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5. Property, Plant and Equipment
 12 Months Ended
Dec. 31, 2014
Notes  
5. Property, Plant and Equipment

5.  Property, Plant and Equipment

 

Property, plant and equipment at December 31, 2014 and 2013, consisted of the following:

 

 

 

 

2014

 

2013

Mill land

$

225,289

$

225,289

Mill building

 

536,193

 

522,786

Milling equipment

 

4,001,771

 

3,716,011

 

 

4,763,253

 

4,464,086

Less accumulated depreciation

 

(152,151)

 

(144,236)

Total mill

 

4,611,102

 

4,319,850

Building and equipment at cost

 

252,348

 

495,037

Less accumulated depreciation

 

(216,926)

 

(348,021)

Total building and equipment

 

35,442

 

147,016

Land

 

1,007,675

 

441,858

Total

$

5,654,199

$

4,908,724

 

 

During the year ended December 31, 2014 $25,021 in interest was capitalized in conjunction with the mill expansion project. No interest was capitalized in 2013.

 

During the year ended December 31, 2014 the Company disposed of a pick-up with $5,930 total cost basis that was fully depreciated for salvage; no income or loss was recorded. A drill with a cost basis of $265,316 which was partially depreciated was sold for $66,826 and a loss on sale of equipment was recorded for $34,878. Also, a ball mill with a historical cost of $9,850 was sold by the NJMJV for an $850 loss. During the year ended December 31, 2013 the Company sold a drill and an excavator with a total cost basis of $240,055 for $112,000.

 

Since both pieces of equipment were fully depreciated at the time of sale, a gain on sale of equipment of $112,000 was recorded in the consolidated statement of operations.

 

During the year ended December 31, 2012, a lease agreement was entered into with Hecla Mining Company on the Company’s Little Baldy land holding. Under the agreement, Hecla has paid $10,000 and $24,000 in 2014 and 2013, respectively, to the Company for the option to obtain NJMC’s interest in the land. The Company has recorded these farm-out receipts as a reduction in the carrying value of the land for the years ended December 31, 2014 and 2013.

 

For year ended December 31, 2013, milling and other equipment include assets under capital lease amounting to $91,625. The lease is being amortized over its terms. Accumulated amortization at December 31, 2014 and 2013 was $91,625 and $65,258, respectively. The lease was concluded in September 2014 and the equipment title was transferred to the Company for no additional consideration.

 

During the year ended December 31, 2014, the Company entered into a purchase and sale agreement to acquire the Eastern Star Elk City property for $425,000. The deal called for a down payment of $125,000 and a promissory note for the balance at 5% per annum. As scheduled the next payment of $125,000 was made on August 15, 2014. Final payment of $175,000 is due on July 15, 2015.