Reclamation and Remediation

6 Months Ended

Jun. 30, 2022

Reclamation and Remediation

Reclamation and Remediation

11. Reclamation and Remediation

The following table presents the changes in reclamation and remediation obligations for the six months ended June 30, 2022 and the year ended December 31, 2021:

	2022		2021
	(in thousands)
Reclamation liabilities – balance at beginning of period	$	1,833	$	1,890
Foreign currency exchange loss (gain)		55		(57)
Reclamation liabilities – balance at end of period		1,888		1,833
Asset retirement obligation – balance at beginning of period		1,279		1,208
Accretion		51		109
Foreign currency exchange loss (gain)		40		(38)
Asset retirement obligation – balance at end of period		1,370		1,279
Total period end balance	$	3,258	$	3,112

The Company’s undiscounted reclamation liabilities of $1.9 million and $1.8 million as of June 30, 2022 and December 31, 2021, respectively, are related to the Don David Gold Mine in Mexico. These represent reclamation liabilities that were expensed through 2013 before proven and probable reserves were established and the Company was considered to be a development stage entity; therefore, most of the costs, including asset retirement costs, were not allowed to be capitalized as part of our Property, Plant & Mine Development.

The Company’s asset retirement obligations reflect the additions to the asset for reclamation and remediation costs in Property, Plant & Mine Development, post 2013 development stage status, which are discounted using a credit adjusted risk-free rate of 8%. As of June 30, 2022 and December 31, 2021, the Company’s asset retirement obligation related to the Don David Gold Mine in Mexico was $1.4 million and $1.3 million, respectively.