XML 24 R10.htm IDEA: XBRL DOCUMENT v3.3.1.900
5. Property, Plant and Equipment
 12 Months Ended
Dec. 31, 2015
Notes  
5. Property, Plant and Equipment

5. Property, Plant and Equipment

 

Property, plant and equipment at December 31, 2015 and 2014, consisted of the following:

 

 

 

 

2015

 

2014

Mill land

$

225,289

$

225,289

Mill building

 

536,193

 

536,193

Milling equipment

 

4,209,440

 

4,001,751

 

 

4,970,922

 

4,763,233

Less accumulated depreciation

 

(285,420)

 

(152,151)

Total mill

 

4,685,502

 

4,611,082

Building and equipment at cost

 

362,188

 

252,348

Less accumulated depreciation

 

(217,738)

 

(216,926)

Total building and equipment

 

144,450

 

35,442

Bear Creek Land

 

196,204

 

150,000

Little Baldy Land

 

72,139

 

82,139

BOW Land

 

230,449

 

230,449

Eastern Star Land

 

250,817

 

425,817

Gillig Land

 

79,137

 

79,137

Highwater Land

 

40,133

 

40,133

Total Land

 

868,879

 

1,007,675

Total

$

5,698,831

$

5,654,199

 

 

During the year ended December 31, 2015 and 2014 $16,295 and $25,021, respectively in interest was capitalized in conjunction with the mill expansion project.

 

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 each year in 2015 and 2014, respectively, to the Company for the option to obtain NJMC’s interest in the land. The Company has recorded these lease payments as a reduction in the carrying value of the land for the years ended December 31, 2015 and 2014.

 

For year ended December 31, 2014, 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 was $91,625. 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 agreement called for a down payment of $125,000 in April 2014 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 was due on July 15, 2015. The agreement was structured such that the Company could opt to not make the final payment and receive title to parcels of the Elk City property covered by the first two payments. The Company opted out of making the final payment and has received title to the property for which payment has been made.