Exploration and evaluation assets and expenditures

12 Months Ended

Aug. 31, 2022

Exploration And Evaluation Assets And Expenditures

Exploration and evaluation assets and expenditures

9. Exploration and evaluation assets and expenditures

The Company explores or acquires gold or other precious metal concessions through its own efforts or through the efforts of its subsidiaries. All of the Company’s concessions are located in Tanzania.

Buckreef Gold Project

At the time of the transition from exploration and evaluation to mineral property, plant and equipment, the Company completed an impairment test as required by IFRS 6. The impairment test compared the carrying amount of the Buckreef Gold Project to its recoverable amount. The recoverable amount is the higher of the value in use and the fair value less costs of disposal. The Company estimated the recoverable amount using the discounted cash flow model. The significant assumptions that impacted the resulting fair value include future gold prices, capital cost estimates, operating cost estimates, estimated reserves and resources and the discount rate. Upon completion of the impairment tests, the Company concluded that there was no impairment.

The continuity of expenditures on mineral property is as follows:

	Buckreef
Balance, August 31, 2020	$	30,997
Exploration expenditures:
Camp, field supplies and travel		356
License fees and exploration and field overhead		2,809
Geological consulting and field wages		3,150
Trenching and drilling		605
Mine design		1,321
Mining and processing costs		987
Change in estimate of asset retirement obligation		(133	)
Gold sales		(2,524	)
Payments to STAMICO as per Joint Venture agreement		1,050
Balance, August 31, 2021	$	38,618
Exploration expenditures:
Camp, field supplies and travel		172
License fees and exploration and field overhead		861
Geological consulting and field wages		67
Trenching and drilling		550
Mine design		227
Mining and processing costs		431
Gold sales		(535	)
Payments to STAMICO as per Joint Venture agreement		172
Balance, November 30, 2021	$	40,563
Reclassification to mineral property, plant and equipment		(40,563	)
Balance, August 31, 2022	$	-