Which of the following expenditures is not an example of expenditures that form part of the initial cost of exploration and evaluation assets?
A) acquisition of rights to explore
B) exploratory drilling
C) construction of roads and tunnels to the mine site
D) activities in relation to evaluating the technical feasibility and commercial viability of extracting a mineral resource

Question

Quizplus · Accepted Answer

Construction of roads and tunnels to the mine site is an example of expenditures that form part of the development cost of the mine, not the initial cost of exploration and evaluation assets. The initial cost includes expenses for acquiring rights to explore, exploratory drilling, and evaluation activities.

Which of the Following Expenditures Is Not an Example of Expenditures