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PROPERTY AND EQUIPMENT
 6 Months Ended
Jun. 30, 2012
PROPERTY AND EQUIPMENT  
PROPERTY AND EQUIPMENT

NOTE 7   PROPERTY AND EQUIPMENT

 

At June 30, 2012 and December 31, 2011, property and equipment consisted of the following (in thousands):

 

 

 

June 30, 2012

 

December 31, 2011

 

Trucks and trailers

 

$

1,468

 

$

1,247

 

Office furniture and equipment

 

1,012

 

638

 

Drill rigs

 

1,869

 

998

 

Building

 

1,469

 

853

 

Land

 

8,669

 

8,619

 

Mining equipment

 

956

 

956

 

Inactive milling equipment

 

749

 

778

 

Subtotal

 

$

16,192

 

$

14,089

 

Less: accumulated depreciation

 

(2,450

)

(2,317

)

Total

 

$

13,742

 

$

11,772

 

 

As a result of the acquisition of Minera Andes, the Company increased its net property and equipment by $1.6 million during the first quarter of 2012.  In addition, during the first quarter of 2012, the Company invested an additional $1.0 million in drill rigs and accessories in Argentina.

 

During the second quarter of 2012, the Company made a decision to sell four drill rigs and their related accessories, with a net realizable value of $1.8 million, net of impairment of $0.2 million, from its operations in Argentina since they no longer meet the Company’s needs.  The Company reported this balance as assets held for sale on the balance sheet as at June 30, 2012.  Subsequent to June 30, 2012, these assets were sold for $1.8 million.