RECLAMATION OBLIGATIONS

3 Months Ended

Mar. 31, 2017

RECLAMATION OBLIGATIONS

RECLAMATION OBLIGATIONS

NOTE 6 RECLAMATION OBLIGATIONS

The Company is responsible for reclamation of certain past and future disturbances at its properties. The two most significant properties subject to these obligations are the Tonkin property in Nevada and the El Gallo 1 mine in Mexico. The Final Plan for Permanent Closure (“FPPC”) and the Amended Plan of Operations for the Tonkin property was approved by the Nevada Division of Environmental Protection (“NDEP”) and by the Bureau of Land Management (“BLM”) pursuant to the Finding of No Significant Impact in March 2012 and September 2015, respectively. Subsequently, on October 3, 2015 the BLM requested an updated bonding requirement in the amount of $3.6 million, which is covered within the surety bonds obtained by the Company as of March 31, 2017. Under current Mexican regulations, surety bonding of projected reclamation costs is not required.

A reconciliation of the Company’s asset retirement obligations for the three months ended March 31, 2017 and for the year ended December 31, 2016 are as follows:

	March 31, 2017		December 31, 2016
Asset retirement obligation liability, beginning of the period	$	9,843	$	7,784
Settlements		(7)		(66)
Accretion of liability		105		506
Adjustment reflecting updated estimates		—		1,619
Asset retirement obligation liability, ending balance	$	9,941	$	9,843
Current portion		(530)		(537)
Non-current portion	$	9,411	$	9,306