REMEDIATION AND ASSET RETIREMENT OBLIGATION

12 Months Ended

Dec. 31, 2022

Asset Retirement Obligation Disclosure [Abstract]

REMEDIATION AND ASSET RETIREMENT OBLIGATION

10. REMEDIATION AND ASSET RETIREMENT OBLIGATION

On an ongoing basis, management evaluates its estimates and assumptions; however, actual amounts could differ from those based on such estimates and assumptions. Changes to the Company’s asset retirement obligation on its Chandalar property are as follows:

	December 31, 2022		December 31, 2021
Asset Retirement Obligation – beginning balance	$	168,677	$	162,189
Accretion		6,747		6,488
Asset Retirement Obligation – ending balance	$	175,424	$	168,677

The Company is responsible to remediate areas previously disturbed by mining activities, with the exception of certain access roads, airstrips or other amenities that are permanent in nature and improve the general access and maintainability of state lands covered by the Company’s mining claims. The Company has accrued $100,000 and $100,000, respectively, for remediation required at a former owner’s mine site in addition to the asset retirement obligation as of December 31, 2022 and 2021.

NyacAU, the operator of the mining permit for the Chandalar placer mine, is responsible for the reclamation work to be done on that mine for activities performed from 2012 through 2018. Should the Company exercise its option as described in Note 4 Joint Venture, it would perform an estimation of reclamation costs at that date to determine the amount of obligation to be recorded in a future year.