PROPERTY, PLANT AND EQUIPMENT

3 Months Ended

Mar. 31, 2013

4. PROPERTY, PLANT AND EQUIPMENT

	Property, Plant and Equipment Balances (net) at
	3/31/2013		12/31/2012
Uranium plant	$	10,886,000	$	10,913,000
Permits and licenses	4,098,000		3,902,000
Mineral rights	4,000,000		3,873,000
Value beyond proven and probable reserves (VBPP)	20,274,000		20,274,000
Evaluation and delineation	2,460,000		2,460,000
Vehicles/depreciable equipment	1,390,000		1,435,000
Wellfield development	153,000		153,000
Other uranium properties	239,000		246,000
Other property, plant and equipment	424,000		458,000
Total	$	43,924,000	$	43,714,000

Impairment of Uranium Properties

At March 31, 2013 and 2012, the carrying value of the project assets at each of our South Texas production locations exceeded their fair value as a result of a decline in the market price of uranium and an increase in the estimated costs for each of our South Texas projects. Such determination resulted in an impairment provision of approximately $279,000 and $269,000 for the first quarters of 2013 and 2012, respectively. The impairment provision for the first quarters of 2013 and 2012, respectively were $96,000 and $168,000 related to Kingsville Dome, $178,000 and $87,000 related to Vasquez and $5,000 and $14,000 for Rosita. The net carrying values of the Kingsville Dome, Rosita and Vasquez projects are approximately $5.4 million, $4.9 million and $412,000 at March 31, 2013.

- Definition

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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