MINERAL PROPERTY INTERESTS AND PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2021

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, 2021 and 2020 are as follows:

	December 31, 2021		December 31, 2020
Mineral property interests, cost	$	344,529	$	314,719
Less: accumulated depletion		(47,197)		(34,601)
Mineral property interests, carrying value	$	297,332	$	280,118
Plant and equipment, cost
Land	$	8,949	$	8,804
Construction in progress		4,078		2,945
Plant and equipment		76,887		72,188
Subtotal	$	89,914	$	83,937
Less: accumulated depreciation		(44,942)		(34,943)
Plant and equipment, carrying value	$	44,972	$	48,994
Mineral property interests and plant and equipment, carrying value	$	342,303	$	329,112

Mineral property interest carrying value at December 31, 2021 and 2020 includes the following:

Name of Property/Complex	State/Province	Country	2021		2020
Fox Complex	Ontario	Canada	$	37,678	$	17,580
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		11,790		14,675
Battle Mountain Complex	Nevada	United States		785		785
El Gallo Project	Sinaloa	Mexico		3,353		3,353
Fenix Project Properties	Sinaloa	Mexico		5,807		5,807
Total mineral property interests			$	297,332	$	280,118

Black Fox and Gold Bar mineral property interest are depleted based on the units of production method from production commencement date over the estimated 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 S-K 1300.

The definition of proven and probable reserves is set forth in the S-K 1300. 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 estimated in accordance with SEC Industry S-K 1300.

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.

During the year ended December 31, 2021, no indicators of impairment have been noted for any of the Company’s mineral property interests. The Company’s evaluation resulted in an impairment charge of $83.8 million for the year ended December 31, 2020.