PROVISON FOR RECLAMATION AND REHABILITATION

12 Months Ended

Dec. 31, 2018

Statements Line Items

PROVISON FOR RECLAMATION AND REHABILITATION [Text Block]

12. PROVISION FOR RECLAMATION AND REHABILITATION The Company’s environmental permit requires that it reclaim certain land it disturbs during mining operations. Significant reclamation and closure activities include land rehabilitation, decommissioning of buildings and mine facilities, ongoing care and maintenance and other costs. Although the ultimate amount of the reclamation and rehabilitation costs to be incurred cannot be predicted with certainty, the total undiscounted amount of probability weighted estimated cash flows required to settle the Company’s estimated obligations is $2,280 for the Guanaceví mine, $1,921 for the Bolañitos mine, $4,326 for the El Cubo mine and $162 for the El Compas development project.  The timing of cash flows has been estimated based on the mine lives using current reserves and the present value of the probability weighted future cash flows. The model assumes a risk-free rate specific to the liability of 2.6% for Guanaceví, 2.5% for Bolañitos and El Cubo and 8.5% for El Compas and with an inflation rate of 2.0% for all sites except El Compas which estimates an inflation rate of 4.3%.  Changes to the reclamation and rehabilitation provision balance during the year are as follows:

		Guanaceví		Bolañitos		El Cubo		El Compas		Total
Balance at December 31, 2016		2,058		1,755		4,033		-		7,846
Accretion		28		17		41		-		86
Disturbance incurred during the year		-		-		-		50		50
Balance at December 31, 2017	$	2,086	$	1,772	$	4,074	$	50	$	7,982
Accretion		43		32		74		1		150
Disturbance incurred during the year		-		-		-		63		63
Balance at December 31, 2018	$	2,129	$	1,804	$	4,148	$	114	$	8,195