UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K/A

(Amendment No. 1)

(Mark One)

☒	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2021

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to ______

Commission file number: 000-28837

IDAHO STRATEGIC RESOURCES, INC. ****
(Name of small business issuer in its charter)
Idaho	82-0490295
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(State or other jurisdiction of incorporation or organization)	(I.R.S. employer identification No.)

201 N. Third Street, Coeur d’Alene, ID 83814

(Address of principal executive offices) (zip code)

(208) 625-9001

Registrant’s telephone number, including area code

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
None	N/A	N/A

SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, $0.00 par value	IDR	NYSE American

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark if disclosure of delinquent filers in response to Item 405 of Regulation S-K is not contained herein, and no disclosure will be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ☒

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “small reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated Filer	☒	Smaller reporting company	☒
		Emerging Growth Company	☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act Yes ☐ No ☒

The aggregate market value of all common stock held by non-affiliates of the registrant, based on the average of the bid and ask prices on June 30, 2021 was $39,775,500.

On March 1, 2022 there were 11,309,160 shares of the registrant’s Common Stock outstanding.

EXPLANATORY NOTE

We are filing this Amendment No. 1 on Form 10-K/A, or this Amendment, to our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, for the purpose of reporting the information required by Items 1300 through 1305 of Regulation S-K for our mining properties under Item 2 of Part I, revising our reporting under Item 7, Part II of Form 10-K, and correcting our name in our auditor’s audit report in Item 8 of Part II. Our Annual Report on Form 10-K, or the Original Filing, was originally filed with the Securities and Exchange Commission, or the SEC, on March 31, 2022. Item 2 of Part I of Form 10-K is reorganized and includes additional disclosures and clarifications related to our properties as prescribed by Items 1300 through 1305 of Regulation S-K. Item 7 of Part II includes further details related to our increase in revenues and gross profits. Item 8 of Part II has been corrected to state our name, Idaho Strategic Resources Inc., rather than our former name, New Jersey Mining Company. And, we have included a Technical Report Summary that is attached as Exhibit 96.1 in Item 15 of Part IV.

Pursuant to the SEC rules, Item 15 of Part IV has also been amended to contain the currently dated certificates from the Company’s principal executive officer and principal financial officer pursuant to Sections 302, 303, and 308 of the Sarbanes-Oxley Act of 2002. The certificates of the Company’s principal executive officer and principal financial officer are attached to this Amendment as Exhibits 31.1, 31.2, 31.3 and 31.4.

Other than with respect to the information contained herein with respect to Item 2 of Part I, Item 7 of Part II, and Item 8 of Part II, below, this Amendment does not change any of the information contained in the Original Filing. Other than as specifically set forth herein, we have not updated or amended the disclosures contained in the Original Filing to reflect events that have occurred since the date thereof. Accordingly, this Amendment should be read in conjunction with our Original Filing. Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Original Filing.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS		3
GLOSSARY OF SIGNIFICANT MINING TERMS		4
PART I		6
ITEM 1.	DESCRIPTION OF THE BUSINESS	6
ITEM 2.	DESCRIPTION OF PROPERTIES	9
ITEM 3.	LEGAL PROCEEDINGS	23
ITEM 4.	MINE SAFETY DISCLOSURES	23
PART II		24
ITEM 5.	MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS	24
ITEM 6.	SELECTED FINANCIAL DATA	25
ITEM 7.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	26
ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	30
ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	31
ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	51
ITEM 9A.	CONTROLS AND PROCEDURES	51
ITEM 9B.	OTHER INFORMATION	51
PART III		52
ITEM 10.	DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE	52
ITEM 11.	EXECUTIVE COMPENSATION	53
ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	55
ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE	56
ITEM 14.	PRINCIPAL ACCOUNTANT FEES AND SERVICES	56
PART IV		57
ITEM 15.	EXHIBITS	57
SIGNATURES		58
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-K and the exhibits attached hereto contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements concern the Company’s anticipated results and developments in the Company’s operations in future periods, planned exploration and development of its properties, plans related to its business and other matters that may occur in the future. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. These statements include, but are not limited to, comments regarding:

·	the establishment and estimates of mineralization;
·	the grade of mineralization;
·	anticipated expenditures and costs in our operations;
·	planned exploration activities and the anticipated outcome of such exploration activities;
·	plans and anticipated timing for obtaining permits and licenses for our properties;
·	expected future financing and its anticipated outcome;
·	anticipated liquidity to meet expected operating costs and capital requirements;
·	our ability to obtain joint ventures partners and maintain working relationships with our current joint venture partners;
·	our ability to obtain financing to fund our estimated exploration expenditures and capital requirements; and
·	factors expected to impact our results of operations.

Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “estimates” or “intends”, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements, including, without limitation:

·	risks related to our limited operating history;
·	risks related to our history of losses and our expectation of continued losses;
·	risks related to our properties being in the exploration or development stage;
·	risks related our mineral operations being subject to government regulation;
·	risks related to future legislation and administrative changes to mining laws;
·	risks related to future legislation regarding climate change;
·	risks related to our ability to obtain additional capital or joint venture partners;
·	risks related to land reclamation requirements and costs;
·	risks related to mineral exploration and development activities being inherently dangerous;
·	risks related to our insurance coverage for operating risks;
·	risks related to cost increases for our exploration and development projects;
·	risks related to a shortage of equipment and supplies adversely affecting our ability to operate;
·	risks related to mineral estimates;
·	risks related to the fluctuation of prices for precious metals, such as gold and silver;
·	risks related to the competitive industry of mineral exploration;
·	risks related to our title and rights in our mineral properties and mill;
·	risks related to joint venture partners and our contractual obligations therewith;
·	risks related to potential conflicts of interest with our management;
·	risks related to our dependence on key management;
·	risks related to the New Jersey Mill operations, management, and milling capacity;
·	risks related to our business model;
·	risks related to evolving corporate governance standards for public companies; and
·	risks related to our shares of common stock.

This list is not exhaustive of the factors that may affect our forward-looking statements. Some of the important risks and uncertainties that could affect forward-looking statements are described further under the sections titled “Description of Business” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Annual Report. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated, or expected. We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events, except as required by law.

We qualify all the forward-looking statements contained in this Annual Report by the foregoing cautionary statements.

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GLOSSARY OF SIGNIFICANT MINING TERMS

Ag-Silver.

Au-Gold.

Alluvial-Adjectivally used to identify rocks or minerals deposited over time by moving water.

Argillites-Metamorphic rock containing clay minerals.

Arsenopyrite-An iron-arsenic sulfide. Common constituent of gold mineralization.

Ball Mill-A large rotating cylinder usually filled to about 45% of its total volume with steel grinding balls. The mill rotates and crushed rock is fed into one end and discharged through the other. The rock is pulverized into small particles by the cascading and grinding action of the balls.

Bedrock-Solid rock underlying overburden.

Cu-Copper.

CIL-A standard gold recovery process involving the leaching with cyanide in agitated tanks with activated carbon. CIL means "carbon-in-leach."

Crosscut-A nominally horizontal mine passageway, generally driven at right angles to the strike of a vein.

Dip-Angle made by an inclined surface with the horizontal, measured perpendicular to strike.

Deposit-A mineral deposit is a mineralized body that has been intersected by sufficient closely-spaced drill holes or underground sampling to support sufficient tonnage and average grade(s) of metal(s) to warrant further exploration or development activities.

Drift-A horizontal mine opening driven on the vein. Driving is a term used to describe the excavation of a mine passageway.

Exploration Stage-As defined by the SEC-includes all issuers engaged in the search for mineral deposits (reserves), which are not in the production stage.

Fault-A fracture in the earth’s crust accompanied by a displacement of one side of the fracture with respect to the other and in a direction parallel to the fracture.

Flotation-A physiochemical process for the separation of finely divided solids from one another. Separation of these (dissimilar) discrete solids from each other is affected by the selective attachment of the particle surface to gas bubbles.

GPT-grams per metric tonne.

Galena-A lead sulfide mineral. The most important lead mineral in the Coeur d’Alene Mining District.

Grade-A term used to assign the concentration of metals per unit weight of ore. An example-ounces of gold per ton of ore (opt). One troy ounce per short ton is 34.28 parts per million or 34.28 grams per metric tonne.

Mill-A general term used to denote a mineral processing plant.

Mineralization-The presence of minerals, usually of potential economic significance, in a specific area or geologic formation.

Mineral Reserve-An estimate of tonnage and grade or quality of indicated and measured mineral resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a measured or indicated mineral resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted.

Mineral Resource-A concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A mineral resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralization drilled or sampled.

Net Smelter Return (“NSR”)-The Net Smelter Return from a processed ore is the value recouped from the mineral products less the costs associated with smelting, refining, and transport to the smelter. The NSR specifically does not permit the deduction of mining and milling costs.

Ore-A mineral or aggregate of minerals that can be mined and treated at a profit. A large quantity of ore that is surrounded by waste or sub-ore material is called an orebody.

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Patented Claim-A mineral claim where the title has been obtained from the U.S. federal government through the patent process of the 1872 Mining Law. The owner of the patented claim is granted title to the surface and mineral rights.

Production Stage-As defined by the SEC-includes all issuers engaged in the exploitation of a mineral deposit (reserve).

Proven Reserve-The economically mineable part of a measured mineral resource and can only result from conversion of a measured mineral resource.

Pyrite-An iron sulfide mineral that usually has no commercial value but is commonly associated with mineral deposits of gold, copper, and other metals.

Quartz-Crystalline silica (SiO2). An important rock-forming and gangue material in veins or other types of mineral deposits.

Quartzites-Metamorphic rock containing significant amounts of quartz.

Raise-An underground opening driven upward, generally on the vein.

Ramp-An underground opening usually driven downward, but not always, to provide access to an orebody for rubber-tired equipment such as loaders and trucks. Typically ramps are inclined at a slope grade of approximately 15%.

Rare Earth Elements (REE)- The rare earth elements (REE) comprise of 15 elements that range in atomic number from 57 (lanthanum) to 71 (lutetium) on the periodic table. Most of the REE’s are not as rare as the group’s name suggests. Although REE’s are relatively abundant in the Earth’s crust, they are rarely concentrated into mineable ore deposits. These elements are in demand because they are essential for a diverse and expanding array of high-technology applications and emerging alternative energy uses.

Royalty or NSR Royalty-A mineral royalty is a percentage of the value extracted from an ore that is paid to an interest holding party, usually a claim owner. The NSR Royalty is calculated based on the value of the processed ore after deducting the costs of smelting, refining, and transport to a smelter. However, the cost of mining and milling is not deducted. Typical NSR Royalty rates in the United States are on the order of 1–5%.

Shoot – A body of ore, usually of elongated form, extending downward or upward in a vein.

Stope-An underground void created by the mining of ore.

Strike-The bearing or azimuth of the line created by the intersection of a horizontal plane with an inclined rock strata, vein or body.

Tellurium-Relatively rare chemical element found with gold and silver that can form minerals known as tellurides.

Tetrahedrite-Sulfosalt mineral containing copper, antimony, and silver.

Vein-A zone or body of mineralized rock lying within boundaries separating it from neighboring wallrock. A mineralized zone having a more or less regular development in length, width and depth to give it a tabular form and commonly inclined at a considerable angle to the horizontal.

Unpatented Claim-A mineral claim staked on United States Public Domain (USPD) that is open for mineral entry. Unpatented lode claims can be no more than 1,500 feet long by 600 feet wide. The claimant owns the mineral rights, but does not own the surface, which is USPD. Any exploration or mining on the claim must first be submitted in a plan of operations (POO) for approval to the appropriate federal land management entity.

Wallrock-Usually barren rock surrounding a vein.

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PART I

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. 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. 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.

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. (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. 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.

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. With over 7,000 acres of patented and unpatented land, the Company has the largest private land position in the area following its consolidation of the Murray Gold Belt for the first time in over 100-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). 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). 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 holds mineral properties in three historic mining districts of Idaho and Montana. Its portfolio of mineral properties includes:

·	The Golden Chest Mine, a producing gold mine located in the Murray Gold Belt (MGB) of North Idaho;
·	A significant portfolio of early-stage exploration properties within the MGB, many of which include historic gold mines and known gold mineralization;
·	United States Geologic Survey (USGS) recognized Rare Earth Element potential
	o	Diamond Creek-one of Idaho’s most prospective REE properties
	o	Roberts Rare Earth-one the highest grade REE properties in the US
·	A significant portfolio of early-stage exploration properties in Central Idaho, primarily in the Elk City area, and;
·	The Butte Highlands Mine (50-percent interest), an advanced-stage project which has seen considerable development work, located south of the city of Butte, in Western Montana, however management does not expect this project to be advanced in the near future;

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.

During the last two years, the Company has focused its efforts on expanding underground development and production at the Golden Chest Mine with an aggressive focus on consolidating and increasing its land holding within the Murray Gold Belt. 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 over the last two years has created a solid foundation for continued growth real estate holdings, and a base of value regardless of market cycles.

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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. IDR also competes with other mining companies for exploration properties and mining assets, mostly properties in the western United States. In recent years, the Company has been successful in resuming operations at the New Jersey Mill, consolidating 100% ownership of the Golden Chest Mine, and acquiring a 50% interest in the Butte Highlands Joint Venture. In October 2016 production at the Golden Chest resumed with the Company as the sole owner and operator. While not its core business, the New Jersey Mill has little competition for contract milling within an approximate 175-mile radius.

Generally, the Company is subject to the risks inherent to the mineral industry. A primary risk of mineral exploration is the low probability of finding a major ore deposit. The Company attempts to mitigate this risk by focusing its efforts in areas known to host significant mineral deposits, and also by relying on its experienced management team to drive analysis, evaluation, and acquisition of properties that it feels have a higher-than-average probability of success. In addition to deal essentials, such as cost, terms, timing, and market considerations, the Company’s process of property acquisition involves screening target properties based on geological, economic, engineering, environmental, and metallurgical factors. In all its operations the Company competes for skilled labor within the mining industry.

The risks associated with the Company’s mining and milling operations include other risks typical of the mining industry, such as: operational effectiveness in the processing plant that could result in lower recovery of the economic metals, mechanical failure of equipment that could increase costs or decrease efficacy, ability to hire and retain qualified operators, and risks that the mining operations are unable to economically extract material due to ground or slope failures that increase cost. The Company manages these risks with engineering and geologic analysis, detailed mine planning, a preventive maintenance program, and installing experienced and technically proficient management.

Another significant risk in the mining industry is the price of metals such as gold and silver. If the prices of these metals were to fall substantially, it could lead to a loss of investor interest in the mineral exploration sector, which would make it more difficult to raise the capital necessary for the Company to move exploration and development plans forward.

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 95% of gold sales in 2021. The remaining gold sales were gold dore’ which was sold to a western U.S. refinery. H&H Metals is also an IDR shareholder. 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.

The Company ships its gold concentrate overseas to a smelter in Japan and the recent global shipping problems due to Covid-19 have caused an increase of inventory of gold concentrate at the New Jersey Mill. Only one day has been allowed for loading vessels in Seattle making it nearly impossible to ship from Idaho. Management is working to set up a concentrate storage area near the Port of Seattle so that several 20-tonne lots of concentrate could be stored closer to the port and loaded on a vessel in the short time currently allowed for loading.

Effect of Existing or Probable Governmental Regulations on the Business

The mining business is subject to extensive federal, state and local laws and regulations governing development, production, labor standards, occupational health, waste disposal, the use of toxic substances, environmental regulations, mine safety and other matters. The Company is subject to potential risks and liabilities occurring as a result of mineral exploration and production. Insurance against environmental risk (including potential liability for pollution or other hazards as a result of the disposal of waste products occurring from exploration and production) is not generally available to the Company (or to other companies in the minerals industry) at a reasonable price. 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.

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. 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).

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. 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. Should such a liability emerge for the Company, its exposure would likely be to clean up or cover old mine tailings that may have washed downstream from upstream mining operations. There are no mineral processing tailings deposits at the Golden Chest Mine. However, at least two old adits have small water discharges. 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. Recently, the EPA has proposed a new cleanup plan that greatly increases the number of historic mine sites to be reclaimed, however, the plan has not been approved. IDR has not received any notifications that it could be liable for any environmental cleanup.

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Costs and Effects of Compliance with Environmental Laws (Federal, State and Local)

No major Federal permits are required for the Golden Chest and New Jersey Mines because the operations are on private land and there are no process discharges to surface waters. However, any exploration program conducted by the Company on unpatented mining claims, usually administered by the BLM or USFS, requires a POO to be submitted. The Company’s exploration programs on public land can be delayed for significant periods of time (one to two years) because of the slow permitting process applied by the USFS. 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. When an underground mine or mill is operating, MSHA performs a series of regular quarterly inspections to verify compliance with mine safety laws, and can assess financial penalties for violations of MSHA regulations. A typical mine citation order for a violation that is not significant or substantial is about $200.

The New Jersey Mine and Mill have two important State of Idaho permits. The first is an Idaho Cyanidation Permit and the second is a reclamation plan for surface mining operations. The Company has also applied for a permit to expand its tailings storage facility (TSF) with the Idaho Department of Water Resources. Once approved, the Company will have to post a reclamation bond of approximately $110,000. If not approved in a timely manner, the Company would have to dispose of tailings in with a slightly more expensive method such as backhauling tailings to the Golden Chest Mine. An Idaho cyanidation permit was granted 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 during the operation of the CLP. IDR estimates the cost of water-monitoring associated with the CLP to be approximately $6,000 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 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 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. 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. The Golden Chest Mine also has an EPA stormwater permit.

When the Company plans an exploration drilling program on public lands, it must submit a POO to either the BLM or USFS. Compilation of the plan can take several days 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, but a small, single set-up drilling program usually requires a bond amount of approximately $5,000. If a plan requires road building, the bond amount can increase significantly. Upon completion of site reclamation and approval by the managing agency, the bond is returned to the Company.

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 38.

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 2022. 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.

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.

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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. These requirements differ significantly from the previously applicable disclosure requirements of SEC Industry Guide 7. Among other differences, subpart 1300 of Regulation S-K requires us to disclose our mineral resources, in addition to our mineral reserves, as of the end of our most recently completed fiscal year both in the aggregate and for each of our individually material mining properties.

Summary

The map below shows the locations of our operations and our exploration Properties.

Figure 1 - Property Location Map

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,
		2021		2020		2019
Gold -	Ounces produced		4,826		3,755		5,060
	Payable ounces sold		4,826		3,755		5,060

The following table summarizes the Company’s total in-situ mineral reserves (the Golden Chest Mine is the Company’s only property with calculated reserves) as of December 31, 2021:

Classification	Year				Metallurgical Recovery
Proven reserves	2020	42,500	5.17	2.0	93%
Proven reserves	2021	38,700	4.87	2.0	93%
Total mineral reserves		38,700	4.87	2.0	93%
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The Company has not completed a Mineral Resource estimate for the year ending December 31, 2021, but is planning to complete one for the year ending December 31, 2022. In 2012, an historic resource estimate was completed as a part of a Canadian NI 43-101 by a third party and is provided for background only and does not represent a current SK 1300-compliant resource. A summary of the historic 2012 NI 43-101 is provided in Exhibit 96.1, the Technical Report Summary on the Golden Chest Mine, Idaho, prepared by the Qualified Person under Section 1300 of SEC Regulation S-K (QP), Grant Brackebusch who is the Qualified Person.

GOLDEN CHEST MINE

Figure 1 - Photo of Golden Chest Mine in February 2020

The Golden Chest Mine is the Company’s only Production Stage mine and is comprised of an underground mine, an open pit mine, and an exploration property located about 1.5 miles east of Murray, Idaho. The Golden Chest Mine includes 26 patented mining claims (319 acres) and 70 unpatented claims (562.5 acres). The mine is permitted with the Idaho Department of Lands and 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). 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. 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.

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). The mill is located on the same property as the New Jersey Mine, adjacent to U.S. Interstate Highway 90 and easily accessed year-round by local roads. Three-phase electrical power is supplied to the New Jersey Mill by Avista Utilities.

Property Ownership and Operation

The New Jersey Mill is operated by IDR. In 2011, IDR signed a joint venture (“JV”) agreement with Crescent Silver LLC (Crescent) to increase the capacity of the New Jersey Mill. Crescent funded the mill expansion in return for a 35% interest in JV assets plus the right to process 7,000 tonnes of its ore per month. IDR is the JV manager and retains a 65% interest in JV assets as well as the right to process its own ore at the rate of 3,000 tonnes per month and to allocate unused and excess capacity in its role as manager. The property covered by the JV agreement includes the crushing circuit, grinding circuit, gravity circuit, flotation circuit, CLP, buildings, and surface rights only over the patented mill site claim. Unpatented mill site claims are also part of the JV.

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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. The expansion cost approximately $3.2 million, all of which was funded by Crescent under terms of the JV (Ex. 10.1). The expansion project included the installation of a new cone crusher, a new fine ore bin, new conveyors, a new 2.4-meter by 4.0-meter ball mill, additional flotation cells, a new paste thickener, associated pumps, and a new building.

Current Ore Processing Operations

In October 2016, the Company resumed operations at the New Jersey Mill, processing ore extracted from open pit and underground at the Golden Chest. In 2021, the New Jersey Mill processed 44,305 tonnes at an average head grade of 3.85 gpt gold with 89% gold recovery. Since restarting operations at the Golden Chest in October 2016, the Company has milled a total of 207,000 tonnes.

The mill recycles process water and utilizes a paste tailings disposal process patented by IDR founder Fred Brackebusch to minimize impacts to the environment. By implementing paste tailings processing methods, IDR can recycle process water and prevent the discharge of process water to surface waters. At full capacity, this method saves more than 50 million gallons of water per year. IDR was recognized as a “Pollution Prevention Champion” by the Idaho Department of Environmental Quality in 2014 for its efforts to reduce pollution at the mill. The Company has submitted a permit for an expansion of its existing tailings storage facility, TSF #1. If the tailings expansion permit approval was delayed beyond mid-2022, the Company would to most likely, back-haul tailings to the Golden Chest mine.

As of December 31, 2021, the Company had a net capital cost of $3,868,692 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. 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<br><br>Idaho Department of Environmental Quality
Tailings Storage Facility (TSF)<br><br>NJ Mill	94-7509<br><br>Idaho Department of Water Resources
Air Quality Exemption (Crushing) for<br><br>NJ Mill	Idaho Department of Envirnmental Quality

BUTTE HIGHLANDS PROPERTY

Property Location

The Butte Highlands property is an underground gold Exploration Stage property operated by Highland Mining LLC. In January 2016, IDR purchased a 50% interest in Butte Highlands Joint Venture LLC (“BHJV”) from Timberline Resources Corporation (“Timberline”). BHJV owns the Butte Highlands property, located 15 miles south of Butte, Montana, within a gold-producing region that includes several large gold deposits. The property can be accessed via State Highway 2 and county and USFS roads. Electricity and water are available on the property.

Property Ownership

The Butte Highlands property covers approximately 135 acres and includes 11 patented claims. All the private lands within the Butte Highlands property are patented lode and placer claims. BHJV is responsible for paying Montana state property taxes on all patented lands and for paying annual BLM maintenance fees on any unpatented mining claims.

Butte Highlands Joint Venture

In 2009, Timberline formed a 50/50 joint venture, the BHJV, with Highland Mining LLC (“Highland”) for the purpose of developing and mining the Butte Highlands property, with Highland to operate and fund all mine development costs through to commercial production. In 2012, Montana State Gold Company LLC (“MSGC”) purchased Highland, assuming its project loan and its funding commitment.

IDR purchased Timberline’s 50% “carried to production” interest in BHJV in 2016 for total consideration of $435,000 with Highland funding all development costs and IDR’s 50% share of costs to be paid from proceeds of future mine production. Proceeds are to be split on an 80/20 basis (to Highland and IDR, respectively) until payback is reached, after which proceeds will be split evenly.

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Property History

The Butte Highlands gold mine was an historic lode mine that produced an estimated 60,000 ounces of gold from 1937 until the War Production Board forced its closure at the onset of WWII. The property was later explored by Battle Mountain, Placer Dome, ASARCO, and Orvana in the 1980’s and 1990’s which, in total, drilled more than 30,000 meters at Butte Highlands, prior to its acquisition by Timberline in 2007.

In 2009, Timberline formed a 50/50 joint venture with Highland to create BHJV for the purpose of developing and mining the property. In 2009 and 2010, Timberline conducted surface exploration, drilling, and permitting work as Highland began building surface and underground infrastructure.

In 2011, BHJV completed an underground exploration ramp and a 16,000-meter underground core drilling program to support mine modeling, focusing on the upper portion of the “Old Mill Block” which has dimensions of approximately 85 meters along strike, 335 meters down dip, and a mineralized thickness of 2.5 to 4.5 meters.

A NI 43-101 compliant technical report for Butte Highlands was completed in May 2013 by Mine Development Associates of Reno, Nevada. However, the property has no mineral reserves or resources as defined by Regulation S-K Subpart 1300.

The project has experienced significant timeline delays due, in part, to miscalculations of the permitting process and other technical issues. Permitting advanced more effectively from 2013 to 2015 with the following critical milestones successfully achieved:

·	In July 2013, the Montana Department of Environmental Quality (“DEQ”) issued the final Montana Pollutant Discharge Elimination System (“MPDES”) water discharge permit;
·	In January 2015, the Montana DEQ authorized BHJV to construct and operate an underground gold mine by publishing positive Record of Decision (“ROD”) on Final Environmental Impact Statement (“EIS”);
·	In October 2015, the U.S. Forest Service (“USFS”) released its Final Decision Notice on haul road with a Finding of No Significant Impacts.

These milestones represent the final major hurdles to the receipt of necessary permits allowing the project to proceed. Final construction designs and completion of work will be required, along with bond payments, before final authority is granted to proceed with the proposed operation. Once final designs and road construction are complete, the USFS will grant authority to use local USFS roads for material haulage. Upon payment of the reclamation bond, the Hard Rock Operating Permit will be granted by the Montana DEQ.

Present Condition, Work Completed, and Exploration Plans

IDR does not anticipate any progress regarding BHJV (not the mine or operations) this year and is looking forward to one day cooperating with its partner to advance and or consolidate ownership in 2022. The partner maintains management and operation control and all plans are subject to their approval and direction and they have proven to be a less than optimal partner.

Present Condition of Plant & Equipment

Since 2009 Highland has invested nearly $40 million at Butte Highlands building a modern gold mine, including nearly 1.6 kilometers of underground mine development and construction of surface facilities, all of which are located on private lands owned by BHJV. As of December 31, 2021, the Company had a net capital cost of $435,000 associated with the Butte Highlands property.

Geology & Mineralization

Gold mineralization at Butte Highlands is hosted primarily in lower Paleozoic Wolsey Shale with higher-grade mineralization occurring within sediments proximal to diorite sills and dikes. The property is within a favorable geologic domain that has hosted several multi-million-ounce gold deposits. There are currently no mineral resources or reserves as defined by Regulation S-K Subpart 1300.

NEW JERSEY MINE PROPERTY

Property Location

The New Jersey Mine is an underground gold Exploration Stage property operated by IDR and located two miles east of Kellogg, Idaho, in the Coeur d'Alene Mining District. The mine is adjacent to U.S. Interstate Highway 90 and is easily accessed year-round by local roads. The New Jersey Mill is located on the same property. Three-phase electrical power is supplied to the New Jersey Mill by Avista Utilities.

Property Ownership

At the New Jersey Mine and Mill complex, the Company owns 102 acres of private land with surface and mineral rights, 108 acres of private land with mineral rights only, 40 acres of private land with surface rights only, and approximately 130 acres of unpatented mining claims. The unpatented claims are on federal land administered by the BLM. The gold-bearing Coleman vein system, including the underground workings and the Coleman pit, are located on the patented mining claims that are wholly owned by the Company and not part of the New Jersey Mill Joint Venture.

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Property History

In the late 1800’s and early 1900’s, New Jersey Mining and Milling (an unrelated company) drove more than 760 meters of development workings on the Coleman Vein and its northwest branch, including drifts, crosscuts, shafts, and raises. The historic development also included a 10-stamp gravity mill that was operated for a short period.

Present Condition, Work Completed, and Exploration Plans

Since 2001, IDR has drilled 14 holes totaling 1,765 meters to explore the Coleman Vein and associated zones. Drilling confirmed vein system continuity and resulted in the discovery of the broad, low grade (averaging about 0.70 gpt gold) Grenfel zone. The Company’s best intercept of the Coleman vein assayed 2.76 gpt gold over 12.5 meters, which included 6.80 gpt gold over 2.5 meters.

In 2008, the Company performed underground exploration on the Coleman Vein at the 740 level, including 84 meters of drifting, with 20 meters along the vein before it was displaced by a fault.

In 2010, a raise was driven upward on the 740 level to explore a narrow high-grade vein that crosscut the main Coleman Vein. This raise was driven 12 meters vertically, leading to the extraction of 367 tonnes that assayed 2.68 gpt gold in processing at the New Jersey Mill.

IDR has not conducted material work at the New Jersey Mine since 2010 and has no plans for exploration in 2022.

While the Company has conducted significant drilling, underground development, and even limited gold production from the New Jersey Mine, the property has no mineral reserves or resources as defined by Regulation S-K Subpart 1300.

As of December 31, 2021, the Company had a capitalized development plus investment cost of $248,289 associated with the mine.

Permits for the New Jersey Mill are set forth in under the caption “New Jersey Mill” in this Item 2.

Geology & Mineralization

The New Jersey Mine area is underlain by argillites and quartzites of the Proterozoic-age Prichard Formation, which commonly hosts gold mineralization regionally. The property occurs adjacent to and north of the major Osburn Fault, an important geological structure of the Coeur d’Alene Mining District. The Prichard Formation is divided into nine units of alternating argillites, siltites, and quartzites; the units exposed in the New Jersey Mine area appear to belong to the lower members. Gold mineralization is associated with sulfide-bearing quartz veins that cut the bedding in Prichard argillite and quartzite. Associated sulfides are pyrite, arsenopyrite, chalcopyrite, low-silver tennantite, galena, and sphalerite.

ALDER GULCH PROPERTY

The Alder Gulch property is a gold Exploration Stage property operated by IDR and located just north of the town of Murray in Shoshone County, Idaho. The property is comprised of 880 acres of patented mining claims having both surface and mineral rights. IDR owns 100% of Alder Gulch, subject to convertible promissory notes secured by 512 acres of the property. The property’s mineralization styles include vein systems and alluvial deposits. The Company has not obtained permits for this property and there are no processing plants or other available facilities located on the property. For more information concerning the Alder Gulch property, please refer to the information set forth under the caption “Individual Properties – MATERIAL OPERATING PROPERTIES” and under the caption “Alder Gulch Property” in this Item 2.

BUCKSKIN PROPERTY

Property Location

The Buckskin property is a gold Exploration Stage property operated by IDR and located 1.5 kilometers north of the town of Murray in Shoshone County, Idaho. The property can be accessed via dirt roads from paved Forest Highway 9.

Property Ownership

The Buckskin property is comprised of 12 patented mining claims covering 218 acres and 73 unpatented mining claims covering approximately 1,367 acres. The 218 acres of patented mining claims were acquired through an exploration and mining lease. The Buckskin Lease term runs for 7.5 years and includes annual payments of $12,000 and a 2-percent NSR on future production from the property. If the property is placed into production, the lease will continue as long as production is underway and also includes a right of first refusal for IDR to purchase the property, and the lease payments are treated as an advance payment on the royalty. The unpatented lode claims adjacent to the core group of claims are wholly owned by the Company and not subject to a royalty. These claims require an annual claim fee payment to the BLM.

Property History

The Buckskin property was mined intermittently for both gold and base metals in the early 20^th^ century with most of the mining completed in the 1930’s. The property contains numerous old workings, most of which are inaccessible. A mill was located on the property, but historic production is unknown.

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Present Condition, Work Completed, and Exploration Plans

In 2019, the Company conducted exploration efforts in the Buckskin area with trenching mapping/sampling, road building, reopening historic underground workings, and underground mapping/sampling. The Company conducted additional field work in 2020 and 2021 such as mapping, trenching, and ground based magnetic surveys. Core drilling is planned for 2022. The Company has a capitalized investment cost of $332,728 associated with this property.

Geology & Mineralization

The bedrock geology at the Buckskin property is largely quartzites of the Burke Formation and argillite-siltite of the Prichard Formation. A major structural feature is the Murray Peak Fault, a northerly trending, high-angle reverse fault. Historical prospects and adits are developed along northerly trending shear zones that are likely related to the Murray Peak Fault, that contain silica flooded rock. Gold mineralization is found in quartz veins and is associated with sulfide minerals including pyrite, chalcopyrite, and galena. Anomalous tungsten was also detected in assays.

Permits and Facilities

There are no permits associated with this property, and there are no processing plants or other available facilities located on the property.

BUTTE GULCH PROPERTY

Property Location

The Butte Gulch property is a gold Exploration Stage property operated by IDR and located 3 kilometers east of the town of Murray in Shoshone County, Idaho. The property lies immediately adjacent to the east side of Golden Chest Mine. It is accessed by paved Forest Highway 9, then on secondary dirt roads.

Property Ownership

The Butte Gulch property is comprised of 60 acres of both patented surface and mineral rights, 117 acres of patented mineral rights, and 602 acres of unpatented claims. The patented surface and mineral rights were purchased from a third party in mid-2018 and any lode production from the patented claims is subject to a 2% NSR. The patented claims where the Company only owns the lode mineral rights can be placer mined by the current owner. IDR holds a first right of refusal for the purchase of the surface rights not already owned by the Company. The unpatented lode claims are wholly owned by the Company and not subject to a royalty.

Property History

Butte Gulch has been placer mined by several different operations over the last century; however, there are no gold production records from these historic placer mining efforts. There is evidence of historic lode prospecting in the form of surface pits and exploration adits on the property, but the Company is not aware of any modern exploration occurring on the property.

Present Condition, Work Completed, and Exploration Plans

The property is an Exploration Stage property adjacent to the Golden Chest Mine. The property vendor has retained the placer mining rights in the bottom of the drainage on the patented claims and conducted placer mining activity last year. IDR has no affiliation or connection with the placer mining operation. Two historic adits have been reopened for mapping and sampling. Additionally, areas have been rock sampled where current placer operations have uncovered altered bedrock. More geologic fieldwork is planned for the upcoming 2022 season to explore for gold mineralization. The Company has a capitalized investment cost of $274,440 combined between this property and the Potosi property.

Geology & Mineralization

Outcrops in the Butte Gulch area are dominantly argillite, siltite, and quartzite units that belong to the Prichard Formation. The hinge line of a major regional scale fold called the Trout Creek Anticline traverses the property. Both northwest and northeast trending quartz veins containing pyrite, galena and chalcopyrite have been identified with anomalous silver mineralization.

Permits and Facilities

There are no permits associated with this property, and there are no processing plants or other available facilities located on the property.

GIANT LEDGE PROPERTY

Property Location

The Giant Ledge property is a gold and base metal Exploration Stage property operated by IDR and located six kilometers east of the town of Murray in Shoshone County, Idaho. The property is situated in Granite Gulch and is accessed by paved Forest Highway 9 and secondary dirt roads.

Property Ownership

The Company’s land position consists of 57 unpatented lode claims covering an area of 1,119 acres. The claim group includes 3 separate claim blocks: Giant Ledge, Porphyry and Bear. The unpatented lode claims are wholly owned by the Company and not subject to a royalty. These claims require an annual claim fee payment to the BLM.

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Property History

The Giant Ledge property consists of several historical prospected areas with lead, copper, and gold mineralization in and along the contact of the igneous intrusive. The Giant Ledge Mine was active in the 1920’s when a 122-meter-deep shaft was sunk and about 450 meters of drift development was completed. A flotation mill was erected, and a minor amount of undisclosed production was achieved. Bunker Hill Mining Company also examined and mapped the mine workings in the 1950’s. Sunshine Mining Company conducted exploration at the Giant Ledge in the mid-1980’s and drilled two core holes. In 2008, the Company obtained core from Sunshine’s drilling program, and it was re-logged and assayed. The best of the mineralization showed 4.6 meters of 0.908 gpt gold and 0.24% combined copper and lead. An extensive soil sampling program was completed in conjunction with a VLF and magnetometer survey.

