PLANT AND EQUIPMENT AND CONSTRUCTION IN PROGRESS

12 Months Ended

Dec. 31, 2018

PLANT AND EQUIPMENT AND CONSTRUCTION IN PROGRESS

PLANT AND EQUIPMENT AND CONSTRUCTION IN PROGRESS

NOTE 6 PLANT AND EQUIPMENT AND CONSTRUCTION IN PROGRESS

As of December 31, 2018 and 2017, property and equipment consisted of the following:

	December 31, 2018		December 31, 2017
Land	$	8,699	$	8,699
Plant and equipment		49,578		43,257
Construction-in-progress		74,643		8,178
Subtotal	$	132,920	$	60,134
Less: accumulated depreciation		(18,186)		(9,088)
	$	114,734	$	51,046

Construction-in-progress included the following costs:

	December 31, 2018		December 31, 2017
Gold Bar project	$	72,425	$	6,011
Black Fox mine		118		67
Fenix project		2,100		2,100
	$	74,643	$	8,178

The Gold Bar project construction-in-progress includes development expenditures incurred for the construction of the mine to date.  These include expenditures for the construction of the heap leach, ADR, and crusher and expenditures for mobilization, design and engineering, and earthwork, among others. 

Construction-in-progress includes $0.8 million of interest costs incurred on a term loan that were capitalized for the year ended December 31, 2018.

The Fenix Project construction-in-progress includes certain equipment which has not been delivered to site. 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 an equipment supplier, whereby the Company was refunded its deposit less costs incurred. 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 Statements of Operations and Comprehensive (Loss) Income for 2016.