ASSET RETIREMENT OBLIGATIONS

6 Months Ended

Jan. 31, 2014

ASSET RETIREMENT OBLIGATIONS [Text Block]

NOTE 9: ASSET RETIREMENT OBLIGATIONS

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

		January 31, 2014			July 31, 2013
Opening balance	$	4,078,080		$	3,112,374
Revision in estimate of asset retirement obligations		(381,197	)		435,758
Additions of asset retirement obligations		-			435,004
Liabilities settled with cash		(12,146	)		(109,916	)
Accretion		139,752			204,860
		3,824,489			4,078,080
Less: current portion of asset retirement obligations		(11,236	)		(836,073	)
Long-term asset retirement obligations	$	3,813,253		$	3,242,007

		January 31, 2014		July 31, 2013
Undiscounted amount of estimated cash flows	$	6,393,785	$	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:

July 31, 2014	$	11,236
July 31, 2015		681,655
July 31, 2016		-
July 31, 2017		940,161
July 31, 2018		635,932
Remaining balance		4,124,801
	$	6,393,785