PROPERTY AND EQUIPMENT

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

NOTE 2 - PROPERTY AND EQUIPMENT

At June 30, 2017 and December 31, 2016, property and equipment were comprised of the following:

	June 30, 2017			December 31, 2016
Processing and rail facility	$	2,914,422		$	2,914,422
Underground equipment		7,782,925			7,500,512
Surface equipment		3,771,943			3,751,054
Land		178,683			178,683
Less: Accumulated depreciation		(3,422,143	)		(2,262,855	)
Total Property and Equipment, Net	$	11,225,830		$	12,081,816

Depreciation expense amounted to $699,644 and $760,263 for the three month periods June 30, 2017 and June 30, 2016, respectively. Depreciation expense amounted to $1,159,288 and $1,244,451 for the six month periods June 30, 2017 and June 30, 2016, respectively.

The estimated useful lives are as follows:

Processing and Rail Facilities	20 years
Surface Equipment	7 years
Underground Equipment	5 years