INCOME TAXES

12 Months Ended

Dec. 31, 2018

Disclosure Of Income Tax [Abstract]

Disclosure of income tax [text block]

17. INCOME TAXES

Rate Reconciliation

The provision for income tax differs from the amount that would have resulted by applying the combined Canadian statutory income tax rates of approximately 26.5% (2017 – 26.5%):

	December 31, 2018			December 31, 2017
(Loss) income before income taxes	$	(14,816	)	$	17,152
		26.5	%		26.5	%
Tax expense calculated using statutory rates		(3,926	)		4,545
Expenses not deductible (earnings not taxable)		4,656			(3,491	)
Change in tax benefits not recognized		(934	)		(1,054	)
Current and deferred mining taxes		4,322			-
Income tax expenses	$	4,118		$	-
Current income tax expense*	$	1,148		$	-
Deferred tax expense	$	2,970		$	-

*In the current income tax expense, $574 has been paid in the year ended December 31, 2018, with the remaining $574 still outstanding, and presented as income taxes payable.

Components of deferred tax assets and liabilities

	December 31, 2018			December 31, 2017
Deferred tax liabilities
Inventory	$	(4,993	)	$	(4,724	)
Property, plant & equipment		(25,275	)		(31,606	)
Derivative assets		(443	)		(255	)
Deferred tax asset
Non-capital loss carryforwards		27,537			36,585
	$	(3,174	)	$	-

Unrecognized deferred tax assets

Deductible temporary differences for which deferred tax assets have not been recognized are attributable to the following:

	December 31, 2018		December 31, 2017
Property, plant and equipment	$	4,693	$	-
Decommissioning and restoration liability		57,929		29,200
Capital losses		3,200		3,420
Non-capital losses, expiring 2034 to 2038		34,247		95,730
Share issuance cost		1,250		3,150
Secured notes payable		36,995		2,439
	$	138,314	$	133,939

The Company also has deductible temporary differences of $6,669 (2017 -$34,580) related to the Northwest Territories mining royalty that are not recognized in these financial statements.