(9) Property, Plant and Equipment

Property and equipment are recorded at historical cost. Major additions and improvements that extend the useful life or functionality of an asset are capitalized, while routine repairs and maintenance are expensed as incurred.

Depreciation and Depletion 

Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets as follows:

Schedule Of Property Plant And Equipment Depreciation

For assets associated with mineral recovery operations, the Company capitalizes costs that are directly attributable to acquiring, constructing, and placing the asset into service in accordance with GAAP. When depletion is applicable to resource-based assets, the Company uses the unit-of-production method to allocate the capitalized cost over the volume of resource extracted during the reporting period. No depletion expense has been recorded to date due to the absence of production.

Impairment of Long-Lived Assets 

The Company reviews long-lived assets, including property and equipment, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is assessed based on the estimated undiscounted future cash flows expected to result from the use of the asset. If the carrying value exceeds those cash flows, an impairment loss is recognized equal to the difference between the asset’s carrying amount and its estimated fair value in accordance with ASC 360, Property, Plant, and Equipment.

No depreciation or impairment expense was recorded during the periods presented, as the Company’s equipment remained in storage and was not placed into service during those periods.