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DECOMMISSIONING AND RESTORATION LIABILITY
 12 Months Ended
Dec. 31, 2018
Disclosure Of Decommissioning And Restoration Liability [Abstract]  
Disclosure of contingent liabilities [text block]
9.
Decommissioning and restoration liability
 
The decommissioning and restoration liability is the addition of the liabilities for both for 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, 2018 and 2017:
 
 
 
December 31,

2018
 
 
December 31,

2017
 
Expected undiscounted cash flows
 
$
56,122
 
 
$
30,045
 
Discount rate
 
 
2.18
%
 
 
2.26
%
Inflation rate
 
 
1.95
%
 
 
1.99
%
Periods
 
 
2029
 
 
 
2028
 
 
The Kennady North Project mine decommissioning and restoration liability was calculated using the following assumptions as at December 31, 2018:
 
 
 
December 31,

2018
 
Expected undiscounted cash flows
 
$
175
 
Discount rate
 
 
1.86
%
Inflation rate
 
 
1.95
%
Periods
 
 
2021
 
 
The decommissioning and restoration liability has been calculated using expected cash flows that are current dollars, with inflation.
 
During the year ended December 31, 2018, the decommissioning and restoration liability was increased by $24,892 (2017 - $4,372) 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 minimal construction and exploration work performed at the KNP mine site.
 
The continuity of the decommissioning and restoration liability at December 31, 2018 and 2017 is as follows:
 
 
 
GK Mine
 
 
KNP
 
 
Total
 
Balance, at January 1, 2017
 
$
24,266
 
 
$
-
 
 
$
24,266
 
Change in estimate of discounted cash flows
 
 
4,372
 
 
 
-
 
 
 
4,372
 
Accretion recorded during the year
 
 
562
 
 
 
-
 
 
 
562
 
Balance, at December 31, 2017
 
$
29,200
 
 
$
-
 
 
$
29,200
 
Addition of balance at the time of KDI acquisition (Note 6)
 
 
-
 
 
 
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