3. Property, Equipment and Mining Claims

12 Months Ended

Dec. 31, 2016

Notes

3. Property, Equipment and Mining Claims

3.   PROPERTY, EQUIPMENT AND MINING CLAIMS

Equipment

At December 31, 2016 and 2015, the Company’s equipment classifications were as follows:

	2016	2015
Exploration and mining equipment	$        1,627,351	$        1,627,351
Vehicles and rolling stock	390,140	413,678
Office and other equipment	65,548	65,548
Total	2,083,039	2,106,577
Accumulated depreciation	(2,063,442)	(2,058,691)
Equipment, net of depreciation	$           19,597	$          47,886

Of the Company’s equipment, $1,319,340 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 $28,289 for 2016. Assets of $1,342,878 and $763,699 being depreciated over corresponding periods, respectively, resulting in total depreciation of $69,425 for 2015.

Mining Properties and Claims, and Royalty Option

At December 31, 2016 and 2015, the Company’s mining properties claims, and royalty option were as follows:

	2016	2015
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
Jumbo Basin royalty option	67,580	-
Total	$        649,746	$        582,166

Asset retirement costs will be amortized over the related long lived asset using a units of production method. No significant production occurred during 2016 and 2015. Accordingly no amortization of these costs has been recorded for 2016 and 2015.