in the H-Vein. · Completed mining in the open pit and transitioned fulltime to underground production.
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REE Exploration Highlights for 2023 include: · Trenched up to 5% total REE’s at Lemhi Pass - including magnet REE concentrations in excess of 70%. · Sampled 28.2% and 34.1% TREO at the Company’s Mineral Hill REE project. · Added to the Company’s Mineral Hill REE landholdings and expanded the strike length of known REE mineralization over 0.5 miles. · Provided numerous REE samples to collaborative partners from various national laboratories, universities, and government agencies.
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Corporate Highlights for 2023 include: · Achieved the first full year of profitability from production in Company history and recorded its fifth consecutive quarter of profitability. · Announced the addition of Carolyn Turner to the Company’s Board of Directors.
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We anticipate an increase in drilling activity in 2024 over 2023, which may result in an increased exploration expense. · General and administrative costs decreased significantly in 2023 compared to 2022 due to no stock option awards taking place in 2023. · Professional services costs increased in 2023 due to acquisition activity early in the year.
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This was a one-time expense and is not expected to continue in 2024. · All in sustaining costs for gold production decreased from $1,689.24 in 2022, to $1,279.38 in 2023 as a result of increased efficiencies and improved scheduling and mine sequencing at the Golden Chest, as well as higher grade ore being processed from the H-vein. 42 Table of Contents Cash Costs and All In Sustaining Costs (“AISC”) Reconciliation to Generally Accepted Accounting Principles (“GAAP”) Reconciliation of cost of sales and other direct production costs and depreciation, depletion, and amortization (GAAP) to cash cost per ounce and AISC per ounce (non-GAAP).

Other IDR 10-K year-over-year comparisons