Present Condition, Work Completed, and Exploration Plans

The property is an Exploration Stage prospect east of the Golden Chest Mine. Although no significant work was performed at Giant Ledge during the 2009-2021 period, the Company is preparing to resume exploration efforts in 2022.

Geology & Mineralization

The primary structural feature on the Giant Ledge property is the French Gulch fault. The fault contact extends through the property, separating monzonitic intrusive rocks on the west, from Prichard Formation’s argillite and quartzites on the east. Structurally controlled mineralization is found in both, the contact between argillite-quartzite sediments and in the monzonite. Seams and disseminations of auriferous pyrite, galena and chalcopyrite are found up to 10 meters into the footwall and hanging wall.

Permits and Facilities

There are no permits associated with this property, and there are no processing plants or other available facilities located on the property.

POTOSI PROPERTY

Property Location

The Potosi property is a gold Exploration Stage property operated by IDR and located 4.4 kilometers southwest of the town of Murray in Shoshone County, Idaho. The property is accessed by the paved Beaver Creek county road and other secondary dirt roads.

Property Ownership

IDR acquired fee simple title to of 3 patented lode claims as part of the 2018 Butte Gulch land acquisition. The 3 patented claims cover a 71-acre area.

Property History

Potosi has been placer mined in several different operations over the last century however, there is no gold production records from these historic placer mining efforts. There is evidence of historic lode prospecting in the form of surface pits and exploration adits on the property, but the Company is not aware of any modern lode exploration occurring on the property.

Present Condition, Work Completed, and Exploration Plans

Minor reclamation work, road improvements and timber harvesting was conducted in 2019, In 2020, the Company completed the remaining reclamation of surface disturbance caused by a previous operator. There are no exploration plans for 2022. The Company has a capitalized investment cost of $274,440 combined between this property and the Butte Gulch property.

Geology & Mineralization

Host rocks at the property are siltites and argillites of the Prichard Formation. Geologic mapping suggests fault structures associated with the Crown Point Shear Zone may cross the property.

Permits and Facilities

There are no permits associated with this property, and there are no processing plants or other available facilities located on the property.

McKINLEY-MONARCH PROPERTY

Property Location

The McKinley-Monarch property is an early-stage, gold Exploration Stage property operated by IDR and encompasses several historic prospects in central Idaho and extends, from the town of Riggins northward for nearly five miles. The property is accessed via public and private dirt roads off US Highway 95.

Property Ownership

In 2013, IDR acquired the McKinley-Monarch property through its acquisition of Idaho Champion Resources (“ICR”). The Company also holds 28 unpatented claims, totaling 560 acres, adjacent the 4 patented claims of the McKinley Mine (not owned by the Company). These claims require an annual claim fee payment to the BLM.

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Property History

The Monarch-McKinley property is located in the Simpson Mining District which was first prospected in 1891. The nearby McKinley Mine, intermittently active until World War II, was the largest lode gold mine in a mining district better known for its placer gold production. Approximately 3000 feet south-southwest of the McKinley Mine, is an area with substantial historic prospecting but lacking significant development, is the Monarch area. The southern bounds of the property, shows several historic underground developments but no records of production have been located. This area was formerly referred to as the “Big Easy Mine” but is now called the Fiddle Creek Prospect.

Present Condition, Work Completed, and Exploration Plans

Surface mapping and sampling by IDR identified an area with significant gold mineralization in outcrop: the Monarch Zone, about one kilometer S-SW of the McKinley Mine. At the Monarch Zone, several samples returned high-grade gold with values up to 26 gpt. There are no exploration plans for 2022. The Company has a capitalized investment cost of $200,000 associated with this property.

Geology and Mineralization

The Monarch-McKinley property is located within the rocks of the Riggins and Seven Devils Groups of the Blue Mountains Island-Arc Complex. The rocks are part of a sequence of accreted terranes sutured to the North American continent during late Mesozoic time. They are comprised of volcanic and volcano-clastic sediments metamorphosed to greenschist facies rocks. The complex structural environment of the collision boundary supplies ample pathways for mineralizing fluids, typical of orogenic systems. Rock alteration consists of carbonization and silicification. Gold mineralization is associated with auriferous pyrite and quartz-carbonate veining.

Permits and Facilities

There are no permits associated with this property, and there are no processing plants or other available facilities located on the property.

EASTERN STAR PROPERTY

Property Location

The Eastern Star property is an early-stage gold Exploration Stage property operated by IDR and located about four miles west of Elk City in central Idaho. It consists of 11 patented lode mining claims (220 acres) acquired by IDR in 2014 and an additional 45 unpatented lode claims (413 acres) located in 2018. The property is accessible via improved dirt roads from Idaho State Highway 14.

Property Ownership

IDR acquired fee simple title to the 11 patented claims (220 acres) from Premium Exploration Inc. (“Premium”) for $250,817 in 2014. The Company also holds the 45 unpatented lode claims (413 acres) surrounding the core group of patented claims. All of the Eastern Star claims are wholly owned by the Company and not subject to a royalty. The unpatented claims require an annual claim fee payment to the BLM.

Property History

The Elk City Mining District is an historic gold mining region dating back to the 1860s that once supported more than 20 underground mines, including the Eastern Star.

In recent years, prior operator Premium collected grab samples from three separate locations, representing nearly one-half mile of mineralized trend. Of 25 grab samples, nine returned gold values greater than 16.9 gpt. Premium then drilled three core holes at Eastern Star, targeting a bulk mineable gold deposit.

Present Condition, Work Completed, and Exploration Plans

In 2014, The Company completed mapping, sampling, and trenching programs. Company geologists identified several quartz veins that had been exploited by historic prospect pits and small shafts. Surface grab samples from these veins confirmed the widespread presence of high-grade gold within mineralized quartz vein material.

Channel samples across the vein zones intercepted notable gold mineralization including 10.4 m of contiguous samples reporting 2.25 gpt gold and 6.4 meters of 7.97 gpt gold, which includes 4.3 meters of 11.34 gpt gold. Select grab samples from trenched material returned values of up to 35.9 gpt gold. The Company has a capitalized investment cost of $250,817 associated with this property.

Although no significant work was performed at Eastern Star during the 2015-2021 period, the Company is preparing to resume exploration efforts in 2022. The Company’s exploration objective at Eastern Star is to evaluate the potential of these high-grade gold-bearing quartz veins for potential development and production.

Geology & Mineralization

The Eastern Star property is underlain by extensively weathered, high grade metamorphic rocks such as biotite gneiss and schist, intruded by felsic dikes and sills emanating from the Idaho Batholith. Two types of gold mineralization are present at the Eastern Star property. The first is the large, low-grade, bulk tonnage mineralization associated with the northerly trending Orogrande Shear Zone, and the second is the easterly trending high-grade gold quartz veins.

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Permits and Facilities

There are no permits associated with this property, and there are no processing plants or other available facilities located on the property.

DIAMOND CREEK RARE EARTH PROPERTY

Property Location

The Diamond Creek REE property is a rare earth elements (REE) Exploration Stage property operated by IDR and covers approximately 1,040 acres and is comprised of 52 unpatented mining claims. It is located in the Eureka Mining district, approximately 13 kilometers (8 miles) north-northwest of the town Salmon, Idaho. The property is accessed by a dirt road known as the Diamond Creek Road.

Property Ownership

The unpatented lode claims are wholly owned by the Company and there are no underlying royalties. The unpatented claims require an annual claim fee payment to the BLM.

Property History

The area was historically prospected for gold until 1949 when its unique geologic setting was recognized by the United States Geologic Survey (USGS) and the Idaho Geological Survey. In the early 1950’s the U.S. government sponsored country-wide exploration for raw materials related to nuclear power. This campaign resulted in the discovery of thorium in areas of Lemhi County, including the REE occurrence in the Diamond Creek area. Several other companies have undertaken minor rare earths exploration programs on the property including one stage of limited core drilling.

Present Condition, Work Completed, and Exploration Plans

The Company staked the claims that make up the property in early 2020. Some surface exploration activities including mapping and sampling were completed in 2021. Additionally, the Company submitted a Plan of Operations (POO) to the USFS for a core drilling program. The POO is currently under review by the USFS.

Geology & Mineralization

The REE mineralization at Diamond Creek is found in quartz veins over a large area approximately 3.2 km long and 0.8 km wide. There are at least eight known veins, and they range in width from 0.15 to 7.6 m in thickness. Vein widths appear best developed in the metasediments and can be traced on the surface for distances ranging from 33.5 to 780 m.

Samples taken by the USGS show total REE oxide contents ranging from 0.59 to 5.51 percent. Work by the USGS in 1979 reported three samples cut across one of the larger veins were assayed for gold and contained 0.5, 2.4 and 11.9 grams per tonne. Down-dip extensions of these mineralized veins have never been sufficiently tested. Historical reports indicate two short core holes have been completed with some significant REE mineralization noted.

Permits and Facilities

There are no permits associated with this property, and there are no processing plants or other available facilities located on the property.

ROBERTS RARE EARTH PROPERTY

Property Location

The Roberts Rare Earth Element property is an early-stage REE Exploration Stage property operated by IDR and comprised of 63 unpatented mining claims covering an area of approximately 1,051 acres. This property is located within the Mineral Hill Mining District, approximately 48 kilometers (30 miles) northwest of Salmon, Idaho. Access to the property is via National Forest Road 036 (Indian Creek Road).

Property Ownership

The unpatented lode claims are wholly owned by the Company and there are no underlying royalties. The unpatented claims require an annual claim fee payment to the BLM.

Property History

The Mineral Hill district was historically prospected for gold and copper in the early 1900’s. Rare earth element (REE) mineralization was discovered later in the early 1950’s. Studies conducted by A. T. Abbott (1954) and A. L. Anderson (1958) from the Idaho Geological Survey, and E. P. Kaiser (1956) with the USGS, pioneered recognition of these REE occurrences. Abbott reported cutting a 2.5-foot sample across the Roberts Lode which returned 21.5-percent combined rare earth oxides and thoria.

Present Condition, Work Completed, and Exploration Plans

The Company staked the claims that make up the property in early 2020 and added to the position with additional claims in 2021. Surface exploration activities including mapping and sampling were completed in 2021. Sampling by Company geologists returned assays of combined rare earths elements in excess of 12%. The company’s samples show REEs like, neodymium, praseodymium, and samarium elements in abundance. Similarly, as with IDR’s Diamond Creek property, REE’s are not the only valuable commodities but gold and niobium may also be in profitable concentration as by-products. Recent samples collected from the Roberts’ property, show assays with gold values up to 8.8 grams per ton and niobium as high as 0.50 %. Exploration plans include geologic mapping, sampling, and geophysical surveys.

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Geology & 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. 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 occurs as a small carbonatite plug, measuring about 200 meters in diameter.

Permits and Facilities

There are no permits associated with this property, and there are no processing plants or other available facilities located on the property.

Individual Properties – MATERIAL OPERATING PROPERTIES

GOLDEN CHEST MINE

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. The Golden Chest Mine includes 26 patented mining claims (319 acres) and 70 unpatented claims (1,390 acres). The 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 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 core of the Golden Chest Mine is a contiguous group of 26 patented claims where all modern mining has taken place to date. The Company owns the rights to both the surface and subsurface mineral on all patented claims directly and through its 100% held subsidiary Golden Chest LLC (GCLLC), excluding the Joe Dandy Claim where IDR owns only the subsurface mineral rights. 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.

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Production from the Golden Chest and an adjacent Area of Interest is subject a 2% NSR payable to Marathon Gold Corporation (Marathon).

Property History

The Golden Chest Mine was developed in the late 1800’s through the early 1900’s as part of the first gold production from the Coeur d’Alene Mining District. Historical accounts vary, but the district is believed to have produced approximately 300,000 ounces of gold from placer sources. It is estimated that the historic hard rock mining at the Golden Chest (prior to IDR’s ownership) produced approximately 65,000 ounces of gold, primarily from shallow, underground, high-grade veins. The Golden Chest Mine is considered to be the largest historic lode producer of gold in northern Idaho.

Modern exploration of the Golden Chest area began in the late 1970’s with several companies, including Cominco-American and Golden Chest Inc. (“GCI”), targeting gold and massive sulfides. Drill tests by GCI included a 200-foot hole from surface that intersected a 60-foot zone containing multiple low-grade gold-bearing quartz veins.

Newmont Exploration Ltd. followed GCI’s discovery by evaluating the veins for bulk mineable potential in the late-1980’s. Newmont drilled 35 shallow reverse-circulation and five core holes. 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. 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.

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. The primary mining method is underhand drift-and-fill utilizing cemented rock-fill (CRF). During 2021, IDR mined a total of 17,180 tonnes of ore at an average grade of 5.32 gpt gold. The ore came from the 891, 842, 833 and 824 stopes. The decline (MAR) was extended at depth during 2021 to the 815 sublevel which required about 190 meters of ramp development and two exhaust ventilation raises were completed by IDR miners. A two-boom jumbo was added late in the year to accelerate MAR development.

Current Open-Pit Operations

In 2021, IDR continued its open pit mining operation which commenced in August of 2016. Mining in the Klondike pit advanced from the 1032 bench to the 1002 bench during the year. A total of 27,125 tonnes of ore at average grade of 2.92 gpt gold and 174,000 tonnes of waste were mined during the year. Ore tonnes and grade in the Klondike Pit were lower than modeled because of unmapped, historic stopes in the Klondike where high-grade material had been mined out by the old-timers.

Exploration Plans and Results

Modern exploration, including over 30,000 meters of drilling, reveals six NW-trending ore shoots at Golden Chest that demonstrate strong periodicity, consistent width and spacing, along the Idaho Fault. Most historic production came from the northernmost of these shoots, the Katie-Dora and the Klondike. Current underground mining occurs within the Skookum Shoot. Excellent exploration potential remains in unmined portions of the northern shoots as well as in the unmined Paymaster and Joe Dandy shoots to the south. During 2021, a total of 6,935 meters of core drilling was completed with drilling at the Joe Dandy, Paymaster, Skookum, and Klondike areas. A highlight of the 2021 drilling included drillhole GC 21-193 which intercepted 7.3 meters of 11.5 gpt gold in the Paymaster area. This intercept is significant as it shows high-grade, thick sequences of the vein and is more than 400 meters south and 125 meters below the current underground mining area in the Skookum. Additionally, drilling in the Klondike such as drillhole GC 21-204 found a new zone of gold mineralization. Drillhole GC 21-204 intercepted 7.5 meters of 5.2 gpt gold (including 3.3 meters of 9.4 gpt gold) in the upper vein and 3.4 meters of 12.2 gpt gold (including 1.1 meters of 34.1 gpt gold) in the lower vein. This newly discovered zone of gold mineralization is in the hanging wall of the Idaho Fault which is significant because it opens a new area for future exploration and the intercepts are reasonably close to the surface. Core drilling totaling approximately 8,000 meters is planned for 2022 using the company’s drill rig. Drilling is planned to explore and define gold resources in the Klondike, Golden Chest, Skookum, and Paymaster areas.

Present Condition of Plant & Equipment

The Golden Chest underground mine is accessed by primary decline ramp (MAR) with a complimentary escape-way incline ramp. The MAR was originally developed in 2013 at nominal 4-meter by 4.5-meter cross-section. 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.

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As of December 31, 2021, the Company had a capitalized development and investment cost of $2,633,706 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 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 being exploited at the Golden Chest Mine is associated with the Idaho Fault, which juxtaposes the quartzites of the upper Prichard Formation against finer-grained argillites, also of the upper Prichard Formation.

Veins occur adjacent to the Idaho Fault both in its footwall, and in its hanging wall. The mineralization occurs in two types of quartz veins, banded and massive. These veins are generally conformable to bedding in the Proterozoic age Prichard Formation. The banded veins, which occur primarily in argillite, contain, pyrite, arsenopyrite, galena, sphalerite and visible gold. Thicker, massive veins occur in quartzite and contain pyrite, galena, chalcopyrite, sphalerite, scheelite and visible gold.

Open pit ore reserves were not calculated for the year ending December 31, 2021. The Klondike open pit is an area with a low density of core drilling and extensive, unmapped stopes (mined-out voids) from historic mining that make it difficult to produce an accurate reserve estimate. The open pit is mined on a drill-as-you-go basis where each bench is economically evaluated based on the blastholes assays to determine whether enough revenue will be available to generate a profit for the bench. These factors combine to make the outlook for continued open pit mining relatively uncertain.

The Company prepared an underground mine reserve estimate in accordance with the requirements of subpart 1300 of Regulation S-K. A block model was completed using Vulcan software and an inverse-distance squared methodology for the underground mine. The underground reserves calculated are entirely in the Skookum shoot where sample density and mining experience gave enough confidence that grades could be reasonably predicted. A gold price using the three-year trailing average of $1,650 was used to calculate reserves for the year ending December 31, 2021. Economic parameters such as mining costs, milling costs, metallurgical recovery, mining dilution, and gold payment under smelter contracts were obtained from the Company’s recent operating history and applied to the reserve calculation exercise. More details related to the reserve calculation are attached as Exhibit 99.2.

The reserve was calculated by mining engineer Andrew Brackebusch, EIT under the supervision of Grant Brackebusch, P.E. who is the qualified person.

Classification	Year				Metallurgical Recovery
Proven reserves	2020	42,500	5.17	2.0	93%
Proven reserves	2021	38,700	4.87	2.0	93%
Total mineral reserves		38,700	4.87	2.0	93%

There was approximately a 9% decrease in tonnes and a 6% decrease in grade in the reserve estimate in 2021 versus 2020 which is due to a lower density of core drilling (wider spacing) below the lowest reserve blocks limiting the area that could be included in a proven reserve estimate. Company block modeling procedures require a minimum of two samples with a 25-meter search radius to estimate a block value for reserve calculations.

Two cut-off grades are used for stope planning, the go/no-go cut-off and the in-stope cut-off. The go/no-go cut-off represents any material that has the potential to be mined but does not have to be mined as part of the operational plan. The go/no-go cut-off is used for initial stope planning as any given stope or sublevel does not have to be mined and should only be mined if it is economic. The go/no-go cut-off is equation is presented in Equation 1.

Equation 1 go/no-go cut-off

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Go/No-Go Cut-off Parameters

The backfill costs are included in the mining cost in above Table. This formula yields a value of 3.18 gpt for the cut-off and was rounded down to 3.0 gpt for a more natural break.

The in-stope cut-off is used when material in a previously defined stope must be mined to reach higher grades. 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 1.09 gpt which was raised to 2.0 gpt to be more selective in the mining process.

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 Person under Section 1300 of SEC Regulation S-K (QP), Grant Brackebusch, P.E. who is the qualified person.

Permit Requirements

The Golden Chest Mine 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 mining operation. 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<br><br>Golden Chest Mine	#S312900<br><br>Idaho Department of Lands
US EPA Stormwater Pollution Prevention Plan<br><br>For NJ Mill and Golden Chest Mine	Multi-Sector General Permit
Idaho Shallow Injection Well for<br><br>Golden Chest Mine	#S94X-0026-001<br><br>Idaho Department of Water Resources

In 2021, MSHA issued four citations for Section 104 S&S violations associated with the Golden Chest Mine and fined the Company $3,754. Reference is made to exhibit 95 to this report.

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Alder Gulch

The Alder Gulch property is a gold Exploration Stage property operated by IDR and located just north of the town of Murray in Shoshone County, Idaho. The property can be accessed via dirt road from paved Forest Highway 9. There are no facilities or existing infrastructure located on this property.

Property Ownership

The Alder Gulch property is comprised of 880 acres of patented mining claims having both surface and mineral rights. There is no underlying royalty attached to the Alder Gulch property. The acquisition of this property was funded by two tranches of secured convertible promissory notes (the “Notes”) issued in 2020 and 2021. The first tranche of Notes (2020 Notes) for 368 acres with an aggregate principal amount of US $885,000 were all converted to IDR common stock in 2020 and 2021 extinguishing the debt and releasing the land (368 acres) to the Company. A second tranche, the 2021 Notes, of secured convertible promissory Notes with an aggregate principal amount of $1,750,000 were issued in 2021 for another 512 acres. The 512 acres of land are the security underlying the Notes. The outstanding principal amount of the Notes will bear interest at an annual rate of 8.0% for a term of three years. The principal amount of the Notes will be convertible at the option of the investors for common shares of the Company at a price of US $4.90 per common share prior to the maturity date of the Notes. Interest only payments shall be made on the Notes payable, and the Company may prepay the Notes in whole or in part without written consent of the investors.

Property History

The Alder Gulch land was originally patented in the 1880’s due to its gold potential and has changed ownership only a couple of times since Idaho statehood in 1890. It was held in the same family for nearly 100 years. Timber harvesting was the main activity occurring on the property in the last century. There is no evidence of modern mineral exploration on the property, but there is evidence of placer mining of gravel deposits left by an ancient river channel along the hillside. There is also evidence of historic prospect pits and exploration adits on the Alder Gulch property.

Present Condition, Work Completed, and Exploration Plans

In 2021, the Company conducted surface sampling, geologic mapping, trenching, and re-opened an adit. Trenching uncovered two vein-systems, the Badger, and the Argus. The Argus vein zone has been tracked for 130 meters along strike through 8 trenches, each 15 meters long. Samples along these veins returned assay gold values up to 8 gpt. Of the 34 samples taken to date on the new uncovered Argus veins, 25 have anomalous gold and eight have values greater than 1 gpt Au. One sampled trench has a 45 cm banded vein interval that assayed 8.57 gpt Au with the 1 meter of wall rock below the vein assaying 0.5 gpt and the 1.5 m above the vein also assaying 0.5 gpt Au. The weighted average of this trench assays 4.68 gpt Au over a true thickness of 2.9 meters indicating a mineralized zone with good gold grades over significant widths. The Company is planning more exploration in 2022 including geologic mapping, trenching, sampling, and core drilling. As of December 31, 2021, the Company has a capitalized investment cost of $2,473,066 associated with this property.

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Geology and Mineralization

The bedrock geology at the Alder Gulch Property is composed of siltite, argillite and quartzite belonging to the Proterozoic Prichard Formation and intrusive rocks of unknown age. A major structural feature is the Murray Peak Fault, a northerly trending, high-angle reverse fault which bisects the property. The ancient stream channel of auriferous gravels, the original justification for granting of the mining patent, extends across the Alder Gulch land from the northeast to the southwest. Gold mineralization is exposed through the gravel cover in numerous prospects, like on the Evans claim where a hydrothermally altered gold bearing intrusive sill barely outcrops above the gravels. The sill contains disseminated pyrite and galena with numerous quartz vein stringers mineralized with chalcopyrite, galena, and gold-bearing tellurides. A select sample from this sill assayed 4.75 gpt gold, 15.65 gpt silver, 2.2 % lead and 7.96 ppm tellurium.

Permits and Facilities

There are no permits associated with this property, and there are no processing plants or other available facilities located on the property. IDR would need to obtain permits for surface disturbances from the Idaho Department of Lands in order to develop this property. There are no current plans to permit the property and no estimates of associated timelines to obtain such permits.

No Mineral Resources or Reserves

The Company has not determined whether there are any mineral resources or reserves with respect to Alder Gulch.

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. American Analytical is ISO 17025 Certified for Mineral and Ore Chemical Testing. Fire assaying is the only method used to quantify gold in core samples and muck samples. Occasionally Atomic Absorptions (AA) is use for multi-element analysis.

IDR’s QA/QC program has been in place since the GCLCC joint venture in 2011. The QA/QC program consists of inserting blanks and commercially certified standards into the sample stream. A blank or a standard is inserted into the sample sequence at least every 10 samples. All standards are commercially certified and have been prepared in advance by accredited labs. The QP’s reviewed the results of blank assay and only 2 of 241 samples returned an assay greater than the detection limit for fire assay, < 0.060 gpt gold.

The sampling methods meet industry standard practices and are adequate for mineral resource and mineral reserve estimation and mine planning purposes. Sampling was conducted by appropriately qualified personnel under direct supervision of appropriately qualified geologists.Sample collection procedures used meet industry best practices. Sample preparation procedures meet industry best practices. QA/QC results produce acceptable results. Security procedures are consistent with industry standards. The databases are managed in a secure area using modern, commonly used software by trained staff. The staff are experienced in the nuances of narrow vein mining and treat the model with their experience in mind.

Drillhole logs are completed using Microsoft Excel and are only accessible by mine technical staff and timestamped at the last time of change. Geologic interpretation and solid modeling are accomplished using Leapfrog. Survey volumes, block modeling, and estimation of Mineral Reserves is accomplished using Maptek’s Vulcan. Data is stored at the mine site and backed up to a separate server stored at the corporate office quarterly.

ITEM 3. LEGAL PROCEEDINGS

None

ITEM 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.

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PART II

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, 2022, there were approximately 1,200 shareholders of record of the Company's Common Stock.

Dividend Policy

The Company has not declared or paid cash dividends or made distributions in the past and the Company does not anticipate that it will pay cash dividends or make distributions in the foreseeable future. The Company currently intends to retain and reinvest future earnings, if any, to finance its operations.

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. 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

Equity 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		507,175	$	5.25		0
Equity compensation plans not approved by the board		0		0		0
Total		507,175	$	5.25		0

Recent Sales of Unregistered Securities

Occasionally, we pay for goods and services with restricted common stock. 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.

The Company closed a private placement in October 2021. 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. 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. 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 Company closed a private placement in April 2020. Under the private placement, the Company sold 105,821 units at $1.89 per unit for net proceeds of $200,000. 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 $2.52 for 24 months. The Company closed a private placement in August 2020. Under the private placement, the Company sold 694,184 units at $3.92 per unit for net proceeds of $2,706,896. 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. The transactions were strictly limited to persons who met certain minimum financial (accredited investors) or sophistication requirements. 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.

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. 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 July of 2020, 19,842 shares of the Company’s stock were issued to a holder of convertible debt at a rate of $2.52 per share in exchange for $50,000 in debt.

In the second quarter of 2021, 19,841 shares were issued in exchange for outstanding warrants for net proceeds of $50,000. In the third quarter of 2021, 26,786 shares were issued in exchange for outstanding warrants for net proceeds of $67,500. In the third quarter of 2020, 74,405 shares were issued in exchange for outstanding warrants for net proceeds of $208,334. In the fourth quarter of 2020, 47,619 shares were issued in exchange for outstanding warrants for net proceeds of $133,333.

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In the fourth quarter of 2020 1,786 shares were issued in exchange for outstanding options at a rate of $2.52 per share for net proceeds of $4,500.

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. 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. 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. In the fourth quarter of 2020, the Company issued 39,286 shares of its common stock in exchange for 80,358 outstanding options in a cashless option exercise. Of these, 35,715 shares with a fair value at the time of exercise of $125,000 were issued to management and the remaining 3,571 shares with a fair value at the time of exercise of $15,000 were issued to other employees.

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. 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.

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. 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 6. SELECTED FINANCIAL DATA

Not required for smaller reporting companies.

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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.

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 and exploration for Rare Earth elements (REE).

The Company’s properties include: the Golden Chest Mine (currently in production), the New Jersey Mill (majority ownership interest), and a 50% carried to production interest in the past producing Butte Highlands Mine located in Montana. In addition to its producing and near-term production projects, Idaho Strategic Resources, Inc. has additional gold exploration prospects, including the McKinley-Monarch and Eastern Star located in Central Idaho, and additional holdings near the Golden Chest in the Murray Gold Belt. Recently, the Company added two 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.

COVID-19 Coronavirus Pandemic Response and Impact

Following the outbreak of the COVID-19 coronavirus global pandemic ("COVID-19") in early 2020, in March 2020 the U.S. Centers for Disease Control issued guidelines to mitigate the spread and health consequences of COVID-19. The Company implemented changes to its operations and business practices to follow the guidelines and minimize physical interaction, including using technology to allow employees to work from home when possible and altering production procedures and schedules, asset maintenance, and limiting discretionary spending. As long as they are required, the operational practices implemented could have an adverse impact on our operating results due to deferred production and revenues or additional costs. The negative impact of COVID-19 remains uncertain, including on overall business and market conditions. There is uncertainty related to the potential additional impacts COVID-19 could have on our operations and financial results for the year.

Critical Accounting Estimates

We have, besides our estimates of the amount of depreciation on our assets, two critical accounting estimates. The ounces of gold contained in our process and concentrate inventory is based on assays taken at the time the ore is processed and the ounces of gold contained in shipped concentrate which is based upon assays taken prior to shipment however subject to final assays at the refinery, these shipments are also subject to the fluctuation in gold prices between our shipment date and estimated and actual final settlement date. Also, the reclamation bond obligation on our balance sheet is based on an estimate of the future cost to recover and remediate our properties as required by our permits upon cessation of our operations, and may differ when we cease operations.

Our concentrate sales sometimes involve variable consideration, as they can be subject to changes in metals prices between the time of shipment and their final settlement. 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. The embedded derivative contained in our concentrate sales is adjusted to fair value through earnings each period prior to final settlement. It is unlikely a significant reversal of revenue for any one concentrate lot will occur. As such, we use the expected value method to price the concentrate until the final settlement date occurs, at which time the final transaction price is known. At December 31, 2021, metals that had been sold but not final settled thus exposed to future price changes totaled 2,196 ounces of gold. The Company has received provisional payments on the sale of these ounces with the remaining amount due reflected in gold sales receivable.

The asset retirement obligation and asset on our balance sheet is based on an estimate of the future cost to recover and remediate our properties as required by our permits upon cessation of our operations, and may differ when we cease operations. At December 31, 2021, 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 $96,600 for the New Jersey Mine and Mill. For purposes of the estimate, we evaluated the expected life in years and costs that, initially, are comparable to rates that we would incur at the present. We are adding to the liability each year, and amortizing the asset over the estimated life, which decreases our net income in total each year. We make periodic reviews of the remaining life of the mine and other operations, and the estimated remediation costs upon closure, and adjust our account balances accordingly. 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.

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Critical Accounting Estimates

The SEC has requested that all registrants address their most critical accounting policies. 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. 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. Actual results will differ, and may differ materially from these estimates under different assumptions or conditions. Additionally, changes in accounting estimates could occur in the future from period to period. Our management has discussed the development and selection of our most critical financial estimates with the Audit and Finance Committee of our Board of Directors. The following paragraphs identify our most critical accounting policies:

Determination of Fair Values

Management determines the fair value of a financial instrument based on the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value is calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities includes consideration of non-performance risk, including the party’s own credit risk.

Impairment of Mineral Rights and Properties, Plant and Equipment

The Company assesses its mineral rights and properties, plant and equipment for possible impairment whenever events or changes in circumstances indicate the carrying value of the assets may not be recoverable. Such indicators include changes in the Company’s business plans, changes in precious metal prices and significant downward revisions of estimated mineralization quantities. If the carrying value of an asset exceeds the future undiscounted cash flows expected from the asset, an impairment charge is recorded for the excess of carrying value of the asset over its estimated fair value.

Determination as to whether and how much an asset is impaired involves management estimates on highly uncertain matters such as future commodity prices, the effects of inflation and technology improvements on operating expenses, and the outlook for global or regional demand conditions for gold and silver. However, the impairment reviews and calculations are based on assumptions that are consistent with the Company’s business plans and long-term investment decisions. Management does not believe there are impairments present in mineral rights and properties, plant, and equipment.

Reclamation and Remediation Obligations

Reclamation costs are allocated to expense over the life of the related assets and are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation and remediation costs. Reclamation obligations are based on when the spending for an existing environmental disturbance will occur. We review, on at least an annual basis, the reclamation obligation at each mine site in accordance with guidance for accounting for asset retirement obligations.

Reclamation obligations for inactive mines are accrued based on management’s best estimate of the costs expected to be incurred at a site. Such cost estimates include, where applicable, ongoing care, maintenance and monitoring costs. Changes in estimates at inactive mines are reflected in earnings in the period an estimate is revised.

Accounting for reclamation and remediation obligations requires management to make estimates unique to each mining operation of the future costs we will incur to complete the reclamation and remediation work required to comply with existing laws and regulations. Actual costs incurred in future periods could differ from amounts estimated. Additionally, future changes to environmental laws and regulations could increase the extent of reclamation and remediation work required. Any such increases in future costs could materially impact the amounts charged to earnings for reclamation and remediation.

Income Taxes

Our income tax expense and deferred tax assets and liabilities reflect management’s best assessment of estimated future taxes to be paid. Deferred income taxes arise from temporary differences between the tax and financial statement recognition of revenue and expense. In evaluating our ability to recover our deferred tax assets, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. In projecting future taxable income, we develop assumptions including the amount of future state and federal pretax operating income, the reversal of temporary differences, and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates that we are using to manage the underlying businesses. Valuation allowances are recorded as reserves against net deferred tax assets by the Company when it is determined that net deferred tax assets are not likely to be realized in the foreseeable future.

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The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations. Income tax positions must meet a more-likely-than-not recognition threshold to be recognized.

Critical Accounting Policies

We have identified our critical accounting policies, the application of which may materially affect the financial statements, either because of the significance of the financials statement item to which they relate, or because they require management’s judgment in making estimates and assumptions in measuring, at a specific point in time, events which will be settled in the future. The critical accounting policies, judgments and estimates which management believes have the most significant effect on the financial statements are set forth below:

a) Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes for items such as mineral reserves, depreciation lives and methods, potential impairment of long-lived assets, deferred income taxes, settlement pricing of gold sales, fair value of stock based compensation, estimation of asset retirement obligations and reclamation liabilities. Estimates are based on historical experience and various other assumptions that the Company believes to be reasonable. Actual results could differ from those estimates.

b) Stock-based Compensation. All transactions in which goods or services are received for the issuance of shares of the Company’s common stock or options to purchase shares of common stock are accounted for based on the fair value of the equity interest issued. The value of common stock awards is determined based upon the closing price of the Company’s stock on the date of the award. The Company estimates the fair value of stock-based compensation using the Black-Scholes model, which requires the input of some subjective assumptions. These assumptions include estimating the length of time employees will retain their vested stock options before exercising them (“expected life”), the estimated volatility of the Company’s common stock price over the expected term (“volatility”), the risk-free interest rate and the dividend yield. Changes in the subjective assumptions can materially affect the estimate of the fair value of stock-based compensation.

c) Income Taxes. Income taxes are accounted for under the liability method. Under this method deferred income tax liabilities or assets are determined at the end of each period using the tax rate expected to be in effect when the taxes are expected to be paid or recovered. A valuation allowance is recorded to reduce the deferred tax assets if there is uncertainty regarding their realization. Uncertain tax positions are evaluated in a two-step process, whereby (i) it is determined whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (ii) for those tax positions that meet the more-likely-than-not recognition threshold, the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the related tax authority would be recognized.

d) Investments. In a joint venture where the Company holds more than 50% of the voting interest and has significant influence, the joint venture is consolidated with the presentation of non-controlling interest. In determining whether significant influences exist, the Company considers its participation in policy-making decisions and its representation on the venture’s management committee.

