3. Property, Plant, Equipment and Mining Claims

12 Months Ended

Dec. 31, 2014

Notes

3. Property, Plant, Equipment and Mining Claims

3.   PROPERTY, PLANT, EQUIPMENT AND MINING CLAIMS

Equipment

At December 31, 2014 and 2013, the Company’s equipment classifications were as follows:

	2014	2013
Exploration and mining equipment	$        1,627,351	$       1,627,351
Vehicles and rolling stock	413,678	413,678
Office and other equipment	65,581	67,318
Total	2,106,610	2,108,347
Accumulated depreciation	(1,989,299)	(1,834,797)
Equipment, net of depreciation	$           117,311	$         273,550

Of the Company’s assets, $1,342,911 are being depreciated over lives of three and five years and $763,699 are being depreciated over seven and ten years, resulting in total depreciation expense of $156,485 for 2014. Assets of $1,344,648 and $763,699 being depreciated over corresponding periods, respectively, resulted in total depreciation of $253,819 for 2013.

Mining Properties and Claims

At December 31, 2014 and 2013, the Company’s mining properties and claims were as follows:

	2014	2013
Chandalar property and claims	$        264,000	$        264,000
2003 purchased claims	35,000	35,000
Unpatented state claims staked	40,400	40,400
Asset retirement costs	242,766	242,766
Total	$        582,166	$        582,166

Asset retirement costs are being depreciated over the related long lived asset using a units of production method. No production occurred during 2014 and 2013. Accordingly no depreciation of these costs has been recorded for 2014 and 2013.