ASSET RETIREMENT OBLIGATIONS

9 Months Ended

Sep. 30, 2019

ASSET RETIREMENT OBLIGATIONS

ASSET RETIREMENT OBLIGATIONS

NOTE 11 ASSET RETIREMENT OBLIGATIONS

The Company is responsible for reclamation of certain past and future disturbances at its properties. The most significant properties subject to these obligations are the Gold Bar and Tonkin properties in Nevada, the El Gallo Project in Mexico, and the Timmins properties in Canada.

A reconciliation of the Company’s asset retirement obligations for the nine months ended September 30, 2019 and for the year ended December 31, 2018 are as follows:

	September 30, 2019		December 31, 2018
Asset retirement obligation liability, beginning balance	$	29,402	$	24,722
Settlements		(324)		(392)
Accretion of liability		1,295		1,205
Adjustment reflecting updated estimates		(1,053)		5,024
Foreign exchange revaluation		434		(1,157)
Asset retirement obligation liability, ending balance	$	29,754	$	29,402
Current portion		(1,435)		(734)
Long-term portion	$	28,319	$	28,668

The adjustment reflecting updated estimates for the nine months ended September 30, 2019 of $1.1 million reflects a reduction of $5.3 million for the estimated environmental obligations for the Black Fox mine and an increase of $4.2 million for the Gold Bar mine. The reduction in the estimated liability for Black Fox mine reflects the approval obtained from the Ministry of Energy, Northern Development and Mines, of Ontario, Canada for the amended environmental closure plan filed during the period. The increase for the Gold Bar mine liability is the result of additional disturbances during the period (December 31, 2018 - an additional $3.6 million related to disturbances).