RECLAMATION AND REMEDIATION LIABILITIES

12 Months Ended

Dec. 31, 2021

RECLAMATION AND REMEDIATION LIABILITIES

RECLAMATION AND REMEDIATION LIABILITIES

NOTE 12 RECLAMATION AND REMEDIATION LIABILITIES

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 Timmins properties in Canada, and the El Gallo Project in Mexico.

A reconciliation of the Company’s asset retirement obligations for the years ended December 31, 2021 and 2020 are as follows:

	December 31, 2021		December 31, 2020
Reclamation and remediation liability, beginning balance	$	34,000	$	32,201
Settlements		(2,225)		(267)
Accretion of liability		2,405		1,901
Revisions to estimates and discount rate		1,257		(54)
Foreign exchange revaluation		15		219
Reclamation and remediation liability, ending balance	$	35,452	$	34,000
Less current portion		5,761		3,232
Long-term portion	$	29,691	$	30,768

The adjustment reflecting updated estimates during the year ended December 31, 2021 primarily relates to a $0.5 million increase in obligations in Nevada, $0.6 million increase in the estimated environmental obligations for the Black Fox, and $0.1 million increase in obligations in Tonkin Springs LLC (2020 – related to $0.1 million increase in obligations in Nevada)  

Reclamation expense in the Statement of Operations includes adjustments for updates in the reclamation liability for properties that do not have reserves in compliance with S-K 1300. Reclamation accretion for all properties is as follows:

	Year ended December 31,
	2021		2020		2019
Reclamation adjustment reflecting updated estimates	$	1,045	$	(113)	$	1,851
Reclamation accretion		2,405		1,901		1,680
Total	$	3,450		1,788	$	3,531