Property, Plant, Equipment and Mineral Interests

6 Months Ended

Jun. 30, 2016

Property, Plant and Equipment, Net [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

3. Property, Plant, Equipment and Mineral Interests

 

	June 30, 2016		December 31, 2015
Land		3,892,583	$	3,895,681
Mineral property interest and claims		2,901,509		2,319,309
Mine development		41,508,336		82,911,481
Mine equipment		55,868,747		27,488,254
Buildings		17,366,740		4,117,901
Computer equipment and software		327,483		300,706
Vehicles		2,062,292		1,908,334
Infrastructure (Water/power)		11,038,426		1,669,585
Asset retirement costs		797,742		626,878
Capitalized interest		6,180,069		5,174,846
Less:
Accumulated depreciation and depletion		(5,919,574)		(1,850,403)
		136,024,353	$	128,562,572

As at June 30, 2016, the Company had capitalized depreciation of $3,559,886 (December 31, 2015 - $1,850,403) relating to assets used in the development of the mine. As the Company entered production on April 1, 2016, the Company began amortising assets put into production on this date and also discontinued capitalizing depreciation.

 

The Company capitalized a portion of the interest expense related to the convertible debenture and notes payable in accordance with its accounting policy. As the Company entered the production phase during the three months ended June 30, 2016, interest was no longer being capitalized. See Note 7 (iv) –Amortization of Discounts and Interest Expense.