Highlights for 2021 include:

·	For the year ending December 31, 2021, the Company processed 44,300 dry metric tonnes (dmt) at the Company’s New Jersey Mill with an average gold head grade of 3.85 grams per tonne gold (gpt).
·	IDR produced a total of 4,826 ounces of gold contained in concentrates and dore’.
·	Mined 27,125 tonnes of ore from the open pit at an average grade of 2.92 gpt gold with an average stripping ratio of 6.4 and an average daily mining rate of 1,024 tonnes per day (tpd). Tonnes and grade were lower than expected because of unmapped historic stopes where the old-timer’s mined portions of the veins.
·	Mined 17,318 tonnes of ore from the underground mine at an average grade of 5.32 gpt gold and completed 190 meters of development related to the Main Access Ramp (MAR) to access new stopes. Two ventilation raises were completed by IDR miners as well.
·	Completed 6,935 meters of core drilling at the Golden Chest with significant gold-vein intercepts in the Paymaster and Klondike areas. A highlight of the 2021 drilling included drillhole GC 21-193 which intercepted 7.3 meters of 11.5 gpt gold in the Paymaster area.
·	Increased land position at rare earth element properties in central Idaho.
·	Increased the size of the Alder Gulch Project by acquiring an additional 500 acres of patented mining claims located just west of the Golden Chest.
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Results of Operations

Our financial performance for the years ended December 31, 2021, and 2020 is summarized below:

·	Revenue from gold concentrate sales was $7,630,416 for the year ending December 31, 2021, compared to $5,674,947 for the comparable period in 2020. The increase in revenue from mining operations is the result of an increase in tonnes processed at the mill and a higher ratio of underground to open pit ore processed at the mill, resulting in a higher average gold grade. We are anticipating this higher underground ore ratio to continue for the foreseeable future.
·	Gross profit in 2021 was $487,877 compared to a gross profit of $67,546 in 2020 providing an increase in gross profit as a percentage of sales from 1.2% in 2020 to 6.4% in 2021. The percentage increase is largely due to the higher gold grade processed at the mill, as well as increased mining efficiency from our new underground equipment placed in service during the year.
·	The Company had a net loss of $3,260,361 in 2021 compared to a net loss of $739,939 for the same period in 2020 due to the planned increase in gold exploration and a non-cash charge related to an increase in stock-based compensation to employees
·	The consolidated net loss included non-cash charges of $1,977,841 ($236,493 in 2020) as follows: depreciation and amortization of $814,422 ($575,671 in 2020), accretion of asset retirement obligation of $9,953 ($9,632 in 2020), stock based compensation of $1,087,575 (none in 2020), stock issued for services of $69,673 (none in 2020), loss on write off of equipment none ($9,536 in 2020), equity income (loss) on investment in Buckskin $3,782 (none in 2020), gain on forgiveness of CARES Act loan of none ($358,346 in 2020).
·	Net loss attributable to Idaho Strategic Resources, Inc. was $3,160,169 and $642,876 in the years ended December 31, 2021, and 2020, respectively.
·	Gold sales receivable increased to $408,187 from $264,779 at December 31, 2021 compared to 2020 as a result of shipping delays related to the global shipping situation.
·	Inventories decreased as of December 31, 2021, compared to 2020 as a result of where material was in the process at the mill.
·	Exploration expenses increased in 2021 compared to 2020 as funds became available. These exploration costs were primarily associated with core drilling at the Golden Chest and rare earth exploration in Central Idaho.
·	Management, professional services, and general and administrative costs increased in 2021 compared to 2020 for reasons including stock based compensation that was awarded in 2021 (none in 2020), and an overall increase in corporate activities as the Company is growing.
·	Stock based compensation increased in 2021 compared to 2020 as the company resumed the program after forgoing any awards in 2020.
·	Mineral properties increased in 2021 with the addition of and to several properties most significantly with the addition of 508 acres to the Alder Gulch property for $1,699,965.
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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).

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, 2021, and 2020. The cost per ounce calculations are based on ounces produced. Upon sale, the Company typically receives payment at an average rate of 91% 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. AISC per ounce is an important measure that we utilize to assess net cash flow after costs for pre-development, exploration, reclamation, and sustaining capital. Current GAAP measures used in the mining industry, such as cost of goods sold do not capture all the expenditures incurred to discover, develop, and sustain gold production.

	December 31,
	2021			2020
Cost of sales and other direct production costs and depreciation, depletion, and amortization	$	7,142,539		$	5,607,401
Depreciation, depletion, and amortization		(814,422	)		(575,671	)
Change in concentrate inventory		188,815			(177,391	)
Cash Cost	$	6,516,932		$	4,854,339
Exploration		1,417,605			303,291
Sustaining capital		676,340			515,742
General and administrative		1,319,145			397,315
Less stock-based compensation and other non-cash items		(1,153,466	)		(9,632	)
All in sustaining costs	$	8,776,556		$	6,061,055
Divided by ounces produced		4,827			3,755
Cash cost per ounce	$	1,350.10		$	1,292.77
All in sustaining cost (AISC) per ounce	$	1,818.22		$	1,614.13

Financial Condition and Liquidity

	For the Years Ended December 31,
Net cash provided (used) by:	2021			2020
Operating activities	$	(1,351,027	)	$	(482,418	)
Investing activities		(3,090,946	)		(1,593,541	)
Financing activities		3,878,546			4,398,108
Net change in cash and cash equivalents		(563,427	)		2,322,149
Cash and cash equivalents, beginning of period		2,539,945			217,796
Cash and cash equivalents, end of period	$	1,976,518		$	2,539,945

The Company has accumulated deficit of approximately $15.8 million at December 31, 2021 and incurred a consolidated net loss in 2021 of $3,260,361. The Company’s working capital at December 31, 2021 is $1,438,819. The Company is currently producing from the open-pit and underground at the Golden Chest. During 2021, production generated negative cash flow from operations of $1,351,027 compared to a negative cash flow used in operations of $482,418 in 2020. 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. 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 12 months.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not required for smaller reporting companies.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the board of directors of Idaho Strategic Resources, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Idaho Strategic Resources, Inc. (the "Company") as of December 31, 2021 and 2020, the related consolidated statements of operations, changes in stockholders’ equity and cash flows for each of the years then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

The Impact of Ore Reserves on Mineral Properties

As discussed in Note 2 to the consolidated financial statements, the Company’s ore reserves are estimated by management’s specialists based on the amount of metals that could be economically and legally extracted or produced at the time of the reserve determination. Management’s calculations of ore reserves are based on financial, engineering, and geological estimates, including future metals prices and operating costs.

We identified the assessment of the impact of ore reserves as a critical audit matter. Costs of developing ore reserves are capitalized and amortized using the units-of-production method over estimated recoverable reserves. Reserves also serve as the basis for assessing the recoverability of the carrying value of Company’s mineral properties.

The reserve estimates are based on several significant assumptions that are developed internally by management’s specialists, including the amount of metals to be extracted, future operating costs, and estimated future capital expenditures. Auditing these elements involved especially challenging and subjective auditor judgment due to the nature and extent of audit effort required to address these matters.

The primary procedures we performed to address this critical audit matter included:

·	Evaluating management’s process for determining estimates of mineralized material, including drilling, sampling, and assaying data.
·	Analyzing the objectivity, experience, and qualification of the Company’s mine engineers.
·	Evaluating the reasonableness of the reserves estimate by reviewing management’s assessment of historical drilling, sampling, and assaying activities, which are used in the estimate of proven and probable reserves.
·	Assessing the reasonableness of management’s determination of future operating costs and estimated future capital expenditures through comparison to current and past performance at the mine site, including evaluating against evidence obtained in other areas of the audit.

Assure CPA, LLC (formerly DeCoria, Maichel & Teague, P.S.)

We have served as the Company’s independent auditor since 2003.

Spokane, Washington

March 31, 2022

Firm ID 444

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Idaho Strategic Resources, Inc.

Table of Contents

	Page
Consolidated Balance Sheets, December 31, 2021 and 2020	33
Consolidated Statements of Operations for the years ended December 31, 2021 and 2020	34
Consolidated Statement of Changes in Stockholders’ Equity for the years ended December 31, 2021 and 2020	35
Consolidated Statements of Cash Flows for the years ended December 31, 2021 and 2020	36
Notes to Financial Statements	37-50
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Idaho Strategic Resources, Inc.

Consolidated Balance Sheets

December 31, 2021, and 2020

	2021			2020
ASSETS
Current assets:
Cash and cash equivalents	$	1,976,518		$	2,539,945
Gold sales receivable		408,187			264,779
Inventories		213,722			402,537
Joint venture receivable		4,442			4,177
Other current assets		334,443			224,063
Total current assets		2,937,312			3,435,501
Property, plant and equipment, net of accumulated depreciation		8,255,961			7,227,144
Mineral properties, net of accumulated amortization		5,843,186			3,455,233
Investment in Buckskin		332,728			-
Investment in joint venture		435,000			435,000
Reclamation bond		103,320			103,320
Deposits		11,694			12,863
Total assets	$	17,919,201		$	14,669,061
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	647,218		$	687,331
Accrued payroll and related payroll expenses		174,110			143,485
Notes payable related parties, current portion		10,543			37,078
Notes payable, current portion		664,153			339,704
Small Business Administration loan and interest, current portion		2,469			1,741
Total current liabilities		1,498,493			1,209,339
Asset retirement obligation		172,348			173,001
Notes payable related parties, long term		106,068			117,234
Convertible debt		1,950,000			1,010,000
Convertible debt-related party		-			25,000
Notes payable, long term		961,748			709,072
Small Business Administration loan and interest, long term		166,742			161,251
Total long-term liabilities		3,356,906			2,195,558
Total liabilities		4,855,399			3,404,897
Commitments and Contingencies		-			-
Stockholders’ equity:
Preferred stock, no par value, 1,000,000 shares authorized; no shares issued or outstanding		-			-
Common stock, no par value, 200,000,000 shares authorized; 10,940,969 and 9,826,665 shares issued and outstanding, respectively		26,004,756			20,986,062
Accumulated deficit		(15,832,955	)		(12,672,786	)
Total Idaho Strategic Resources, Inc. stockholders’ equity		10,171,801			8,313,276
Non-controlling interest		2,892,001			2,950,888
Total stockholders’ equity		13,063,802			11,264,164
Total liabilities and stockholders’ equity	$	17,919,201		$	14,669,061

The accompanying notes are an integral part of these consolidated financial statements.

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Idaho Strategic Resources, Inc.

Consolidated Statements of Operations

For the Years Ended December 31, 2021, and 2020

	2021			2020
Revenue-gold sales	$	7,630,416		$	5,674,947
Cost of sales:
Cost of sales and other direct production costs		6,328,117			5,031,730
Depreciation and amortization		814,422			575,671
Total cost of sales		7,142,539			5,607,401
Gross profit		487,877			67,546
Other operating expenses:
Exploration		1,417,605			303,291
Loss on write-off of equipment		-			9,536
Management		518,011			169,493
Professional services		293,402			183,017
General and administrative		1,319,145			397,315
Total other operating expenses		3,548,163			1,062,652
Income (loss) from operations		(3,060,286	)		(995,106	)
Other (income) expense:
Gain on forgiveness of CARES Act loan		-			(358,346	)
Equity income on investment in Buckskin		(3,782	)
Timber revenue		(4,338	)		(49,798	)
Timber expense		-			3,494
Interest income		(146	)		(1,696	)
Interest expense		208,341			151,179
Total other (income) expense		200,075			(255,167	)
Net income (loss)		(3,260,361	)		(739,939	)
Net income (loss) attributable to non-controlling interest		(100,192	)		(97,063	)
Net income (loss) attributable to Idaho Strategic Resources, Inc.	$	(3,160,169	)	$	(642,876	)
Net income (loss) per common share-basic and diluted	$	(0.31	)	$	(0.07	)
Weighted average common shares outstanding-basic and diluted		10,192,465			9,198,015

The accompanying notes are an integral part of these consolidated financial statements.

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Idaho Strategic Resources, Inc.

Consolidated Statements of Changes in Stockholders’ Equity

For the Years Ended December 31, 2021, and 2020

	** <br><br>Common Stock**				Accumulated<br><br>Deficit Attributable<br><br>to Idaho<br><br>Strategic			Non-Controlling			Stockholders’
	Shares		Amount		Resources, Inc.			Interest			Equity
Balance, December 31, 2019		8,843,725	$	17,682,999	$	(12,029,910	)	$	3,003,888		$	8,656,977
Contribution from non-controlling interest in Mill JV		-		-		-			44,063			44,063
Issuance of common stock for cash and warrants net of issuance costs		800,004		2,906,896		-			-			2,906,896
Issuance of common stock for options exercised		1,786		4,500		-			-			4,500
Issuance of common stock for warrants exercised		122,024		341,667		-			-			341,667
Issuance of common stock for cashless option exercise		39,286		-		-			-			-
Conversion of convertible debt to common stock		19,840		50,000		-			-			50,000
Net loss		-		-		(642,876	)		(97,063	)		(739,939	)
Balance, December 31, 2020		9,826,665	$	20,986,062	$	(12,672,786	)	$	2,950,888		$	11,264,164
Contribution from non-controlling interest in Mill JV		-		-		-			41,305			41,305
Issuance of common stock for cash and warrants net of issuance costs		578,579		2,580,000		-			-			2,580,000
Issuance of common stock for services		10,726		69,673		-			-			69,673
Issuance of common stock for warrants exercised		46,627		117,500		-			-			117,500
Issuance of common stock for investment in Buckskin		76,298		328,946		-			-			328,946
Issuance of common stock for cashless option exercise		70,725		-		-			-			-
Issuance of options to management, directors, and employees		-		1,087,575		-			-			1,087,575
Conversion of convertible debt to common stock		331,349		835,000		-			-			835,000
Net loss		-		-		(3,160,169	)		(100,192	)		(3,260,361	)
Balance, December 31, 2021		10,940,969	$	26,004,756	$	(15,832,955	)	$	2,892,001		$	13,063,802

The accompanying notes are an integral part of these consolidated financial statements.

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Idaho Strategic Resources, Inc.

Consolidated Statements of Cash Flows

For the Years Ended December 31, 2021, and 2020

	2021			2020
Cash flows from operating activities:
Net loss	$	(3,260,361	)	$	(739,939	)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation and amortization		814,422			575,671
Accretion of asset retirement obligation		9,953			9,632
Stock based compensation		1,087,575			-
Stock issued for services		69,673			-
Loss on write-off of equipment		-			9,536
Equity income on investment in Buckskin		(3,782	)		-
Gain on forgiveness of CARES Act loan		-			(358,346	)
Change in operating assets and liabilities:
Gold sales receivable		(143,408	)		41,145
Inventories		188,815			(177,391	)
Joint venture receivable		(265	)		(1,767	)
Other current assets		(110,380	)		(65,230	)
Accounts payable and accrued expenses		(33,894	)		161,188
Accrued payroll and related payroll expenses		30,625			63,083
Net cash used by operating activities		(1,351,027	)		(482,418	)
Cash flows from investing activities:
Purchases of property, plant, and equipment		(664,645	)		(502,879	)
Additions to mineral properties		(2,414,607	)		(1,077,799	)
Deposit on equipment		(11,694	)		(12,863	)
Net cash used by investing activities		(3,090,946	)		(1,593,541	)
Cash flows from financing activities:
Sales of common stock and warrants, net of issuance costs		2,580,000			2,906,896
Proceeds from exercise of warrants		117,500			341,667
Proceeds from exercise of stock options		-			4,500
Principal payments on notes payable		(572,558	)		(439,902	)
Principal payments on notes, related parties		(37,701	)		(62,362	)
Issuance of convertible debt		1,750,000			1,085,000
Proceeds from Small Business Administration loans		-			518,246
Contributions from non-controlling interest		41,305			44,063
Net cash provided by financing activities		3,878,546			4,398,108
Net change in cash and cash equivalents		(563,427	)		2,322,149
Cash and cash equivalents, beginning of year		2,539,945			217,796
Cash and cash equivalents, end of year	$	1,976,518		$	2,539,945
Supplemental disclosure of cash flow information:
Interest paid in cash, net of amount capitalized	$	257,614		$	148,086
Non-cash investing and financing activities:
Deposit applied to purchase of equipment and mineral property	$	12,863		$	25,000
Notes payable for equipment purchase		1,149,683			283,154
Common stock issued for investment in Buckskin		328,946			-
Conversion of convertible debt to common stock		835,000			50,000

The accompanying notes are an integral part of these consolidated financial statements.

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Idaho Strategic Resources, Inc.

Notes to Consolidated Financial Statements

1. Description of Business

Idaho Strategic Resources, Inc. (“the Company”) was incorporated as an Idaho corporation on July 18, 1996, as New Jersey Mining Company. On December 6, 2021 New Jersey Mining Company changed its name to Idaho Strategic Resources Inc. and also finalized a 1 for 14 reverse stock split of its common stock as previously approved by shareholders at a Special Meeting of the Shareholders held on October 6, 2021. On the date of the reverse stock split, every fourteen (14) shares of New Jersey Mining Company were automatically converted into one issued and outstanding share of Idaho Strategic Resources, Inc. common stock without any change in the par value per share. The Company’s primary business is exploring for, developing, and extracting gold, and to a lesser extent, silver, and base metal mineral resources in the Greater Coeur d’Alene Mining District of North Idaho. From an operational perspective, the Company 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. With over 7,000 acres of patented and unpatented land, the Company has the largest private land position in the area following its consolidation of the Murray Gold Belt for the first time in over 100-years.

The Company also has an expanded focus on identifying and exploring Critical Minerals (Rare Earth Minerals). 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). 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.

2. Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its majority-owned subsidiary, the New Jersey Mill Joint Venture (“NJMJV”). Intercompany accounts and transactions are eliminated. The portion of NJMJV partially owned by other investors is presented as non-controlling interest on the consolidated balance sheets, statements of operations, and statement of changes in stockholders’ equity.

Accounting for Investments in Joint Ventures and Equity Method Investments

Investment in Joint Ventures

For joint ventures where the Company holds more than 50% of the voting interest and has significant influence, the joint venture is consolidated with the presentation of non-controlling interest. In determining whether significant influence exists, the Company considers its participation in policy-making decisions and its representation on the venture’s management committee.

For joint ventures in which the Company does not have joint control or significant influence, the cost method is used. For those joint ventures in which there is joint control between the parties, the equity method is utilized whereby the Company’s share of the ventures’ earnings and losses is included in the statement of operations as earnings in joint ventures and its investments therein are adjusted by a similar amount. The Company periodically assesses its investments in joint ventures for impairment. If management determines that a decline in fair value is other than temporary it will write-down the investment and charge the impairment against operations.

Equity Method Investments

Investments in companies and joint ventures in which we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting. In determining whether significant influence exists, the Company considers its participation in policy-making decisions and representation on governing bodies. Under the equity method of accounting, our share of the net earnings or losses of the investee are included in net income (loss) in the consolidated statements of operations. We evaluate equity method investments whenever events or changes in circumstance indicate the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. At December 31, 2021, the Company’s 37% common stock holding of Buckskin Gold and Silver, Inc. is accounted for using the equity method (Note 9).

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Notes to Consolidated Financial Statements

2. Summary of Significant Accounting Policies (continued)

At December 31, 2021 and 2020, the Company’s percentage ownership and method of accounting for each joint venture and equity method investment is as follows:

	December 31, 2021					December 31, 2020
Joint Venture	%<br><br>Ownership			Significant<br><br>Influence?	Accounting<br><br>Method	%<br><br>Ownership			Significant<br><br>Influence?		Accounting<br><br>Method
NJMJV		65	%	Yes	Consolidated		65	%	Yes		Consolidated
Butte Highlands Joint Venture (“BHJV”)		50	%	No	Cost		50	%	No		Cost
Buckskin Gold and Silver		37	%	Yes	Equity		-			-		-

Non-controlling Interest

Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the Company’s stockholders’ equity and its net income (loss). Non-controlling interests represent non-controlling investor’s initial contribution at the date of the original acquisition, ongoing contributions, and percentage share of earnings since inception.

Use of Estimates ****

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes for items such as mineral reserves, depreciation lives and methods, potential impairment of long-lived assets, deferred income taxes, settlement pricing of gold sales, fair value of stock based compensation, estimation of asset retirement obligations and reclamation liabilities. Estimates are based on historical experience and various other assumptions that the Company believes to be reasonable. Actual results could differ from those estimates.

Revenue Recognition

Gold Revenue Recognition and Receivables-Sales of gold sold directly to customers are recorded as revenues and receivables upon completion of the performance obligations and transfer of control of the product to the customer. For concentrate sales, the performance obligation is met, the transaction price can be reasonably estimated, and revenue is recognized generally at the time of shipment at estimated forward prices for the anticipated month of settlement. The embedded derivative contained in our concentrate sales is adjusted to fair value through earnings each period prior to final settlement. Due to the time elapsed from shipment to the customer and the final settlement with the customer, prices at which sales of our concentrates will be settled are estimated. Previously recorded sales and accounts receivable are adjusted to estimated settlement metals prices until final settlement by the customer. For sales of dore’ and metals from doré, the performance obligation is met, the transaction price is known, and revenue is recognized at the time of transfer of control of the agreed-upon metal quantities to the customer by the refiner.

Sales and accounts receivable for concentrate shipments are recorded net of charges by the customer for treatment, refining, smelting losses, and other charges negotiated with the customers. Charges are estimated upon shipment of concentrates based on contractual terms, and actual charges typically do not vary materially from estimates. Costs charged by customers include fixed costs per ton of concentrate and price escalators. Refining, selling, and shipping costs related to sales of doré and metals from doré are recorded to cost of sales as incurred. See Note 13 for more information on our sales of products.

Other Revenue Recognition-Revenue from harvest of raw timber is recognized when the performance obligation under a contract and transfer of control have both been completed. Sales of timber found on the Company’s mineral properties are not a part of normal operations.

Inventories

Inventories include concentrate inventory and supplies inventory. Concentrate inventory is valued at the lower of full cost of production or estimated net realizable value based on current metal prices. Costs consist of mining, transportation, royalties, and milling costs including applicable overhead, depreciation, depletion, and amortization relating to the operations. Costs are allocated based on the stage at which the ore is in the production process. Supplies inventory is stated at the lower of first-in, first-out weighted average cost or estimated net realizable value.

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Notes to Consolidated Financial Statements

2. Summary of Significant Accounting Policies (continued)

Income Taxes

Income taxes are recognized in accordance with Accounting Standards Codification (“ASC”) 740 Income Taxes, whereby deferred income tax liabilities or assets at the end of each period are determined using the tax rate expected to be in effect when the taxes are actually paid or recovered. A valuation allowance is recognized on deferred tax assets when it is more likely than not that some or all of these deferred tax assets will not be realized.

Uncertain tax positions are evaluated in a two-step process, whereby (i) it is determined whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (ii) for those tax positions that meet the more-likely-than-not recognition threshold, the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the related tax authority would be recognized.

Fair Value Measurements

When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period are included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date. At December 31, 2021 and 2020, the Company did not have any assets or liabilities that were valued at a fair value measurement other than its gold sales receivable. Due to the time elapsed from shipment to the customer and the final settlement with the customer, management must estimate the prices at which sales of gold concentrates will be settled. Previously recorded sales and accounts receivable are adjusted to estimated settlement metals prices until final settlement by the customer. See Note 13 for further information.

Financial Instruments

The carrying amounts of financial instruments including cash and cash equivalents, reclamation bond, notes payable to related parties, notes payable, and the Small Business Administration loan approximate their fair values. The fair value of the convertible notes payable at December 31, 2021 is $2,922,923 based on the convertible rate and the trading price of the Company’s stock at December 31, 2021.

Net Income (Loss) Per Share

Net income (loss) per share is computed by dividing net income (loss) attributable to the Company excluding net income (loss) attributable to a non-controlling interest by the weighted average number of common shares outstanding during the year. Diluted net income (loss) per share reflects the potential dilution that could occur from common shares issuable through stock options, warrants, and other convertible securities. For the years ended December 31, 2021, and 2020, potentially dilutive common stock equivalents excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive are as follows:


Stock options	507,175	150,000
Stock purchase warrants	669,467	426,788
Convertible debt	392,866	367,064
Total	1,569,508	943,852

Reclassifications

Certain prior period amounts have been reclassified to conform to the 2021 financial statement presentation. Reclassifications had no effect on net income (loss), stockholders’ equity, or cash flows as previously reported.

Cash and Cash Equivalents

The Company considers cash in banks and other deposits with an original maturity of three months or less when purchased to be cash and cash equivalents. These deposit balances may at times exceed federally insured limits. No losses have been recognized because of these balances.

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Notes to Consolidated Financial Statements

2. Summary of Significant Accounting Policies (continued)

Property, Plant and Equipment

Property, plant, and equipment are stated at cost. Depreciation and amortization are based on the estimated useful lives of the assets and are computed using straight-line or units-of-production methods. The expected useful lives of most of the Company’s buildings are up to 50 years and equipment life expectancy ranges between 2 and 10 years. When assets are retired or sold, the costs and related allowances for depreciation and amortization are eliminated from the accounts and any resulting gain or loss is reflected in operations.

Mineral Properties

Significant payments related to the acquisition of mineral properties, mineral rights, and mineral leases are capitalized. If a commercially mineable ore body is discovered, such costs are amortized when production begins using the units-of-production method based on estimated reserves. If no commercially mineable ore body is discovered, or such rights are otherwise determined to have no value, such costs are expensed in the period in which it is determined the property has no future economic value.

Consideration received by the Company pursuant to joint ventures or mineral interest agreements is applied against the carrying value of the related mineral interest. When and if payments received exceed the carrying value, the excess amount is recognized as a gain in the consolidated statement of operations in the period the consideration is received.

Interest Capitalization

When capital projects are funded within the reporting period for which cash is paid which could have been used for debt reduction an amount equal to 10% of the capital project expenditure in interest expense is capitalized in mineral properties.

Mine Exploration and Development Costs

The Company expenses exploration costs as such in the period they occur. The mine development stage begins once the Company identifies ore reserves which is based on a determination whether an ore body can be economically developed. Expenditures incurred during the development stage are capitalized as deferred development costs and include such costs for drifts, ramps, and infrastructure. Costs to improve, alter, or rehabilitate primary development assets which appreciably extend the life, increase capacity, or improve the efficiency or safety of such assets are also capitalized. The development stage ends when the production stage of ore reserves begins. Amortization of deferred development costs is calculated using the units-of-production method over the expected life of the operation based on the estimated recoverable mineral ounces.

Pre-Development Activities

Pre-development activities involve cost incurred in the exploration stage that may ultimately benefit production, such as underground ramp development, pumping, and open-pit development, which are expensed due to the lack of evidence of economic development, which is necessary to demonstrate future recoverability of these expenses. These costs are charged to operations as incurred.

Claim Fees

Unpatented claim fees paid at time of staking are expensed when incurred. Recurring renewal fees which are paid annually are recorded as other current assets and expensed over the course of the year.

Impairment of Long-Lived Assets

The Company evaluates the carrying amounts of its long-lived assets for impairment whenever events and circumstances indicate the carrying value may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. Estimated undiscounted future net cash flows from each mineral property are calculated using estimated future production, three-year average metals prices, operating capital and costs, and reclamations costs. An impairment loss is recognized when the estimated discounted future cash flows expected to result from the use of an asset are less than the carrying amount of the asset. The Company’s estimates of future cash flows are subject to risks and uncertainties. It is reasonably possible that changes in estimates could occur which may affect the expected recoverability of the Company’s investments in mineral properties.

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Notes to Consolidated Financial Statements

2. Summary of Significant Accounting Policies (continued)

Asset Retirement Obligations and Remediation Costs

Mineral properties are subject to standards for mine reclamation that have been established by various governmental agencies. Asset retirement obligations are related to the retirement of the mine when a contractual obligation has been established and a reasonable estimate of fair value can be determined. These obligations are initially measured at fair value with the resulting cost capitalized at the present value of estimated reclamation costs. An asset and a related liability are recorded for the fair value of these costs. The liability is accreted, and the asset amortized over the life of the related asset. Adjustments are made for changes resulting from either the timing or amount of the original estimate underlying the obligation. If there is an impairment to an asset’s carrying value and a decision is made to permanently close the property, changes to the liability are recognized and charged to the provision for closed operations and environmental matters. Separate from asset retirement obligations, the Company records liability for remediation costs when a reasonable estimate of fair value can be determined. Accrued remediation costs are not discounted.

Reclamation Bond

Various laws and permits require that financial assurances be in place for certain environmental and reclamation obligations and other potential liabilities. At December 31, 2021 and 2020, the Company had a $103,320 reclamation bond for the Golden Chest Mine.

Stock Based Compensation

All transactions in which goods or services are received for the issuance of shares of the Company’s common stock or options to purchase shares of common stock are measured at fair value of the equity interest issued. The fair value of common stock awards is determined based upon the closing price of the Company’s stock on the date of the award. The Company estimates the fair value of stock-based compensation of options using the Black-Scholes model, which requires the input of some subjective assumptions. These assumptions include estimating the length of time employees will retain their vested stock options before exercising them (“expected life”), the estimated volatility of the Company’s common stock price over the expected term (“volatility”), the risk-free interest rate and the dividend yield. Changes in the subjective assumptions can materially affect the estimate of the fair value of stock-based compensation.

COVID-19 Coronavirus Pandemic Response and Impact

Following the outbreak of the COVID-19 coronavirus global pandemic (“COVID-19”) in early 2020, in March 2020 the U.S. Centers for Disease Control issued guidelines to mitigate the spread and health consequences of COVID-19. The impact of the guidelines on our business has been minimal. The Company implemented changes to its operations and business practices to follow the guidelines and minimize physical interaction, including using technology to allow employees to work from home when possible and altering production procedures and schedules, asset maintenance, and limiting discretionary spending. As long as they are required, the operational practices implemented could have an adverse impact on our operating results due to deferred production and revenues or additional costs. The negative impact of COVID-19 remains uncertain, including on overall business and market conditions. It is possible that future restrictions could have an adverse impact on our operations or financial results beyond 2021.

Going Concern

The Company is currently producing from both the open-pit and underground at the Golden Chest Mine. In the past, the Company has been successful in raising required capital from sale of common stock, forward gold contracts, and debt. As a result of its planned production, equity sales and potential debt borrowings or restructurings, management believes cash flows from operations and existing cash are sufficient to conduct planned operations and meet contractual obligations for the next 12 months.

Recent Accounting Pronouncements

Accounting Standards Updates Adopted

In December 2019, the FASB issued ASU No. 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The update contains several provisions intended to simplify the accounting for income taxes. The update is effective for fiscal years beginning after December 15, 2020. The update was adopted as of January 1, 2021, and its adoption did not have a material impact on the Company’s consolidated financial statements.

Accounting Standards Updates to Become Effective in Future Periods

In August 2020, the FASB issued ASU No. 2019-12 Debt with Conversion and Other Options (Subtopic 470 -20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815 -40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The update is to address issues identified as a result of the complexity associated with applying generally accepted accounting principles for certain financial instruments with characteristics of liabilities and equity. The update is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years and with early adoption permitted. Management is evaluating the impact of this update on the Company’s consolidated financial statements.

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Notes to Consolidated Financial Statements

3. Inventories

At December 31, 2021 and 2020, inventories consisted of the following:

	2021		2020
Concentrate inventory
In process	$	41,082	$	90,743
Finished goods		97,074		230,318
Total concentrate inventory		138,156		321,061
Supplies inventory
Mine parts and supplies		54,998		52,600
Mill parts and supplies		20,568		28,876
Total supplies inventory		75,566		81,476
Total	$	213,722	$	402,537

4. Property, Plant and Equipment

Property, plant and equipment at December 31, 2021 and 2020 consisted of the following:

	2021			2020
Mill
Land	$	225,289		$	225,289
Building		536,193			536,193
Equipment		4,192,940			4,192,940
		4,954,422			4,954,422
Less accumulated depreciation		(1,085,730	)		(914,095	)
Total mill		3,868,692			4,040,327
Buildings and equipment
Buildings		324,075			297,932
Equipment		5,042,915			3,250,551
		5,366,990			3,548,483
Less accumulated depreciation		(1,847,191	)		(1,229,136	)
Total building and equipment		3,519,799			2,319,347
Land
Bear Creek		266,934			266,934
BOW		230,449			230,449
Eastern Star		250,817			250,817
Gillig		79,137			79,137
Highwater		40,133			40,133
Total land		867,470			867,470
Total	$	8,255,961		$	7,227,144
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Notes to Consolidated Financial Statements

5. Mineral Properties

Mineral properties at December 31, 2021 and 2020 are as follows:

	2021			2020
Golden Chest
Mineral Property	$	1,577,669		$	1,539,001
Infrastructure		1,056,037			468,669
Total Golden Chest		2,633,706			2,007,670
New Jersey		248,289			248,289
McKinley-Monarch		200,000			200,000
Butte Potosi		274,440			274,440
Alder Gulch		2,473,066			773,101
Park Copper		78,000			-
Less accumulated amortization		(64,315	)		(48,267	)
Total	$	5,843,186		$	3,455,233

For the year ended December 31, 2021, $49,273 of interest expense was capitalized in association with the ramp access project at the Golden Chest. No interest was capitalized in 2020.

Golden Chest

The Golden Chest is an open pit and underground mine project currently producing for the Company located near Murray, Idaho consisting of 25 patented and 70 unpatented mining claims. A 2% Net Smelter Royalty is payable on production at the Golden Chest to a former joint venture partner. Royalty expense of $151,763 and $114,204 was recognized as costs of sales and other direct production costs in the years ended December 31, 2021, and 2020, respectively.

New Jersey

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

McKinley-Monarch

The McKinley-Monarch project is located near the town of Lucille, Idaho. The project consists of 28 unpatented claims totaling 560 acres. The Company started exploring the property in 2013.

Butte Potosi

In 2018, the Company purchased the Butte and Potosi properties near its Golden Chest mine. These properties consists of patented mining claims some of which include both the surface and mineral rights and some of which include only the mineral rights. There is an underlying 2% net smelter return on all ores mined and shipped from any lode production from the patented claims on the Butte property.

Alder Gulch

In February 2020, the Company purchased property located in Alder Gulch just north of Murray in Shoshone County, Idaho which consists of 368 acres of real property, including patented mining claims with both surface and mineral rights. In February 2021, the Company paid $10,000 and in April of 2021, the Company paid an additional $1,689,965 to complete the purchase of approximately 512 acres of land adjacent to the Alder Gulch property for a total of $1,699,965. The Company started exploring the property in 2020.

Park Copper

In August 2021, the Company paid $78,000 in cash for 100 acres of patented mineral property in Shoshone County referred to as Park Copper.

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Notes to Consolidated Financial Statements

6. Notes Payable

At December 31, 2021 and 2020, notes payable are as follows:

		2020
Paus 2 yrd. LHD, 60-month note payable, 4.78% interest rate payable through October 2024, monthly payments of 5,181	164,422	$	217,354
Paus 2 yrd. LHD, 60-month note payable, 3.45% interest rate payable through July 2024, monthly payments of 4,847	143,547		195,768
Compressor, 48-month note payable, 5.25% interest rate payable monthly through January 2022, monthly payments of 813	410		9,958
CarryAll transport, 36-month note payable, 4.5% interest rate payable monthly through June 2024, monthly payments of 627	17,752		-
CarryAll transport, 36-month note payable, 4.5% interest rate payable monthly through February 2024, monthly payments of 303	7,501		-
Atlas Copco loader, 60-month note payable, 10.5% interest rate payable monthly through June 2023, monthly payments of 3,550	58,866		93,265
Sandvik LH203 LHD, 36-month note payable, 4.5% interest payable monthly through May 2027, monthly payments of 10,352	283,955		-
Doosan Compressor, 36-month note payable, 6.99% interest payable monthly through July 2024, monthly payments of 602	17,064		-
Caterpillar 306 excavator, 48-month note payable, 4.6% interest payable monthly through November 2024, monthly payments of 1,512	49,421		64,896
Caterpillar 938 loader, 60-month note payable, 6.8% interest rate payable monthly through August 2023, monthly payments of 3,751	70,734		109,492
Caterpillar R1600 LHD, 48-month note payable, 4.5% interest rate payable through January 2025, monthly payments of 17,125	590,535		-
Caterpillar AD22 haul truck, 48-month note payable, 6.45% interest rate payable monthly through June 2023, monthly payments of 12,979	221,694		358,043
Total notes payable	1,625,901		1,048,776
Due within one year	664,153		339,704
Due after one year	961,748	$	709,072

All values are in US Dollars.

