ASSET RETIREMENT OBLIGATIONS

12 Months Ended

Jul. 31, 2016

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligation Disclosure [Text Block]

NOTE 9: ASSET RETIREMENT OBLIGATIONS

The Company’s asset retirement obligations relate to future remediation and decommissioning activities at the Palangana Mine and Hobson Processing Facility.

Balance, July 31, 2015	$	3,926,846
Revision in estimate of asset retirement obligations		(452,505)
Accretion		272,123
Balance, July 31, 2016	$	3,746,464

During Fiscal 2016, ARO for the Palangana Mine were revised due to changes in the estimated timing of restoration and reclamation of the Palangana Mine. As a result, ARO liabilities associated with the Palangana Mine were reduced by $452,505, the corresponding mineral rights and properties were reduced by $144,107, and a credit amount of re-valuation of ARO totaling $308,398 was recognized as a result of a downward adjustment to fully depleted underlying mineral rights and properties, which was recorded against the mineral property expenditures for the Palangana Mine.

The estimated amounts and timing of cash flows and assumptions used for the ARO estimates are as follows:

	July 31, 2016		July 31, 2015
Undiscounted amount of estimated cash flows	$	6,650,255	$	6,600,868
Payable in years		4.1 to 15		2.5 to 15
Inflation rate		1.15% to 2.25%		2.02% to 2.25%
Discount rate		5.02% to 8.00%		6.56% to 8.00%

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

Fiscal 2017	$	-
Fiscal 2018		-
Fiscal 2019		139,052
Fiscal 2020		414,058
Fiscal 2021		667,984
Remaining balance		5,429,161
	$	6,650,255