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Decommissioning And Restoration Liability
 12 Months Ended
Dec. 31, 2019
Disclosure Of Decommissioning And Restoration Liability [Abstract]  
Decommissioning and Restoration Liability
9.
DECOMMISSIONING AND RESTORATION LIABILITY
The decommissioning and restoration liability is the addition of the liabilities for both the GK Mine and the Kennady North Project, which are broken down separately below. 
 
The GK Mine decommissioning and restoration liability was calculated using the following assumptions as at December 31, 2019 and 2018:
 
 
 
  
 
 
 
 
 
 
December 31,
 
2019
 
 
 
 
 
 
  
 
 
 
 
 
December 31,
 
2018
 
 
 
 
 
 
   
Expected undiscounted cash flows
  
$
                             
    58,965
 
  
$
                                56,122
 
   
Discount rate
  
 
1.76%
 
  
 
2.18%
 
   
Inflation rate
  
 
1.35
%
 
  
 
1.95%
 
   
Periods
  
 
2029
 
  
 
2029
 
 
The Kennady North Project decommissioning and restoration liability was calculated using the following assumptions as at December 31, 2019 and 2018:
 
 
  
 
 
 
 
 
 
December 31,
 
2019
 
 
 
 
 
 
  
 
 
 
 
 
December 31,
 
2018
 
 
 
 
 
 
Expected undiscounted cash flows
  
$
                                 2,235
 
  
$
                                     175
 
Discount rate
  
 
3.71%
 
  
 
1.86%
 
Inflation rate
  
 
1.96%
 
  
 
1.95%
 
Periods
  
 
2023
 
  
 
2021
 
The decommissioning and restoration liability has been calculated using expected cash flows that are current dollars, with inflation.
During the year ended December 30, 2019, the decommissioning and restoration liability was increased by $2,490 for an increase in additional disturbance due to ongoing mining activity. During the year ended December 31, 2018, the decommissioning and restoration liability was increased by $24,892 for a change in estimate, reflecting primarily an increase in estimated reclamation and restoration costs due to the construction work completed at the GK mine site, the mining operations on the property, and a decrease in estimated reclamation and restoration costs due to minimal construction and exploration work performed at the KNP mine site.
The continuity of the decommissioning and restoration liability at December 31, 2019 and 2018 is as follows:
 
  
  
 
GK Mine
 
  
 
KNP
 
 
 
Total
 
Balance, at January 1, 2018
  
$
29,200
 
  
$
-
 
 
$
29,200
 
Addition of balance at the time of KDI acquisition
  
 
-
 
  
 
173
 
 
 
173
 
Change in estimate of discounted cash flows
  
 
24,900
 
  
 
(8
) 
 
 
24,892
 
Accretion recorded during the year
  
 
656
 
  
 
1
 
 
 
657
 
Balance, at December 31, 2018
  
$
            54,756
 
  
$
            166
 
 
$
            54,922
 
Change in estimate of discounted cash flows
  
 
571
 
  
 
1,919
 
 
 
2,490
 
Accretion recorded during the year
  
 
1,102
 
  
 
2
 
 
 
1,104
 
Balance, at December 31, 2019
  
$
56,429
 
  
$
2,087
 
 
$
58,516
 
Less: current portion of decommissioning and restoration liability
  
 
2,445
 
  
 
-
 
 
 
2,445
 
Non-current decommissioning and restoration liability
  
$
53,984
 
  
$
2,087
 
 
$
56,071