XML 40 R12.htm IDEA: XBRL DOCUMENT

PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2011

PROPERTY AND EQUIPMENT [Text Block]

5.	PROPERTY AND EQUIPMENT

Property and equipment costs consist of the following:

		At December 31,
		2011			2010

Land	$	87,114		$	98,094
Buildings		2,071,618			2,071,618
Mine development costs – existing dumps		468,034			468,034
Mine development costs – new dumps		1,841,080			1,841,080
Asset retirement obligation		2,708,870			3,821,641
Mining and other equipment		43,341,482			42,795,633
Total	$	50,518,198		$	51,096,100

Accumulated depreciation, depletion and amortization		(6,313,728	)		(5,639,197	)
Net property and equipment	$	44,204,470		$	45,456,903

Total depreciation, depletion and amortization (“DD&A”) of property and equipment charged to operations was $1,111,844 and $1,709,473 for the years ended December 31, 2011 and 2010, respectively. The Company allocates DD&A to copper inventories based upon the relative pounds in inventory at each reporting date. Accordingly, as of December 31, 2011 and 2010, $923,129 and $1,360,441, respectively, of DD&A costs were included in copper inventories.

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References+ Details