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Properties, Plants and Equipment

12 Months Ended

Dec. 31, 2011

6. Properties, Plants and Equipment

The major components of the Company's properties, plants and equipment at December 31, 2011 and 2010 are shown below. Approximately $1.6 million and $63,000 of capitalized costs at December 31, 2011 and 2010, respectively, related primarily to the construction of an antimony mill in Mexico, have not yet been placed in service and, therefore, have not been subject to depreciation.

		2011			2010
Antimony:
Equipment	$	2,209,542		$	1,803,107
Buildings		1,436,149			863,933
Mineral rights and obligations		807,906			473,940
Land		1,567,327			597,063
		6,020,924			3,738,044
Accumulated depreciation		(1,616,266	)		(1,416,751	)
Total Antimony, net		4,404,658			2,321,293

Zeolite:
Equipment		2,239,348			2,125,748
Buildings		1,663,554			1,452,284
		3,902,902			3,578,032
Accumulated depreciation		(2,260,556	)		(2,054,325	)
Total Zeolite, net		1,642,346			1,523,707
Properties, plants and equipment, net	$	6,047,004		$	3,845,000

During 2010 the Company incurred an impairment charge of $199,302 on certain constructed assets at its Cal Los Arcos Mexican mill site because it was determined that the mill site was no longer viable. Assets such as installation costs and concrete work that were unable to be transported to the new mill site at Corral Blanco were deemed to be impaired and therefore written off.

During 2011, the Company assessed the obligation for removal and remediation costs relating to its plants and mine in Mexico. Management assigned a cost to the expected work involved in complying with the requirements of the Mexico operating permits. Management applied, based on a 20 year life, an cost inflation factor, and then discounted that cost to a current net present value based on a discount rate of 6% (management’s estimate of its credit-adjusted interest rate). Management determined a future cost in 2031 of approximately $430,000 with a net present value of $134,000.

Asset Retirement
Obligation:
Balance December 31, 2010		$ -
Additions during 2011		134,000
Balance December 31, 2011		$ 134,000

The asset retirement obligation liability is combined with reclamation obligations for Idaho and Montana operations of $107,500 at December 31, 2011.

- Definition

Tabular disclosure of the useful life and salvage value of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software.

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