Property, Plant and Equipment

6 Months Ended

Jun. 30, 2012

Property, Plant and Equipment

Property, Plant and Equipment

8.Property, Plant and Equipment

The components of property, plant and equipment are as follows:

	June 30,			December 31,
	2012			2011
	(in thousands)
Mineral properties	$	239,200		$	239,200
Exploration properties	16,549			16,549
Royalty properties	200			1,208
Buildings	4,476			4,766
Mining equipment and machinery	25,538			21,335
Other furniture and equipment	1,773			1,553
Asset retirement cost	1,883			3,506
	289,619			288,117
Less: Accumulated depreciation	(6,993		)	(3,918		)
	282,626			284,199

During the second quarter 2012 the Company completed the sale if its 1% net smelter royalty interest in the Platosa property to Excellon Resources Inc. for $2.4 million and recorded a $1.8 million gain on the sale which is reflected in interest and other income on the accompanying statements of operations.

The asset retirement cost is all related to the Company’s Velardeña mines in Mexico and was adjusted during the second quarter 2012 based on the completion of a mine closure plan during the period as discussed in detail in Notes 10 and 19.

Additions to property, plant and equipment for the six months ended June 30, 2012 are primarily related to activity at the Company’s Velardeña mines.