PLANT AND EQUIPMENT, MINE DEVELOPMENT AND CONSTRUCTION IN PROGRESS

12 Months Ended

Dec. 31, 2017

PLANT AND EQUIPMENT, MINE DEVELOPMENT AND CONSTRUCTION IN PROGRESS

PLANT AND EQUIPMENT, MINE DEVELOPMENT AND CONSTRUCTION IN PROGRESS

NOTE 6 PLANT AND EQUIPMENT, MINE DEVELOPMENT AND CONSTRUCTION IN PROGRESS

As of December 31, 2017 and 2016, property and equipment consisted of the following:

	December 31, 2017		December 31, 2016
Land	$	8,699	$	8,699
Plant and equipment		43,257		8,505
Construction-in-progress		8,178		2,812
Subtotal	$	60,134	$	20,016
Less: accumulated depreciation		(9,088)		(5,764)
	$	51,046	$	14,252

Construction-in-progress included the following costs:

	December 31, 2017		December 31, 2016
Gold Bar project	$	6,011	$	—
Black Fox mine		67		—
El Gallo 2 project		2,100		2,812
	$	8,178	$	2,812

The Gold Bar project construction-in-progress includes deposits for long-lived capital equipment and expenditures for mobilization, design and engineering, and earthwork. 

El Gallo 2 project construction-in-progress includes certain equipment which has not been delivered in 2017. In 2017, an impairment charge of $0.7 million was recorded against this equipment to reflect the decline in fair value. It is uncertain if and when this equipment can be utilized in current operations.

In the second quarter of 2016, the Company reached an agreement with a separate contractor, whereby the Company was refunded its equivalent 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) for 2016.