All notes are collateralized by the property or equipment purchased in connection with each note. Future principal payments of debt at December 31, 2021 are as follows:

2022	$	664,153
2023		584,778
2024		354,770
2025		22,200
Total	$	1,625,901
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Notes to Consolidated Financial Statements

7. Asset Retirement Obligations

The Company has established asset retirement obligations associated with the ultimate closing of its mineral properties where there has been or currently is operations. Obligations were established for the New Jersey mill in 2014 and the Golden Chest mine in 2016. Activity for the years ended December 31, 2021, and 2020 is as follows:

	2021			2020
Balance at January 1	$	173,001		$	163,369
Accretion expense		9,953			9,632
Change in asset retirement obligation estimate		(10,606	)		-
Balance at December 31	$	172,348		$	173,001

The change in the asset retirement obligation estimate during the current year related to a revision to the estimated start of the reclamation process to a later date at our Golden Chest properties.

8. Joint Venture Arrangements

New Jersey Mill Venture Agreement (“NJMJV”)

In January 2011, the Company and United Mine Services, Inc. (“UMS”) now Crescent Silver, LLC (Crescent) entered into a joint venture agreement relating to the New Jersey mineral processing plant. To earn a 35 percent interest in the venture, UMS provided $3.2 million funding to expand the processing plant to 15 tonnes/hr. The Company is the operator of the venture and charges operating costs to Crescent for milling its ore up to 7,000 tonnes/month, retain a milling capacity of 3,000 tonnes/month, and as the operator of the venture receive a fee of $2.50/tonne milled. As of December 31, 2021, and 2020, an account receivable existed with the Mill Joint Venture from Crescent for $4,442 and $4,177, respectively.

Butte Highlands Joint Venture

On January 29, 2016, the Company purchased a 50% interest in Butte Highlands JV, LLC (“BHJV”) for a total consideration of $435,000. Highland Mining, LLC (“Highland”) is the other 50% owner and manager of the joint venture. Under the operating agreement, Highland will fund all future project exploration and mine development costs. The Agreement stipulates that Highland is manager of BHJV and will manage BHJV until such time as all mine development costs, less $2 million are distributed to Highland out of the proceeds from future mine production. The Company has determined that because it does not currently have significant influence over the joint venture’s activities, it will account for its investment on a cost basis.

9. Investment in Buckskin

In August 2021 the Company exchanged 45,940 shares of the Company’s common stock for 22% of Buckskin Gold and Silver Inc. (“Buckskin”). The Company’s closing share price on the date of the agreement (August 18, 2021) was recorded as the cost basis for the investment. In October 2021 the Company exchanged an additional 30,358 shares of the Company’s common stock for an additional 15% of Buckskin. The Company’s closing share price on the date of the exchange (October 15, 2021) was recorded as the cost basis for the investment addition. This investment in Buckskin is being accounted for using the equity method resulted in recognition of equity income on the investment of $3,782 during the year ended December 31, 2021. The Company makes an annual payment of $12,000 to Buckskin per a lease covering 218 acres of patented mining claims. As of December 31, 2021, the Company holds 37% of Buckskins outstanding shares.

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Notes to Consolidated Financial Statements

10. Income Taxes

The Company did not recognize a provision (benefit) for income taxes for the years ended December 31, 2021 and 2020.

The significant components of net deferred tax assets at December 31, 2021 and 2020 were as follows:

	2021			2020
Deferred tax assets
Net operating loss carry forward	$	4,796,000		$	3,984,500
Mineral properties		241,300			201,200
Asset retirement obligation		4,600			8,400
Stock based compensation		503,400			219,000
Other		16,800			14,800
Total deferred tax assets		5,562,100			4,427,900
Valuation allowance		(4,017,800	)		(3,286,100	)
		1,544,300			1,141,800
Deferred tax liabilities
Property, plant, and equipment		(1,544,300	)		(1,141,800	)
Total deferred tax liabilities		(1,544,300	)		(1,141,800	)
Net deferred tax assets	$	-		$	-

At December 31, 2021 and 2020, the Company had net deferred tax assets principally arising from the net operating loss carryforward for income tax purposes. As management of the Company cannot determine that it is more likely than not that the Company will realize the benefit of the deferred tax assets, a valuation allowance equal to 100% of the net deferred tax asset exists at December 31, 2021 and 2020.

At December 31, 2021 the Company had net operating loss carry forwards of approximately $18,118,000 for both federal and state purposes, $11,100,000 of which expire between 2021 through 2037. The remaining balance of $7,018,000 will never expire but its utilization is limited to 80% of taxable income in any future year.

The income tax provision (benefit) for the years ended December 31, 2021 and 2020 differ from the statutory rate of 21% as follows:

	2021			2020
Provision (benefit) at statutory rate for the period	$	(683,600	)	$	(155,400	)
State taxes, net of federal taxes		(178,200	)		(43,300	)
Non-taxable item-CARES Act loan forgiven		-			(96,200	)
Change in rate reconciliation		57,000			-
Adjustment of prior year tax estimates		73,100			(5,800	)
Increase (decrease) in valuation allowance		731,700			300,250
Total provision (benefit)	$	-		$	-

The Company is open to examination of our income tax filings in the United States and state jurisdictions for the 2019 through 2021 tax years. Tax attributes from years prior to that can be adjusted as a result of examinations. In the event that the Company is assessed penalties and or interest, penalties will be charged to other operating expense and interest will be charged to interest expense. The Company has reviewed its tax positions and believes it has not taken a position that would not be sustained under examination.

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Idaho Strategic Resources, Inc.

Notes to Consolidated Financial Statements

11. Equity

The Company has authorized 200,000,000 shares of no-par common stock at December 31, 2021 and 2020. In addition, the Company has authorized 1,000,000 shares of no-par preferred stock, none of which had been issued at December 31, 2021 or 2020. On December 6, 2021, the Corporation completed a one-for-fourteen (1:14) reverse share split of all of its issued and outstanding common shares, resulting in a reduction of the issued and outstanding shares from 152,573,743 to 10,898,408. Shares reserved under the Corporation’s equity, incentive plans and warrants were adjusted to reflect the reverse stock split. All share and per share data presented in the Corporation’s consolidated financial statements have been retroactively adjusted to reflect the reverse stock split unless otherwise noted.

S tock Purchase Warrants Outstanding

Transactions in common stock purchase warrants for the years ended December 31, 2021, and 2020 are as follows:

		****	ExercisePrices
Balance December 31, 2019	921,438		2.52-3.08
Issued	400,002		2.52-5.60
Expired	(772,628	)	2.52-3.08
Exercised	(122,024	)
Balance December 31, 2020	426,788		2.52-5.60
Issued	289,294		5.60-7.00
Exercised	(46,615	)
Balance December 31, 2020	669,467		2.52-7.00

All values are in US Dollars.

These warrants expire as follows:

Shares	Exercise<br><br>Price		Expiration<br><br>Date
33,070	$	2.52	April 21, 2022
347,103	$	5.60	August 28, 2022
235,722	$	5.60	October 14, 2023
53,572	$	7.00	November 12, 2023
669,467

Stock Options

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. Upon exercise of the options shares are issued from the available authorized shares of the Company. Options reserved to any one related person on an annual basis may not upon exercise exceed 5% and the aggregate number of all options outstanding will not exceed 10% of the issued outstanding common shares in total as calculated at that time.

In February 2021, the board granted 283,936 stock options to officers, board members, and employees. These options vested immediately and are exercisable at $5.60 for 3 years. Total stock-based compensation recognized on these options was $604,571. In March 2021, the Company granted 3,572 stock options to an individual for services rendered to the Company. These options vested immediately and are exercisable at $5.60 for 3 years. Total stock-based compensation recognized on these options was $9,860. In October 2021 the Company granted 182,166 stock options to officers, board members, and employees. These options vested immediately and are exercisable at $5.60 for 3 years. Total stock-based compensation recognized on these options was $473,144. An additional 32 options were recorded in 2021 representing fractional share issuances related to the 1-14 reverse stock split. The fair value of stock option awards granted, and the key assumptions used in the Black-Scholes valuation model to calculate the fair value of the options are as follows:

	February 11, 2021		****	March 15, 2021		****	October 20, 2021
Fair value	$	604,572		$	9,860		$	473,143
Options issued		283,936			3,572			182,143
Exercise price	$	5.60		$	5.60		$	5.60
Expected term (in years)		3.0			3.0			3.0
Risk-free rate		0.19	%		0.33	%		0.70	%
Volatility		97.9	%		99.3	%		96.6	%
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Idaho Strategic Resources, Inc.

Notes to Consolidated Financial Statements

11. Equity, continued

Transactions in stock options for the years ended December 31, 2021, and 2020 are as follows:

		****	Exercise Prices
Balance December 31, 2019	375,893		$	1.40-2.52
Exercised	(82,143	)	$	1.40-2.52
Expired	(143,750	)	$	1.40-2.52
Balance December 31, 2020	150,000		$	1.40-1.96
Granted	469,674		$	5.60
Exercised	(101,786	)	$	1.40-1.96
Forfeited	(10,713	)	$	1.96-5.60
Balance December 31, 2021	507,175		$	1.96-5.60
Exercisable at December 31, 2021	507,175		$	1.96-5.60

At December 31, 2021, the outstanding stock options have an intrinsic value of approximately $1,108,000 and have a weighted average remaining term of 2.2 years. Cashless options exercised in the year ended December 31, 2021 had an intrinsic value of $445,290.

12. Related Party Transactions

At December 31, 2021 and 2020, the Company had a note payable to Ophir Holdings, LLC, a company owned by two officers and one former officer of the Company, 6% interest, monthly payments of $3,777 with a balloon payment of $110,835 in February 2023. The balance due on the note was $116,611 and $154,312 at December 31, 2021, and 2020, respectively. At December 31, 2021, $10,543 of related party debt is payable in 2022 and the remaining $106,068 is payable in 2023. Related party interest expense for the years ending December 31, 2021, and 2020 was $7,627 and $10,992, respectively. There is no accrued interest payable at December 31, 2021 or 2020 on this note.In February 2020, the Company’s corporate secretary, Monique Hayes, participated in the Company’s convertible debt offering for $25,000. Interest expense on her note was $975 and $1,742 for the years ended December 31, 2021, and 2020 respectively. She converted her note in May 2021 as provided in the agreement. See Note 14.

The Company leases office space from certain related parties on a month-to-month basis. Payments under these short-term lease arrangements totaled $25,008 and $24,840 for the years ended December 31, 2021, and 2020, respectively, and are included in general and administrative expenses on the Consolidated Statement of Operations.

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Idaho Strategic Resources, Inc.

Notes to Consolidated Financial Statements

13. Sales of Products

Our products consist of both gold flotation concentrates which in 2020 and 2021 we sold to a broker (H&H Metal), and an unrefined gold-silver product known as doré which we sell to a precious metal refinery. Revenue is recognized upon the completion of the performance obligations and transfer of control of the product to the customer, and the transaction price can be determined or reasonably estimated.

For gold flotation concentrate sales, the performance obligation is met when the transaction price can be reasonably estimated, and revenue is recognized generally at the time when risk is transferred to H&H Metal based on contractual terms. Based on contractual terms, the Company has determined the performance obligation is met and title is transferred to H&H Metal when the Company receives its first provisional payment on the concentrate because, at that time, 1) legal title is transferred to the customer, 2) the customer has accepted the concentrate lot and obtained the ability to realize all of the benefits from the product, 3) the concentrate content specifications are known, have been communicated to H&H Metal, and H&H Metal has the significant risks and rewards of ownership to it, 4) it is very unlikely a concentrate will be rejected by H&H Metal upon physical receipt, and 5) we have the right to payment for the concentrate. Concentrates lots that have been sold are held at our mill up to 60 days, until H&H Metal provides shipping instructions.

Our concentrate sales sometimes involve variable consideration, as they can be subject to changes in metals prices between the time of shipment and their final settlement. 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 embedded derivative contained in our concentrate sales is adjusted to fair value through earnings each period prior to final settlement. It is unlikely a significant reversal of revenue for any one concentrate lot will occur. As such, we use the expected value method to price the concentrate until the final settlement date occurs, at which time the final transaction price is known. At December 31, 2021, metals that had been sold but not final settled thus exposed to future price changes totaled 2,196 ounces of gold. The Company has received provisional payments on the sale of these ounces with the remaining amount due reflected in gold sales receivable.

Sales and accounts receivable for concentrate shipments are recorded net of charges for treatment and other charges negotiated by us with H&H Metal, which represent components of the transaction price. Charges are estimated by us upon transfer of risk of the concentrates based on contractual terms, and actual charges typically do not vary materially from our estimates. Costs charged by the customer include fixed treatment, refining and costs per ton of concentrate and may include penalty charges for lead and zinc content above a negotiated baseline as well as excessive moisture.

For sales of doré and of metals from doré, the performance obligation is met, the transaction price is known, and revenue is recognized at the time of transfer of control of the agreed-upon metal quantities to the customer.

Sales of products by metal for the years ended December 31, 2021, and 2020 were as follows:

	2021			2020
Gold	$	8,156,948		$	6,102,115
Silver		24,689			10,699
Less: Smelter and refining charges		(551,221	)		(437,867	)
Total	$	7,630,416		$	5,674,947

Sales by significant product type for the years ended December 31, 2021 and 2020 were as follows:

	2021		2020
Concentrate sales to H&H Metal	$	7,285,651	$	5,384,597
Dore’ sales to refineries		344,765		290,350
Total	$	7,630,416	$	5,674,947

In 2021 and 2020 floatation concentrates sold to H&H Metals Corp accounted 95% of all gold sales. The remaining 5% in 2021 and 2020 was doré sold to a third party. At December 31, 2021 and 2020, our gold sales receivable balance related to contracts with customers of $408,187 and $264,779, respectively, consist only of amounts due from H&H Metal. There is no allowance for doubtful accounts. We have determined our contracts do not include a significant financing component. For doré sales, payment is received at the time the performance obligation is satisfied. Consideration for concentrate sales is variable, and we receive payment for a significant portion of the estimated value of concentrate parcels at the time the performance obligation is satisfied.

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Idaho Strategic Resources, Inc.

Notes to Consolidated Financial Statements

14. Convertible Debt

In February 2020, the Company issued convertible promissory notes with an aggregate principal value of $885,000 from which funds were utilized for the purchase of the Alder Gulch property (Note 5). The notes are collateralized by the Alder Gulch property as well as other unencumbered real property that the Company currently owns. The outstanding principal amount of the notes bears interest at an annual rate of 8.0% with interest payments due monthly and the principal due in February 2023. The principal amount of the notes is convertible at the option of the note holders into shares of the Company’s common stock at a price of $2.52 per share (351,192 shares) prior to the maturity date of the notes. In July 2020, one of the participants converted $50,000 in debt for 19,840 shares of the Company’s common stock. In 2021, the remaining eight participants converted 835,000 in debt for 331,349 shares of the Company’s common stock. Interest expense for these notes was $30,426 and $59,886 for the years ended December 31, 2021, and 2020, respectively including $975 and $1,742, respectively to the Company’s corporate secretary, Monique Hayes, who participated in the Company’s convertible debt offering for $25,000 which was also converted for 9,921 shares of the Company’s stock.

In July 2020, a current convertible debt holder was issued an additional convertible promissory note for a principal balance of $200,000 which funds were utilized for the purchase of a new jumbo underground drill. The note is collateralized by the drill. The outstanding principal amount of the note bears interest at an annual rate of 6.0% with interest payments due monthly and the unpaid principal due in June 2023. The principal amount of the note is convertible at the option of the note holder into shares of the Company’s common stock at a price of $5.60 per share (35,715 shares) prior to the maturity date of the note. Interest expense for this note was $12,000 and $5,250 for the years ended December 31, 2021, and 2020, respectively.

In March of 2021 the Company issued convertible promissory notes of $1,750,000 from which funds were utilized for the purchase of an addition to the Alder Gulch property (Note 5). The notes are collateralized by the Alder Gulch property as well as other unencumbered real property that the Company currently owns. The outstanding principal amount of the notes bears interest at an annual rate of 8.0% with interest payments due monthly and the principal due in March 2024. The principal amount of the notes is convertible at the option of the note holders into shares of the Company’s common stock at a price of $4.90 per share (357,143 shares) prior to the maturity date of the notes. Interest expense for this note was $109,775 for the year ended December 31, 2021.

15. Small Business Administration Loans

On April 10, 2020, the Company received a loan of $358,346 pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act, which was enacted March 27, 2020. The loan, which was in the form of a Note dated April 10, 2020, had a maturity date on April 9, 2022, and an interest rate of 1% per annum, payable monthly commencing on October 9, 2020. The Note could be prepaid by the Company at any time prior to maturity with no prepayment penalties. This loan was forgiven after being used for qualifying expenses under the provisions of the CARES Act prior to the filing of these financial statements. Qualifying expenses included payroll costs, costs used to continue group health care benefits, rent, and utilities. The amount of the PPP loan has been recognized as gain on forgiveness of the CARES Act loan in the Company’s consolidated income statement for the year ended December 31, 2020.

In April 2020, the Company received $10,000 under Division A, Title I, Section 1110 of the CARES Act. Additionally, in May 2020, the Company received a loan of $149,900 pursuant to the Small Business Act Section 7(b). The May loan which was in the form of a Note dated May 16, 2020, matures May 16, 2050, and bears interest at a rate of 3.75% per annum. Payments of $731 are due monthly and will begin in January 2022. At December 31, 2021, total accrued interest on the remaining loan is $9,311 of which $6,219 and $3,092 were accrued in 2021 and 2020, respectively and which is included in the Small Business Administration loan balance on the consolidated balance sheet.

16. Subsequent Events

The Company closed a private placement in February 2022. Under the private placement the Company sold 360,134 units at $7.50 per unit for net proceeds of $2,701,000. Each unit consisted of one share of the Company’s stock.

On March 11, 2022, the Company started trading on the NYSE American exchange under the trading symbol IDR.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

At the end of the period covered by this Annual Report on Form 10-K, our President who also serves as our Chief Accounting Officer evaluated the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15(e) and Rule 15d-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”). Based upon that evaluation, it was concluded that our disclosure controls were effective as of the end of the period covered by this report, to ensure that: (i) information required to be disclosed by the Company in the reports that it files under the Exchange Act is recorded, processed, summarized, and reported within required time periods specified by the Securities & Exchange Commission rules and forms, and (ii) material information required to be disclosed in reports filed under the Exchange Act is accumulated and communicated to our management, including our President and Chief Accounting Officer, as appropriate, to allow for accurate and timely decision regarding required disclosure.

Internal Control over Financial Reporting

Management’s Annual Report on Internal Control Over Financial Reporting

The management of Idaho Strategic Resources, Inc. is responsible for establishing and maintaining adequate internal control over financial reporting. This internal control system has been designed to provide reasonable assurance to the Company’s management and Board of Directors regarding the preparation and fair presentation of the Company’s published financial statements.

All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

The management of Idaho Strategic Resources, Inc. has assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2021. To make this assessment, we used the criteria for effective internal control over financial reporting described in Internal Control-Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on our assessment, we believe that, as of December 31, 2021, the Company’s internal control over financial reporting is effective.

Changes in internal control over financial reporting

There was no material change in internal control over financial reporting in the quarter ended December 31, 2021.

ITEM 9B. OTHER INFORMATION

None.

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PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE

Name & Address	Age	Position	Term
John Swallow<br><br>c/o 201 N. Third Street<br><br>Coeur d’Alene, ID 83814	55	Chief Executive Officer/ President & Chairman of the Board	8/29/2013 to 12/1/2014 and 5/2/2015 to present President 1/20/17 to present CEO and 8/29/2013 to present Director<br><br>7/11/2019 to present Chairman
Grant A. Brackebusch<br><br>c/o 201 N. Third Street<br><br>Coeur d’Alene, ID 83814	52	Chief Financial Officer, Vice President, & Director	7/18/1996 to present
Kevin Shiell<br><br>c/o 201 N. Third Street<br><br>Coeur d’Alene, ID 83814	63	Director	1/10/17 to present
Rich Beaven<br><br>c/o 201 N. Third Street<br><br>Coeur d’Alene, ID 83814	54	Director	1/12/2022 to present
Robert Morgan<br><br>c/o 201 N. Third Street<br><br>Coeur d’Alene, ID 83814	54	Vice President	1/16/2018 to present
Monique Hayes<br><br>c/o 201 N. Third Street<br><br>Coeur d’Alene, ID 83814	56	Secretary	11/20/16 to present

Directors are elected by shareholders at each annual shareholders meeting to hold office until the next annual meeting of shareholders or until their respective successors are elected and qualified.

Executive Officers and Key Employees

John Swallow was named Chief Executive Officer and President on January 10, 2017. Prior to being named as CEO, Mr. Swallow was appointed as the President and a Director of the Company on August 29, 2013. He resigned as president in December 2014, and subsequently reappointed as President on May 5, 2015, following the resignation of Mr. Highsmith. Following Mr. Steiner’s resignation on July 11, 2019, Mr. Swallow became the Chairman of the Board. He holds a B.S. in Finance from Arizona State University. Mr. Swallow was the Vice President of Timberline Drilling, Inc. from November 2011 until accepting the role of President with the Company. From September 2009, until November 2011, Mr. Swallow was self-employed. From January 2006 until September 2009, he served as chairman of Timberline Resources Corporation. He brings wide-ranging experience from within the local mineral exploration industry as well as extensive knowledge of the junior equity markets. Mr. Swallow’s extensive experience in the drilling industry, his previous roles as a chairman of a board and as a vice president of a corporation qualify him to sit on the Board of the Company.

Grant A. Brackebusch, P.E. has served as the Vice President and a Director of the Company since 1996. He holds a B.S. in Mining Engineering from the University of Idaho. He is registered in Idaho as a Professional Engineer. He has worked for Idaho Strategic Resources, Inc. since 1996 and worked for Newmont Mining previously. Currently, he supervises the mining operation at the Golden Chest Mine including the operation of the New Jersey Mill. He has experience with permitting, exploration, open pit, and underground mining as well as mineral processing. Mr. Brackebusch’s extensive mining background, knowledge of the Company’s daily operations, and industry expertise qualifies him to sit on the Board of the Company.

Kevin Shiell has more than 35 years of operating and management experience in the mining and mineral processing industries, primarily in Montana, Idaho, and Nevada. He has held executive leadership positions at several public companies, including General Manager and Vice President of Mine Operations at Stillwater Mining Company, Chief Operating Officer at MDM Gold, and various mine supervisory positions at Hecla Mining Company. Mr. Shiell is currently the General Manager of the Hollister and Midas Gold Mines which are owned and operated by Hecla Mines. He brings vast operational knowledge and management experience at a transformational time in the Company’s development.

Rich Beaven joined the Idaho Strategic Resources Board on January 12, 2022. Mr. Beaven is Lead Portfolio Manager and Principal at Signia Capital. Signia is a small-cap value asset manager with a largely institutional (pension fund) client base. Prior to co-founding Signia Capital Management in 2002, Rich was the Assistant Director of Research and a Portfolio Manager for a $2B Pacific Northwest asset management firm. With blue-collar roots, Rich went on to get a BA in business administration from the University of Kentucky and an MBA from Gonzaga University. In addition, he is a CFA charter holder and has served as President of the CFA Society of Spokane.

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Robert Morgan has served as the Vice President Exploration of the Company since January 2018. Mr. Morgan has over 22 years of exploration experience, including 20 years focused on gold exploration, of which 12 years were in Northern Idaho and Montana. Mr. Morgan has worked for some of the world’s leading gold exploration and mining companies including Newmont and ASARCO throughout the western United States, Alaska, and South America. He is practiced in designing, implementing, and managing large exploration programs for gold, silver, base metals and rare earth elements. His technical work has included geologic mapping, logging of drill holes, compilation, and interpretation of multiple data sets for target identification. Mr. Morgan earned his Bachelor of Science degree in geology from California State University at Chico. He has an extensive environmental background with emphasis on wetlands and water management. Mr. Morgan is a registered professional geologist with the State of Idaho and Professional Land Surveyor registered with the State of Montana.

Monique Hayes was appointed Corporate Secretary in November 2016. She has over 10 years of investor relations corporate governance experience in the mining industry and over 10 years of communications and brand management experience. Prior to joining Idaho Strategic Resources, Inc., Ms. Hayes worked for Hecla Mining Company, Revett Mining Company and Sterling Mining. Her advertising and communications experience includes working for Publicis Dialog Direct and White Runkle Associates where she worked with national accounts including AT&T Wireless, Bell Atlantic and NordicTrack. Ms. Hayes attended City University where she studied business management, brand strategy and communications.

Legal Proceedings

No Director or Officer has been involved in any legal action involving the Company for the past five years.

Section 16(a) Beneficial Ownership Reporting Compliance

Under Section 16(a) of the Securities Exchange Act of 1934, as amended, and the regulations thereunder, the Company’s Directors, Executive Officers and beneficial owners of more than 10% of any registered class of the Company’s equity securities are required to file reports of their ownership of the Company’s securities and any changes in that ownership with the SEC.

Based solely on our review of the copies of such forms received by us, or written representations from certain reporting persons, we believe that during fiscal year ended December 31, 2021, all filing requirements applicable to its officers, directors and greater than 10% percent beneficial owners were complied with.

Code of Ethics

The Company adopted a Code of Ethics at a Board of Directors meeting on December 9, 2003, that applies to the Company’s executive officers. The Company also adopted a Code of Ethics for all employees at the Board of Directors meeting on February 18, 2008.

Board Nomination Procedures

There have been no material changes to the procedures by which security holders may recommend nominees to the registrant’s board of directors.

ITEM 11. EXECUTIVE COMPENSATION

Compensation of Officers

A summary of cash and other compensation for John Swallow, the Company’s President, Chief Executive Officer, and Chairman of the Board, Grant Brackebusch, the Company’s Vice President, and Robert Morgan, the Company’s Vice President (the “Named Executive Officers”), for the two most recent years is as follows:

Executive Officer Summary Compensation Table

Name & Principal Position	Year	Salary()	Bonus()	StockAwards()	OptionAwards1()	Nonequity Incentive Plan Compensation()	Nonqualified Deferred Compensation Earnings ()	All Other Compensation()	Total()
John Swallow	2021
President, Chief Executive Officer, & Chairman	2020
Grant Brackebusch	2021
Vice President	2020
Robert Morgan	2021
Vice President	2020

All values are in US Dollars.

(1)	Stock Awards and Options Awards include fees earned as Directors. The Company has valued all Stock Awards granted at fair value as computed in accordance with FASB Accounting Standards Codification Topic 718. The compensation of the Named Executive Officers has been set by disinterested members of the Board of Directors to a level competitive with other mining companies of similar size with similar types of operations. The executive stock compensation is for services as directors.
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The Company does not have a retirement plan for its executive officers and there is no agreement, plan or arrangement that provides for payments to executive officers in connection with resignation, retirement, termination or a change in control of the Company.

Outstanding Equity Awards at Fiscal Year-end

As of December 31, 2021, 64,287 Options were vested and outstanding to directors Grant Brackebusch, John Swallow, and Kevin Shiell.

Director Compensation

Director Summary Compensation Table

Name & Principal Position	Year	Salary ()	Bonus ()	StockAwards()	OptionAwards1()	Nonequity Incentive Plan Compensation()	Nonqualified Deferred Compensation Earnings ()	All Other Compensation()	Total()
Kevin Shiell	2021
Director	2020

All values are in US Dollars.

No Option Awards were issued the Directors for service as directors of the Company in 2020. No additional fees are paid for attendance at Board of Directors’ meetings, committee membership or committee chairmanship. On occasion, Directors are retained for consulting services unrelated to their duties as Directors. These consulting services are either paid in cash or with unregistered Common Stock according to the Company’s policy for share-based payment of services.

The Company does not have a retirement plan for its Directors and there is no agreement, plan or arrangement that provides for payments to Directors in connection with resignation, retirement, termination or a change in control of the Company.

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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The following table sets forth information as of March 1, 2022 regarding the shares of Company Common Stock beneficially owned by: (i) each person known by the Company to own beneficially more than 5% of the Company’s Common Stock; (ii) each Director of the Company; (iii) the CEO and CFO of the Company (the “Named Executive Officers”); and (iv) all Directors and the Named Executive Officers of the Company as a group. Except as noted below, each holder has sole voting and investment power with respect to the shares of the Company Common Stock listed as owned by that person.

Security Ownership of Certain Beneficial Owners

Title of Class	Name and Address Of Beneficial Owner	Amount and Nature of Beneficial Owner	Percent of Class^(1)^
Common	John Swallow<br><br>c/o 201 N. Third Street<br><br>Coeur d’Alene, ID 83814	1,346,731 (a)	10.47%
Common	Robert Dumont<br><br>c/o 201 N. Third Street<br><br>Coeur d’Alene, ID 83814	730,096 (b)	5.68

Security Ownership of Management

Title of Class	Name and Address of Beneficial Owner	Amount and Nature of Beneficial Owner	Percent of Class^1^
Common	John Swallow<br><br>c/o 201 N. Third Street<br><br>Coeur d’Alene, ID 83814	1,346,731 (a)	10.47%
Common	Grant A. Brackebusch<br><br>c/o 201 N. Third Street<br><br>Coeur d’Alene, ID 83814	139,483 (c)	1.08%
Common	Kevin Shiell<br><br>c/o 201 N. Third Street<br><br>Coeur d’Alene, ID 83814	64,287 (d)	0.50%
Common	Rob Morgan<br><br>c/o 201 N. Third Street<br><br>Coeur d’Alene, ID 83814	35,358 (e)	0.27%
Common	Rich Beaven<br><br>c/o 201 N. Third Street<br><br>Coeur d’Alene, ID 83814	-	-
Common	Monique Hayes<br><br>c/o 201 N. Third Street<br><br>Coeur d’Alene, ID 83814	45,621 (f)	0.35%
Common	All Directors and Executive Officers as a group (6 individuals)	1,631,480	12.68%
(1)	Based upon 11,309,160 outstanding shares of common stock 669,467 warrants, 492,889 vested options, and 392,866 shares into which debt can be converted at March 1, 2022.
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a)	Consists of 1,303,145 shares of common stock, presently exercisable options to purchase 21,429 shares and presently exercisable warrants to purchase 22,157 shares.
b)	Consists of 628,904 outstanding shares of common stock and presently exercisable warrants to purchase 101,192 shares.
c)	Consists of 118,054 shares of common stock and presently exercisable options to purchase 21,429 shares of common stock.
d)	Consists of 42,858 shares of common stock and presently exercisable options to purchase 21,429 shares of common stock.
e)	Consists of 13,929 shares of common stock and presently exercisable options to purchase 21,429 shares of common stock.
f)	Consists of 24,192 shares of common stock and presently exercisable options to purchase 21,429 shares of common stock.

None of the Directors or Officers has the right to acquire any additional securities pursuant to options, warrants, conversion privileges or other rights. No shares are pledged as security.

Securities Authorized for Issuance under Equity Plans

In April 2014, the Company established a stock option plan to authorize the granting of stock options to officers and employee. The Company occasionally pays for goods or services with unregistered Common Stock and uses the average bid price of the stock, as quoted on the NYSE American, at the time to determine the number of shares to be issued.

Changes in Control

None.

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ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Certain Relationships and Related Transactions

None

Director Independence

The Board of Directors has determined that John Swallow and Grant Brackebusch are not independent directors. Kevin Scheill and Rich Beaven are independent directors.

The Board of Directors does not have separately designated nominating or compensation committees. The entire Board performs these functions. The Company’s audit committee is comprised of two non-executive members Kevin Shiell and Rich Beaven.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Audit Fees

The aggregate fees billed for professional services rendered by the Company’s principal accountant for the audit of the annual financial statements included in the Company’s annual report on Form 10-K for the fiscal years ended December 31, 2021, and December 31, 2020 and the review for the financial statements included in the Company’s quarterly reports on Form 10-Q during those fiscal years, were $60,856 and $54,374 respectively.

Audit Related Fees

The Company incurred no fees during the last two fiscal years for assurance and related services by the Company’s principal accountant that were reasonably related to the performance of the audit or review of the Company’s financial statements, and not reported under “Audit Fees” above.

Tax Fees

$5,200 in 2021 and $6,300 in 2019 was paid to the Company’s principal accountant for tax compliance, tax advice, and tax planning services.

All Other Fees

$600 in other fees were incurred during 2021 and none in 2020 for other services rendered by the Company’s principal accountant.

Audit Committee Pre-Approval Policies

The Board of Directors has adopted an audit committee pre-approval policy. The audit committee is required to pre-approve the audit and non-audit services performed by the independent auditor in order to assure that the provision of such services do not impair the auditor’s independence.

56
Table of Contents

PART IV

ITEM 15. EXHIBITS

Financial Statements

The following Consolidated Financial Statements of the Corporation are filed as a part of this report:

1.	Report of Independent Registered Public Accounting Firm dated March 31, 2022.
2.	Consolidated Balance Sheets—December 31, 2021 and 2020.
3.	Consolidated Statements of Operations—Years ended December 31, 2021 and 2022.
4.	Consolidated Statements of Changes in Stockholders’ Equity—Years ended December 31, 2021 and 2020.
5.	Consolidated Statements of Cash Flows—Years ended December 31, 2021, and 2020.
6.	Notes to Consolidated Financial Statements.

