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6. Properties, Plants and Equipment

12 Months Ended

Dec. 31, 2012

Properties Plants And Equipment

6. Properties, Plants and Equipment

The major components of the Company's properties, plants and equipment at December 31, 2012 and 2011 are shown below. Approximately $1.4 million and $1.6 million of capitalized costs at December 31, 2012 and 2011, respectively, related primarily to the construction of an antimony mill in Mexico, have not yet been placed in service and, therefore, have not been subject to depreciation for those years.

During 2010 the Company incurred an impairment charge of $199,302 on certain constructed assets at its Cal Los Arcos Mexican mill site because it was determined that the mill site was no longer viable. Assets such as installation costs and concrete work that were unable to be transported to the new mill site at Corral Blanco were deemed to be impaired and therefore written off.

		2012				2011
Antimony
Equipment		$	3,762,238			$	1,936,038
Buildings			1,219,025				1,054,311
Mineral rights			786,087				635,011
Land and Other			5,942,853				3,394,174
			11,710,203				7,019,534
Accumulated depreciation			(2,850,722	)			(2,597,878	)
Total Antimony, net			8,859,481				4,421,656

Zeolite
Equipment			2,397,119				2,125,748
Buildings			818,538				788,913
			3,215,657				2,914,661
Accumulated depreciation			(1,498,732	)			(1,289,313	)
Total Zeolite, net			1,716,925				1,625,348

Properties, plants and equipment, net		$	10,576,406			$	6,047,004

During 2011, the Company assessed the obligation for removal and remediation costs relating to its plants and mine in Mexico. Management assigned a cost to the expected work involved in complying with the requirements of the Mexico operating permits. Management applied, based on a 20 year life, a cost inflation factor, and then discounted that cost to a current net present value based on a discount rate of 6% (management’s estimate of its credit-adjusted interest rate). Management determined a future cost in 2031 of approximately $430,000 with a net present value of $142,040.

Asset Retirement Obligation
Balance December 31, 2010		$	-
Incurred during 2011			134,000
Balance December 31, 2011			134,000
Accretion during 2012			8,040
Balance December 31, 2012		$	142,040

The asset retirement obligation liability is combined with reclamation obligations for Idaho and Montana operations of $107,500 at December 31, 2012.

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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