Note 11 - Asset Retirement Obligations

12 Months Ended

Jul. 31, 2019

Notes to Financial Statements

Asset Retirement Obligation Disclosure [Text Block]

NOTE  11 : ASSET RETIREMENT OBLIGATIONS

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

Balance, July 31, 2018	$	4,020,282
Accretion		229,362
Revision in estimate of asset retirement obligations		(708,562	)
Balance, July 31, 2019	$	3,541,082

During Fiscal

2019,

the ARO for the Palangana Mine and the Hobson Processing Facility was revised due to changes in the estimated timing of restoration and reclamation of the Palangana Mine and decommissioning of the Hobson Processing Facility. As a result, ARO liabilities associated with the Palangana Mine reduced by

$532,309,

and ARO liabilities associated with the Hobson Processing Facility reduced by

$176,253.

Refer to Note

5:

Mineral Rights and Properties and Note

6:

Property, Plant and Equipment.

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

	July 31, 2019			July 31, 2018
Undiscounted amount of estimated cash flows		$	8,221,018		$	7,275,504
Payable in years	9	to	21	5	to	17
Inflation rate	1.56%	to	2.17%	1.37%	to	2.14%
Discount rate	5.50%	to	5.96%	5.48%	to	6.40%

The undiscounted amounts of estimated cash flows for the next

five

years and beyond are as follows:

Fiscal 2020	$	-
Fiscal 2021		-
Fiscal 2022		-
Fiscal 2023		-
Fiscal 2024		-
Remaining balance		8,221,018
	$	8,221,018