Mineral Properties and Development Costs

3 Months Ended

Mar. 31, 2012

Mineral Properties and Development Costs

Mineral Properties and Development Costs

(7) Mineral Properties and Development Costs

        Mineral properties and development costs, which are referred to collectively as mineral properties, include acquisition costs, drilling costs, and the cost of other development work, all of which are capitalized. The Company depletes mineral properties using the units of production method over estimated proven and probable reserves. For the three months ended March 31, 2012, the Company capitalized $21,000 of depletion costs in work-in-process inventory related to the reserves that were mined and crushed during this period.