ASSET RETIREMENT OBLIGATIONS

3 Months Ended

Oct. 31, 2015

ASSET RETIREMENT OBLIGATIONS [Text Block]

NOTE 8: ASSET RETIREMENT OBLIGATIONS

The Company's asset retirement obligations relate to future remediation and decommissioning activities at the Palangana Mine and Hobson Processing Facility.

Balance, July 31, 2015	$	3,926,846
Accretion		78,334
Balance, October 31, 2015	$	4,005,180

The estimated amounts and timing of cash flows and assumptions used for the ARO estimates are as follows:

		October 31, 2015		July 31, 2015
Undiscounted amount of estimated cash flows	$	6,600,868	$	6,600,868
Payable in years		2.5 to 15		2.5 to 15
Inflation rate		2.02% to 2.25%		2.02% to 2.25%
Discount rate		6.56% to 8.00%		6.56% to 8.00%

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

Fiscal 2016	$	-
Fiscal 2017		451,488
Fiscal 2018		996,388
Fiscal 2019		677,387
Fiscal 2020		132,486
Remaining balance		4,343,119
	$	6,600,868