PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Jul. 31, 2012

PROPERTY, PLANT AND EQUIPMENT [Text Block]

NOTE 6: PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consist of the following:

		July 31, 2012							July 31, 2011
		Cost		Accumulated Amortization			Net Book Value		Cost		Accumulated Amortization			Net Book Value
Hobson Processing Facility	$	6,671,959	$	(258,068	)	$	6,413,891	$	6,529,928	$	(106,832	)	$	6,423,096
Mining equipment		2,182,251		(811,016	)		1,371,235		1,527,101		(506,424	)		1,020,677
Vehicles		1,841,119		(1,063,240	)		777,879		1,615,480		(746,268	)		869,212
Computer equipment		636,240		(378,651	)		257,589		376,275		(272,706	)		103,569
Furniture and fixtures		193,013		(108,531	)		84,482		183,338		(72,623	)		110,715
Land		175,144		-			175,144		175,144		-			175,144
Leasehold improvements		9,970		(8,956	)		1,014		8,728		(8,728	)		-
	$	11,709,696	$	(2,628,462	)	$	9,081,234	$	10,415,994	$	(1,713,581	)	$	8,702,413

Hobson Processing Facility

On December 18, 2009, the Company acquired the Hobson Processing Facility (“Hobson”) as part of the STMV Acquisition with an estimated fair value of $6,529,928 at acquisition. Hobson is located in Karnes County, Texas about 100 miles northwest of Corpus Christi and was originally licensed and constructed in 1978. Hobson is designed to process uranium-loaded resins from satellite facilities, such as the Palangana Mine, to produce the final product in the form of uranium concentrates.

Upon commencement of processing the uranium-loaded resins from the Palangana Mine in November 2010, the Company began depreciating the capitalized costs of Hobson, which included a reclamation liability of $329,928, on a straight-line basis over a ten-year period.