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Mineral properties and development costs
3 Months Ended
Feb. 29, 2020
Mineral properties and development costs  
Mineral properties and development costs

6)Mineral properties and development costs

 

 

 

 

 

 

 

 

 

 

 

 

in thousands of dollars

 

 

 

 

 

 

Acquisition costs

 

Assets

 

 

 

 

 

 

reimbursable

 

derecognized 

 

February 29,

 

    

November 30, 2019

 

from Ambler

 

note 4(a)

 

2020

 

    

$

    

Metals LLC

    

$

    

$

Alaska, USA

 

 

 

  

 

 

 

 

Ambler (a)

 

26,631

 

(44)

 

(26,587)

 

 —

Bornite (b)

 

4,000

 

 —

 

(4,000)

 

 —

 

 

30,631

 

(44)

 

(30,587)

 

 —

 

 

 

 

 

 

 

 

 

 

in thousands of dollars

 

    

November 30, 2018

 

Acquisition costs

 

November 30, 2019

 

    

$

    

$

    

$

Alaska, USA

 

 

 

  

 

 

Ambler (a)

 

26,587

 

44

 

26,631

Bornite (b)

 

4,000

 

 —

 

4,000

 

 

30,587

 

44

 

30,631

 

(a)

Mineral properties expense

The following table summarizes mineral properties expense for the noted periods.

 

 

 

 

 

 

 

    

    

    

In thousands of dollars

 

 

Three months ended

 

Three months ended

 

 

February 29, 2020

 

February 28, 2019

 

 

$

 

$

Alaska, USA

 

 

  

 

Community

 

137

 

118

Drilling

 

 —

 

0

Engineering

 

723

 

357

Environmental

 

99

 

165

Geochemistry and geophysics

 

12

 

165

Land and permitting

 

134

 

120

Project support

 

249

 

226

Other income

 

 —

 

(1)

Wages and benefits

 

191

 

385

 

 

1,545

 

1535

 

Mineral property expenses consist of direct drilling, personnel, community, resource reporting and other exploration expenses as outlined above, as well as indirect project support expenses such as fixed wing charters, helicopter support, fuel, and other camp operation costs. Expenses during the first quarter ended February 29, 2020 consisted mainly of engineering studies in preparation of the Arctic feasibility study and care and maintenance of the camp during the winter season.  Cumulative mineral properties expense in Alaska from the initial earn-in agreement on the property in 2004 to February 29, 2020 is $115.3 million and cumulative acquisition costs were $30.6 million. Cumulative spend to date totaled $145.9 million through to February 29, 2020. On February 11, 2020, upon the formation of the joint venture with South 32, the acquisition costs of $30.6 million were derecognized upon the contribution of the mineral properties to Ambler Metals.

(b)Derecognition

As part of the formation of the joint venture with South32 on February 11, 2020, Trilogy contributed all of its assets associated with the UKMP, including the Arctic and Bornite projects. As a result, $0.62 million of machinery and equipment as well as $30.6 million of mineral properties related to the UKMP were derecognized in Trilogy on February 11, 2020.