Exhibits

Exhibits	Description of Document
3.0*	Articles of Incorporation of New Jersey Mining Company filed July 18, 1996
3.1*	Articles of Amendment filed September 29, 2003
3.2*	Articles of Amendment filed November 10, 2011
3.3*	Bylaws of New Jersey Mining Company
3.4	Amended and Restated Articles of Incorporation, incorporated by reference to the Company’s Form 8-K as filed with the Securities and Exchange Commission on October 27, 2021.
3.5	Amended and Restated By-laws of Idaho Strategic Resources, Inc., incorporated by reference to the Company’s Form 8-K as filed with the Securities and Exchange Commission on October 27, 2021.
10.1*	Venture Agreement with United Mine Services, Inc. dated January 7, 2011.
10.2***	Consent, Waiver and Assumption of Venture Agreement by Crescent dated February 14, 2014
10.3	Registrant’s Grant of Options to Directors and Officers dated December 30, 2016, incorporated by reference to the Company’s Form 8-K as filed with the Securities and Exchange Commission on January 4, 2017.
10.4	Registrant’s Grant of Options to Employees and Directors of the Company dated October 20, 2021, incorporated by reference to the Company’s Form 8-K as filed with the Securities and Exchange Commission on October 22, 2021.
10.5	Form of Convertible Note Purchase Agreement dated as of February 18, 2020, incorporated by reference to the Company’s 8-K as filed with the Securities and Exchange Commission on February 20, 2020.
10.6	Form of Convertible Promissory Note dated as of February 18, 2020, incorporated by reference to the Company’s 8-K as filed with the Securities and Exchange Commission on February 20, 2020.
10.7	Form of Convertible Note Purchase Agreement dated as of April 14, 2021, incorporated by reference to the Company’s 8-K as filed with the Securities and Exchange Commission on April 19, 2021.
10.8	Form of Convertible Promissory Note dated as of April 14, 2021, incorporated by reference to the Company’s 8-K as filed with the Securities and Exchange Commission on April 19, 2021.
14*	Code of Ethical Conduct.
21	Subsidiaries of the Registrant, incorporated by reference to the Company’s Form 10-K as filed with the Securities and Exchange Commission on February 26, 2018.
23.1****	Consent of Qualified Person for Technical Report Summary of Golden Chest Mine.
23.2****	Consent of Qualified Person for Technical Report Summary of Golden Chest Mine.
31.1****	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
31.2****	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
32.1****	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
32.2****	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
95****	Mine safety information listed in Section 1503 of the Dodd-Frank Act.
96.1****	Technical Report Summary For the Golden Chest Mine, Idaho, U.S.A.
99.1	Audit Committee Pre-Approval Policies-Filed as an exhibit to the registrant’s annual report on Form 10-KSB for the year ended December 31, 2003 and incorporated by reference herein.
101.INS****	XBRL Instance Document
101.SCH****	XBRL Taxonomy Extension Schema Document
101.CAL****	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF****	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB****	XBRL Taxonomy Extension Label Linkbase Document
101.PRE****	XBRL Taxonomy Extension Presentation Linkbase Document
*	Filed with the Registrant’s Form 10 on June 4, 2014.
---	---
**	Filed July 2, 2014
***	Filed March 31, 2015.
****	Filed herewith.
57
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Table of Contents

SIGNATURES

In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

	Idaho Strategic Resources, Inc.
Date: March 31, 2021	By	/s/ JOHN SWALLOW
		John Swallow,
		President, Chief Executive Officer
Date: March 31, 2021	By	/s/ GRANT A. BRACKEBUSCH
		Grant A. Brackebusch,
		Vice President, Chief Financial Officer
58
---

njmc_ex311.htm EXHIBIT 31.1

Certification

I, John Swallow, certify that:

(1)	I have reviewed this amended annual report on Form 10-K/A of Idaho Strategic Resources Inc.
(2)	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
(3)	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
(4)	I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

(5)	I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: December 8, 2022
By:	/s/John Swallow

| | John Swallow |

| | Chief Executive Officer |

njmc_ex312.htm EXHIBIT 31.2

Certification

I, Grant Brackebusch, certify that:

(1)	I have reviewed this amended annual report on Form 10-K/A of Idaho Strategic Resources Inc.
(2)	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
(3)	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
(4)	I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

(5)	I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: December 8, 2022
By:	/s/Grant Brackebusch

| | Grant Brackebusch |

| | Chief Financial Officer |

njmc_ex321.htm EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the amended Annual Report of Idaho Strategic Resources Inc., (the "Company") on Form 10-K/A for the period ending December 31, 2021, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, John Swallow, Chief Executive Officer of Idaho Strategic Resources Inc., certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: December 8, 2022
By:	/s/John Swallow

| | John Swallow |

| | Chief Executive Officer |

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906 has been provided to Idaho Strategic Resources Inc. and will be retained by Idaho Strategic Resources Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished in accordance with Securities and Exchange Commission Release No. 34-47551 and shall not be considered filed as part of the Form 10-K/A.

njmc_ex322.htm EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the amended Annual Report of Idaho Strategic Resources Inc., (the "Company") on Form 10-K/A for the period ending December 31, 2021, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Grant Brackebusch, Chief Financial Officer of Idaho Strategic Resources Inc., certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: December 8, 2022
By:	/s/Grant Brackebusch

| | Grant Brackebusch |

| | Chief Financial Offic |

The foregoing certification is being furnished in accordance with Securities and Exchange Commission Release No. 34-47551 and shall not be considered filed as part of the Form 10-K/A.

njmc_ex95.htm EXHIBIT 95

Mine Safety Disclosures

Our mines are operated subject to the regulation of the Federal Mine Safety and Health Administration (“MSHA”), under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”). In July 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) was signed into law, and amended in December 2011. When MSHA believes a violation of the Mine Act has occurred, it may issue a citation for such violation, including a civil penalty or fine, and the mine operator must abate the alleged violation.

As required by the reporting requirements of the Dodd-Frank Act, as amended, the table below presents the following information for the year ended December 31, 2021.

Mine	Section 104 S&S Violations		Section 104(b) Orders		Section 104(d) Citations and Orders		Section 110(b)(2) Violations		Section 107(a) Orders		Total Dollar Value of MSHA Assessments Proposed		Total Number of Mining Related Fatalities		Received Notice of Pattern of Violations Under Section 104(e)	Received Notice of Potential to have Patterns Under Section (c)	Legal Actions Pending as of Last Day of Period		Legal Actions Initiated During Period		Legal Actions Resolved During Period

| Golden Chest | | 4 | | 0 | | 0 | | 0 | | 0 | $ | 3,754 | | 0 | no | no | | 0 | | 0 | | 0 |

| New Jersey Mill | | 2 | | 0 | | 0 | | 0 | | 0 | $ | 1,835 | | 0 | no | no | | 0 | | 0 | | 0 |

njmc_ex961.htm EXHIBIT 96.1

Technical Report Summary<br> <br>For The Golden Chest Mine,<br> <br>Idaho, USA<br> <br>SK-1300 Report

Idaho Strategic Resources, Inc.

Prepared By:

Grant A. Brackebusch, P.E.

Robert J. Morgan PG, PLS

For

Idaho Strategic Resources, Inc.

201 North 3^rd^ St.

Coeur d’Alene, ID 83814

Effective Date: December 31, 2021

Signature Date: December 8, 2022

1-0

Contents

Contents		1-1

| Tables | | 1-6 |

| Figures | | 1-7 |

| 1.0 | EXECUTIVE SUMMARY | 1-8 |

| 1.1 | Summary | 1-8 |

| 1.1.1 | Conclusions | 1-8 |

| 1.1.2 | Recommendations | 1-10 |

| 1.2 | Economic Analysis | 1-11 |

| 1.2.1 | Economic Criteria | 1-11 |

| 1.2.2 | Physical Parameters | 1-11 |

| 1.2.3 | Revenue Parameters | 1-12 |

| 1.2.4 | Operating and Capital Costs | 1-12 |

| 1.2.5 | Taxes and Royalties | 1-12 |

| 1.2.6 | Cash Flow | 1-12 |

| 1.2.7 | Sensitivity | 1-12 |

| 1.3 | Technical Summary | 1-13 |

| 1.3.1 | Property Description | 1-13 |

| 1.3.2 | Land Tenure | 1-13 |

| 1.3.3 | History | 1-13 |

| 1.3.4 | Geologic Setting, Mineralization, and Deposit | 1-13 |

| 1.3.5 | Exploration | 1-13 |

| 1.3.6 | Mineral Resource Estimate | 1-13 |

| 1.3.7 | Mineral Reserve Estimate | 1-13 |

| 1.3.8 | Mining Methods | 1-13 |

| 1.3.9 | Mineral Processing | 1-14 |

| 1.3.10 | Infrastructure | 1-14 |

| 1.3.11 | Market Studies | 1-14 |

| 1.3.12 | Environmental Permitting | 1-14 |

| 2.0 | INTRODUCTION | 2-1 |

| 2.1 | Site Visit | 2-1 |

| 2.2 | Sources of Information | 2-1 |

| 2.3 | List of Abbreviations | 2-2 |

1-1

3.0	PROPERTY DESCRIPTION	3-1

| 3.1 | Location | 3-1 |

| 3.2 | Ownership and Holdings | 3-1 |

| 3.3 | Royalty | 3-5 |

| 3.4 | Permit Requirements | 3-5 |

| 3.5 | Encumbrances and Other Risks | 3-5 |

| 4.0 | ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHSYIOGRAPHY | 4-1 |

| 4.1 | Accessibility | 4-1 |

| 4.2 | Climate | 4-1 |

| 4.3 | Local Resources and Infrastructure | 4-1 |

| 4.4 | Physiography and Environment | 4-2 |

| 5.0 | HISTORY | 5-1 |

| 5.1 | Location of District | 5-1 |

| 5.2 | Historic Gold Mining | 5-1 |

| 5.3 | Historical Mineral Resource Estimates | 5-2 |

| 5.4 | New Jersey Mining Company (IDR 2003-2012) | 5-2 |

| 5.5 | Golden Chest LLC (2010-2015) | 5-2 |

| 5.6 | Micon NI 43-101 (2011 and 2012) | 5-2 |

| 5.7 | Juniper Mining Company (2013) | 5-2 |

| 5.8 | Idaho Strategic Resources (2016-Present) | 5-3 |

| 6.0 | GEOLOGICAL SETTING, MINERALIZATION, AND DEPOSIT | 6-1 |

| 6.1 | Regional Geology | 6-1 |

| 6.1.1 | Belt Supergroup | 6-1 |

| 6.2 | Local Geology | 6-3 |

| 6.2.1 | Lithology | 6-3 |

| 6.2.2 | Structure | 6-5 |

| 6.3 | Property Geology | 6-6 |

| 6.3.1 | Lithology | 6-6 |

| 6.3.2 | Structure | 6-8 |

| 6.4 | Mineralization and Alteration | 6-9 |

| 6.4.1 | Vein Types | 6-9 |

| 6.4.2 | Vein Names and Locations | 6-11 |

| 6.4.3 | Lithologic Control of Veins | 6-12 |

| 6.4.4 | Vein Mineralization | 6-13 |

| 6.4.5 | Wall Rock Alteration | 6-14 |

| 6.5 | Deposit Type | 6-14 |

| 6.5.1 | Orogenic | 6-14 |

| 6.5.2 | Age and Genesis | 6-15 |

1-2

7.0	EXPLORATION	7-1

| 7.1 | Drilling | 7-2 |

| 7.1.1 | Vertical Continuity | 7-2 |

| 7.1.2 | Drill Hole Surveys | 7-2 |

| 7.1.3 | Drill Hole Sampling | 7-3 |

| 7.3 | Hydrogeology Data | 7-3 |

| 8.0 | SAMPLE PREPARATION, ANALYSES, AND SECURITY | 8-1 |

| 8.1 | Laboratory Accreditation and Certification | 8-1 |

| 8.2 | Sample Quality Assurance and Quality Control (QA/QC) | 8-1 |

| 8.2.1 | Blanks | 8-1 |

| 8.2.2 | Standard – 3 gpt | 8-1 |

| 8.2.3 | Standard – 8 gpt | 8-2 |

| 8.3 | Sample Preparation | 8-3 |

| 8.4 | Sample Analysis | 8-3 |

| 8.5 | Security | 8-4 |

| 8.6 | QP Comments on Sample Collection, Preparation, QA/QC, Analysis and Security | 8-4 |

| 9.0 | DATA VERIFICATION | 9-1 |

| 9.1 | Database Procedures | 9-1 |

| 9.2 | Validation Procedures | 9-1 |

| 9.2.1 | Micon Historic Database Validation | 9-2 |

| 9.3 | Validation Limitations and QP Comments | 9-2 |

| 10.0 | MINERAL PROCESSING AND METALLURGICAL TESTING | 10-1 |

| 10.1 | New Jersey Mill 100 TPD Metallurgical Testing | 10-1 |

| 10.2 | Resource Development Inc. Metallurgical Testing | 10-2 |

| 11.0 | MINERAL RESOURCE ESTIMATES | 11-1 |

| 11.1 | Summary | 11-1 |

| 11.2 | 2012 Resource (Historic NI 43-101) | 11-1 |

1-3

12.0	MINERAL RESERVE ESTIMATES	12-1

| 12.1 | Summary | 12-1 |

| 12.2 | Conversion to Mineral Reserves | 12-1 |

| 12.3 | Cut-Off Grade | 12-2 |

| 12.4 | Dilution | 12-2 |

| 12.5 | Extraction | 12-3 |

| 12.6 | Reconciliation | 12-3 |

| 13.0 | MINING METHODS | 13-1 |

| 13.1 | Mining Operations – Underground | 13-1 |

| 13.1.1 | Cut and Fill Method, Skookum Shoot | 13-2 |

| 13.1.2 | Skookum Shoot Area | 13-2 |

| 13.2 | Ground Stability | 13-3 |

| 13.2.1 | Operating Practices | 13-4 |

| 13.3 | Underground Development | 13-4 |

| 13.3.1 | Ground Support | 13-4 |

| 13.3.2 | Development Performance | 13-4 |

| 13.4 | Backfill | 13-5 |

| 13.5 | Mine Equipment | 13-5 |

| 13.6 | Mine Infrastructure | 13-5 |

| 13.7 | Open Pit Mining Operations | 13-6 |

| 14.0 | PROCESSING AND RECOVERY METHODS | 14-1 |

| 14.1 | Crushing Circuit | 14-1 |

| 14.2 | Grinding Circuit | 14-1 |

| 14.3 | Flotation Circuit | 14-1 |

| 14.4 | Tailings Circuit | 14-1 |

| 14.5 | Mill Production | 14-2 |

| 14.6 | Mill Workforce | 14-3 |

| 15.0 | INFRASTRUCTURE | 15-1 |

| 15.1 | Roads and Logistics | 15-1 |

| 15.2 | Mine Layout | 15-2 |

| 15.2.1 | Waste Rock Storage | 15-3 |

| 15.2.2 | Tailings Disposal | 15-3 |

| 15.2.3 | Power | 15-3 |

| 16.0 | MARKET STUDIES | 16-1 |

| 16.1 | Market Overview | 16-1 |

| 16.2 | Commodity Price Projections | 16-1 |

| 16.3 | Contracts | 16-1 |

1-4

17.0	ENVIRONMENTAL STUDIES, PERMITTING, AND PLANS, NEGOTIATIONS, OR AGREEMENTS WITH LOCAL INDIVIDUALS OR GROUPS	17-1

| 17.1 | Environmental Studies and Permitting | 17-1 |

| 17.2 | Surface Mine Permit | 17-1 |

| 17.3 | Tailings Storage Facility (TSF) Permit | 17-2 |

| 17.4 | Cyanidation Permit | 17-2 |

| 17.5 | Stormwater Permits | 17-2 |

| 17.6 | Community and Social Aspects | 17-2 |

| 17.7 | Comments on Environmental Permitting and Monitoring | 17-2 |

| 18.0 | CAPITAL AND OPERATING COSTS | 18-1 |

| 18.1 | Capital Costs | 18-1 |

| 18.2 | Operating Costs | 18-1 |

| 19.0 | ECONOMIC ANALYSIS | 19-1 |

| 19.1 | Economic Criteria | 19-1 |

| 19.1.1 | Physicals | 19-1 |

| 19.1.2 | Estimation Parameters | 19-1 |

| 19.1.3 | Taxation and Royalties | 19-1 |

| 19.2 | Cash Flow Analysis | 19-2 |

| 19.3 | Sensitivity Analysis | 19-2 |

| 20.0 | ADJACENT PROPERTIES | 20-1 |

| 21.0 | OTHER RELEVANT DATA AND INFORMATION | 21-1 |

| 22.0 | INTERPRETATION AND CONCLUSIONS | 22-1 |

| 22.1 | Geology and Mineral Resources | 22-1 |

| 22.2 | Mining and Mineral Reserves | 22-1 |

| 22.3 | Mineral Processing | 22-2 |

| 22.4 | Infrastructure | 22-2 |

| 22.5 | Environment | 22-2 |

| 23.0 | RECOMMENDATIONS | 23-1 |

| 23.1 | Geology and Mineral Resources | 23-1 |

| 23.2 | Mining and Mineral Reserves | 23-1 |

| 23.3 | Mineral Processing | 23-1 |

| 23.4 | Environmental | 23-1 |

| 24.0 | REFERENCES | 24-1 |

| 25.0 | RELIANCE ON INFORMATION PROVIDED BY THE REGISTRANT | 25-1 |

| 26.0 | DATE AND SIGNATURE PAGE | 26-1 |

1-5

Tables

Table 1‑1 Golden Chest Projected Production for One Year	1-12

| Table 2‑1 - List of Abbreviations | 2-2 |

| Table 3‑1 List of patented claims at the Golden Chest Mine, as of December 31, 2021 | 3-1 |

| Table 3‑2 List of Unpatented Claims at the Golden Chest Property | 3-4 |

| Table 3‑3 Permit Descriptions | 3-5 |

| Table 4‑1 Average Climate for Burke, ID 10km South of Golden Chest | 4-1 |

| Table 6‑1 Belt Supergroup Stratigraphy in the Mine Region (modified after Gott 1980) | 6-2 |

| Table 10‑1 RDI Flotation Test Results | 10-3 |

| Table 11‑1 Golden Chest Overall Mineral Resource @ 0.4 g/t Gold Cut-off as at 31 December 2012 | 11-2 |

| Table 11‑2 Golden Chest In-pit Mineral Resources @ 0.3 g/t Gold Cut-off as at 31 December, 2012 | 11-2 |

| Table 11‑3 Golden Chest Underground Potential Resource @ 2.0 g/t Gold Cut-off as at December 31, 2012 | 11-2 |

| Table 11‑4 Summary of Search/Interpolation Parameters for the Idaho Vein System | 11-3 |

| Table 11‑5 Summary of Search/Interpolation Parameters for the H Vein | 11-3 |

| Table 12‑1 Golden Chest Underground Proven Reserves at December 31^st^, 2021 | 12-1 |

| Table 12‑2 Go/No-Go Cut-off Parameters | 12-2 |

| Table 12‑3 Calculated Dilution vs. Average Theoretical Dilution | 12-3 |

| Table 12‑4 Planned vs. actual for stopes that were a part of the 2020 reserve and have been mined out. | 12-3 |

| Table 13‑1 Calculated Vs. Theoretical Dilution Factors | 13-3 |

| Table 13‑2 Development by year and Company | 13-5 |

| Table 13‑3 Underground Mine Equipment List, Idaho Strategic Resources— | 13-5 |

| Table 13‑4 Idaho Pit Summary (August 2016-June 2020) | 13-6 |

| Table 14‑1 Mill Production Summary | 14-2 |

| Table 17‑1 Environmental Permits | 17-1 |

| Table 18‑1 Capital Cost Estimates Associated with Reserves | 18-1 |

| Table 18‑2 2021 Annual costs per tonne and mine planning/reserve costs used | 18-2 |

| Table 19‑1 Underground reserve scenario production summary. | 19-1 |

| Table 19‑2 Table of Golden Chest underground reserve cash flows. | 19-2 |

| Table 19‑3 Summary of Golden Chest underground reserve sensitivity analysis | 19-4 |

1-6

Figures

Figure 3‑1 and New Jersey Mill Location Map	3-1

| Figure 3‑2 Patented and unpatented claim locations | 3-2 |

| Figure 6‑1 Geologic Provinces of Idaho (Idaho State University 2017) | 6-1 |

| Figure 6‑2 Belt Stratigraphy in the Mine Region | 6-3 |

| Figure 6‑3 Prichard Formation (Green), Gem Stocks (Pink), Major Fault Lineaments (Blue) and Trout Creek Anticline (Black). | 6-4 |

| Figure 6‑4 Regional Geologic Map | 6-6 |

| Figure 6‑5 Mine Geologic Map | 6-8 |

| Figure 6‑6 Banded Vein Example | 6-10 |

| Figure 6‑7 Brecciated Vein Example | 6-10 |

| Figure 6‑8 Massive Vein Example | 6-11 |

| Figure 6‑9 Vertical Cross-Section of Vein Location | 6-12 |

| Figure 6‑10 Gold-Sphalerite-Galena-Pyrite-Quartz Vein from the 941 Level | 6-13 |

| Figure 6‑11 Intrusive Related Orogenic Model (modified after Groves et al. 1998) | 6-16 |

| Figure 7‑1 Planview of Golden Chest Drill Traces | 7-1 |

| Figure 8‑1 Drill Sampling 3 gpt Standard QA/QC Tracking | 8-2 |

| Figure 8‑2 Drill Sampling 8 gpt Standards QA/QC Tracking | 8-3 |

| Figure 8‑3 Mine Office/Core Shed Building | 8-4 |

| Figure 10‑1 Aerial View of New Jersey Mill | 10-1 |

| Figure 10‑2 New Jersey Mill 100 TPD Flowsheet | 10-2 |

| Figure 13‑1 Map showing outline | 13-1 |

| Figure 14‑1 New Jersey Mill Flowsheet | 14-2 |

| Figure 15‑1 Infrastructure Layout. | 15-2 |

| Figure 19‑1 Sensitivity analysis of Golden Chest underground reserves | 19-3 |

| Figure 20‑1 Map of Adjacent Properties | 20-1 |

1-7

1.0 EXECUTIVE SUMMARY

1.1 Summary

This Technical Report Summary (TRS) on the Golden Chest Mine, Idaho (Golden Chest, property, or mine) has been prepared for Idaho Strategic Resources, Inc. (IDR) by the Qualified Persons (QP’s) Grant A. Brackebusch, P.E. and Robert J. Morgan, PG, PLS. Both are employees of IDR. Brackebusch is the Vice President of Operations and Morgan is the Vice President of Exploration.

The purpose of this report is to disclose Mineral Reserves at the Golden Chest Mine as of December 31, 2021.

IDR is listed on the NYSE and currently reports Mineral Reserves in its Annual Report on Form 10K with the United States Securities and Exchange Commission (SEC). This TRS conforms to SEC’s Modernized Property Disclosure Requirements for Mining Registrants as described in Subpart 229.1300 of Regulation S-K, Disclosure by Registrants Engaged in Mining Operations (S-K 1300) and Item 601 (b)(96) Technical Report Summary.

The Golden Chest mine is narrow vein underground gold mine located in Murray, Idaho, which produces approximately 40,000 tonnes of ore annually to feed the New Jersey Mill (NJ Mill) in Kellogg, Idaho. The Golden Chest has operated continually since 2016. The NJ Mill produces a bulk sulfide flotation concentrate which is shipped to overseas smelters.

1.1.1 Conclusions

The QP’s offer the following interpretations and conclusions by area.

Geology and Mineral Resources

·	The Company has not completed a Mineral Resource Estimate for the year ending December 31, 2021, but is planning to complete one for the year ending December 31, 2022. In 2012, an historic resource estimate was completed as a part of a Canadian NI 43-101 by a third party. A summary of the historic 2012 NI 43-101 is provided for background only and does not represent a current SK 1300-compliant resource.
·	Core sampling is supervised by professional geologist and sampling procedures meet industry best practices.
·	The sample preparation, security, and analytical procedures for core samples were consistent with generally accepted industry best practices.
·	The QA/QC procedures for core samples are consistent with generally accepted industry standards. However, a persistent, low bias in assay results was found in the 3 gpt standard.
·	Blanks and standards are not currently included with muck samples from the stope rounds. Blanks and standards should be included with muck samples on a weekly basis.
·	The QP’s review of database validation yielded no deficient procedures or data. The sample database is valid for reserve and resource calculations.

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Mining and Mineral Reserves

·	The Mineral Reserve estimate of has been reviewed by the QP’s and found to be in accordance with the definitions for Mineral Reserves in S-K 1300. Mineral Reserves at December 31, 2021 are 38,700 tonnes at an average grade of 4.87 gpt gold using a gold price of $1,650 per troy ounce.
·	The Mineral Reserves are all within the Skookum Shoot area near existing infrastructure and near previously mined areas where sample data is dense enough for Proven classification.
·	Open pit ore reserves were not calculated for the year ending December 31, 2021. The Klondike open pit is an area with a low density of core drilling and extensive, unmapped stopes (mined-out voids) from historic mining that make it difficult to produce an accurate reserve estimate. The open pit is mined on a drill-as-you-go basis where each bench is economically evaluated based on the blastholes assays to determine whether enough revenue will be available to generate a profit for the bench. These factors combine to make the outlook for continued open pit mining relatively uncertain.
·	Mineral Reserves are prepared by qualified personnel with appropriate supervision using industry-standard mining software.
·	The QP’s believe the use of a trailing three-year average gold price is appropriate and consistent with generally accepted practices within the mining industry.
·	The mining method at the Golden Chest is underhand cut-and-fill utilizing cemented rock fill (CRF) in the stopes.
·	The mining method is appropriate for this type of vein deposit and the ground conditions with minimum widths of 2.5 m and an average stope width of 3.0 m.
·	The Mineral Reserve is based on the underhand cut-and-fill mining method.
·	Block model versus muck sample reconciliation shows the block model accurately predicts gold grade within 2%. A reconciliation of the block model and mine versus the mill feed should completed.
·	Dilution is accounted for in the Mineral Reserve estimate and extraction is assumed to be 100%.
·	The ground support plan with the use of Swellex-bolts in conjunction with CRF has improved geotechnical stope stability.
·	The mine uses 1.5 m^3^ rubber-tired LHDs along with diesel-hydraulic drill jumbos and a 22-tonne underground dump truck.
·	Life-of-mine (LOM) plans should be completed once an updated Mineral Resource estimate is completed. Mining equipment, infrastructure, and mineral processing requirements could be determined once an LOM plan is completed.

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Mineral Processing

·	Material is shipped from the Golden Chest Mine in Murray, Idaho to the New Jersey Mill in Kellogg, Idaho for processing using highway dump trucks with pups.
·	The New Jersey Mill operates as a bulk flotation plant at a rate of approximately 40,000 tonnes per year to produce a bulk-sulfide concentrate for sale to copper smelters in Asia.
·	The mill has processed nearly 207,000 tonnes of material from the Golden Chest open pit and underground and achieved gold recovery of 89.7% with an average concentrate grade of 252 gpt gold.
·	The mill has achieved higher gold recovery of 93% for straight underground material. This is appropriate gold recovery to use for underground Mineral Reserve estimates.
·	Previous campaigns of processing material from the Golden Chest at the 100 tpd New Jersey Mill from 2005 to 2009 provided metallurgical testing information at a bulk-sample scale.
·	RDI performed metallurgical testing evaluating gravity, flotation, and cyanidation processes using core samples from the Skookum Shoot.
·	The New Jersey Mill utilizes the novel process of paste tailings disposal and recycles process water to minimize its impact on the environment.

Infrastructure

·	The Golden Chest Mine is accessible all year round via a paved highway known as Forest Highway 9 and has all the necessary infrastructure to mine at the current rate.
·	An increase in the current mining rate would require an upgrade to the electrical power line to the mine.

Environment

·	The Golden Chest Mine and New Jersey Mill have all the necessary environmental permits to operate.
·	The Company has posted bonds to cover the cost of reclamation at both the Golden Chest and New Jersey Mill.
·	The Company promotes a “We Live Here” philosophy which encourages a commitment to the environment because employees and management all live and recreate in the local area. Local hiring and buying are also encouraged under this philosophy.

1.1.2 Recommendations

The QP’s offer the following recommendations by area.

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Geology and Mineral Resources

1.	An updated Mineral Resource compliant with SK 1300 should be calculated for the year ending December 31, 2022, as there has been significant additional core drilling since the historic Micon 2012 Resource and some depletion from mining.
2.	Inferred Mineral Resource classification should observe the spacing requirement of two drill holes within 75 meters instead of 100 meters as used in the historic Micon 2012 Resource.
3.	The 3 gpt standard assays should be investigated to determine if a cause for the low bias can be found.
4.	Blanks and standards should be included with the muck samples on a weekly basis.
5.	Follow-up or closeout assays around a vein intercept should be checked on a regular basis that they have been added to the sample database to avoid inaccuracies in compositing.

Mining and Mineral Reserves

1.	Add the reconciliation of mill tonnes and grade to the block model reconciliation exercise.
2.	The use of the mechanical bolter in the stopes should be implemented into the stope design to pursue increased efficiency and safety in the installation of ground support.
3.	Study the addition of a paste backfill system for the potential to reduce operating costs.
4.	Commission double-boom jumbo to increase rate of development.

Mineral Processing

1.	Hire a metallurgical consultant to perform a plant audit of the mill to help optimize operational parameters to maximize net smelter return.
2.	Complete mineralogic study of concentrate to define mineralogic components of concentrate.

Environment

1.	Consider hiring a full-time environmental professional or environmental contractor as the scope of operations has increased.
2.	Make plans to drill three groundwater monitoring wells at the Golden Chest Mine.

1.2 Economic Analysis

1.2.1 Economic Criteria

IDR completed a one-year cash flow analysis for the Mineral Reserve estimation as it prefers to use sample information from mining previous levels to increase the confidence in grade estimation which produces a more accurate estimate in a narrow vein gold deposit.

1.2.2 Physical Parameters

·	Total mill feed processed: 38,700 tonnes
·	Average processing rate: 185 metric tonnes per shift

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Table 1‑1 Golden Chest Projected Production for One Year

Commodity	Head Grade	Mill % Recovery	Mill Recovered Au Grams	Year’s Mill Au Grams

| Au | 4.87 | 93 | 175,580 | 175,580 |

1.2.3 Revenue Parameters

·	Gold price used in the economic analysis is a constant $1650 per troy ounce representing a 3-year trailing average (2019, 2020, 2021).
·	Constant smelter payment factor of 91%
·	Constant Net of Smelter Royalty (NSR) of 2%

1.2.4 Operating and Capital Costs

·	Constant Net of Smelter Royalty (NSR) of 2%
·	Constant Ore haulage cost of $12.50 per tonne
·	Constant milling cost of $35.00 per tonne
·	Constant ore mining with fill of $95 per tonne
·	Constant development cost of $55 per tonne
·	Sustaining capital of $480,000 for mine equipment and $70,000 for mill infrastructure
·	Mine life of one year

1.2.5 Taxes and Royalties

Idaho Strategic resources pays property tax in Shoshone County and occasionally a Net Profit Tax to Shoshone county. No income tax is anticipated to be payable in the next year as IDR has a substantial corporate tax loss carryforward.

The current production zone is subject to a 2% NSR royalty payable to Marathon Gold Corp. which is included in the estimate. Property taxes and net profit tax paid to Shoshone County are minor compared to the 2% NSR and are neglected in the analysis.

1.2.6 Cash Flow

The results of this analysis indicate a positive cash flow of approximately $1,250,000 at the base case. Capital requirements are paid within the year and the positive cash flow indicates economic viability at the base case $1650 per troy ounce gold price. See Table 19-2 for more detail.

1.2.7 Sensitivity

The sensitivity analysis found that gold mill recovery, smelter payment factor, gold grade, and gold price are the most sensitive variables in the estimate.

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1.3 Technical Summary

1.3.1 Property Description

The Golden Chest Mine is located 2.4 km east of Murray, Idaho along Forest Highway 9. The mine is an underground cut and fill gold property exploiting a narrow, quartz vein system. The Golden Chest produces about 40,000 tonnes of ore annually utilizing underhand cut and fill. The ore is processed at the New Jersey Mill in Kellogg, Idaho to produce a bulk sulfide concentrate for sale to smelters in Asia.

1.3.2 Land Tenure

The Company owns 100% of the Golden Chest mine and the land position is comprised of both patented (319 acres) and unpatented claims (1,390 acres) subject to a 2% Net Smelter Royalty (NSR).

1.3.3 History

The Golden Chest Mine is the oldest lode gold mine in the Coeur d’Alene District. Historic reports peg the estimated production of the Golden Chest at 65,000 ounces of gold produced before 1940. Since 1940 gold production is estimated to be approximately 30,000 ounces with this production occurring after 2004.

1.3.4 Geologic Setting, Mineralization, and Deposit

The Golden Chest is considered an orogenic gold deposit with gold mineralization hosted in a quartz vein near a major local fault. The primary geological control to mineralization at the Golden Chest is the Idaho Fault and gold mineralization usually occurs within 50 meters of the fault. The deposit is hosted by the Prichard Formation which is the oldest member of the Belt Supergroup.

1.3.5 Exploration

Currently IDR is conducting exploratory core drilling on the property with the aim to increase the Mineral Resource and help define the Mineral Reserve.

1.3.6 Mineral Resource Estimate

The Company has not completed a Mineral Resource Estimate for the year ending December 31, 2021, but is planning to complete one for the year ending December 31, 2022.

1.3.7 Mineral Reserve Estimate

Mineral Reserve estimates, prepared by IDR and reviewed and accepted by the QP’s, have been classified in accordance with the definitions for Mineral Reserves in S-K 1300 and are estimated to be as 38,700 tonnes at a grade of 4.87 gpt gold.

1.3.8 Mining Methods

The Golden Chest Mine is accessed by a decline ramp 4.5 m by 4.0 m in cross-section. A northern ramp provides for an escapeway and secondary escape. The vein is mined by underhand cut and fill utilizing cemented rock fill (CRF) as backfill. Ore and waste are transported to the surface via the main ramp with a 22-tonne haul truck.

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1.3.9 Mineral Processing

The New Jersey Mill located 3 km east of Kellogg, Idaho has processed material from the Golden Chest since 2017 from both open pit and underground sources at a rate of about 300 tpd for 3.5 days per week. The New Jersey Mill uses a conventional bulk sulfide flotation flowsheet utilizing crushing, grinding, flotation, and paste tailings disposal. Concentrate is shipped to copper smelters in Asia.

1.3.10 Infrastructure

The Golden Chest mining operations have been ongoing since 2012 and infrastructure at the site includes 1,000 meters of underground ramp, electrical service, a core shed, a mine dry, and a shop building. Year-round access to the mine is provided by Forest Highway 9 which is maintained by Shoshone County.

1.3.11 Market Studies

The Golden Chest produces a bulk sulfide concentrate sold to copper smelters in Asia through a concentrate broker and has sold concentrate in this fashion since 2016.

1.3.12 Environmental Permitting

The Golden Chest Mine and New Jersey Mill have all the necessary environmental permits to operate. The NJ Mill utilizes a unique tailings disposal method known as paste tailings disposal that allows process water recycling and prevents the discharge of process water to surface waters of the US.

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2.0 INTRODUCTION

This Technical Report Summary (TRS) on the Golden Chest Mine (Golden Chest, property, or mine) has been prepared for Idaho Strategic Resources, Inc. (IDR) by the Qualified Persons (QP’s) Grant A. Brackebusch, P.E. and Robert J. Morgan, PG, PLS. Both are employees of IDR. Brackebusch is the Vice President of Operations and Morgan is the Vice President of Exploration.

The purpose of this report is to disclose Mineral Reserves at the Golden Chest Mine as of December 31, 2021. This is the initial TRS completed for the Golden Chest Mine.

Idaho Strategic Resources, Inc. (IDR) is listed on the NYSE and currently reports Mineral Reserves in its Annual Report on Form 10K with the United States Securities and Exchange Commission (SEC). This TRS conforms to SEC’s Modernized Property Disclosure Requirements for Mining Registrants as described in Subpart 229.1300 of Regulation S-K, Disclosure by Registrants Engaged in Mining Operations (S-K 1300) and Item 601 (b)(96) Technical Report Summary.

2.1 Site Visit

Both QP’s are employees of IDR and spend a significant portion of their time at the mine and the mill so a site visit is unnecessary.

2.2 Sources of Information

During preparation of this report discussions were held with the following personnel.

Rick Alexander	Mill Lead Operator, IDR
Andrew Brackebusch, EIT	Golden Chest Mine Engineer, IDR
John Etienne	Chief Geologist, IDR
John Ferguson	Company Accountant, IDR
Kelly Gallogly	Golden Chest Mine Geologist, IDR
Rebecca Goddard	Exploration Geologist, IDR
Chandler Harris	Contract Geologist, Tamarack Geologic Services
Matt Williams	Golden Chest Mine Foreman, IDR
Jared Williams	Golden Chest Mine Foreman, IDR

Other sources of information can be found in Section 24.0 References.

