PROPERTY AND EQUIPMENT

3 Months Ended

Mar. 31, 2013

5.	PROPERTY AND EQUIPMENT

Property and equipment costs consist of the following:

		March 31,			December 31,
		2013			2012
		(unaudited)
Land	$	87,114		$	87,114
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			2,708,870
Mining and other equipment		42,457,786			42,457,786
Total		49,634,502			49,634,502

Accumulated depreciation, depletion and
amortization		(6,750,488	)		(6,648,074	)
Net property and equipment	$	42,884,014		$	42,986,428

Total depreciation, depletion and amortization (“DD&A”) of property and equipment charged to operations was $161,570 and $212,271 for the three month periods ended March 31, 2013 and 2012, respectively. The Company allocates DD&A to copper inventories based upon the relative pounds in inventory at each reporting date. Accordingly, as of March 31, 2013 and December 31, 2012, $584,989 and $644,145, respectively, of DD&A costs were included in copper inventories.

- Definition

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.

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