PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2016

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

NOTE 7 PROPERTY AND EQUIPMENT

As of December 31, 2016 and 2015, property and equipment consisted of the following:

	December 31, 2016		December 31, 2015
Trucks and trailers	$	1,233	$	1,065
Office furniture and equipment		1,891		1,543
Leasehold improvements		661		661
Drill rigs		1,198		1,061
Building		1,514		1,514
Land		8,699		8,699
Mining equipment		2,008		1,625
Construction-in-process		2,812		4,314
Subtotal	$	20,016	$	20,482
Less: accumulated depreciation		(5,764)		(4,723)
Total	$	14,252	$	15,759

Additions to property and equipment during the year ended December 31, 2016 are mainly in relation to office, furniture and equipment and mining equipment acquired for the El Gallo 1 mine. Depreciation expense for 2016 was $1.2 million (2015 - $0.9 million, 2014 - $1.0 million).

Construction-in-process included a deposit with a contractor for the construction of certain equipment pertaining to the El Gallo 2 project. In the second quarter of 2016, the Company reached an agreement with the contractor, whereby the Company was refunded the deposit less costs incurred for the equipment design. The total amount of the deposit was $1.5 million, of which $1.0 million was refunded. The remaining $0.5 million was recorded under development costs in the Consolidated Statement of Operations and Comprehensive Income (Loss).