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2.3 List of Abbreviations

Table 2‑1 - List of Abbreviations

Term	Abbreviation

| Acres | ac |

| Ammonium Nitrate/Fuel Oil | ANFO |

| Bureau of Land Management | BLM |

| Canadian National Instrument 43-101 | NI 43-101 |

| Centimeter | cm |

| Concentrate Leach Plant | CLP |

| Cemented Rock Fill | CRF |

| Cubic meter(s) | m^3^ |

| Cubic meters per hour | m^3^/hr |

| Cyanide | CN |

| Meters | m |

| Degrees Celsius | ^o^C |

| Direct Current | DC |

| Environmental Protection Agency | EPA |

| Fire assay | FA |

| Diameter | dia. |

| Global positioning system | GPS |

| Gram(s) | g |

| Grams per tonne | gpt, g/t |

| Grams per tonne of gold | g/t Au |

| Gold | Au |

| Golden Chest Limited Liability Company | GCLLC |

| Hectare(s) | ha |

| Hour | hr |

| Idaho Department of Environmental Quality | IDEQ |

| Idaho Strategic Resources, Inc. | IDR |

| Juniper Mining Company | JMC |

| Kilogram | kg |

| Kilograms per tonne | kg/tonne |

| Kilometer(s) | km |

| Kilowatt | kW |

| Kilowatt Hour | kWh |

| Load-Haul-Dump loader | LHD |

| Main Access Ramp | MAR |

| Meter(s) | m |

| Meters above sea level | masl |

| Micron(s) | μm |

| Millimetre(s) | mm |

| Million | M |

| Million years old | Ma |

| Minute(s) | min |

| Net Smelter Royalty | NSR |

| North American Datum | NAD |

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Term	Abbreviation

| Ounces per tonne | opt |

| Parts per million | ppm |

| Professional Geologist | PG |

| Professional Land Surveyor | PLS |

| Professional Engineer | PE |

| Quality Assurance | QA |

| Quality Assurance/Quality Control | QA/QC |

| Quality Control | QC |

| Qualified Person | QP |

| Reduced Intrusion-Related Gold System | RIRGS |

| Second | s |

| Small Mine Development | SMD |

| Sodium cyanide | NaCN |

| Tonne(s) | t |

| Tonnes per Day | tpd |

| Tonnes per hour | t/h |

| United States | US |

| United States Dollars | USD$ |

| Universal Transverse Mercator | UTM |

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3.0 PROPERTY DESCRIPTION

3.1 Location

The Golden Chest Mine (mine) has an area of 554.9 hectares (ha) and is located in Shoshone County, Idaho, United States. The mine is approximately centered at Latitude 47^o^37’14” North and Longitude 115^o^49’43” West (Figure 3-1). The mine is approximately 2.4 kilometers (km) east of the small town of Murray, Idaho and 115 km east of the city of Coeur d’ Alene, Idaho.

The New Jersey Mill (Mill) is located in Shoshone County, Idaho, United States approximately at Latitude 47^o^31’50” North and Longitude 116^o^04’38” West (Figure 3-1). The Mill is located approximately 21 km south of the town of Murray, Idaho and 3 km east of the city of Kellogg, Idaho.

Figure 3‑1 and New Jersey Mill Location Map

3.2 Ownership and Holdings

The Golden Chest Mine is composed of patented and unpatented claims (Figure 3-2). The land position consists of 26 patented mining claims (Table 3-1) covering approximately 129.1 hectares (ha) (319 acres) and 70 unpatented claims covering a total of approximately 562.5 ha (1,390 acres).

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Figure 3‑2 Patented and unpatented claim locations

The core of the Golden Chest Mine is a contiguous group of 26 patented claims where all modern mining has taken place to date. The Company owns the rights to both the surface and subsurface mineral on all patented claims directly and through it’s 100% held subsidiary Golden Chest LLC (GCLLC), excluding the Joe Dandy Claim where IDR owns only the subsurface mineral rights. 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. Table 3-1 below lists the patented claims at the Golden Chest Mine.

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Table 3‑1 List of patented claims at the Golden Chest Mine, as of December 31, 2021

IDR currently maintains 70 unpatented mining claims covering 562.5 ha (1,390 acres). The claims have been filed with the United States Bureau of Land Management (BLM) agency and at the Shoshone County Courthouse. Annual maintenance fees are paid to the BLM by September 1, and the Golden Chest unpatented claim fees have been paid and are in good standing. The unpatented mining claims are located on parcels of public land from which the claimant owns the mineral rights, however, no surface land ownership is conveyed.

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Table 3‑2 List of Unpatented Claims at the Golden Chest Property

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3.3 Royalty

The Golden Chest Mine patented and unpatented claims are subject to a 2% Net Smelter Royalty (NSR) payable to Marathon Gold Corp. on a quarterly basis.

3.4 Permit Requirements

The Golden Chest Mine and New Jersey Mill have 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 mining operation. A summary of the permits held by the Company are found in Table 3-3.

Table 3‑3 Permit Descriptions

3.5 Encumbrances and Other Risks

As mentioned earlier, IDR does not own the surface of the Joe Dandy claim, however the deed for the claim contains language granting the owner of the mineral rights the ability to work and operate on the claim to mine the quartz lode. The Company is not aware of any significant factors or risks that may affect access, title, or the right or ability to perform work on the property.

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4.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHSYIOGRAPHY

4.1 Accessibility

The Golden Chest Mine is accessible year-round via a paved road known as Forest Highway 9 - a distance of 56 kilometers (35 miles) from Kingston, Idaho. At Kingston, Forest Highway 9 merges with US Interstate 90 for easy access to the local communities of Kellogg, Wallace, and Coeur d’Alene.

4.2 Climate

The Golden Chest is located in northern Idaho, which has a mountain climate typical for temperate regions in the mid-latitudes that are influenced by both polar and tropical air masses typified by wet, cold winters and short, dry summers.

The nearest climate records are found from Burke, Idaho (1907-1967) which is located approximately 10 km south of the mine at a slightly higher elevation.

Table 4‑1 Average Climate for Burke, ID 10km South of Golden Chest

Average annual precipitation is 121.9 cm, falling mainly in winter. Average annual snowfall is 616.9 cm and may occur in spring and fall as well as in winter.

During the winter, IDR is able to operate all season by plowing snow from the mine roads and utilizing tire chains on equipment when necessary. Forest Highway 9 is maintained all winter by Shoshone County.

4.3 Local Resources and Infrastructure

The Golden Chest Mine benefits from local human resources and services in the towns of Murray, Wallace, and Kellogg, Idaho which are located 2.4 km west, 18 km south, and 24 km southwest respectively of the mine. Wallace, with a population of 1076 people at the 2020 census, is the county seat of Shoshone County.

The area has a long mining heritage as gold was discovered in Murray in 1882 and mining has continued to the present – mostly south of the Golden Chest in the Silver Valley. Current underground mining in the area is conducted by Hecla at the Lucky Friday Mine and Americas Gold and Silver Corporation at the Galena Mine. These historic and modern mining operations have resulted in an area that is familiar with and is equipped to support the mining industry. Experienced mining personnel and small business support are available.

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4.4 Physiography and Environment

The topography of the mine area consists mainly of steep, mountainous terrain, which is primarily covered in mixed coniferous forest, except where recently burned. The mine is characterized by high relief, with elevations ranging from 880 meters above sea level (masl) at the Prichard Creek valley bottom to 1,220 masl on the ridges at the north end of the mine’s patented claim group.

The drainage pattern around the mine consists of dendritic perennial and intermittent watercourses that drain generally southwest. The dominant watercourses of the area are the North Fork of the Coeur d’ Alene River and Prichard Creek. The area is characterized by incised streams bounded by long steep ridges.

Timber consists mostly of pine, fir, cedar, and hemlock. Elk, deer and moose are the most common large mammals in the area. Other reported mammals in the surrounding area are black bear, wolf, and mountain lion. There are no known protected species within the mine area.

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5.0 HISTORY

5.1 Location of District

The Golden Chest Mine is the oldest lode gold mine in the Coeur d’Alene District. The area commonly known as the Coeur d'Alene Mining District, has been subdivided for purposes of record and administration into a number of local mining districts. All of these subdivided local mining districts are in Shoshone County, Idaho. The Golden Chest Mine is more specifically located in the Summit Mining District within the Murray Gold Belt region of the greater Coeur d’Alene Mining District.

5.2 Historic Gold Mining

The first discovery of gold in the Coeur d’Alene District was made along the South Fork of the Coeur d’Alene River by Thomas Irwin in 1879. A.J. Prichard initiated the first active mining in 1882 when he staked out a number of placer claims for himself and his friends near the present site of Murray. The first lode claim in the district, the Paymaster, was located in September of 1883 and is now part of the Golden Chest.

By the end of 1883 and early in 1884, several mines were developed along Prichard Creek; the Mother Lode, Daddy, and Treasure Box mines on the creek’s south side, and the Golden Chest on the north side. By 1885, Murray had a population of about 1,500 with the Golden Chest and its 20-stamp mill employing 25 to 30 men. However, by 1886, with the discovery of the enormous lead-silver deposits at Bunker Hill, the scene of most mining activity had shifted to the South Fork of the Coeur d’Alene River near Kellogg. The mining of lode quartz-gold veins had essentially ceased by 1900.

Prior to 1910, the Katie-Dora and Klondike Ore Shoots were accessed from the Katie #2, Katie #3, Martin, and Pettit Levels. After consolidation of the properties in 1910, the Idaho #3 level was completed at a lower elevation to access the deeper levels of the Katie-Dora and Klondike zones. Starting in late 1915, the Golden Chest was reopened as a source of tungsten (scheelite) for high-speed steels used in cutting tools designed for armament production in the First World War.

During the Depression, placer mining was considerably revived, and in 1933 and 1934 the Golden Chest was again active. Only a small amount of work was in progress and most of the historic underground gold mining was complete when P. Shenon, of the Idaho Bureau of Mines and Geology, visited the Golden Chest in 1935. Shenon reported that underground maps displayed over 4,000 m of drifts and crosscuts.

Historic reports peg the estimated production of the Golden Chest at 65,000 ounces of gold produced before 1940. The first documented drilling program on the Golden Chest Mine was conducted between 1969 and 1973 by Golden Chest Incorporated (GCI). Drill tests by GCI included four underground holes and one surface diamond drill hole totaling 385 m. The surface hole intersected an 18 m zone containing multiple, low-grade gold-bearing quartz veins.

Newmont Exploration Limited (NEL) conducted exploration activities including mapping, sampling and drilling between 1987 and 1990. In 1987 and 1988, Newmont completed six core drill holes with depths to 175 m. In 1988 and 1989, an additional 29 reverse-circulation holes, with depths up to 130 m, were completed on the property. Newmont dropped the property in 1990, due to the property not fulfilling their requirements for an open pit resource.

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5.3 Historical Mineral Resource Estimates

Newmont Exploration Limited (NEL) evaluated the Golden Chest for bulk mineable potential between 1987 and 1990. Newmont drilled six core holes totaling 734 total meters; and 29 reverse-circulation holes totaling 2,659 total meters. This work resulted in a mineral resource estimate as follows:

· Potential Open Pit Resource: 4,758,852 short tons grading 0.049 ounces per ton (opt) Au for 230,278 ounces of gold at cut-off grade of 0.02 opt Au.

Since these “resources” are historical in nature, they cannot be relied upon. It is unlikely that these resource numbers conform to current SK 1300 criteria or to Society of Mining Metallurgy and Exploration (SME) standards, and most importantly they have not been verified to determine their relevance or reliability. However, they have been included into this section for illustrative purposes only and should not be disclosed out of context.

5.4 New Jersey Mining Company (IDR 2003-2012)

IDR leased the Golden Chest in 2003 and began a core drilling program to confirm several of Newmont’s favorable drill intercepts. Confirmatory core drilling results led to enough validation to begin a new portal (North Portal) in late 2004. Between 2004 and 2008, a 440 m spiral ramp was developed from the surface down to the historic Idaho #3 Level.

Between 2004 and 2012, small-scale mining by IDR from the North Portal access extracted a total of 8,400 tonnes of material grading 6.90 gpt Au and 1,705 ounces (oz) of gold recovered.

5.5 Golden Chest LLC (2010-2015)

The Golden Chest Limited Liability Company (GCLLC) was formed in December 2010 by a joint venture agreement between IDR and Marathon Gold USA. GCLLC began an intense surface drilling program; drilling 106 core holes in 2011 and 45 core holes in 2012 totaling over 18,000 meters.

5.6 Micon NI 43-101 (2011 and 2012)

Marathon Gold Corporation, a Canadian company and parent company to Marathon Gold USA required an independent NI 43-101 Technical Report in order to support regulatory disclosures leading to the “Micon Technical Report on the Initial Resource Estimate at the Golden Chest Property, Idaho, United States, effective date December 31, 2011”. Continued work the next year led to the development of an updated, second technical report by Micon in 2012. The updated 2012 NI 43-101 technical report included an overall mineral resource 254,000 oz gold in the Measured and Indicated categories and 223,000 oz gold in the Inferred category @ 0.4 gpt gold cut-off. The Micon 2012 report also included an open pit resource estimate with 4.63-million tonnes grading 1.71 grams per ton (gpt) gold and totaling 223,000 ounces (oz) of gold in the “Measured” and “Indicated” categories.

5.7 Juniper Mining Company (2013)

In September of 2013, Juniper Mining Company leased from GCLLC a section along the Idaho Fault known as the Skookum Shoot. Juniper conducted confirmation drilling, consisting of 16 surface core holes, to verify previous drilling results and by 2014 started construction of the South Portal and associated access ramp. Underground mining, using underhand cut and fill method was conducted from November 2014 through September 2015. Juniper accomplished about 1,000 meters of underground development after investing approximately $7 to $9 million. Other work included 889 face chip samples, 2,457 muck samples, and 734 jackleg probe hole cuttings samples. IDR processed the Golden Chest material at its New Jersey Mill during the Juniper Lease, earning cash from milling fees and its share of a 2% net smelter return (NSR) royalty on gold production. Juniper mined 40,840 dry metric tonnes of ore at an average grade of 6.70 gpt gold, resulting in production of approximately 8,000 oz of gold.

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In September 2015, Juniper ceased operations and terminated their lease, forfeiting the remaining mineralized material and mine infrastructure returning the property to GCLLC.

5.8 Idaho Strategic Resources (2016-Present)

In August 2016, Idaho Strategic Resources (IDR), formerly known as New Jersey Mining Company, began to re-open the mine, starting with open pit mining on the Idaho Vein (Idaho Pit) and de-watering of the underground workings. Through June 2022, open pit mining was coincident with underground mining.

6.0 GEOLOGICAL SETTING, MINERALIZATION, AND DEPOSIT

6.1 Regional Geology

The Golden Chest Mine lies within the Northern Thrust Belt geologic province of Idaho (Figure 6-1). The Northern Thrust Belt is characterized by a set of north-west trending thrust faults which cut through the Mesoproterozoic metamorphic and sedimentary rocks of the Belt Supergroup.

Figure 6‑1 Geologic Provinces of Idaho (Idaho State University 2017)

6.1.1 Belt Supergroup

The Belt Supergroup consists of a thick sequence of marine basin sediments that were deposited 1470-1400 million years ago (Ma). In the mine region, the Belt Supergroup is comprised of four major groups, from oldest to youngest:

1) The Lower Belt Group, which is composed of a single formation (Prichard) with eight members, and is composed of thin to thick bedded argillite, siltite, and quartzite.

2) The Ravalli Group, which is composed of three formations and is dominated by quartzite lithologies.

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3) The Middle Belt Carbonate Group (in the mine area, consists of the Wallace Formation) which is dominated by limestone and dolomitic quartzites.

4) The Missoula Group which consisting of interbedded quartzite and argillite (Table 6-1).

Table 6‑1 Belt Supergroup Stratigraphy in the Mine Region (modified after Gott 1980)

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Figure 6‑2 Belt Stratigraphy in the Mine Region

Most of historic production in the Coeur d’Alene Mining District has been from the Ravalli and Lower Belt Groups. The host rock lithology at the Golden Chest is the Prichard Formation of the Lower Belt Group.

6.2 Local Geology

6.2.1 Lithology

Prichard Formation

The area surrounding Murray, Idaho is dominated by the lithologies of the Prichard Formation (Figure 7--3) which comprises the Lower Belt Group of the Belt Supergroup. The Prichard Formation is made up of a series of weakly metamorphosed, marine basin sediments consisting of siltite, argillite and quartzite. The sediments were deposited by underwater landslides in an active shelf environment creating turbidite sequences. The turbidites are composed of graded couplets consisting of a dark argillite layer and a light siltite layer. The quartzite beds are often discontinuous lenses that suggest deposition in narrow sub-marine channels. In the Murray area, the total thickness of the Prichard Formation is greater than 2740 m (Hosterman 1956). The entire Prichard Formation has been weakly metamorphosed to lower greenschist facies, which is manifested by the presence of low temperature minerals such as chlorite and a weak schistose texture.

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Gem Stocks

Locally, the largest group of named igneous intrusives is called the Gem Stocks (Figure 6-3). The Murray Stocks, discussed in Section 6.3, are a smaller associated subset of the Gem Stocks. The Gem Stocks are zoned, monzonitic to syenitic intrusions. Base and precious metals were mined from veins at stock margins in the late 1800’s to mid-1900. The intrusions are small in areal extent but are known from mining to become larger with depth. Age dates for the Gem Stocks vary, but most range in age between 94 to 118 Ma, with a suggested emplacement age of 100 Ma.

The Gem and Murray stocks precede the emplacement of the Idaho Batholith and represent numerous intrusive events along their northeast-southwest trend. This is evidenced by the most mafic portion of the stocks being at the southwestern end of the string of intrusions, while the most felsic portion is at the northeastern end near Murray. The Bitterroot lobe of the Idaho Batholith was intruded during regional compression in Cretaceous time; 95 to 70 Ma.

Figure 6‑3 Prichard Formation (Green), Gem Stocks (Pink), Major Fault Lineaments (Blue) and Trout Creek Anticline (Black).

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6.2.2 Structure

Thompson Pass Fault

The Thompson Pass Fault is the largest geologic structure in the Murray area (Figure 7.3). This fault is the northernmost fault structure of the three faults that define the Lewis and Clark Line in the region. The Lewis and Clark Line is a zone of nearly vertical normal, reverse and strike-slip faults that represents a fundamental break in the crust along which intermittent movement has occurred from Proterozoic time (2,500 Ma) to the present. The Lewis and Clark Line includes the Thompson Pass Fault as the north boundary, the Osburn Fault in the center, and the Placer Creek Fault as the south boundary. Near the mine, the Thompson Pass Fault strikes northwesterly, has a near vertical dip and strong right-lateral, strike-slip displacement.

Trout Creek Anticline

The Trout Creek Anticline is the next largest structural feature in the Murray area after the Thompson Pass Fault. The northerly-trending Trout Creek Anticline is truncated on its southern end by the Thompson Pass Fault. The Trout Creek Anticline is an asymmetric upright fold, with the eastern limb dipping more steeply than the western limb. The western limb dips west at about 45 degrees. The Golden Chest mine is located on the western limb of the Trout Creek Anticline (Figure 7.3). The Idaho Fault is the major fault in the mine workings and is conformable to the western limb and has the same dip.

Murray Peak Fault

Another major structural feature in the local area is the Murray Peak Fault (Figure 7.3). This fault is a northerly trending, high-angle reverse fault which primarily dips steeply to the west at 70° to 85°. Like the Trout Creek Anticline, the Murray Peak Fault is truncated at its southern end by the Thompson Pass Fault.

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Figure 6‑4 Regional Geologic Map

6.3 Property Geology

6.3.1 Lithology

The Golden Chest mine has five fundamental rock types; three are sedimentary in origin and two are igneous. The sedimentary rocks are composed of siltite, argillite and quartzite; or any combination of these three rock types. The two types of igneous rocks are both intrusive; quartz monzonite and lamprophyre.

Siltite, Argillite and Quartzite

The mine host rocks are composed of siltite, argillite and quartzite, which belong to the Prichard Formation in the Lower Belt Group. The nomenclature for the Prichard Formation as used by IDR has been adapted from Cressman (1989). This adaptation of the Prichard describes and divides the rock units into informal members of the formation starting from older to younger, and these members are identified with nomenclatures of A through H (eight members in total). On the mine, the two youngest members of the Prichard are represented, Members G and H (Figure 6-5).

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Member G is characterized by lenses of quartzite interbedded with siltite and argillite. This rock unit forms the footwall of the Idaho Fault. The thickness of Member G can range in thickness from 10 to more than 1000 m.

Member H, which lies stratigraphically above Member G, is dominated by dark gray argillites and light gray siltites with minor quartzites. This rock unit forms the hanging wall of the Idaho Fault. Bedding is dominantly planar. The thickness of Member H is from 600 to 750 m.

Quartz Monzonite

The intrusive rocks on the mine are dominantly quartz monzonite, which belong to the Murray Stocks. The Murray Stocks are a subset to the Gem Stocks and share the same Cretaceous age. Surface exposures of quartz monzonite are limited to the southern end of the mine. The quartz monzonite is more often seen in drill core as either a sill occupying the Idaho Fault or as a dike in its hanging wall.

The quartz monzonite is composed of approximately 40% quartz, 40% potassium feldspar and 20% plagioclase. It is mostly observed as grey-colored and equigranular, although porphyritic phases are also found in drill core at the southern end of the mine. When porphyritic, the quartz monzonite contains abundant, light pink potassium feldspar phenocrysts. Minor purple fluorite in thin quartz veinlets has been observed in some drill core.

Lamprophyres

There are several generations of lamprophyre dikes and sills. The lamprophyre dikes or sills are usually narrow with widths less than 1 m and are composed of a fine-grained groundmass with visible phenocrysts of black hornblende, biotite, or pyroxene.

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Figure 6‑5 Mine Geologic Map

Lamprophyre dikes can contain xenoliths of gold-bearing quartz vein material, indicating that at least some of these dikes and sills postdate mineralization. Marvin et al (1984) indicate ages of 68.8 ± 2.0 Ma to 58.8 ± 1.5 Ma for lamprophyre dikes in the area.

6.3.2 Structure

The mine lies at or near the intersection of several structural features including the Thompson Pass Fault, Trout Creek Anticline, the Murray Peak Fault and the Idaho Fault. This complexity forms a structural knot that has prepared the ground by providing channels for the hydrothermal fluids required to form the quartz-gold veins.

Idaho Fault

The primary structure at the Golden Chest Mine is the Idaho Fault. The Idaho Fault is interpreted as a moderate-angle, reverse fault that has exploited a lithologic boundary in the Prichard Formation.

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The Idaho Fault occurs in the west limb of the Trout Creek Anticline, on a smaller scale secondary (parasitic) fold that plunges to the north-northwest. The strike of the Idaho Fault and the fold axis of the Trout Creek Anticline are sub-parallel (Figure 7.2). Bedding above and below the Idaho Fault may be parallel to it or intersecting at angles, dependent on location along the secondary fold.

Locally the Idaho Fault displays both cataclastic and mylonitic textures, indicating the fault has been active more than once. Fault slickensides can show dip-slip, strike-slip and oblique-slip movement.

Minor Faults (North West Striking)

Since IDR re-started the mine in 2016, a series of northwest striking, steeply south dipping faults have been identified in both the hanging and footwalls of the Idaho Fault. Relative movement along these faults has been difficult to determine as there are no readily identifiable marker units in the Prichard Formation. These faults have been noted to offset or terminate veins.

6.4 Mineralization and Alteration

The primary geological control to mineralization at the Golden Chest is the Idaho Fault. The Idaho Fault separates the hanging wall (Prichard Formation-Member H) from its footwall (Prichard Formation-Member G).

The Idaho Fault acted as the conduit for the mineralizing fluids that produced most of the veins at the Golden Chest Mine. The veins are generally stratiform and conformable to the Idaho Fault and are centered along the Idaho Fault to form a sub-parallel, stacked vein set.

The Minor Faults (Northwest Striking) have been seen to influence grade and tonnage in individual veins as they have been mined. The exact mechanism of control has yet to be determined.

6.4.1 Vein Types

There are three main types of quartz-gold veins found at the mine; banded, brecciated and massive. Most of the gold production and best grades come from the banded quartz veins. The banded veins consist of thin, sub-parallel shear surfaces that result from compression. The bands are composed of quartz, fine sulfides and phyllosilicate septa (derived from wall rock). A banded vein example is shown in Figure 6-6 where gold grains are circled.

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Figure 6‑6 Banded Vein Example

Many of the veins at the mine are brecciated. Both the breccia clasts and matrix can be mineralized in this vein type. Brecciation events have modified or destroyed the textures of both the banded and massive vein types. A brecciated vein example is shown in Figure 6-7.

Figure 6‑7 Brecciated Vein Example

Massive quartz veins are characterized by a lack of banding or brecciation. They are also distinguished by a general lack of sulfides. The massive veins can have good gold values, but usually not as rich as the banded or brecciated veins. A massive vein example is shown in Figure 6-8.

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Figure 6‑8 Massive Vein Example

6.4.2 Vein Names and Locations

Most of the veins recognized at the mine are along or near the Idaho Fault. Both the veins and fault dip moderately to the west at approximately 45 degrees. An example vertical cross-section is shown in Figure 6-9 below.

Veins are found in both the hanging wall and the footwall of the Idaho Fault, and they are concentrated within 100 meters of the fault. Vein density increases with proximity to the Idaho Fault with the most abundant veining occurring within 50 meters of the fault. The historical workings at the mine appear to target veins that are generally within 25 meters of the Idaho Fault.

The “Idaho Vein” is the name given to the quartz vein found in the immediate footwall of the Idaho Fault.

There have been discrepancies in identifying the different veins throughout the years, because the veins pinch, swell, and split along strike. Because of this, the correlating of veins between mining levels or even along strike is difficult.

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Figure 6‑9 Vertical Cross-Section of Vein Location

6.4.3 Lithologic Control of Veins

The two main lithological controls for veining at the Golden Chest are:

• Rheological: brittle-ductile contrast

• Permeability and porosity

Most of the veins at the mine are preferentially found in areas of rheological contrast. Vein development is at its strongest when brittle units, like quartzite and blocky siltite, are in contact with the more ductile laminated siltite-argillite beds.

The permeability and porosity of the lithologic units at the Golden Chest is largely related to grain size. The fine-grained units act as aquitards to hydrothermal fluids while the coarser, more permeable units accommodate and hold the hydrothermal fluids. The quartzite units of the Prichard Formation are more permeable and porous than the surrounding siltite-argillites and are more susceptible to hosting widespread silica-flooding and silicification.

At the mine, the hanging wall to the Idaho Fault is mainly composed of thinly laminated siltite-argillite, with almost no quartzite beds, and these rocks are not as susceptible to silicification. However, the footwall lithologies of the Idaho Fault are primarily light grey, fine-grained quartzites and blocky siltites and these units are very susceptible to pervasive silicification.

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6.4.4 Vein Mineralization

Gold mineralization at the Golden Chest is mostly associated with the sulfide minerals pyrite, galena, sphalerite, and chalcopyrite. Less commonly, gold can be found adjacent to arsenopyrite or scheelite. Both the mineralogy of ore and gangue is shown below.

• Ore mineralogy: pyrite, galena, chalcopyrite, sphalerite, arsenopyrite, gold, scheelite

• Gangue mineralogy: quartz, chlorite, carbonates, sericite, muscovite

Commonly, native gold is seen as intergrowths associated with pyrite, galena, sphalerite, and chalcopyrite. Gold mineralization occurs along the grain boundaries or inside clusters of these sulfides (Figure 6-10).

Figure 6‑10 Gold-Sphalerite-Galena-Pyrite-Quartz Vein from the 941 Level

Four petrologists have examined vein samples from the Golden Chest Mine. The vein samples in each study were from different locations and do not show the same features. Hausen (1987) was contracted by Newmont to examine some samples of banded quartz vein material. He concluded the sulfides and quartz were epigenetic, or the mineralization is of a later age than the enclosing rocks.

Twenty-two years later, Gammons (2009) concluded the gold mineralization was late and associated with galena and chalcopyrite, but not sphalerite. Gammons determined the ore minerals as pyrite, galena, sphalerite (with chalcopyrite rims), chalcopyrite, and gold; in order of decreasing abundance. Additionally, he noted that most of the gold grains are in the 50 micron size range, and should be easy to mill or leach since they mostly occur on cracks in pyrite.

A petrographic analysis done by Ross (2010) determined the vein material at the Golden Chest is well-banded due to a combination of multi-phase mineralogical and tectonic layering. She described the banded vein quartz mineralogy as consisting of white to pale grey semi-translucent quartz, with dark septa of altered wall rock and thin sulfide-rich bands. The tectonic layering was described as hairline slip surfaces and stylolitic bands of pyrite and phyllosilicates.

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Juniper Mining Company also conducted a mineralogical investigation as part of their metallurgical testing. The study showed the gold to be mostly found in association with pyrite and galena and the majority of gold grain sizes are in the 2 to 10 micron range.

Scheelite

Scheelite is found in many areas of the mine and the Golden Chest was a producer of tungsten during World War I. Frequently scheelite can be found with gold as a common subordinate mineral in orogenic gold systems. At the Golden Chest, scheelite is typically found in relatively pure masses within quartz veins.

6.4.5 Wall Rock Alteration

The wall rocks at the Golden Chest display weak alteration, which is usually confined to the area proximal to the gold-quartz veins. The alteration is in part dictated by the permeability/porosity of the lithologies. Within the gold-bearing quartz veins, the alteration minerals are primarily chlorite, sericite, and muscovite. Sometimes earthy hematite is observed.

Generally, the hanging wall rocks of the Idaho Fault display a lack of widespread alteration, due to the tight impermeable mineralogy of the siltite-argillite units. In most cases, hanging wall alteration is chloritic and is localized within 10 meters (33 feet) of Idaho Fault or the veins.

Footwall rocks, on the other hand, can display three types of alteration: sericitic, chloritic and silicification. Alteration within the footwall can be widespread and is related to rock permeability and porosity. Areas containing quartzite lithologies are particularly susceptible, and are often subject to pervasive, passive silica flooding.

The intrusive rocks may show substantial argillic and sericite alteration, especially near faults. Some propylitic alteration has been noted, characterized by veinlets of epidote in the monzonite.

6.5 Deposit Type

The Golden Chest deposit is recognized as an “intrusive related” orogenic gold-quartz vein system by IDR geologists. However, recently there has been the suggestion that the Golden Chest deposit type could be a Reduced Intrusion-Related Gold System (RIRGS). The RIRGS deposit classification is already mired in confusion over nomenclature. It should be remembered that each ore deposit has its own specific and unique characteristics and not all deposits exhibit all characteristics of any particular classification. Deposit models are sets of guidelines, not absolute parameters. No one model will describe multiple deposits, one model describes one deposit. That being said, there is considerable overlap between the two deposit model types and the Golden Chest deposit has characteristics of both orogenic and RIRGS model types. This report will continue to use the orogenic deposit classification for the Golden Chest.

6.5.1 Orogenic

Before 1998, the term mesothermal was used for orogenic gold-quartz vein systems. Other synonyms for this type of vein are shear-hosted lode gold, low-sulfide gold-quartz veins and California Mother Lode veins. These “mesothermal” or orogenic deposits are associated with regionally metamorphosed terranes of all ages. Some of the largest gold deposits in the world are associated with orogenic vein systems. World class orebodies are generally 2 to 10 kilometers (km) long, 1 km wide, and are mined down-dip to depths of 2 to 3 km. This deposit type is responsible for a significant portion of the world’s gold production.

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Orogenic vein deposits usually form within fault systems produced by regional compression or transpression (strike-slip movement). These compressional events are often associated with the collision, docking and subduction of exotic terranes. The majority of orogenic gold deposits are located within second- and third-order structures near first-order, deep-crustal fault zones. Ore forms as vein fill along second- and third-order shears and fault structures. Fluid migration along these fault structures is driven by episodes of major pressure fluctuations during seismic events. Gold is usually deposited at crustal levels within and near the brittle-ductile transition zone at depths of 6-12 kilometers, pressures between 1 to 3 kilobars and temperatures from 200° to 400° Celsius.

6.5.2 Age and Genesis

The genesis of the gold mineralization at the Golden Chest is interpreted to be related to the movement of mineralizing fluids, derived from cooling plutons, up shear zones. Hershey (1916) also believed that gold mineralization was related to the intrusive events, while the Ag-Pb-Zn mineralization was remobilized and leached from the Prichard Formation. regional

The North America Cordillera gold veins are often post-Middle Jurassic and appear to form immediately after accretion of oceanic terranes to the continental margin. The Golden Chest may be related to similar gold vein systems in British Columbia where deposits are mainly Middle Jurassic, ~ 165-170 Ma and Late Cretaceous ~ 95 Ma.

Mineralization age estimates are debatable, but it is possible that there was more than one gold mineralizing event. This Report suggests an age of 94 Ma for the gold mineralizing event at the Golden Chest. This age estimate is based on cross-cutting relationships with the quartz monzonite intrusive and coincides with the end of the Murray Stock emplacement and predates the Idaho Batholith activity.

Intrusive-related orogenic systems are characterized by intrusive rocks emplaced along a fault structure. Figure 6-11 below, displays the position of the Golden Chest Mine in relation to the intrusive and the Idaho Fault. In the case of the Golden Chest, the gold mineralization is interpreted to be primary mineralization resulting from the felsic igneous intrusive. The Thompson Pass Fault is considered to represent the first-order deep crustal fault with the Idaho Fault being a second-order fault. This association is indicative of intrusive related orogenic systems because the first-order fault provides the deep plumbing, and the second-order faults provide the extensional setting.

Other similarities between intrusive related orogenic deposits and the Golden Chest Mine:

1)	Precambrian turbidite host rocks
2)	compressional geologic environments with reverse fault movement;
3)	strong structural control
4)	epigenetic banded veins
5)	quartz-dominant vein system with ≤ 3-5% sulfide minerals
6)	a general lack of widespread alteration

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7)	continuity at depth

Figure 6‑11 Intrusive Related Orogenic Model (modified after Groves et al. 1998)

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7.0 EXPLORATION

For the year 2021, the sole form of exploration work completed on the property was diamond core drilling.

Figure 7‑1 Planview of Golden Chest Drill Traces

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7.1 Drilling

7.1.1 Vertical Continuity

Exploration drill holes are those designed to test specific geological targets more distant from the active workings. All 27 diamond core holes, totaling 6935 m, were drilled from the surface. The geologic targets for the drilling were the Klondike, Paymaster, and Deep Skookum mineral regions. These areas are distant from the active mine workings and currently do not contain any calculated resources or reserves.

The drilling was carried out by IDR’s in-house drill rig using a Hagby 1000 machine, and a contractor, Ruen Drilling, of Clark Fork, Idaho, using a Boart Longyear LF70 and LF90 drills. Core sizes drilled were NQ2 (5.08 cm) and HQ (6.36 cm). Drilling was fanned from prepared drill pads.

All holes are cemented from the bottom of the hole to 30 m above any important mineralized zones. Above the cement, the holes are grouted.

The drillers place the core in waxed cardboard boxes which are then stacked on pallets and strapped down prior to transport, by either drillers or geologic staff, to the logging facility, which is located near the mine offices.

Upon receipt of the core at the logging facility, the boxes are laid out in order on the benches. They are then examined to ensure correct block meterages and core orientation. Zones of core loss are noted, and geotechnical logging is conducted. This includes measurement of recovery and rock quality designation (RQD).

Logging is conducted by IDR geologists. Data is digitally captured on notebook computers using Microsoft Excel.

The core is then logged for lithology and mineralogy, as well as sedimentary structures, veins, faults, and other structural features. Following this, a third logging pass is made noting type, style, and intensity of alteration. During the logging process, features of note are marked with colored pencil so as to be visible in the core photos.

The core is then wetted and photographed using a camera and lighting which provides uniform digital images. In addition to the notations on the core for geological information, the sample boundaries and numbers are also marked to allow for easier validation of the assay results using the core photos.

7.1.2 Drill Hole Surveys

Hole locations and orientations are marked for the drillers by the supervising geologist. Once the drill is on site and ready to begin drilling, a double check of the rig orientation is made by the supervising geologist. The hole is surveyed using a Flexit Single-Shot downhole survey tool. The first measurement is made at 30 m depth and every 30 m increment in depth as the hole is drilled.

The Flexit Single-shot azimuth measurements are based on magnetics, and susceptible to interference from steel objects. Taking a reading 30 m down the hole reduces the chance that the instrument will be influenced by any iron objects on or near surface at the drill site. The Single-shot instrument also records the magnetic field strength which is used to derive average field strength for help in assessing individual orientation readings. If an obviously spurious measurement is recorded, it is discarded and replaced with a second instrument survey reading collected at the same depth.

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The survey data is recorded on paper and forwarded to the supervising geologist for entry into Microsoft Excel software. The surveyed holes are checked on screen using Seequent Leapfrog or Maptek Vulcan software to confirm that they were oriented as planned and in the correct location.

The hole collar locations are picked up by the mine surveyors using a RTK iGAGE-8 base and rover GPS. This is to provide a means for gauging the accuracy of the downhole surveys, and to note any general trends in hole deviation.

