Asset Retirement Obligation

6 Months Ended

Jun. 30, 2017

Asset Retirement Obligation Disclosure [Abstract]

NOTE 11 – ASSET RETIREMENT OBLIGATION

Mine closure costs are based principally on legal and regulatory requirements. Management estimates costs associated with reclamation of mining properties as well as remediation costs for inactive properties. The Company uses assumptions about future costs, capital costs and reclamation costs. Such assumptions are based on the Company’s current mining plan and the best available information for making such estimates. In calculating the present value of the asset retirement obligation the Company used a credit adjusted risk free interest rate of 8% to 10% and projected mine lives of five to 12 years, depending on the site. On an ongoing basis, management evaluates its estimates and assumptions; however, actual amounts could differ from those based on such estimates and assumptions.

Changes in the asset retirement obligation for the periods ended June 30, 2017 and December 31, 2016 are as follows:

	Six months ended June 30, 2017		Year ended December 31, 2016
Asset retirement obligation, beginning of period	$	974,109	$	901,597

Accretion expense		36,256		72,512
Asset retirement obligation, end of period	$	1,010,365	$	974,109