MINERAL RIGHTS AND PROPERTIES

3 Months Ended

Oct. 31, 2015

MINERAL RIGHTS AND PROPERTIES [Text Block]

NOTE 3: MINERAL RIGHTS AND PROPERTIES

Mineral Rights

At October 31, 2015, 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, 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, 2015, annual maintenance payments of approximately $1,105,000 were required to maintain these mineral rights.

Mineral rights and property acquisition costs consisted of the following:

		October 31, 2015			July 31, 2015
Mineral Rights and Properties
Palangana Mine	$	6,587,135		$	6,587,135
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		14,905			14,905
Nichols Project		154,774			154,774
Anderson Project		9,154,268			9,154,268
Workman Creek Project		1,472,008			1,472,008
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		285,741			285,741
		41,969,655			41,969,655
Accumulated Depletion		(3,929,884	)		(3,929,884	)
		38,039,771			38,039,771
Databases		2,410,038			2,410,038
Accumulated Amortization		(2,216,274	)		(2,166,966	)
		193,764			243,072
Land Use Agreements		390,155			390,155
Accumulated Amortization		(244,784	)		(235,031	)
		145,371			155,124
	$	38,378,906		$	38,437,967

The Company has not established proven or probable reserves, as defined by the SEC under Industry Guide 7, 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.

During the three months ended October 31, 2015, the Company continued with the strategic plan for reduced operations implemented in Fiscal 2014 and further reduced operations at the Palangana Mine to capture residual uranium only. As a result, no depletion for the Palangana Mine was recorded on the Company’s consolidated financial statements for the three months ended October 31, 2015.

Mineral property expenditures incurred by major projects were as follows:

		Three Months Ended October 31,
		2015		2014
Mineral Property Expenditures
Palangana Mine	$	385,149	$	432,660
Goliad Project		20,809		34,257
Burke Hollow Project		721,544		980,567
Longhorn Project		3,592		11,246
Salvo Project		14,163		20,800
Anderson Project		112,133		94,172
Workman Creek Project		30,690		31,300
Slick Rock Project		48,825		49,784
Yuty Project		111,016		218,889
Coronel Oviedo Project		132,899		144,584
Other Mineral Property Expenditures		208,200		241,872
	$	1,789,020	$	2,260,131