7.1.3 Drill Hole Sampling

On completion of the logging, the core is marked for sampling. Samples range in length from a minimum of 0.1 m to a maximum of 1.6 m with breaks made based on changes in estimated grade or mineralization style or lithological changes. Tags are placed in the boxes for each sample.

The core marked for sampling is cut in half longitudinally with a standard wet tile saw. The cut pieces are placed back in the core box in their original location and orientation.

Sample tag books are filled out with hole ID, location, from and to information, and a tag is placed in the sample bag. The sampled intervals are recorded in the Microsoft Excel core log and then checked using a validation routine in Seequent Leapfrog or Maptek Vulcan software to confirm that there are no overlaps or accidental gaps. Approximately 1200 drill core samples were collected.

Assay Quality Assurance/Quality Control (QA/QC) samples consisting of either a blank or standard inserted into the sample sequence every 10 samples. These are also recorded in the database. The lab, American Analytical Services, Inc., Osburn, Idaho, also conducts internal QA/QC involving duplicate pulps and rejects.

Samples are collected by taking one half of the cut core and placing it into polyester bags which are then put into a vehicle and driven by an IDR employee to American Analytical Services, Inc., Osburn, Idaho. The shipping list is generated in Microsoft Excel and placed with the shipment along with a lab-required Chain of Custody form.

In the QP’s opinion, the drilling, core handling, logging, and sampling at Golden Chest is being conducted according to common industry practice, in a manner appropriate for the deposit type and mineralization style.

7.3 Hydrogeology Data

Hydrogeology data is not currently collected from the Golden Chest drill holes.

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8.0 SAMPLE PREPARATION, ANALYSES, AND SECURITY

8.1 Laboratory Accreditation and Certification

The laboratory used by IDR for sample preparation and analyses is:

American Analytical Services, Inc.,

59148 Silver Valley Rd,

Osburn, ID 83849

+1 (208) 752-1034

American Analytical is ISO 17025 Certified for Mineral and Ore Chemical Testing. Fire assaying is the only method used to quantify gold in core samples and muck samples. Occasionally Atomic Absorptions (AA) is use for multi-element analysis.

American Analytical (AAS) is independent of the parties involved in the Golden Chest Mine.

8.2 Sample Quality Assurance and Quality Control (QA/QC)

8.2.1 Blanks

The QP’s reviewed the results of blank assay and only 2 of 241 samples returned an assay greater than the detection limit for fire assay, < 0.060 gpt gold. These are acceptable results.

8.2.2Standard – 3 gpt

A review of the assay results from the 3 gpt gold standard was conducted by the QP’s. The results are presented below in Figure 8-1.

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Figure 8‑1 Drill Sampling 3 gpt Standard QA/QC Tracking

A review of the 3 gpt standard shows an assay bias to the low side as 27.5% of the assays are below three standard deviations (2.69 gpt) and only 0.92% of the assays exceed three standard deviations (3.39 gpt). The average assay for the 3 gpt standard is 2.80 gpt which is right at minus two standard deviations.

8.2.3 Standard – 8 gpt

A review of the assay results from the 3 gpt gold standard was conducted by the QP’s. The results are presented below in Figure 8-2.

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Figure 8‑2 Drill Sampling 8 gpt Standards QA/QC Tracking

The assay results for the 8 gpt standard show good dispersion around the mean with only 13 of 226 results (5.75%) outside of three standard deviations. These are acceptable results.

8.3 Sample Preparation

Once the geologist has completed their detailed logging they delineate sample intervals, and the core technicians saw the core longitudinally in half with a diamond blade saw, cleaning the blade between sample intervals. The right half of the core is placed in a sample bag. A tag with a unique sample identification (ID) number is placed inside each sample bag before it is sealed. This sample ID number is also written on the outside of the sample bag. This same sample ID is tagged into the core box at the respective interval and the remaining core half is reserved in the core box for future reference. Generally, samples of 1 m in length are taken; however, in areas of particular interest, sample size can be reduced as low as 0.1 m. In zones with anticipated weak mineralization the sample interval can be extended to the maximum distance between run blocks (1.6m).

8.4 Sample Analysis

For all the samples processed by AAS on behalf of GCLLC/IDR, the following methods were used to obtain a fire assay for gold. Samples received at the American Analytical are sorted and coded. They are then placed in the sample drying room and dried at 60°C. After drying, samples are crushed and split in the sample preparation room. After splitting, samples (30 grams each) are sent to the fire assay area and numbered in order. The sample is carefully mixed with the necessary reagents, dominantly litharge, in a fire clay crucible. The mixture is then heated to 760°C for 20 minutes, and finished at temperature 1,038°C, with the entire fusion process lasting sixty minutes. The crucibles are then removed from the assay furnace and the molten slag (lighter material) is carefully poured from the crucible into a mold, leaving a lead button at the base of the mold. The lead button is then placed in a preheated cupel which absorbs the lead when cupelled at 950°C to recover the doré bead containing both gold and silver. The entire doré bead is placed in nitric acid where the silver goes into solution and the gold remains in the bottom of the cup. The gold bead is then weighed to the thousandth of milligram accuracy on a micro-balance.

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8.5 Security

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. Samples remain within the custody of staff up to the moment the samples are delivered to the laboratory at which time AAS assumes custody. 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.

All drill core is stored in locked and secure facilities, either the Mine Office/Core Shed building (Figure 8-1) or in locked Connex containers.

Figure 8‑3 Mine Office/Core Shed Building

8.6 QP Comments on Sample Collection, Preparation, QA/QC, Analysis and Security

The sampling methods are acceptable, meet industry standard practices, and are adequate for mineral resource and mineral reserve estimation and mine planning purposes, based on the following:

·	Sampling was conducted by appropriately qualified personnel under direct supervision of appropriately qualified geologists.
·	Sample collection procedures used meet industry best practices.
·	Sample preparation procedures meet industry best practices.
·	QA/QC results produce acceptable results. However, the low bias in the 3 gpt standard would tend to underestimate gold cent. The 3 gpt data should be investigated in consultation with the laboratory, and another source of standard material should be found.
·	Security procedures are consistent with industry standards.

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9.0 DATA VERIFICATION

9.1 Database Procedures

Drilling, chip sampling, and round sampling data are captured and stored using Maptek’s Vulcan software. Photographic information is stored in drillhole specific folders on the IDR’s mine server which is backed up with a physical copy and stored at a secure location periodically. Drillhole logs are completed using Microsoft Excel and are only accessible by mine technical staff and timestamped at the last time of change. Geologic interpretation and solid modeling are accomplished using Leapfrog. Survey volumes, block modeling, and estimation of Mineral Reserves is accomplished using Maptek’s Vulcan.

On completion of a downhole survey, the data is input into Maptek’s Vulcan and reviewed in 3D on screen to check for major inconsistencies. On the fly dip and azimuth information is available to the exploration geologists at the drill rig to compare to previous surveys. If a dip and azimuth measurement is in question the survey at the prescribed hole depth will be taken again.

Core assay results are sent from the lab as PDF and comma-delimited (CSV) files. These values are input into the master drill log completed by each core logging geologist and checked by engineering staff before input into the drill hole database.

As the Golden Chest is an orogenic gold system there is a visual difference between the mineralized quartz and wall rock. The core photos are checked against assays that are suspect to verify mineralized zones. The reserve model only considers the Idaho Vein portion of the deposit, as such the assay values are readily verifiable in 3D space as well. The Idaho Vein intercepts can usually be planned to within one to two meters using three-dimensional vein solids.

Once data are checked against core photos and input into Vulcan’s Maptek, a readout of missing and overlapping intervals can be checked for inconsistencies in the drill hole data input by core logging geologists.

Data is stored at the mine site and backed up to a separate server stored at the corporate office quarterly.

9.2 Validation Procedures

For the preparation of this report 20% of the drill hole logs completed in 2021 were checked for inaccuracies. Assay values in the Vulcan database were checked against the geologist’s core logs and then again against the assay sheets from the lab. No issues were found comparing the Vulcan database to geologist’s logs, and then again to laboratory forms. Of the 6 holes (21-183,185,193,197,202, and 205) totaling 302 assays 13 non-detect close out samples were found to be unentered into the Vulcan database. These samples verify that the sampled interval is “closed out” by an assayed non-detect gold value, but do not influence composite evaluation, as a missing sample is characterized as zero grade when compositing to a minimum width. All of the 2021 drilling was in exploration areas distal to the reserves and did not impact reserve calculations. In any case, the 13 missing samples account for less than 5% of the total assays evaluated in the investigation and represent an acceptably small fraction of the database.

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Checking Vulcan for overlapping sample intervals yielded no overlapping portions of the drill hole database

The visual inspection of vein wireframes and drill hole in three-dimensions yielded similar results. Surveyed mining voids were captured by drill hole traces. Some drill holes have been surveyed by the underground surveying crew in stopes. The drill hole trace and underground survey points usually align within one to two meters. One note is that data taken by Juniper Mining Company (JMC) in the form of muck samples had to be corrected for an inappropriate coordinate system. JMC created a mine grin inadvertently by truncating Northings and Eastings to exclude the ten-thousands place. This created a mine grid not comparable to the UTM coordinates used by IDR and caused a twisting effect around the arbitrary origin. A correction was applied to JMC data to account for the inappropriate flattening of a UTM zone by truncation. This data is far enough away from the current mining front that it has no influence over current reserves.

9.2.1 Micon Historic Database Validation

Micon carried out data verification as a part of its 2012 NI 43-101 resource estimation at the Golden Chest. Micon re-analyzed sample pulps from 6 historical holes. New assays showed 99% correlation with previous assays. Micon’s database validation consisted of the following steps:

·	Checking for any non-conforming assay information such as duplicate samples and missing sample numbers.

| · | Verifying collar elevations against survey information for each drill hole. |

| · | Verifying collar coordinates against survey information for each drill hole. |

| · | Verifying the dip and azimuth against survey information for each drill hole. |

| · | Comparing the database assays and intervals against the original assay certificates and drill logs. |

Micon’s comments were, “On the whole the database was found to be in good shape. A few minor adjustments to drill hole collar elevations were made where road cuttings had reduced the elevations by about 2 to 3 m.” Micon’s drillhole database validation exercise covered holes drilled from 2004 through 2012. These holes are a part of the current reserve. Micon’s validation is taken as another indicator that the drill hole database is well managed and validated acceptably.

9.3 Validation Limitations and QP Comments

In the QP’s opinion the validation exercises undertaken are sufficient to justify the current reserve reporting practices in use at the Golden Chest by IDR. There is no evidence to date that suggests an issue with the practices in database management at the Golden Chest. The databases are managed in a secure area using modern, commonly used software by trained staff. The staff are experienced in the nuances of narrow vein mining and treat the model with their experience in mind. In the QP’s opinion the database is properly maintained and appropriate for use in the estimation of reserves.

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10.0 MINERAL PROCESSING AND METALLURGICAL TESTING

The New Jersey Mill located 3 km east of Kellogg, Idaho has processed material from the Golden Chest since 2017 from both open pit and underground sources. See Figure 10-1. The New Jersey Mill originally started as 100 tpd flotation plant but was expanded to a nameplate capacity of 360 tpd in 2012. For the purposes of this section, the processing of Golden Chest material during the 100 tpd era will be treated as metallurgical testing. A laboratory test program using drill core from the Golden Chest to evaluate gravity, flotation, and cyanidation methods for the recovery of gold is also discussed.

Figure 10‑1 Aerial View of New Jersey Mill

10.1 New Jersey Mill 100 TPD Metallurgical Testing

During the period from 2005 through 2009, IDR processed just over 8,300 tonnes of material grading 6.9 gpt gold and achieved a gold recovery of 94%. A flowsheet of the 100 tpd mill is shown below in Figure 10-2.

In general, the process included a crushing circuit, a grinding circuit, a flotation circuit, and a tailings disposal circuit. A bulk sulfide concentrate was made using rougher flotation cells followed by a single stage of cleaner cells. A neutral pH was maintained in the flotation circuit. Concentrate grades ranged from 100 gpt to 400 gpt gold depending upon the gold grade of the feed. Concentrates were sold to smelters through a broker and sold directly to Nevada Gold Mines Goldstrike facility in Carlin, Nevada.

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Figure 10‑2 New Jersey Mill 100 TPD Flowsheet

The Golden Chest material processed during this time was sourced from underground mining of veins in the Klondike Shoot area, located in the northern portion of the mine. Gold mineralization was associated with structurally controlled faults, quartz veins and silica-flooding. Visible gold was relatively rare and gold mineralization was associated with pyrite, galena, chalcopyrite, and sphalerite. The mineralization had relatively low levels of sulfides, approximately 1% to 5%, and the ore processed was reasonably representative of the mineral deposit.

Deleterious elements in the concentrate were below smelter penalty levels, with arsenic quantities at 1,000 ppm, while lead and zinc were 2,000 ppm each. Iron and sulfur were the primary components of the concentrate at 33% and 38%, respectively. The concentrate is amenable to cyanide leaching.

The Company operated a Concentrate Leach Plant (CLP) and leached total of 78 tonnes (t) of Golden Chest flotation concentrates using an agitated tank leach followed by electrowinning. The head grade of the concentrate was 122 gpt Au and a gold recovery of 86.6% was achieved in the CLP. Low recovery and long leaching times were due to poor agitation in the leach tanks during this testing period. The Company completed a 6-tonne batch test leaching Golden Chest concentrate in 2016 with increased agitation power which resulted in 95% gold recovery in 72 hours.

10.2 Resource Development Inc. Metallurgical Testing

Resource Development Inc. (RDI) of Wheat Ridge, Colorado conducted preliminary metallurgical test work on core sample splits from the confirmation drilling in the Skookum Shoot in 2014. The mineralogy of the material from the Skookum Shoot is representative of the typical mineralized material at the Golden Chest. RDI’s program consisted of gravity, flotation, and cyanidation tests.

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RDI completed three gravity concentration tests, using 1 kg of material per test. Each test consisted of a different grind size: 48 mesh, 65 mesh and 100 mesh. Overall gold recovery ranged from 31% to 37% with final concentrate grades ranging from 277 to 323 gpt Au.

RDI completed seven flotation tests, using 1 kg of material per test. The tests consisted of rougher flotation only with no cleaner flotation tests. The samples were ground in a rod mill at 50% solids to produce three different grind sizes (P80): 65, 100 and 150 mesh. Flotation reagents and retention times were also varied as part of the testing. Results of the flotation tests are presented in the table below.

Table 10‑1 RDI Flotation Test Results

The highest recovery test consisted of a 9-minute flotation time, the finest grind (150 mesh) and used the reagent Aeroflot 208.

RDI also completed three cyanide bottle roll tests on whole ore, using 1 kg of whole ore from core sample rejects. Each sample was ground in a laboratory rod mill at 40% solids and the target grind size was varied in each test. The three grind sizes (P80) were 65 mesh, 100 mesh and 200 mesh. The leach time was fixed at 72 hours and solution samples were taken for gold assay at 6, 24, 48 and 72 hours.

Gold recovery ranged from 85.9% to 94.4% in the three tests with the 100 mesh test achieving the best recovery in 48 hours and the lowest recovery was the 200 mesh grind. Cyanide consumption ranged from 0.30 kg/tonne to 1.57 kg/tonne with the finest grind of 200 mesh consuming the most cyanide. RDI reported the Golden Chest material was, “very amenable to cyanide leaching” and that a nominal 100 mesh grind was ideal.

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11.0 MINERAL RESOURCE ESTIMATES

11.1 Summary

The Company has not completed a Mineral Resource Estimate for the year ending December 31, 2021, but is planning to complete one for the year ending December 31, 2022.

In 2012, an historic resource estimate was completed as a part of a Canadian NI 43-101 by a third party. A summary of the historic 2012 NI 43-101 is provided for background only and does not represent a current SK 1300 compliant resource. The 2012 resource was completed by Micon International Limited and is summarized in the following section. The 2012 historic resource had an effective date of December 31^st^, 2012.

Micon carried out database verification, density analysis, domaining, drill hole log versus assay profile studies, raw assay statistics, geologic solid modelling, compositing statistics, grade variography, block model definition, grade interpolation, resource modelling/estimation, and resource model validation.

11.2 2012 Resource (Historic NI 43-101)

The historic resource at the Golden Chest split the resource into three different categories, overall or global resources, in-pit resources, and underground resources. The summary of each is tabulated below. Mineral Resources were categorized by Micon in the following manner in 2012.

·	Measured mineral resources include all mineralized blocks with a minimum of 3 drill holes within a 25 m radius of the centroid of each block. Isolated blocks occurring as “islands” were downgraded to the Indicated category.

| · | Indicated mineral resources include all mineralized blocks within the full range of the variogram and are estimated using a minimum of 3 drill holes within approximately 50 m radius of the centroid of each block. Isolated blocks occurring as “islands” were excluded. |

| · | Inferred mineral resources include all the remaining mineralized blocks to the extent of the wireframe constraints i.e., up to three times the variogram range. They are estimated with data from a minimum of 2 drill holes and include the isolated blocks excluded from the Indicated category. Generally, the inferred resource areas have been drilled on a 100 m by 100 m grid or larger. |

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Table 11‑1 Golden Chest Overall Mineral Resource @ 0.4 g/t Gold Cut-off as at 31 December 2012

Table 11‑2 Golden Chest In-pit Mineral Resources @ 0.3 g/t Gold Cut-off as at 31 December, 2012

Table 11‑3 Golden Chest Underground Potential Resource @ 2.0 g/t Gold Cut-off as at December 31, 2012

Note: in Tables 11-1, 11-2, and 11-3 resource tonnes and ounces have been rounded and may not tally due to rounding.

The open pit resource presented in table 11-2 was evaluated at a 0.3 g/t Au cut-off. It is based on a number of parameters and assumptions including a gold price of US$ 1,455 per troy ounce, 92% metallurgical gold recovery, mining costs of US$ 2.00 per tonne, process costs of US$ 9.50 per tonne, general and administrative costs of US$ 2.00 per tonne, and environmental and rehabilitation costs of US$ 0.20 per tonne treated.

The underground potential resource presented in table 11-3 was based on a 2.0 g/t cut-off grade based on the experience of Marathon Gold Corporation and New Jersey Mining Company (Idaho Strategic Resources).

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The resource model used to create the historic resource was estimated using an Ordinary Kriging method with an Inverse Distance Cubed validation along with visual inspection. The model created by Micon was created using conventional Whittle software. The search parameters used in this historic resource are defined below.

Table 11‑4 Summary of Search/Interpolation Parameters for the Idaho Vein System

Table 11‑5 Summary of Search/Interpolation Parameters for the H Vein

The Micon estimate top cut grades at 40 gpt to limit the influence that narrow high grade intercepts had on overall blocks. Blocks were constrained by vein shapes to limit “bleeding” of grade into areas outside of the main veins. The entirety of the historic report can be found on the System for Electronic Document Analysis and Retrieval (SEDAR) website under the company name “New Jersey Mining Company”.

The QP recommends that an updated Mineral Resource be calculated for the year ending December 31, 2022, as there has been significant additional core drilling since the Micon 2012 Resource and some depletion from mining. Another recommendation would be to change the criteria for Inferred classification by reducing the spacing requirement to two drill holes within 75 meters instead of 100 meters.

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12.0 MINERAL RESERVE ESTIMATES

12.1 Summary

Mineral Reserve estimates for the Golden Chest are summarized below. The only tonnage included in Mineral Reserves at the Golden Chest are those tonnes directly adjacent to the existing Skookum Shoot Main Access Ramp (MAR) and previously mined stopes with enough drilling and mine sampling density to reach the geologic certainty to make a reserve determination. During mining, each 3-meter round in the stope is sampled by the miners as a “muck sample” which provides useful data for reserve calculations and mill grade-reconciliation. Current reserves represent stope blocks that are completely “blocked in” by previous mining and sampling (muck samples) or have mining information within 12 meters and a drill hole spacing less than approximately 50 m within the stope block.

Table 12‑1 Golden Chest Underground Proven Reserves at December 31^st^, 2021

The schedule parameters above assume that each of these sublevels is a mine on its own that is undertaken by a single mining crew. To see the economic analysis of mining these reserves at full potential mining capacity over a one-year period, refer to section 19. Some levels will not be mined in the course of the year as they are not required to feed the mill at current levels as open pit material is currently being processed.

12.2 Conversion to Mineral Reserves

The mining method evaluated in this estimate is the Underhand Cut and Fill method. Minimum dimensions vary by stope and are discussed in more detail in section 12.

To accurately model projected mining grades within the reserve estimate, actual mine muck samples are input into the model composites. The minimum block size for the reserve model represents the average mining width (3m) to create a fully diluted block model that represents the grade of mining each block. The drill hole data is composited using a 3 m run length method to represent a minimum mining width and create a fully diluted model.

Three-dimensional stope shapes are created using Maptek’s Vulcan software using a 3.0 gpt grade shell as design guidance. If an area of waste is included in a potential stope grade shell it is evaluated on a cost/benefit basis as whether to mine through it to reach higher grades or end the stope. The 3.0 gpt grade shell is chosen because that is the 2021 go/no-go cut-off (i.e., doesn’t have to be mined to reach higher grade material). Once a stope length has been determined, the decision to mine has been made, all material above the in-stope cut-off is considered ore. The in-stope cut-off for 2021 is 2.0 gpt and represents the situation where the material must be mined to reach higher grades and as such the mining cost is a sunk cost. Stope development (MAR, attack ramps, muck bays, sumps, etc) is designed by level to evaluate each sublevel’s ability to payback its share of the necessary development.

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12.3 Cut-Off Grade

Equation 1 go/no-go cut-off

Table 12‑2 Go/No-Go Cut-off Parameters

The backfill costs are included in the mining cost in Table 12-2. This formula yields a value of 3.18 gpt for the cut-off and was rounded down to 3.0 gpt for a more natural break.

12.4 Dilution

Dilution is accounted for in the reserve blocks by compositing drill holes to 3 m run-lengths and including all muck sampling in the reserve model. This method takes into account the minimum mining width and allows for an acceptable estimate of mining performance. Dilution is also checked operationally by periodically channel sampling only the vein in a heading and comparing it to the corresponding muck sample. This method does not account for any vein pinching or swelling in the rock that was blasted in each round but shows a good correlation to theoretically calculated dilution values. Table 12-3 shows the calculated dilution and theoretical dilution for two planned stopes that were mined near the 2020 reserve. They show the impact that vein thickness has on any given cut and the ability of the mining crews to maintain minimum width and minimize dilution. The calculated values vary widely from cut to cut and with vein thickness as is to be expected but show a good correlation over the length weighted average thickness. Grade control geologists monitor the adherence to the planned dilution and offer support and guidance as needed when a stope is being mined.

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Table 12‑3 Calculated Dilution vs. Average Theoretical Dilution

12.5 Extraction

The extraction rate for this mining method assumes 100% based on the fully diluted model, and the cutting of each planned stope to its design dimensions. This has shown reasonable correlation from modeled to mined results and is a common value for the underhand cut and fill mining method.

12.6 Reconciliation

A model to mine reconciliation is provided below to illustrate the planned versus actual results of the mining of stopes that were a portion of the 2020 reserve.

Table 12‑4 Planned vs. actual for stopes that were a part of the 2020 reserve and have been mined out.

These stopes were a portion of the 2020 reserves and Table 12-4 shows the planned grade of the entire stope vs the calculated grade of length weighted averaging the muck samples taken for each round. The table does not necessarily represent ore tonnes as the whole stope planned stope is compared to the whole sampled stope to evaluate model efficiency. Ore and waste decisions are made round by round underground by the value of each individual muck sample. Overall, the model shows good correlation to mining results. Total tonnage shipped is larger than planned most likely due to the mining a few exploration rounds near the end of each planned stope. It is operational procedure to mine two to five rounds beyond the planned end of the stopes to increase geologic certainty along strike in an attempt to increase the economic length of the planned stope.

The QP’s recommend that a model to mill reconciliation be included next year to assess the block model’s performance against the tonnes and grade of material delivered to the mill.

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13.0 MINING METHODS

Figure 13‑1 Map showing outline

13.1 Mining Operations – Underground

The entirety of modern mining at the Golden Chest has taken place in the Skookum Shoot. The Idaho Vein, within the Skookum Shoot, has been mined successfully using the Underhand Cut and Fill method since 2015 when Juniper Mining Company leased the property. Juniper Mining Company contracted Small Mines Development (SMD) to drive the main access ramp (MAR) and to mine during the lease period.

The Golden Chest is a ramp access mine that was developed as a modern rubber-tire operation. All material is transported to the surface via two underground haul trucks and occasionally a 4.6 m^3^ load-haul-dump underground loader (LHD). Stope rounds are transported to bays using 1.5 m^3^ LHD’s. Drilling advance of stope rounds is accomplished with two Tamrock Quasar single boom jumbo drills. An electric over hydraulic twin boom jumbo drill and small section (2.7m by 2.7m) bolting machine have been procured to further increase operational efficiencies. The main ramp has a width and height of 4 m by 4.6 m respectively. All ventilation/secondary escape raises are mined 3 m by 3 m. Stope dimensions are 3m by 3m.

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As of December 2021, the majority of the planned underground tonnage will be mined from the 830 and 818 sublevels which represent 100% of the planned underground production in 2022 and are a majority of the current reserve. General mine design parameters are as follows:

·	Minimum stope cut-off grade to make a mining decision (go/no-go cut-off) is 3.0 gpt.

| · | In-stope cut-off is 2.0 gpt. |

| · | Underground Yearly Production Target 2022: 26,000 ore tonnes. |

| · | Underground mining crews work two 11 hour shifts four days per week year-round. |

| · | Mill crews work two twelve hour shifts 4 days per week year-round. |

| · | Attack ramp access to the orebody is a 30 m minimum distance into the Idaho Fault footwall. |

| · | MAR dimensions: 4 m wide by 4.6 m tall. |

| · | Sublevel spacing: 12 m |

| · | Stope dimensions: 3m by 3m |

| · | Minimum mining width: 2.5 m |

| · | Ventilation drift/raise dimensions: 3m by 3m |

The current reserves at the Golden Chest represent a mine life approximately one year of milling throughput. The current deepest intercept on the Skookum Shoot is drill hole GC 12-121 which intercepted 2 m true thickness grading 4.94 gpt. GC 12-121 intercepted the IDVN structure at the 652 m elevation, which is 175 meters vertically lower than current mining operations. It is The Company’s opinion that the Skookum Shoot may provide a longer life of mine than the current reserves reported. More drilling to further define the structure is necessary to achieve the geologic certainty necessary to make longer term determinations of mine life.

13.1.1 Cut and Fill Method, Skookum Shoot

The cut and fill method is the dominant mining method at the Golden Chest. Sublevels are accessed from the MAR which is designed to be at least 30 m from the Idaho Vein structure at all times. Each sublevel consists of 4 stopes that are generally 3m wide and 3m high that are accessed via attack ramps that are oriented perpendicular to the strike of the Idaho Vein. The primary cut on a sublevel starts with the highest in elevation and proceeds underhand until the sublevel is mined out. To maintain stope vertical spacing an overhand cut, or pillar cut, is occasionally taken between cement rock filled (CRF) stopes (i.e., CRF above and below). The stope accesses are designed to split the strike length of the Skookum Shoot in half as nearly as possible given ramp design constraints. After a level is mined out, CRF is placed in the mined-out stope via LHD and truck and allowed to cure until sufficient strength is achieved to resume mining beneath. Each round taken has a muck sample taken by miners. The muck sample is taken by mucking into the pile and sampling periodically up the muck pile in 3 separate portions of the muck pile. Material routing decisions are made based on muck sample assay results.

13.1.2 Skookum Shoot Area

The entirety of the mineral reserve at the Golden Chest is contained within the Skookum Shoot where mining experience and core hole sample density is high enough to define a reserve within the Golden Chest resource. The Skookum Shoot area is comprised of the Idaho Vein which varies in width from 1 m to 6 m in select locations. Average vein width is approximately 1.5 m. The Idaho Vein strikes 15 degrees northeast and dips 45 degrees to the west. Cut and fill stopes progress underhand. In areas where the vein exceeds 3.5 m in width, a second drift and fill cut is mined adjacent to the first cut. The first cut is jammed tight with CRF to assure hangingwall stability. Mining dilution in the Skookum Shoot is evaluated periodically by grade control geologists by sampling vein true widths and comparing them to muck samples taken for each round by the miners. See Table 13-1 below for cuts near current mining activities and their associated dilution factors compared to the theoretical dilution factor. On a cut-by-cut basis the dilution factor trends above and below the theoretical average, but in general the trend matches well with what would be expected from theoretical dilution calculation.

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Table 13‑1 Calculated Vs. Theoretical Dilution Factors

13.2 Ground Stability

The Idaho Vein is directly associated with the Idaho Fault that bounds Units G and H of the Prichard formation at the Golden Chest. The Idaho Vein lies directly below the Idaho Fault which varies in thickness from 0.1 m to 0.5 m. The Idaho Fault and the adjacent faulted zone are a driving parameter in ground support design. Idaho Strategic Resources plans stope support standards and design considerations based on known fault thicknesses and mining experience. Each stope is designated a type and supported accordingly utilizing Swellex and Split-Set bolts of varying lengths according to ground conditions. Welded wire mesh, 2.7 m support mats, and CRF are also utilized as primary and secondary ground support depending on stope design. Bolt QA/QC consists of regular bolt pull testing to confirm manufacturer specifications and installation practice adherence. As a progressive approach to mechanize the installation of ground supports a mechanized bolter designed for openings as small as 2.7 m was budgeted for 2022. This should increase employee safety and improve support installation efficiency.

The MAR is excavated in the competent quartzite of Prichard Unit G and effectively supported with the use of Split-Set bolts of varying lengths and Swellex inflatable bolts where necessary. The MAR utilizes welded wire mesh to increase safety on the skin of the opening. The bolter mentioned previously is also available for use in the MAR to improve employee safety and mechanize the bolting process for the long-term health of miners.

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13.2.1 Operating Practices

Idaho Strategic Resources implements the following practices to ensure that its support practices are in line with industry practices and practical knowledge gained from historic mining:

·	Minimize stope mining time and fill time.

| · | Maintaining a minimum distance of 30 m for the MAR for long term stability. |

| · | Utilize CRF and underhand method wherever possible to improve stability of individual cuts. |

| · | Utilization of Swellex bolts in hangingwall of stopes where bond strength is a critical parameter. |

| · | Proactive long Swellex support in areas with long spans to ensure long-term stability. |

| · | Minimize Idaho Fault exposure by leaving an ore remnant along the hangingwall in stopes. |

| · | Minimize Idaho Fault exposure by adherence to stope height and level design. |

The Golden Chest ground support measures are the result of extensive experience at the Golden Chest and careful planning of stope design requirements. The typical stope sizes and the utilization of underhand cut and fill reflect conservative, commonly accepted design principles that take into account the nature of the specific ground at the Golden Chest.

13.3 Underground Development

The Golden Chest has two portals to access underground workings. The main haulage for material out of the mine is the South Portal. The South Portal also serves as the ventilation intake. It was driven in 2015. The North Portal was driven in 2004 and serves as the mine’s ventilation exhaust.

Development openings are designed to meet equipment and ventilation requirements with potential future production in mind. All main haulage ramps have dimensions of 4 m wide by 4.6 m tall. The North Ramp is the secondary escape/ventilation exhaust and is 3m wide by 3m tall. It is accessible to secondary equipment via the North Portal.

13.3.1 Ground Support

Both the North and South Ramps are driven in Unit G of the Prichard formation which is a massive quartzite with favorable tunneling conditions. Ground support is carried out using Split-Set bolts and welded wire mesh. Proactive, extra-length support in the form of single run or connectable Swellex bolts is carried out at intersections and in other larger span areas to promote long-term stability.

13.3.2 Development Performance

Initial mining by IDR took advantage of completed development done by Juniper Mining Company. IDR has hired the necessary development crews and acquired the necessary equipment to complete the needed development during 2022. IDR is on track to complete development in the planned time frame for 2022.

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Table 13‑2 Development by year and Company

13.4 Backfill

IDR has utilized Cemented Rock Fill (CRF) at the Golden Chest to provide geotechnical stability and enable efficient extraction of the orebody. The CRF is mixed at the company’s on-site surface plant and placed underground with underground trucks and LHD’s. QA/QC of the CRF is completed on at least a daily basis and more regularly if weather conditions change. QA/QC consists of cement grout pulp density determinations by the operator using a Marcy Scale, slump cone tests, and CRF unconfined compressive strength (UCS) testing is done on site as well. The automated CRF plant allows for a consistent product with QA/QC oversight from plant operators. The UCS results of specific days are tested at 7 and 28 days and tracked to ensure long term quality for backfill.

13.5 Mine Equipment

The mine equipment fleet has been expanded in the previous years to allow for expanded production. At this time there is a sufficient fleet of equipment on-site and the necessary maintenance crews to care for it. Major equipment is summarized below.

Table 13‑3 Underground Mine Equipment List, Idaho Strategic Resources—

13.6 Mine Infrastructure

Mine Infrastructure is contained entirely on IDR patented mining claims at the Golden Chest. The majority of the infrastructure is in place on the area of the mine immediately below the South Portal entrance to the mine. The mine infrastructure includes 500 kVA 3-phase electrical service, North and South ramps, ore bin, backfill plant, mine offices, and a mine shop. All milling infrastructure is located offsite at the New Jersey Mill in Kellogg, Idaho.

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13.7 Open Pit Mining Operations

Two small open pits have been mined at the Golden Chest. There are no open pit reserves at the Golden Chest. The largest of the mined pits was the Idaho Pit. The Idaho Pit was mined in 34 months from August 2016 to June 2020. All the material from this campaign of Golden Chest mining was shipped to the New Jersey mill in Kellogg, Idaho for processing using primarily flotation to produce a bulk sulfide concentrate that was marketed to Japan and South Korea. Occasional gold dore’ was produced from cleanouts of the ball mill liners where gold tends to collect. Mill statistics for this campaign are summarized below.

Table 13‑4 Idaho Pit Summary (August 2016-June 2020)

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14.0 PROCESSING AND RECOVERY METHODS

The New Jersey Mill located 3 km east of Kellogg, Idaho has processed material from the Golden Chest since 2017 from both open pit and underground sources at a rate of about 300 tpd. The New Jersey Mill uses a conventional bulk sulfide flotation flowsheet utilizing crushing, grinding, flotation, and paste tailings disposal. The flowsheet is depicted below in Figure 14-1.

14.1 Crushing Circuit

Ore is delivered from the Golden Chest to the stockpile pad at the New Jersey Mill by truck and pup trailers with an average payload of 30 dry metric tonnes. The ore is stockpiled with a 3 m^3^ front-end loader and fed to belt feeder that conveys the material to a jaw crusher where it’s crushed to pass about 10 cm. The material is then fed to a screen equipped with 1.25 cm openings. The fine material passes into the fine ore bin and the oversize material is conveyed back to a Metso HP 100 cone crusher for further crushing. Discharge from the cone crusher is fed back onto the screen feed belt so all material discharged into the fine ore bin must pass 1.25 cm.

14.2 Grinding Circuit

Ore is discharged from the fine ore bin at a rate of about 12 tonnes per hour by a conveyor that feeds a 2.5 m by 4.0 m ball mill. Lime is added on the ball mill feed conveyor to increase the pH to 10.0 in the flotation circuit. Water and a flotation collector reagent are added to the ball mill feed. The ball mill discharges into a sump where more water is added before the slurry is pumped to a hydro-cyclone that controls the grind achieved by the ball mill. Cyclone overflow is delivered to the flotation circuit and coarse particles report to the cyclone underflow which is routed back to the ball mill for regrinding.

