7 Exploration and evaluation expenditure (continued) Recognition and measurement Exploration and evaluation expenditure includes pre-license costs, costs associated with exploring, investigating, examining and evaluating an area of mineralisation, and assessing the technical feasibility and commercial viability of extracting the mineral resource from that area. Other than acquisition costs, exploration and evaluation expenditure incurred on licenses where the commercial viability of extracting the mineral resource has not yet been established is generally expensed when incurred. Once the commercial viability of extracting the mineral resource are demonstrable (at which point, the Group considers it is probable that economic benefits will be realised), the Group capitalises any further evaluation costs incurred. The recoverability of the exploration and evaluation assets is dependent on the successful development and commercial exploration, or alternatively, sale of the respective area of interest. Exploration and evaluation assets are assessed for impairment if: – insufficient data exists to determine commercial viability; or – other facts and circumstances suggest that the carrying amount exceeds the recoverable amount. An exploration and evaluation asset shall be reclassified to mine properties when the technical feasibility and commercial viability of extracting a mineral resource are demonstrable and a decision has been made to develop and extract the resource. Exploration and evaluation assets shall be assessed for impairment, and any impairment loss shall be recognised, before reclassification to mine properties. No amortisation is charged during the exploration and evaluation phase. Key estimates and assumptions – Exploration and evaluation assets The application of the Group’s accounting policy for exploration and evaluation assets requires significant judgment to determine whether future economic benefits are likely from either future exploitation or sale, or whether activities have not reached a stage that permits a reasonable assessment of the existence of reserves. 8 Property, plant and equipment 2022 $ 2021 $ Motor vehicles – cost 187,636 102,961 Less: Accumulated depreciation (69,770) (34,513) 117,866 68,448 Plant & equipment – cost 198,706 124,184 Less: Accumulated depreciation (58,305) (23,158) 140,401 101,026 258,267 169,474 Movements in carrying amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and end of the current financial year: Motor vehicles Plant and equipment Total Opening balance 1 January 68,448 101,026 169,474 Additions 85,646 75,693 161,339 Depreciation expense (34,846) (34,635) (69,481) FXmovement (1,382) (1,683) (3,065) Closing Balance 31 December 117,866 140,401 258,267 Notes to the Consolidated Financial Statements for the year ended 31 December 2022 Siren Gold Limited 62
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