MINERAL RIGHTS AND PROPERTIES

3 Months Ended

Oct. 31, 2014

MINERAL RIGHTS AND PROPERTIES [Text Block]

NOTE 4: MINERAL RIGHTS AND PROPERTIES

Mineral Rights

At October 31, 2014, the Company had mineral rights in the States of Arizona, Colorado, New Mexico, Texas and Wyoming and the Republic of Paraguay. These mineral rights were acquired through staking and purchase, lease or option agreements and are subject to varying royalty interests, some of which are indexed to the sale price of uranium. At October 31, 2014, annual maintenance payments of approximately $1,055,000 are required to maintain these mineral rights.

Mineral rights and property acquisition costs consisted of the following:

		October 31, 2014			July 31, 2014
Mineral Rights and Properties, Unproven
Palangana Mine	$	6,664,260		$	6,664,260
Goliad Project		8,689,127			8,689,127
Burke Hollow Project		1,495,750			1,495,750
Longhorn Project		116,870			116,870
Salvo Project		364,710			364,710
Nichols Project		154,774			154,774
Anderson Project		9,154,268			9,154,268
Workman Creek Project		1,372,008			1,372,008
Los Cuatros Project		257,250			257,250
Slick Rock Project		661,271			661,271
Yuty Project		11,947,144			11,947,144
Coronel Oviedo Project		1,133,412			1,133,412
Other Property Acquisitions		262,115			262,115
		42,272,959			42,272,959
Accumulated Depletion		(3,664,286	)		(3,454,533	)
		38,608,673			38,818,426
Databases		2,405,038			2,405,038
Accumulated Amortization		(1,990,461	)		(1,928,901	)
		414,577			476,137
Land Use Agreements		390,155			390,155
Accumulated Amortization		(205,772	)		(196,019	)
		184,383			194,136
	$	39,207,633		$	39,488,699

During the three months ended October 31, 2014, the Company did not record any impairment loss associated with the abandonment of the Company’s mineral rights (three months ended October 31, 2013: $28,891).

The Company has not established proven or probable reserves, as defined by the SEC under Industry Guide 7, through the completion of a “final” or “bankable” feasibility study for any of its mineral projects. The Company has established the existence of mineralized materials for certain uranium projects, including the Palangana Mine. Since the Company commenced uranium extraction at the Palangana Mine without having established proven or probable reserves, there may be greater inherent uncertainty as to whether or not any mineralized material can be economically extracted as originally planned and anticipated.

No revenues were generated from the sale of uranium concentrates during the three months ended October 31, 2014 or Fiscal 2014. Historically, the Palangana Mine has been the Company’s sole source for uranium concentrates sold to generate its revenues during Fiscal 2013 and 2012, with no revenues generated prior to Fiscal 2012. The economic viability of the Company’s mining activities, including the expected duration and profitability of the Palangana Mine and of any future satellite ISR mines, such as the Goliad Project, located within the South Texas Uranium Belt, has many risks and uncertainties. These include, but are not limited to: (i) a significant, prolonged decrease in the market price of uranium; (ii) difficulty in marketing and/or selling uranium concentrates; (iii) significantly higher than expected capital costs to construct the mine and/or processing plant; (iv) significantly higher than expected extraction costs; (v) significantly lower than expected uranium extraction; (vi) significant delays, reductions or stoppages of uranium extraction activities; and (vii) the introduction of significantly more stringent regulatory laws and regulations. The Company’s mining activities may change as a result of any one or more of these risks and uncertainties and there is no assurance that any ore body that we extract mineralized materials from will result in profitable mining activities.

Mineral property expenditures incurred by major projects were as follows:

		Three Months Ended October 31,
		2014		2013
Mineral Property Expenditures
Palangana Mine	$	432,660	$	671,582
Goliad Project		34,257		144,971
Burke Hollow Project		980,567		174,298
Longhorn Project		11,246		8,244
Salvo Project		20,800		789
Anderson Project		94,172		84,161
Workman Creek Project		31,300		28,971
Slick Rock Project		49,784		49,025
Yuty Project		218,889		17,825
Coronel Oviedo Project		144,584		84,151
Other Mineral Property Expenditures		241,872		324,126
	$	2,260,131	$	1,588,143