ASSET RETIREMENT OBLIGATIONS

3 Months Ended

Oct. 31, 2017

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligation Disclosure [Text Block]

NOTE 10: ASSET RETIREMENT OBLIGATIONS

The asset retirement obligations (“ARO”) relate to future remediation and decommissioning activities at our Palangana Mine, Hobson Processing Facility, Reno Creek Project and Alto Paraná Titanium Project.

Balance, July 31, 2017	$	3,729,902
Accretion		54,102
Assumed from Reno Creek Acquisition		73,973
Balance, October 31, 2017	$	3,857,977

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

	October 31, 2017		July 31, 2017
Undiscounted amount of estimated cash flows	$	7,275,504	$	7,098,581
Payable in years		5.0 to 17		5.0 to 17
Inflation rate		1.37% to 2.14%		1.37% to 2.14%
Discount rate		5.48% to 6.40%		5.48% to 6.40%

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

Fiscal 2018	$	-
Fiscal 2019		-
Fiscal 2020		-
Fiscal 2021		-
Fiscal 2022		148,391
Remaining balance		7,127,113
	$	7,275,504