ASSET RETIREMENT OBLIGATIONS

3 Months Ended

Oct. 31, 2014

ASSET RETIREMENT OBLIGATIONS [Text Block]

NOTE 9: ASSET RETIREMENT OBLIGATIONS

The Company's asset retirement obligations (“ARO”) relate to site restoration for the Palangana Mine and Hobson Processing Facility.

Balance, July 31, 2014	$	3,967,589
Accretion		68,534
Balance, October 31, 2014		4,036,123
Less: current portion of asset retirement obligations		(284,023	)
Long-term asset retirement obligations	$	3,752,100

		October 31, 2014		July 31, 2014
Undiscounted amount of estimated cash flows	$	6,382,549	$	6,382,549
Payable in years		2.5 to 12		2.5 to 12
Inflation rate		1.56% to 2.43%		1.56% to 2.43%
Discount rate		5.00% to 10.50%		5.00% to 10.50%

The undiscounted amounts of estimated cash flows for the next five fiscal years and beyond are as follows:

Fiscal 2015	$	198,816
Fiscal 2016		340,827
Fiscal 2017		1,082,173
Fiscal 2018		635,932
Fiscal 2019		-
Remaining balance		4,124,801
	$	6,382,549