PROPERTY AND EQUIPMENT

3 Months Ended

Mar. 31, 2014

NOTE 5 PROPERTY AND EQUIPMENT

As at March 31, 2014 and December 31, 2013, property and equipment consisted of the following:

	March 31, 2014			December 31, 2013
	(in thousands)
Trucks and trailers	$	1,041		$	1,041
Office furniture and equipment	1,163			1,163
Drill rigs	998			998
Building	1,469			1,469
Land	8,699			8,672
Mining equipment	1,363			1,206
Construction-in-progress	5,709			3,894
Subtotal	$	20,442		$	18,443
Less: accumulated depreciation	(3,525		)	(3,300		)
Total	$	16,917		$	15,143

The increase in property and equipment from December 31, 2013 to March 31, 2014 was mainly in relation to construction-in-progress assets, which include advances the Company made to a supplier for long-lead items for its El Gallo 2 project.

Depreciation expense for the three months ended March 31, 2014 and 2013 was $0.2 million and $0.3 million, respectively.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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