ASSET RETIREMENT OBLIGATIONS

9 Months Ended

Apr. 30, 2012

ASSET RETIREMENT OBLIGATIONS [Text Block]

NOTE 10: ASSET RETIREMENT OBLIGATIONS

The Company's asset retirement obligations relates to site restoration for the Hobson Processing Facility, Palangana Mine and Mt. Lucas from the acquisition of STMV.

		April 30, 2012			July 31, 2011
Opening balance	$	3,027,803		$	2,243,840
Revision in estimate of asset retirement obligations		424,436			126,000
Liabilities assumed		-			1,798,387
Liabilities settled with cash		(737,130	)		(1,212,942	)
Liabilities settled with common shares		-			(54,000	)
Accretion		94,730			126,518
		2,809,839			3,027,803
Less: current portion of asset retirement obligations		(784,284	)		(675,872	)
Long-term asset retirement obligations	$	2,025,555		$	2,351,931

		April 30, 2012		July 31, 2011
Undiscounted amount of estimated cash flows	$	2,950,798	$	3,677,822
Payable in years		2.75 to 8.5		3.5 to 8.5
Inflation Rate		1.87% to 2.25%		2.25%
Discount Rate		5.00% to 10.5%		5.00%