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Short-term investments
Short-term investments generally represent investments in guaranteed interest contracts and time deposits
which have original maturities in excess of three months but less than 12 months. These investments are accounted
for at amortized cost.
Mineral properties
Mineral property acquisition costs, including indirectly related acquisition costs, are capitalized when
incurred. Acquisition costs include cash consideration and the fair market value of common shares issued as
consideration. Properties acquired under option agreements, whereby payments are made at the sole discretion of
the Company, are capitalized as mineral property acquisition costs at such time as the payments are made.
Exploration costs are expensed as incurred. When it is determined that a mining deposit can be economically and
legally extracted or produced based on established proven and probable reserves under SEC Industry Guide 7,
development costs related to such reserves and incurred after such determination will be considered for
capitalization. The establishment of proven and probable reserves is based on results of feasibility studies, which
indicate whether a property is economically feasible. Upon commencement of commercial production, capitalized
costs will be amortized over their estimated useful lives or units of production, whichever is a more reliable
measure. Capitalized amounts relating to a property that is abandoned or otherwise considered uneconomic for the
foreseeable future will be written off.
Restricted cash
The Company maintains at times cash deposits and/or surety bonds, as required by regulatory bodies as
assurance for the funding of future reclamation costs associated with the Company’s asset retirement obligation.
These funds held in cash deposits and/or used as collateral for surety bonds are restricted to that purpose and are not
available for the Company’s use until the reclamation obligations have been fulfilled. Restricted cash is classified as
a non-current asset.
Asset retirement obligations
Our mining and exploration activities are subject to various laws and regulations, including legal and
contractual obligations to reclaim, remediate, or otherwise restore properties at the time the property is removed
from service. Asset retirement obligations are recognized when incurred and recorded as liabilities at fair value.
The reclamation obligation is based on when spending for an existing disturbance will occur. We reclaim the
disturbance from our exploration programs on an ongoing basis; therefore, the portion of our asset retirement
obligation corresponding to our exploration programs will be settled in the near term and is classified as a current
liability. The remaining reclamation associated with environmental monitoring programs is classified as a long-term
liability; however, because we have not declared proven and probable reserves under SEC Industry Guide 7, the
timing of these reclamation activities is uncertain. The fair value of the outstanding liability at the end of the period
approximates the cost of the asset retirement obligation. For exploration stage properties that do not qualify for
asset capitalization, the costs associated with the obligation are charged to operations. For development and
production stage properties, the costs will be added to the capitalized costs of the property and amortized using the
units-of-production method. We review, on a quarterly basis, unless otherwise deemed necessary, the asset
retirement obligation in connection with the Bear Lodge Property.
Asset retirement obligations are secured by surety bonds held for the benefit of the state of Wyoming in
amounts determined by applicable federal and state regulatory agencies.