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Mineral Properties

9 Months Ended

Sep. 30, 2022

Mineral Properties

Mineral Properties

2. Mineral Properties

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

(in thousands)		September 30,				December 31,
		2022				2021
Exploration
Lik project (Alaska – US)		$	15,611			$	15,611
Golden Crest (South Dakota – US)			1,081				695
Total exploration mineral properties		$	16,692			$	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 September 30,								Nine months ended September 30,
		2022				2021				2022				2021
Geologic and field expenses		$	559			$	413			$	1,567			$	751
Administrative			96				29				265				75
Total exploration costs		$	655			$	442			$	1,832			$	826

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.