ASSET RETIREMENT OBLIGATIONS

12 Months Ended

Jul. 31, 2017

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligation Disclosure [Text Block]

NOTE 10: ASSET RETIREMENT OBLIGATIONS

The Company’s asset retirement obligations relate to future remediation and decommissioning activities at the Palangana Mine, Hobson Processing Facility and the Alto Parana Titanium Project pilot plant in Paraguay.

Balance, July 31, 2016	$	3,746,464
Accretion		224,873
Assumed from CIC Acquisition		102,950
Revision in estimate of asset retirement obligations		(344,385)
Balance, July 31, 2017	$	3,729,902

During Fiscal 2017 and Fiscal 2016, the ARO for the Palangana Mine was 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 $344,385 (Fiscal 2016: $452,505), the corresponding mineral rights and properties were reduced by $157,130 (Fiscal 2016: $144,107) and a credit amount of re-valuation of ARO totaling $187,255 (Fiscal 2016: $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, 2017		July 31, 2016
Undiscounted amount of estimated cash flows	$	7,098,581	$	6,650,255
Payable in years		5.0 to 17		4.1 to 15
Inflation rate		1.37% to 2.14%		1.15% to 2.25%
Discount rate		5.48% to 6.40%		5.02% to 8.00%

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

Fiscal 2018	$	-
Fiscal 2019		-
Fiscal 2020		-
Fiscal 2021		-
Fiscal 2022		148,391
Remaining balance		6,950,190
	$	7,098,581