14.3 Flotation Circuit

Cyclone overflow is piped to a trash screen at the head end of the rougher flotation circuit. Flotation reagents including Aerofloat 208, potassium amyl xanthate, and MIBC are introduced into the rougher feed. Rougher flotation consists of a single Wemco 144 cell followed by in series by the scavenger cells which are bank of five Wemco 66D cells. All rougher concentrate and scavenger concentrate reports to the cleaner circuit which consists of two banks of three Wemco 40 cells operated in series. Concentrate from the second bank of cleaner cells is the final concentrate. The concentrate is thickened and pumped to a plate-and-frame filter where it’s dried to about 6% moisture and dropped into 2-tonne supersacks ready for delivery to a copper smelter in Japan.

14.4 Tailings Circuit

Tailings from the scavenger circuit is pumped to two 4-meter diameter deep cone thickeners (DCT) operated in parallel. Flocculant is added to the feed to promote settlement of solids. The pulp density of the feed is approximately 32% solids and the underflow from the DCT’s ranges from 60% to 66% solids. Underflow is pumped using peristaltic hose pumps into the hopper of a positive displacement piston pump which generates enough pressure to deliver the paste tailings to the tailings storage facility (TSF). Clear overflow water is piped to a storage tank and recycled back through the process. Makeup water for the process is sourced from a groundwater well adjacent to the mill. The Company received a “Pollution Prevention Champion” award from the Idaho Department of Environmental Quality for its paste tailings process because of the water savings compared to conventional tailings disposal. Water is not discharged from the TSF to surface waters of the USA, but land applied to the TSF footprint.

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Figure 14‑1 New Jersey Mill Flowsheet

14.5 Mill Production

Mill production and recovery for the period from 2016 through December 31, 2021, are summarized in the table below. During this period only material from the Golden Chest was processed. The material was mined from a combination of open pits and the underground mine. Approximately 76% of the mill feed was from the open pit source and the remainder from the underground.

Table 14‑1 Mill Production Summary

Gold recovery was lower for open pit material because the sulfides were partially oxidized which reduces recovery in the flotation circuit. The QP has observed that unoxidized, underground material has exhibited an average gold recovery of 93% and believes this is an appropriate recovery to use for resource and reserve calculations for underground mining.

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14.6 Mill Workforce

The mill workforce is comprised of two crusher operators and six flotation operators for a total workforce of 8 individuals. The mill currently operates on a four-day week so milling capacity could be increased by adding personnel to get to a seven-day week.

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15.0 INFRASTRUCTURE

The Golden Chest mining operations have been ongoing since 2012 and infrastructure at the site has been well developed to this point. Infrastructure includes a core shed, mine dry, and a shop building situated on the old dump of the No. 3 Level. See Figure 15-1. Year-round access to the mine is provided by Forest Highway 9 which is maintained by Shoshone County. Mine water supply is provided from historic underground workings and power is provided by an overhead transmission line from Wallace.

15.1 Roads and Logistics

The Golden Chest is approximately 64 km (40 mi) from Kellogg, Idaho via paved roads maintained by the State of Idaho and Shoshone County. On site access to the mine is provided by a network of dirt and gravel roads that IDR maintains. The on-site roads are graded yearly or as necessary and designed for year-round use. Snow maintenance on site is completed by IDR staff.

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15.2 Mine Layout

Figure 15‑1 Infrastructure Layout.

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15.2.1 Waste Rock Storage

The Golden Chest has two areas for development rock storage. The backfill aggregate stockpile and the rock storage site (RSS). The Rock Storage Site was designed for Idaho Pit waste rock and has been undergoing concurrent reclamation. Reclamation includes regrading to a 2:1 slope and revegetation with natural flora. Approximately 3,000 trees are scheduled to be planted on the RSS in 2022.

The backfill aggregate storage consists of underground development rock that is screened to backfilling requirements and then placed underground as CRF.

15.2.2 Tailings Disposal

Paste tailings facilities are located at the New Jersey Mill in Kellogg, Idaho. The Golden Chest was recognized in 2015 by the Idaho Department of Environmental Quality as a Pollution Prevention Champion with an associated award for the paste tailings technology. Associated detail about tailings infrastructure can be found in Section 14 of this report.

15.2.3 Power

The Golden Chest is serviced by Avista (AVA) grid power in an amount not to exceed 500 kVA. This supply is sufficient for current operations and some mining expansion but would need to be increased to expand production if future reserves justified an on-site milling operation.

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16.0 MARKET STUDIES

16.1 Market Overview

The Golden Chest ore is milled at the New Jersey Mill in Kellogg, Idaho to produce a bulk-sulfide flotation concentrate which is primarily composed of iron sulfide (pyrite). The flotation concentrate usually contains about 250 gpt gold and 80 gpt silver, and the Company is paid for both metals, though silver is a minor component of sales. On occasion the ball mill will be cleaned out and a gold-gravity concentrate will be reduced to a dore’ bullion and sold to a US-based gold refinery.

The annual global gold supply is about 160 million ounces, so the Company is a minor producer of gold. The Company’s flotation concentrate is typically shipped to copper smelters in Asia where the pyrite helps fuel the smelting process and is also desirable because of its high gold content. Most marketing effort is spent finding a smelter that finds the concentrate suitable for its process and will buy it. The Company has contracted with a concentrate broker, H&H Metals Corp., to facilitate the marketing of its flotation concentrate since 2016.

16.2 Commodity Price Projections

The Company uses a trailing three-year average gold price to calculate Mineral Reserves. For the Mineral Reserves at the year ending December 31, 2021, the Company used a gold price of $1,650 per troy ounce. Silver is ignored in the reserve calculations. The Company expects to calculate Mineral Resources next year (December 31, 2022) and will most likely use a higher gold price than the Mineral Reserve calculation which will be selected by the Company’s Engineering Department with input from the Corporate Office. The Company’s QP believes the use of a three-year trailing average gold price is reasonable for the 2021 Mineral Reserve given current world economic trends and gold market fundamentals.

16.3 Contracts

As mentioned above, a concentrate broker, H&H Metals Corp. (H&H), is contracted with the Company to facilitate concentrate sales to smelters in Asia, primarily. H&H is an unaffiliated party and provides a provisional payment equal to 90% of the expected net smelter return once 10 wet metric tonnes of concentrate are produced and sampled. A final settlement is made once the concentrate has been delivered to the smelter, sampled, and assays have been traded between the parties. The H&H contract deducts fees for treatment charges, refining fees, transportation, and sampling costs. Additionally, penalties may be assessed for lead and zinc over 2% individually, and excessive moisture greater than 10%.

On occasion, the Company may enter hedging contracts to lock in the gold price on flotation concentrate produced and for which it has received a provisional payment. H&H provides the hedging as part of their service to the Company.

IDR employees perform the mining and mill duties, but the Company also contracts with a local general contractor for ore haulage to the New Jersey mill, and other associated earthwork. This contracted work is usually performed for an hourly rate competitive with local market conditions.

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17.0 ENVIRONMENTAL STUDIES, PERMITTING, AND PLANS, NEGOTIATIONS, OR AGREEMENTS WITH LOCAL INDIVIDUALS OR GROUPS

17.1 Environmental Studies and Permitting

The Golden Chest Mine and New Jersey Mill are both located on private land and although no comprehensive baseline environmental impact study has been completed, all the required permits to operate have been obtained and are detailed below. Each permit application addresses the potential environmental impact of the operation, has plans for monitoring, and presents a reclamation or closure plan. A summary of the permits held by the Company for mining at the Golden Chest are summarized in the table below.

Table 17‑1 Environmental Permits

17.2 Surface Mine Permit

The Golden Chest has a surface mining permit and reclamation plan from the Idaho Department of Lands (IDL) to allow operating an open pit mine. The plan presents a design for a rock storage site, addresses open pit slope stability, water monitoring activity, and Best Management Practices (BMP’s) to control runoff and mitigate the impact of the surface mining operation. The reclamation plan includes re-sloping the waste rock site to a 2 to 1 slope, placing a topsoil cover and reseeding. Mitigation plans for potential acid rock drainage are also included and a post-closure monitoring period of five years is part of the plan. A cash bond of $103,000 which is the estimated reclamation cost was posted with IDL. Water is monitored for pH and metals at five different surface monitoring sites on a quarterly basis under a Quality Assurance Project Plan (QAPP) and results are submitted to the Idaho Department of Environmental Quality (IDEQ).

Surface disturbance associated with the underground mine is permitted under the surface mining plan and discharge water from the underground is land applied under an exemption from permitting by the IDEQ or pumped to the shallow injection well site permitted with the Idaho Department of Water Resources (IDWR).

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17.3 Tailings Storage Facility (TSF) Permit

The NJ Mill utilizes a unique tailings disposal technique known as paste tailing disposal which recycles process water and minimizes water stored in the TSF by thickening tailings and discharging to the TSF at high pulp densities. This greatly simplifies the permitting as there is no discharge of water to surface waters of the US.

An engineered plan for the expansion of the existing NJ Mill TSF was completed by a third-party engineering firm and submitted to the IDWR in 2021. IDWR approved the plans for construction in 2022. The TSF expansion plan calls for a downstream buttress to increases post-earthquake stability and creates enough storage volume for at least four years of operations. A cash bond of $117,000 was posted with the IDWR which is the estimated reclamation cost. A post closure plan calls for capping the tailings with clean fill and seeding with grass and conifer trees. A five-year post closure monitoring period is part of the TSF expansion plan.

17.4 Cyanidation Permit

The NJ Mill holds an Idaho cyanidation permit from the IDEQ that was originally planned for a concentrate leach circuit. Approximately 130 tonnes of concentrate were leached before the Company decided to submit a closure plan to the IDEQ since the process was deemed unnecessary. Estimated closure costs related to the cyanidation plan are $25,000 which was posted with the IDEQ in the form of a certificate of deposit. The closure plan is currently under review by the IDEQ and a water monitoring program that includes monitoring three groundwater wells and three surface water sites will continue for five years past the closure date of the TSF.

17.5 Stormwater Permits

Both the mine and the mill hold US EPA Multi-Sector General Stormwater Permits. A series of BMP’s such as straw wattles, silt fences, sumps, and ditches are used to mitigate erosion and the impact of stormwater runoff from the mine and mill. BMP’s are monitored quarterly concurrent with water sampling.

17.6 Community and Social Aspects

As stated on the Company’s website, “Idaho Strategic Resources’ corporate philosophy is a direct reflection of the personal motivations and individual belief systems of our employees and preferred contractors. We live, work, and raise families in the extended communities where we operate, thus we have a deep-seated desire to protect our neighborhoods and environment for future generations. We are committed to preserving the best elements of our history while remaining open to opportunities to restore and protect our environment. Idaho Strategic Resources promotes a policy of “We Live Here” when it comes to relationships with the community.” The Company’s hiring practice of employing local employees where a low turnover rate is observed and procuring supplies and services from local vendors demonstrates the Company’s commitment to the local community in the opinion of the QP.

17.7 Comments on Environmental Permitting and Monitoring

The QP believes the Company’s operations are adequate and in compliance with the appropriate environmental regulations. Current permitting and monitoring tasks are handled by the engineering and geology staff. The scope of operations has increased enough that hiring an environmental professional is recommended. Another QP recommendation would be to drill at least three groundwater monitoring wells at the Golden Chest so that the mine’s potential impact on groundwater can be monitored.

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18.0 CAPITAL AND OPERATING COSTS

18.1 Capital Costs

Capital costs for the Golden Chest are comprised of development costs for the MAR, capital for mining equipment, and mill capital. All dollar amounts are presented in U.S. dollars (USD).

This development consists of MAR meterage/tonnage, attack ramp meterage/tonnage, ventilation raise meterage/tonnage, and ancillary development meterage/tonnage (sumps, muck bays, laydown cut outs and other ancillary excavations). If specific equipment or infrastructure is required to reach a stope block, then it is included in the capital for that specific stope block. Capital cost estimates for each reserve sublevel are shown below.

Table 18‑1 Capital Cost Estimates Associated with Reserves

The capital development costs outlined in table 18-1 consist entirely of development costs to reach the sublevel associated. All of the equipment and necessary infrastructure and personnel necessary to access the orebody on these sublevels is in place at the mine currently. The development costs are derived from actual costs from mining and are considered to be within plus or minus (+/-) 15%.

Capital costs shown for each block will not necessarily occur in 2022. Some development may have already occurred, and some levels may be left idle depending on management’s mining decisions. The purpose of attributing development costs to each block is to illustrate the economic prospects of each block to pay back its attributable development.

Mining equipment capital costs are estimated at $40,000 per month based on current equipment demands.

Mill capital costs are estimated on an annual basis at $70,000 per year based on current milling operations.

18.2 Operating Costs

Operating costs used for the definition of reserves at year end 2021 are based on the previous year’s calculated costs per tonne with adjustments for the projected years mill feed source. Operating costs for the Golden Chest are based on actual cost information from the mining operation and represent accuracies of +/-15%. A table of operating costs is shown below. Management and General and Administrative costs attributable to the operation are included in the operating costs per tonne.

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Table 18‑2 2021 Annual costs per tonne and mine planning/reserve costs used

Differences between 2021 annual costs and mine planning values are explained as follows:

·	Mining costs (stoping costs) with backfill were slightly reduced to reflect improvements in backfill productivity achieved with more experienced mining personnel hired in early 2022

| · | Development costs were found using the annual costs incurred in the Main Access Ramp (MAR) which is a 4-meter wide by 4.6-meter-high heading, which was $54.75 per tonne. Additionally, a first principles approach was used to calculate the costs in the MAR which found nearly identical costs of $55.00 per tonne. |

| · | Milling costs were reduced to $31 per tonne for underground material. Underground material is finer than open pit material and requires less crushing. Also, less reagents are required for underground material as there is less oxidation and higher tailings densities are achieved in the thickeners. |

| · | Mill haulage costs were elevated to $12.50 per tonne to reflect an increase in projected fuel prices. |

| · | Gold Recovery was set at 93% for straight underground ore which is in line with recoveries achieved during the milling of underground material from the Golden Chest for Juniper Mining Company |

| · | Smelter recovery (payment) was set at 91% which is the payment factor calculated according to the current smelting contract assuming a gold price of $1650 per ounce and a minimum gold concentrate of 550 grams per tonne (gpt) gold. This concentrate grade is consistent with historic mill performance at a head grade from 5.5 gpt to 6.5 gpt. |

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19.0 ECONOMIC ANALYSIS

19.1 Economic Criteria

Underground reserves represent approximately one year of mill feed at the New Jersey Mill. Idaho Strategic Resources prefers this conservative approach to reserve estimation due to the nature of narrow vein mining. Additional reserves may or may not be defined by future mining and drilling operations. For the purpose of this economic analysis only the currently defined reserves are included. Economic analysis was carried out as if the mill feed was strictly underground and no open pit material was milled at the New Jersey Mill. Currently some open pit material is milled at the New Jersey Mill that offsets underground tonnage. The open pit material is not part of any reserve at the Golden Chest.

Each sublevel within the Golden Chest is evaluated for economic viability based on the ability of the sublevel to payback its investment requirements. If this criterion is met, then the material is placed in the reserves to estimate annual cash flow. Current underground reserves represent approximately one year of tonnage as such the discount rate was ignored because of the negligible effect of discounting annually over a one-year timeline.

19.1.1 Physicals

·	Total mill feed processed: 38,700 tonnes

| · | Average processing rate: 185 metric tonnes per shift |

Table 19‑1 Underground reserve scenario production summary.

Commodity	Head Grade	Mill % Recovery	Mill Recovered Au Grams	Year’s Mill Au Grams

| Au | 4.87 | 93 | 175,580 | 175,580 |

19.1.2 Estimation Parameters

·	Gold price used in the economic analysis is a constant $1650 per troy ounce representing a 3-year trailing average (2019, 2020, 2021).

| · | Constant smelter payment factor of 91% |

| · | Constant Net of Smelter Royalty (NSR) of 2% |

| · | Constant Ore haulage cost of $12.50 per tonne |

| · | Constant milling cost of $35.00 per tonne |

| · | Constant ore mining with fill of $95 per tonne |

| · | Constant development cost of $55 per tonne |

| · | Reserve life of 1 year |

| · | Sustaining capital of $480,000 for mine equipment and $70,000 for mill infrastructure |

19.1.3 Taxation and Royalties

Idaho Strategic resources pays property tax in Shoshone County and occasionally a Net Profit Tax to Shoshone county. No income tax is anticipated to be payable in the next year. Idaho Strategic will use existing net operating losses to generate a zero annual taxable income through the next year.

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19.2 Cash Flow Analysis

Cash flow analysis of the Golden Chest reserves is presented below. The cash flow considers mill feed, grade and tonnes, as well as associated operating and capital costs discussed in previous sections. No discounting of the cash flow was performed as the scheduled reserves represent approximately one year of milling and there is a negligible effect of discounting a one-year cash flow on an annual basis.

Table 19‑2 Table of Golden Chest underground reserve cash flows.

19.3 Sensitivity Analysis

The Golden Chest underground reserve’s annual cash flow was evaluated for its sensitivity to the following variables.

·	Metal grade

| · | Metal recovery |

| · | Metal price |

| · | Operating costs |

| · | Capital costs |

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Figure 19‑1 Sensitivity analysis of Golden Chest underground reserves

The table below shows individual values that make up the sensitivity analysis. All relationships between a single variable and the cash flow can are linear and can be interpolated further to estimate further variances from the base case.

The sensitivity analysis illustrates a commonly found sensitivity to metal prices and recoveries. Milling recovery, smelter payment, grade, and gold price show an exact relationship with each other, and are the most sensitive variables in the estimate. The operating cost, mining with fill, is the variable with the next largest impact on cash flow, but with a much shallower slope than the highly sensitive metal related variables. This is to be expected as with any underground mining method where a majority of the total tonnes moved in any given production schedule will be in-stope tonnes.

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Table 19‑3 Summary of Golden Chest underground reserve sensitivity analysis

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20.0 ADJACENT PROPERTIES

Like other long lived mining districts, there are abundant patented and unpatented claims in the area. Two notable, large claim groups; the Mother Lode and Butte Gulch, are immediately adjacent to the mine. IDR patented and unpatented land, adjacent patented land and historic mining prospects are shown in Figure 20-1.

The Mother Lode claim block consists of 6 patented claims and 26 unpatented claims. The claim block is currently owned by Mother Lode Gold Mines, Inc. (William Campbell, Spokane, Washington, USA). The Mother Lode claim block lies on the south side of Prichard Creek, and to the southwest of the mine. When Newmont Exploration Limited was exploring at the Golden Chest (1987-1990), they had extended their mine boundary to include the Mother Lode property due to it containing similar geology. Some drilling was completed before the Mother Lode was returned to its owner.

The Butte Gulch patented claim group adjoins the east side of the mine. The Butte Gulch property was part of the Golden Chest land package until the early 1990’s, when it was divided. In 2019, IDR purchased the mineral rights to the Butte Gulch patented claim group. The surface rights of the Butte Gulch property are owned by Bell Run Properties LLC (Thomas Lanager, Curwensville, PA, USA). Butte Gulch was placer mined during the original Murray gold rush and has been reworked several times since, with the latest work occurring in the 2020’s.

Figure 20‑1 Map of Adjacent Properties

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21.0 OTHER RELEVANT DATA AND INFORMATION

No additional information or explanation is necessary to make this TRS understandable and not misleading.

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22.0 INTERPRETATION AND CONCLUSIONS

The QP’s offer the following interpretations and conclusions by area.

22.1 Geology and Mineral Resources

The Company has not completed a Mineral Resource Estimate for the year ending December 31, 2021 but is planning to complete one for the year ending December 31, 2022. In 2012, an historic resource estimate was completed as a part of a Canadian NI 43-101 by a third party. A summary of the historic 2012 NI 43-101 is provided for background only and does not represent a current SK 1300-compliant resource.

| · | Core sampling is supervised by professional geologist and sampling procedures meet industry best practices. |

| · | The sample preparation, security, and analytical procedures for core samples were consistent with generally accepted industry best practices. |

| · | The QA/QC procedures for core samples are consistent with generally accepted industry standards. However, a persistent, low bias in assay results was found in the 3 gpt standard. |

| · | Blanks and standards are not currently included with muck samples from the stope rounds. Blanks and standards should be included with muck samples on a weekly basis. |

| · | The QP’s review of database validation yielded no deficient procedures or data. The sample database is valid for reserve and resource calculations. |

22.2 Mining and Mineral Reserves

·	The Mineral Reserve estimate of has been reviewed by the QP’s and found to be in accordance with the definitions for Mineral Reserves in S-K 1300. Mineral Reserves at December 31, 2021 are 38,700 tonnes at an average grade of 4.87 gpt gold using a gold price of $1,650 per troy ounce.

| · | The Mineral Reserves are all within the Skookum Shoot area near existing infrastructure and near previously mined areas where sample data is dense enough for Proven classification. |

| · | Mineral Reserves are prepared by qualified personnel with appropriate supervision using industry-standard mining software. |

| · | The QP’s believe the use of a trailing three-year average gold price is appropriate and consistent with generally accepted practices within the mining industry. |

| · | The mining method at the Golden Chest is underhand cut-and-fill utilizing cemented rock fill (CRF) in the stopes. |

| · | The mining method is appropriate for this type of vein deposit and the ground conditions with minimum widths of 2.5 m and an average stope width of 3.0 m. |

| · | The Mineral Reserve is based on the underhand cut-and-fill mining method. |

| · | Block model versus muck sample reconciliation shows the block model accurately predicts gold grade within 2%. A reconciliation of the block model and mine versus the mill feed should completed. |

| · | Dilution is accounted for in the Mineral Reserve estimate and extraction is assumed to be 100%. |

| · | The ground support plan with the use of Swellex-bolts in conjunction with CRF has improved geotechnical stope stability. |

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·	The mine uses 1.5 m^3^ rubber-tired LHDs along with diesel-hydraulic drill jumbos and a 22-tonne underground dump truck.
·	Life-of-mine (LOM) plans should be completed once an updated Mineral Resource estimate is completed. Mining equipment, infrastructure, and mineral processing requirements could be determined once an LOM plan is completed.

22.3 Mineral Processing

·	Material is shipped from the Golden Chest Mine in Murray, Idaho to the New Jersey Mill in Kellogg, Idaho for processing using highway dump trucks with pups.

| · | The New Jersey Mill operates as a bulk flotation plant at a rate of approximately 40,000 tonnes per year to produce a bulk-sulfide concentrate for sale to copper smelters in Asia. |

| · | The mill has processed nearly 207,000 tonnes of material from the Golden Chest open pit and underground and achieved gold recovery of 89.7% with an average concentrate grade of 252 gpt gold. |

| · | The mill has achieved higher gold recovery of 93% for straight underground material. This is appropriate gold recovery to use for underground Mineral Reserve estimates. |

| · | Previous campaigns of processing material from the Golden Chest at the 100 tpd New Jersey Mill from 2005 to 2009 provided metallurgical testing information at a bulk-sample scale. |

| · | RDI performed metallurgical testing evaluating gravity, flotation, and cyanidation processes using core samples from the Skookum Shoot. |

| · | The New Jersey Mill utilizes the novel process of paste tailings disposal and recycles process water to minimize its impact on the environment. |

22.4 Infrastructure

·	The Golden Chest Mine is accessible all year round via a paved highway known as Forest Highway 9 and has all the necessary infrastructure to mine at the current rate.

| · | An increase in the current mining rate would require an upgrade to the electrical power line to the mine. |

22.5 Environment

·	The Golden Chest Mine and New Jersey Mill have all the necessary environmental permits to operate.

| · | The Company has posted bonds to cover the cost of reclamation at both the Golden Chest and New Jersey Mill. |

| · | The Company promotes a “We Live Here” philosophy which encourages a commitment to the environment because employees and management all live and recreate in the local area. Local hiring and buying are also encouraged under this philosophy. |

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23.0 RECOMMENDATIONS

The QP’s offer the following recommendations by area.

23.1 Geology and Mineral Resources

6.	An updated Mineral Resource compliant with SK 1300 should be calculated for the year ending December 31, 2022, as there has been significant additional core drilling since the historic Micon 2012 Resource and some depletion from mining.

| 7. | Inferred Mineral Resource classification should observe the spacing requirement of two drill holes within 75 meters instead of 100 meters as used in the historic Micon 2012 Resource. |

| 8. | The 3 gpt standard assays should be investigated to determine if a cause for the low bias can be found. |

| 9. | Blanks and standards should be included with the muck samples on a weekly basis. |

| 10. | Follow-up or closeout assays around a vein intercept should be checked on a regular basis that they have been added to the sample database to avoid inaccuracies in compositing. |

23.2 Mining and Mineral Reserves

5.	Add the reconciliation of mill tonnes and grade to the block model reconciliation exercise.

| 6. | The use of the mechanical bolter in the stopes should be implemented into the stope design to pursue increased efficiency and safety in the installation of ground support. |

| 7. | Study the addition of a paste backfill system for the potential to reduce operating costs. |

| 8. | Commission double-boom jumbo to increase rate of development. |

23.3 Mineral Processing

3.	Hire a metallurgical consultant to perform a plant audit of the mill to help optimize operational parameters to maximize net smelter return.

| 4. | Complete mineralogic study of concentrate to define mineralogic components of concentrate. |

23.4 Environmental

3.	Consider hiring a full-time environmental professional or environmental contractor as the scope of operations has increased.

| 4. | Make plans to drill three groundwater monitoring wells at the Golden Chest Mine. |

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24.0 REFERENCES

Ash, C., and Alldrick, D., 1996: Au-quartz Veins, in Selected British Columbia Mineral Deposit Profiles, Volume 2 - Metallic Deposits, Lefebure, D.V. and Hõy, T, Editors, British Columbia Ministry of Employment and Investment, Open File 1996-13, pages 53-56.

Chavez, J., 1990, Newmont Exploration Limited, Golden Chest Mine: Exploration Summary.

Cressman, E.R., 1989, Reconnaissance Stratigraphy of Prichard Formation (Middle Proterozoic) and the Early Development of the Belt Basin, Washington, Idaho, and Montana. U.S. Geological Survey Professional Paper 1490, 80 p.

Gammons, C., 2009. Professor, Dept. of Geological Engineering. Montana Tech of The University of Montana. E-mail communication.

Goldbarb, R.J., Baker, Timothy, Dubé, Benoît, Groves, D.I., Hart, C.J.R., and Gosselin, Patrice, 2005, Distribution, Character, and Genesis of Gold Deposits in Metamorphic Terrances: Economic Geology 100th Anniversary Volume, pp. 407-450

Gott, G.B., and Cathrall, J.B., 1980, Geochemical-Exploration Studies in the Coeur d’Alene District, Idaho and Montana: U.S. Geological Survey Professional Paper 1116, 63 p.

Groves, D.I., Goldfarb, R.J., Gebre-Mariam, M., Hagemann, S.G., and Robert, F., 1998, Orogenic gold deposits: A proposed classification in the context of their crustal distribution and relationship to other gold deposit types: Ore Geology Reviews 13, p.7-27, published by Elsevier Science B.V.

Hart, C.J.R., 2005, Classifying, Distinguishing and Exploring for Intrusion‐Related Gold Systems. Canadian Institute of Mining – Geological Society “The Gangue” Issue 87, October 2005.

Hausen, 1987, Newmont Golden Chest petrographic work, private report.

Hershey, O. H., 1916, Origin and distribution of ore in the Coeur d’Alene: Mineral Science Press, book 21, shelf, 7.

Hobbs, S.W., Griggs, A.B., Wallace, R.E., and Campbell, A.B., 1965, Geology of the Coeur d’ Alene district, Shoshone County, Idaho: U.S. Geological Survey Professional Paper 478, 139 p.

Hosterman, J.W., 1956, Geology of the Murray Area, Shoshone County, Idaho: U.S. Geological Survey Bulletin 1027-P, p. 725-748.

Idaho State University, 2017, Digital Geology of Idaho: http://geology.isu.edu/Digital_Geology_Idaho/

Keenan, Chester, J., 1916, Preliminary Report, May 5, 1916. unpublished report.

Lewis, R.S., T.H. Kiilsgaard, E.H. Bennett, and W.E. Hall, 1987, Lithologic and chemical characteristics of the central and southeastern part of the southern lobe of the Idaho Batholith, in T.B. Vallier and H.C. Brooks, editors, Geology of the Blue Mountains Region of Oregon, Idaho, and Washington: The Idaho Batholith and its Border Zone: US Geological Survey Professional Paper 1436, p. 151-196.

Lindgren, W., 1933. Mineral Deposits. McGraw Hill, New York and London, 930 p.

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Marvin, R.F., Zartman, R.E., Obradovich, J.D., and Harrison, J.E., 1984, Geochronometric and lead isotope data on samples from the Wallace 1 x 2 quadrangle, Montana and Idaho: U.S. Geological Survey Miscellaneous Field Studies Map MF-1354-G, 1 plate.

McLachin, R., 2016, Geological Society of America (GSA) poster at 68th annual meeting, GSA Rocky Mountain Section, Moscow, Idaho, May, 2016. https://gsa.confex.com/gsa/2016RM/webprogram/Paper276190.html.

Mitchell, V.E., Reed, S.L., and Larsen, J, 2021, Digital Geology of Idaho website, https://digitalgeology.aws.cose.isu.edu/Digital_Geology_Idaho/Module7/mod7.htm

Mulholland, P., 2015, Juniper Mining Company, , final Mine report.

Murahwi, C., San Martin, A. J., and Gowans, R., 2011: Technical Report on the Initial Resource Estimate for the Golden Chest Property, Idaho, United States, effective date December 31, 2011.

Murahwi, C., San Martin, A. J., and Gowans, R., 2012: Golden Chest Property, Idaho, United States 43-101F1 Technical Report, effective date December 31, 2012.

Pertzel, B., 2017, Intrusion-related Gold Systems. Pertzel, Tahan & Associates PTY http://www.mrt.tas.gov.au/mrtdoc/tasxplor/download/14_6803/EL402008_201312_03_Appendix.pdf.

Randall, T., 2014, Metallurgical Testing of Juniper Samples, Golden Chest Mine-Idaho. Resource Development Incorporated (RDI), Wheat Ridge, CO.

Ross, Katherina, 2010, in Rhys, David, 2010, Review of structural setting and potential of gold prospects on the Toboggan Mine, Idaho. Newmont Exploration private report

Rowe, J.E., 1908, The Coeur d’Alene Mining District, Idaho, The Mining World, December 5, 1908.

Ransome, Frederick L. and Calkins, Frank C., 1908, Geology and Ore Deposits of the Coeur d ’Alene District, Idaho, USGS Professional Paper 62.

Schalck, D.K., 1989, The geology and alteration of the Gem stocks, Shoshone County, Idaho, in V.E. Chamberlain, R.M. Breckenridge, and Bill Bonichsen, editors, Guidebook to the Geology of Northern and Western Idaho and Surrounding Area: Idaho Geological Survey Bulletin 28, p. 125-135.

Shenon, P.J., 1938, Geology and Ore Deposits Near Murray, Idaho. Idaho Bureau of Mines and Geology Pamphlet 47, 44 p.

Sillitoe, R.H. 1991, Intrusion-related gold deposits. In: Foster, R.P. (ed.), Metallogeny and Exploration of Gold. Blackie and Sons, Glasgow, p. 165-209.

24-2

25.0 RELIANCE ON INFORMATION PROVIDED BY THE REGISTRANT

This TRS has been prepared by the QP’s for IDR. The QP’s are employees of IDR, and they are Grant A. Brackebusch, P.E. (Vice President – Operations), and Robert J. Morgan, PG PLS (Vice President – Exploration).

The information, conclusions, opinions, and estimates contained herein are based on

·	Information available to the QP’s at the time of the writing of this TRS,

| · | Assumptions, conditions, and qualifications as set forth in this TRS, |

| · | And data, reports provided by IDR and third-party sources. |

The QP’s relied on information provided by IDR’s legal counsel regarding the mineral rights on the Joe Dandy patented claim. The QP’s consider this reasonable as the legal counsel is an attorney with experience with mining law.

The QP’s relied on tax information from the Company’s tax accountant regarding the size of a tax loss carryover for the Company so that taxes can be ignored on the economic analysis of Mineral Reserves. The QP’s consider this reasonable at the tax accountant has experience in tax preparation.

The QP’s believe they have taken the steps, in their professional opinion, to assure the information used to prepare this report is valid.

25-1

26.0 DATE AND SIGNATURE PAGE

This report titled “Technical Report Summary on the Golden Chest Mine, Idaho” with an effective date of December 31, 2021, was prepared and signed by:

Grant A. Brackebusch, P.E.

Vice President - Operations, Idaho Strategic Resources, Inc.

Dated: December 8, 2022

Robert J. Morgan, PG, PLS

Vice President – Exploration, Idaho Strategic Resources, Inc.

Dated: December 8, 2022

26-1

njmc_ex231.htm EXHIBIT 23.1

Consent of Qualified Person

In connection with the Idaho Strategic Resources, Inc. amended Annual Report on Form 10-K/A for the year ended December 31, 2021 and any amendments or supplements and/or exhibits thereto (collectively, the “Form 10-K”), the undersigned consents to:

(i)	the filing and use of the technical report summary titled “Technical Report Summary For The Golden Chest Mine, Idaho, U.S.A.” (the “TRS”), with an effective date of December 31, 2021, as an exhibit to and referenced in the Form 10-K;
(ii)	the incorporation by reference of the TRS in the Registration Statements on Form S-3, as amended (Registration No. 333-264647) (the “Registration Statement”):
(iii)	the use of and references to our name, including our status as an expert or “qualified person” (as defined in Subpart 1300 of Regulation S-K promulgated by the Securities and Exchange Commission), in connection with the TRS, Form 10-K and the Registration Statement; and
(iv)	any extracts or summaries of the TRS included or incorporated by reference in the Form 10-K and the Registration Statement, and the use of any information derived, summarized, quoted or referenced from the TRS, or portions thereof, that was prepared by us, that we supervised the preparation of, and/or that was reviewed and approved by us, that is included or incorporated by reference in the Form 10-K and the Registration Statement.

Dated: December 8, 2022
By:	/s/Grant Brackebusch, P.E.

| Name: | Grant Brackebusch |

njmc_ex232.htm EXHIBIT 23.2

Consent of Qualified Person

(i)	the filing and use of the technical report summary titled “Technical Report Summary For The Golden Chest Mine, Idaho, U.S.A.” (the “TRS”), with an effective date of December 31, 2021, as an exhibit to and referenced in the Form 10-K;
(ii)	the incorporation by reference of the TRS in the Registration Statements on Form S-3, as amended (Registration No. 333-264647) (the “Registration Statement”):
(iii)	the use of and references to our name, including our status as an expert or “qualified person” (as defined in Subpart 1300 of Regulation S-K promulgated by the Securities and Exchange Commission), in connection with the TRS, Form 10-K and the Registration Statement; and
(iv)	any extracts or summaries of the TRS included or incorporated by reference in the Form 10-K and the Registration Statement, and the use of any information derived, summarized, quoted or referenced from the TRS, or portions thereof, that was prepared by us, that we supervised the preparation of, and/or that was reviewed and approved by us, that is included or incorporated by reference in the Form 10-K and the Registration Statement.

Dated: December 8, 2022
By:	/s/Robert John Morgan, PG, PLS.

| Name: | Robert John Morgan |

10-K/A

FORM 10-K/A

(208) 625-9001

EXPLANATORY NOTE

TABLE OF CONTENTS

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

GLOSSARY OF SIGNIFICANT MINING TERMS

PART I

ITEM 1. DESCRIPTION OF THE BUSINESS

ITEM 2. DESCRIPTION OF PROPERTIES

ITEM 3. LEGAL PROCEEDINGS

ITEM 4. MINE SAFETY DISCLOSURES

PART II

ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

ITEM 6. SELECTED FINANCIAL DATA

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

ITEM 9A. CONTROLS AND PROCEDURES

ITEM 9B. OTHER INFORMATION

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE

ITEM 11. EXECUTIVE COMPENSATION

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

PART IV

ITEM 15. EXHIBITS

SIGNATURES