RECLAMATION DEPOSITS

3 Months Ended

Oct. 31, 2014

RECLAMATION DEPOSITS [Text Block]

NOTE 6: RECLAMATION DEPOSITS

Reclamation deposits include interest and non-interest bearing deposits issued in the States of Arizona, Texas and Wyoming relating to exploration, pre-extraction, extraction and processing activities in the respective states.

Reclamation deposits consisted of the following:

		October 31, 2014		July 31, 2014
Palangana Mine	$	3,689,666	$	3,689,666
Hobson Processing Facility		1,957,476		1,957,476
Arizona		15,000		15,000
Wyoming		816		815
		5,662,958		5,662,957
Interest		16,016		15,672
	$	5,678,974	$	5,678,629

In November 2014, the Company secured $5.6 million of surety bonds subject to a 2% annual premium on the face value, replacing an equivalent amount of reclamation deposits related to future remediation and decommissioning activities at the Palangana Mine and Hobson Processing Facility. Since the reclamation deposits had been funded entirely by cash payments, the surety bonds allowed for the release of $3.9 million as cash and cash equivalents to the Company, with the $1.7 million balance or 30% of the face value remaining as reclamation deposits for collateral purposes.