ASSET RETIREMENT OBLIGATIONS

12 Months Ended

Jul. 31, 2018

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligation Disclosure [Text Block]

NOTE 11: ASSET RETIREMENT OBLIGATIONS

The Company’s asset retirement obligations relate to future remediation and decommissioning activities at our Palangana Mine, Hobson Processing Facility and the Alto Parana Titanium Project pilot plant in Paraguay.

Balance, July 31, 2017	$	3,729,902
Accretion		216,407
Assumed from Reno Creek Acquisition		73,973
Balance, July 31, 2018	$	4,020,282

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

	July 31, 2018			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 years and beyond are as follows:

Fiscal 2019	$	-
Fiscal 2020		-
Fiscal 2021		-
Fiscal 2022		-
Fiscal 2023		148,391
Remaining balance		7,127,113
	$	7,275,504