MINERAL PROPERTY INTERESTS AND PLANT AND EQUIPMENT

6 Months Ended

Jun. 30, 2019

MINERAL PROPERTY INTERESTS, PLANT AND EQUIPMENT AND CONSTRUCTION IN PROGRESS

MINERAL PROPERTY INTERESTS, PLANT AND EQUIPMENT AND CONSTRUCTION IN PROGRESS

NOTE 7 MINERAL PROPERTY INTERESTS AND PLANT AND EQUIPMENT

The definition of proven and probable reserves is set forth in the SEC Industry Guide 7. If proven and probable reserves exist at the Company’s properties, the relevant capitalized mineral property interests and asset retirement costs are charged to expense based on the units of production method upon commencement of production. The Company’s Gold Bar, Black Fox and San José properties have proven and probable reserves compliant with SEC Industry Guide 7.

The following table summarizes mineral property interests and plant and equipment at June 30, 2019 and December 31, 2018:

	June 30, 2019		December 31, 2018
Mineral property interests	$	340,945	$	326,086
Land		8,708		8,699
Construction in progress		3,901		74,643
Plant and equipment		130,572		49,578
Subtotal	$	484,126	$	459,006
Less: accumulated depreciation		(48,006)		(35,127)
Net carrying value	$	436,120	$	423,879

Plant and equipment at June 30, 2019 includes $1.4 million of capitalized interest related to the Gold Bar mine (December 31, 2018 – $0.8 million). As at February 16, 2019, first production occurred at the Gold Bar mine and related construction-in-progress costs were transferred into the appropriate category of plant and equipment and mineral property interests and amortized.

The Company’s leased assets include equipment, vehicles and office space; the assets are amortized on a straight-line basis over their estimated useful lives (see note 9 Leases). Leased assets at June 30, 2019 were as follows:

	June 30, 2019
	Operating lease		Finance leases
Leased assets, cost	$	1,167	$	8,048
Accumulated amortization		(413)		(515)
Net book value	$	754	$	7,533