PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Jul. 31, 2015

PROPERTY, PLANT AND EQUIPMENT [Text Block]

NOTE 5: PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following:

				July 31, 2015							July 31, 2014
				Accumulated			Net Book				Accumulated			Net Book
		Cost		Depreciation			Value		Cost		Depreciation			Value
Hobson Processing Facility	$	6,819,088	$	(773,933	)	$	6,045,155	$	7,107,717	$	(595,169	)	$	6,512,548
Mining Equipment		2,452,572		(2,019,996	)		432,576		2,587,206		(1,678,958	)		908,248
Logging Equipment and Vehicles		1,962,895		(1,714,908	)		247,987		1,855,451		(1,559,850	)		295,601
Computer Equipment		615,064		(573,355	)		41,709		645,622		(551,633	)		93,989
Furniture and Fixtures		182,802		(176,726	)		6,076		183,810		(164,003	)		19,807
Land		175,144		-			175,144		175,144		-			175,144
	$	12,207,565	$	(5,258,918	)	$	6,948,647	$	12,554,950	$	(4,549,613	)	$	8,005,337

Hobson Processing Facility

The Company acquired the Hobson Processing Facility (“Hobson”) as part of the acquisition of South Texas Mining Venture, L.L.P. in December 2009 and commenced processing uranium-loaded resins from the Palangana Mine in November 2010, at which point the Company began depreciating the capitalized costs of Hobson. During Fiscal 2015, the capitalized costs of Hobson were depreciated on a straight-line basis over its estimated useful life of 12 years.

Upon further review of the Company’s anticipated satellite mining activities in Texas, the expected useful life of Hobson was extended from 12 to 15 years effective August 1, 2015 on a prospective basis. This extension required a revision of certain assumptions used to estimate the ARO liabilities of Hobson, resulting in a reduction of the respective ARO assets and liabilities of $288,629 during Fiscal 2015. Refer to Note 9.