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Decommissioning And Restoration Liability
 12 Months Ended
Dec. 31, 2020
Disclosure Of Decommissioning And Restoration Liability [Abstract]  
Decommissioning and Restoration Liability
8.
DECOMMISSIONING AND RESTORATION LIABILITY
The decommissioning and restoration liability represents 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, 2020 and 2019:
 
 
  
 
 
 
 
 
 
December 31,
 
2020
 
 
 
 
 
 
  
 
 
 
 
 
December 31,
 
2019
 
 
 
 
 
 
   
Expected undiscounted cash flows
  
$
                                  61,558
 
  $                                 58,965 
   
Discount rate
  
 
0.67%
 
   1.76% 
   
Inflation rate
  
 
2.00%
 
   1.35% 
   
Periods
  
 
2030
 
   2029 
The Kennady North Project decommissioning and restoration liability was calculated using the following assumptions as at December 31, 2020 and 2019:
 
 
  
 
 
 
 
 
 
December 31,
 
2020
 
 
 
 
 
 
  
 
 
 
 
 
December 31,
 
2019
 
 
 
 
 
 
Expected undiscounted cash flows
  
$
                                  2,268
 
  $                                 2,235 
Discount rate
  
 
0.25%
 
   3.71% 
Inflation rate
  
 
2.00%
 
   1.96% 
Periods
  
 
2024
 
   2023 
The decommissioning and restoration liability has been calculated using expected cash flows that are current dollars, with inflation.
During the year ended December 31, 2020, the decommissioning and restoration liability was increased by $13,364 (2019 - $2,490) due to additional disturbance related to ongoing mining activity as well as changes in the discount and inflation rates.
The continuity of the decommissioning and restoration liability at December 31, 2020 and 2019 is as follows:
 
    
 
GK Mine
   
 
KNP
   
 
Total
 
    
Balance, at January 1, 2019
  
$
 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, at  December 31, 2019
  
$
             53,984
 
  
$
             2,087
 
  
$
             56,071
 
    
Change in estimate of discounted cash flows
  
 
13,086
   
 
278
   
 
13,364
 
    
Accretion recorded during the year
  
 
976
   
 
76
   
 
1,052
 
    
Balance, at December 31, 2020
  
$
 70,491
 
  
$
 2,441
 
  
$
 72,932
 
    
Less: current portion of decommissioning and restoration liability
  
 
2,489
   
 
-
   
 
2,489
 
    
Non-current decommissioning and restoration liability, at  December 31, 2020
  
$
 68,002
 
  
$
 2,441
 
  
$
 70,443