MINERAL PROPERTY INTERESTS AND PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2019

MINERAL PROPERTY INTERESTS AND PLANT AND EQUIPMENT

MINERAL PROPERTY INTERESTS AND PLANT AND EQUIPMENT

NOTE 8 MINERAL PROPERTY INTERESTS AND PLANT AND EQUIPMENT

The cost and carrying value of mineral property interests and plant and equipment at December 31, 2019 and 2018 are as follows:

	December 31, 2019		December 31, 2018
Mineral property interests, cost	$	339,374	$	326,086
Less: accumulated depletion		(28,154)		(16,941)
Mineral property interests, carrying value	$	311,220	$	309,145
Plant and equipment, cost
Land	$	8,746	$	8,699
Construction in progress		2,961		74,643
Plant and equipment		133,014		49,578
Subtotal	$	144,721	$	132,920
Less: accumulated depreciation		(37,150)		(18,186)
Plant and equipment, carrying value	$	107,571	$	114,734
Mineral property interests and plant and equipment, carrying value	$	418,791	$	423,879

Plant and equipment at December 31, 2019 includes $1.4 million of capitalized interest related to the Gold Bar mine (December 31, 2018 – $0.8 million). On 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 amortized.  As at December 31, 2018, the Gold Bar project construction-in-progress included expenditures incurred for the construction of the heap leach, ADR, and crusher facilities as well as expenditures for mobilization, design and engineering among others.

Mineral property interest carrying value at December 31, 2019 and 2018 includes the following:

Name of Property/Complex	State/Province	Country	2019		2018
Black Fox Complex	Ontario	Canada	$	14,627	$	16,365
Lexam	Ontario	Canada		41,595		41,595
Los Azules Copper Project	San Juan	Argentina		191,490		191,490
Tonkin Properties	Nevada	United States		4,833		4,833
Gold Bar Project	Nevada	United States		48,492		44,131
Battle Mountain Complex	Nevada	United States		785		785
El Gallo Project	Sinaloa	Mexico		3,591		4,139
Fenix Project Properties	Sinaloa	Mexico		5,807		5,807
Total mineral property interests			$	311,220	$	309,145

Black Fox and Gold Bar mineral property interest are depleted based on the units of production method from production commencement date over the proven and probable reserves.

The El Gallo Project is depleted and depreciated using the straight line or units-of-production method over the stated mine life, as the project does not have proven and probable reserves compliant with Guide 7.

The Company conducts a review of potential triggering events for impairment for all its mineral projects on a quarterly basis or when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. No triggering events were identified for the years ended December 31, 2019 and 2018. For the year ended December 31, 2017, the Company recorded an impairment charge of $0.7 million against certain construction-in-progress equipment relating to the Fenix Project.