PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2012

NOTE 9 PROPERTY AND EQUIPMENT

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

	December 31, 2012			December 31, 2011

Trucks and trailers	$	1,417		$	1,247
Office furniture and equipment		1,163			638
Drill rigs		1,869			998
Building		1,469			853
Land		8,669			8,619
Mining equipment		1,026			956
Inactive milling equipment		101			778

Subtotal	$	15,714		$	14,089
Less: accumulated depreciation		(2,947	)		(2,317	)

Total	$	12,767		$	11,772

The slight increase in property and equipment from 2011 to 2012 was mainly due to the acquisition of Minera Andes, partially offset by a reduction in the inactive milling equipment in Nevada.

During 2012, the Company made a decision to sell the majority of the inactive milling equipment and related assets in Nevada to supplement its working capital. The items that were sold included the ball mill, process facility, thickener, mobile homes and other miscellaneous equipment. Total proceeds received for these assets were $1.7 million.

Depreciation expense for 2012 was $1.0 million (2011—$0.6 million, 2010—$0.5 million).

- 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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