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Mineral Properties

3 Months Ended

Mar. 31, 2023

Mineral Properties

Mineral Properties

2. Mineral Properties

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

(in thousands)		March 31,				December 31,
		2023				2022
Exploration
Lik project (Alaska – US)		$	15,611			$	15,611
Golden Crest (South Dakota – US)			1,035				1,035
Total exploration mineral properties		$	16,646			$	16,646

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,
		2023				2022
Geologic and field expenses		$	232			$	194
Administrative			43				32
Total exploration costs		$	275			$	226

Asset Retirement Obligation

In connection with the acquisition of its interest in the Lik project in 2017, Solitario has 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 is 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.