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Note 4 - Mineral Rights and Properties | 12 Months Ended
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Jul. 31, 2021
Notes to Financial Statements |
Mineral Industries Disclosures [Text Block] | NOTE 4: MINERAL RIGHTS AND PROPERTIES Mineral Rights As at July 31, 2021, we had mineral rights in the States of Arizona, Colorado, New Mexico, Texas and Wyoming, in Canada and in the Republic of Paraguay. These mineral rights were acquired through staking and purchase, lease or option agreements and are subject to varying royalty interests, some of which are indexed to the sale price of uranium. As at July 31, 2021, annual maintenance payments of approximately $3.4 million were required to maintain these mineral rights. As at July 31, 2021, the carrying value of these mineral rights and properties was as follows:
|  | July 31, 2021 |  |  | July 31, 2020 |
Mineral Rights and Properties |  |  |  |  |  |  |  |
Palangana Mine |  | $ | 6,027,784 |  |  | $ | 6,027,784 |
Goliad Project |  |  | 8,689,127 |  |  |  | 8,689,127 |
Burke Hollow Project |  |  | 1,495,750 |  |  |  | 1,495,750 |
Longhorn Project |  |  | 116,870 |  |  |  | 116,870 |
Salvo Project |  |  | 14,905 |  |  |  | 14,905 |
Anderson Project |  |  | 3,470,373 |  |  |  | 3,470,373 |
Workman Creek Project |  |  | 899,854 |  |  |  | 799,854 |
Los Cuatros Project |  |  | 257,250 |  |  |  | 257,250 |
Slick Rock Project |  |  | 60,000 |  |  |  | 30,000 |
Reno Creek Project |  |  | 31,527,870 |  |  |  | 31,527,870 |
Diabase Project |  |  | 546,938 |  |  |  | 546,938 |
Yuty Project |  |  | 11,947,144 |  |  |  | 11,947,144 |
Oviedo Project |  |  | 1,133,412 |  |  |  | 1,133,412 |
Alto Paraná Titanium Project |  |  | 1,433,030 |  |  |  | 1,433,030 |
Other Property Acquisitions |  |  | 91,080 |  |  |  | 91,080 |
|  |  | 67,711,387 |  |  |  | 67,581,387 |
Accumulated Depletion |  |  | (3,929,884 | ) |  |  | (3,929,884 | )
|  |  | 63,781,503 |  |  |  | 63,651,503 |
Databases and Land Use Agreements |  |  | 2,458,808 |  |  |  | 2,458,808 |
Accumulated Amortization |  |  | (2,456,308 | ) |  |  | (2,454,808 | )
|  |  | 2,500 |  |  |  | 4,000 |
|  | $ | 63,784,003 |  |  | $ | 63,655,503 |
We have not established proven or probable reserves, as defined by the SEC, for any of our mineral projects. We have established the existence of mineralized materials for certain uranium projects, including the Palangana Mine. Since we commenced uranium extraction at the Palangana Mine without having established proven or probable reserves, there may be greater inherent uncertainty as to whether or not any mineralized material can be economically extracted as originally planned and anticipated. Mineral property expenditures incurred on our projects were as follows:
|  | Year Ended July 31, |
|  | 2021 |  |  | 2020 |
Mineral Property Expenditures |  |  |  |  |  |  |  |
Palangana Mine |  | $ | 889,597 |  |  | $ | 1,342,927 |
Goliad Project |  |  | 237,515 |  |  |  | 190,278 |
Burke Hollow Project |  |  | 1,445,797 |  |  |  | 1,130,467 |
Longhorn Project |  |  | 9,154 |  |  |  | 17,023 |
Salvo Project |  |  | 31,209 |  |  |  | 28,318 |
Anderson Project |  |  | 78,601 |  |  |  | 71,170 |
Workman Creek Project |  |  | 32,700 |  |  |  | 32,700 |
Slick Rock Project |  |  | 52,117 |  |  |  | 52,521 |
Reno Creek Project |  |  | 672,225 |  |  |  | 596,551 |
Yuty Project |  |  | 31,279 |  |  |  | 65,679 |
Oviedo Project |  |  | 371,966 |  |  |  | 350,211 |
Alto Paraná Titanium Project |  |  | 198,969 |  |  |  | 230,350 |
Other Mineral Property Expenditures |  |  | 427,678 |  |  |  | 474,208 |
|  | $ | 4,478,807 |  |  | $ | 4,582,403 |
United States Projects
| ● | Palangana Mine, Texas
We hold various mining lease and surface use agreements granting us the exclusive right to explore, develop and mine for uranium at the Palangana Mine located in Duval County, Texas, approximately 100 miles south of our Hobson Processing Facility. These agreements are subject to certain royalty and overriding royalty interests indexed to the sale price of uranium and generally have an initial five -year term with extension provisions. During Fiscal 2021 and Fiscal 2020, we continued with reduced operations at the Palangana Mine to capture residual uranium only. As a result, no depletion for the Palangana Mine was recorded on our consolidated financial statements.
