Note 10 - Asset Retirement Obligations

6 Months Ended

Jan. 31, 2019

Notes to Financial Statements

Asset Retirement Obligation Disclosure [Text Block]

NOTE

10

: ASSET RETIREMENT OBLIGATIONS

The asset retirement obligations (the “ARO”) relate to future remediation and decommissioning activities at our Palangana Mine, Hobson Processing Facility, Reno Creek Project and Alto Paraná Titanium Project.

Balance, July 31, 2018	$	4,020,282
Accretion		114,681
Balance, January 31, 2019	$	4,134,963

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

	January 31, 2019					July 31, 2018
Undiscounted amount of estimated cash flows	$	7,275,504				$	7,275,504
Payable in years		5.0	to	17			5.0	to	17
Inflation rate		1.37%	to	2.14	%		1.37%	to	2.14	%
Discount rate		5.48%	to	6.40	%		5.48%	to	6.40	%

The undiscounted amounts of estimated cash flows for the next

five

fiscal years and beyond are as follows:

Fiscal 2019	$	-
Fiscal 2020		-
Fiscal 2021		-
Fiscal 2022		-
Fiscal 2023		148,391
Remaining balance		7,127,113
	$	7,275,504