Legitimate Expenditure for Work Obligations.
Section 26
SEC. 26. Legitimate Expenditure for Work Obligations. - Expenses for prospecting, exploration, and development work, including the costs of labor, materials and equipment used, and the fees and charges paid for geodetic, geological, geophysical, geochemical and other related surveys and for laboratory and pilot plant testing shall be considered legitimate expenditures for work obligations. The cost of buildings, machinery, equipment, roadways or other works shall be considered expenditures for work obligations if it is clearly shown that they are essential to the exploration and development of, or will facilitate the extraction of minerals from, the mining claims.