ASSET RETIREMENT OBLIGATIONS

3 Months Ended

Oct. 31, 2013

ASSET RETIREMENT OBLIGATIONS [Text Block]

NOTE 9: ASSET RETIREMENT OBLIGATIONS

The Company's asset retirement obligations ("ARO") relates to site restoration for the Hobson Processing Facility, Palangana Mine and Mt. Lucas assumed as part of the STMV Acquisition.

		October 31, 2013			July 31, 2013
Opening balance	$	4,078,080		$	3,112,374
Revision in estimate of asset retirement obligations		-			435,758
Additions of asset retirement obligations		-			435,004
Liabilities settled with cash		(12,123	)		(109,916	)
Accretion		69,231			204,860
		4,135,187			4,078,080
Less: current portion of asset retirement obligations		(834,609	)		(836,073	)
Long-term asset retirement obligations	$	3,300,578		$	3,242,007

		October 31, 2013		July 31, 2013
Undiscounted amount of estimated cash flows	$	5,963,142	$	5,975,265
Payable in years		2.5 to 12		2.5 to 12
Inflation rate		1.56% to 2.43%		1.56% to 2.43%
Discount rate		5.00% to 10.50%		5.00% to 10.50%

The undiscounted amounts of estimated cash flows for the next five years and beyond are as follows:

Undiscounted estimated cash flow for the next five years
July 31, 2014	$	856,373
July 31, 2015		623,964
July 31, 2016		598,202
July 31, 2017		1,549,289
July 31, 2018		-
Remaining balance		2,335,314
	$	5,963,142