PROPERTY AND EQUIPMENT

9 Months Ended

Sep. 30, 2013

PROPERTY AND EQUIPMENT [Text Block]

5.      PROPERTY AND EQUIPMENT

Property and equipment costs consist of the following:

		September 30,			December 31, 2012
		2013
		(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		42,507,786			42,457,786
Total		49,684,502			49,634,502
Accumulated depreciation, depletion and amortization		(6,943,767	)		(6,648,074	)
Net property and equipment	$	42,740,735		$	42,986,428

Total depreciation, depletion and amortization (“DD&A”) of property and equipment charged to operations was $130,184 and $444,812 for the three and nine month periods ended September 30, 2013, respectively. Total depreciation, depletion and amortization (“DD&A”) of property and equipment charged to operations was $182,028 and $590,364, respectively, for the three and nine month periods ended September 30, 2012, respectively. The Company allocates DD&A to copper inventories based upon the relative pounds in inventory at each reporting date. Accordingly, as of September 30, 2013 and December 31, 2012, $495,026 and $644,145, respectively, of DD&A costs were included in copper inventories.