ASSET RETIREMENT OBLIGATIONS

9 Months Ended

Apr. 30, 2017

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligation Disclosure [Text Block]

NOTE 10: ASSET RETIREMENT OBLIGATIONS

The Company’s ARO relate to future remediation and decommissioning activities at our Palangana Mine and Hobson Processing Facility.

Balance, July 31, 2016	$	3,746,464
Accretion		168,655
Balance, April 30, 2017	$	3,915,119

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

	April 30, 2017		July 31, 2016
Undiscounted amount of estimated cash flows	$	6,650,255	$	6,650,255
Payable in years		4.1 to 15		4.1 to 15
Inflation rate		1.15% to 2.25%		1.15% to 2.25%
Discount rate		5.02% to 8.00%		5.02% to 8.00%

The undiscounted amounts of estimated cash flows for the next five fiscal 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