8. Remediation

9 Months Ended

Sep. 30, 2015

Notes

8. Remediation

8.   REMEDIATION

In prior years, the Company accrued $50,000 for remediation of a historic mill site. In 2013, the Company accrued an additional $300,000 for the cost of remediation of a mine road and associated disturbance which must be completed by October 2015 per an order issued by the Army Corps of Engineers (“ACOE”). In 2014, the Company received a quote from an independent third party to perform the remediation work and accrued an additional $578,000 to cover the anticipated costs of this remediation prior to October 2015. The total accrual for these anticipated costs at December 31, 2014 was $928,000. The cost of the mine road remediation is in addition to the asset retirement obligation calculated in previous years and was classified as a current liability. Remediation activities were completed during the quarter ended September 30, 2015, and the Company received a confirmation of completion and satisfaction from ACOE on September 23, 2015. The Company recognized a gain on change in remediation estimate of $117,236, based on actual costs incurred. A remediation accrual of $50,000 at September 30, 2015 is for anticipated costs to remediate contamination caused by activities of a previous operator next to the historic inactive mill site. Additional asset retirement obligation at September 30, 2015 and December 31, 2014 was $306,200 and $297,282, respectively.