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Mineral Properties
 3 Months Ended
Mar. 31, 2022
Mineral Properties  
Mineral Properties

2. Mineral Properties

 The following table details Solitario’s investment in Mineral Properties:

 

(in thousands)

 

March 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Exploration

 

 

 

 

 

 

Lik project (Alaska – US)

 

$15,611

 

 

$15,611

 

Golden Crest (South Dakota – US)

 

 

705

 

 

 

695

 

Total exploration mineral properties

 

$16,316

 

 

$16,306

 

 

All exploration costs on our exploration properties, none of which have proven and probable reserves, including any additional costs incurred for subsequent lease payments or exploration activities related to our projects, are expensed as incurred.

 

Exploration expense

 

The following items comprised exploration expense:

 

(in thousands)

 

Three months ended

 March 31,

 

 

 

2022

 

 

2021

 

Geologic and field expenses

 

$194

 

 

$125

 

Administrative

 

 

32

 

 

 

22

 

Total exploration costs

 

$226

 

 

$147

 

 

Asset Retirement Obligation

 

                In connection with the acquisition of its interest in the Lik project in 2017, Solitario recorded an asset retirement obligation of $125,000 for Solitario’s estimated reclamation cost of the existing disturbance at the Lik project.  This disturbance consists of an exploration camp including certain drill sites and access roads at the camp.  The estimate was based upon estimated cash costs for reclamation as determined by the permitting bond required by the State of Alaska, for which Solitario has purchased a reclamation bond insurance policy in the event Solitario or its 50% partner, Teck, do not complete required reclamation.

 

                Solitario has not applied a discount rate to the recorded asset retirement obligation as the estimated time frame for reclamation is not currently known, as reclamation is not expected to occur until the end of the Lik project life, which would follow future development and operations, the start of which cannot be estimated or assured at this time.  Additionally, no depreciation will be recorded on the related asset for the asset retirement obligation until the Lik project goes into operation, which cannot be assured.