Note 11 - Asset Retirement Obligations

12 Months Ended

Jul. 31, 2020

Notes to Financial Statements

Asset Retirement Obligation Disclosure [Text Block]

NOTE 11 : ASSET RETIREMENT OBLIGATIONS

The Company's asset retirement obligations (AROs) 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, 2019	$	3,541,082
Accretion		193,232
Balance, July 31, 2020	$	3,734,314

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

3:

Mineral Rights and Properties and Note

4:

Property, Plant and Equipment herein.

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

	July 31, 2020				July 31, 2019
Undiscounted amount of estimated cash flows	$	8,221,018			$	8,221,018
Payable in years		9	to	21		9	to	21
Inflation rate		1.56%	to	2.17%		1.56%	to	2.17%
Discount rate		5.50%	to	5.96%		5.50%	to	5.96%

The undiscounted amounts of estimated cash flows for the next

five

years and beyond are as follows:

Fiscal 2021	$	-
Fiscal 2022		-
Fiscal 2023		-
Fiscal 2024		-
Fiscal 2025		-
Remaining balance		8,221,018
	$	8,221,018