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PROPERTY AND EQUIPMENT
 9 Months Ended
Sep. 30, 2012
PROPERTY AND EQUIPMENT  
PROPERTY AND EQUIPMENT

NOTE 8   PROPERTY AND EQUIPMENT

 

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

 

 

 

September 30, 2012

 

December 31, 2011

 

Trucks and trailers

 

$

1,417

 

$

1,247

 

Office furniture and equipment

 

1,054

 

638

 

Drill rigs

 

1,869

 

998

 

Building

 

1,469

 

853

 

Land

 

8,669

 

8,619

 

Mining equipment

 

1,026

 

956

 

Inactive milling equipment

 

644

 

778

 

Subtotal

 

$

16,148

 

$

14,089

 

Less: accumulated depreciation

 

(2,665

)

(2,317

)

Total

 

$

13,483

 

$

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 in Argentina.

 

During the second quarter of 2012, the Company made a decision to sell four drill rigs, which were purchased during the first quarter of 2012, 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 met the Company’s needs.  During the third quarter of 2012, these assets were sold for proceeds of $1.8 million.

 

During 2012, the Company also sold some of its inactive milling equipment, mobile homes and vehicles from its Tonkin property in Nevada, with a net book value of $0.1 million for net proceeds of $1.4 million.