| ● | Goliad Project, Texas
We hold various mining lease and surface use agreements granting us the exclusive right to explore, develop and mine for uranium at the Goliad Project located in Goliad County, Texas. These agreements are subject to certain fixed royalty interests based on net proceeds from sales or indexed to the sales price of uranium and have an initial five -year term with extension provisions.
| ● | Burke Hollow Project, Texas
We hold various mining lease and surface use agreements granting us the exclusive right to explore, develop and mine for uranium at the Burke Hollow Project located in Bee County, Texas. These agreements are subject to fixed royalty interests based on net proceeds from sales and have an initial five -year term with extension provisions.
| ● | Longhorn Project, Texas
We hold various mining lease and surface use agreements granting us the exclusive right to explore, develop and mine for uranium at the Longhorn Project located in Live Oak County, Texas. These agreements are subject to certain royalty interests indexed to the sale price of uranium and have an initial five -year term with extension provisions.
| ● | Salvo Project, Texas
We hold various mining lease and surface use agreements granting us the exclusive right to explore, develop and mine for uranium at the Salvo Project located in Bee County, Texas. These agreements are subject to certain royalty interests indexed to the sales price of uranium and have an initial five -year term with extension provisions.
| ● | Anderson Project, Arizona
We hold an undivided 100% interest in contiguous mineral lode claims and state leases at the Anderson Project located in Yavapai County, Arizona.
| ● | Workman Creek Project, Arizona
We hold an undivided 100% interest in contiguous mineral lode claims in the Workman Creek Project located in Gila County, Arizona. The Workman Creek Project is subject to a 3.0% net smelter royalty requiring an annual advance royalty payment of $50,000 for 2016 and 2017, and $100,000 thereafter. We have an exclusive right and option to acquire 1.5% of the net smelter royalty for $1,000,000 at any time until January 21, 2024. Additionally, certain individuals hold an option to acquire a 0.5% net smelter royalty exercisable by paying the Company the sum of $333,340 at any time until January 21, 2024. During Fiscal 2021 and Fiscal 2020, advance royalty payments of $100,000 and $100,000, respectively, were capitalized as Mineral Rights and Properties and added to the carrying value of the Workman Creek Project.
| ● | Los Cuatros Project, Arizona
We hold an undivided 100% interest in a state lease in the Los Cuatros Project located in Maricopa County, Arizona.
| ● | Slick Rock Project, Colorado
We hold an undivided 100% interest in contiguous mineral lode claims in the Slick Rock Project located in San Miguel County, Colorado. Certain claims of the Slick Rock Project are subject to a 1.0% or 3.0% net smelter royalty, the latter requiring an annual advance royalty payment beginning in November 2017. During Fiscal 2021 and Fiscal 2020, advance royalty payments of $30,000 and $30,000, respectively, were capitalized as Mineral Rights and Properties and added to the carrying value of the Slick Rock Project.
| ● | Reno Creek Project, Wyoming
The Reno Creek Project consists of U.S. federal mineral lode claims, state mineral leases, various private mineral leases and certain surface use agreements which grant us the exclusive right to explore, develop and mine for uranium, which is located in Campbell County, Wyoming. The mineral leases and surface use agreements are subject to certain royalty interests with terms ranging from five to 20 years, some of which have extension provisions. Canadian Project
| ● | Diabase Project, Canada
We hold a 100% interest in the Diabase Project located on the southern rim of the Athabasca Basin uranium district in Saskatchewan, Canada. Paraguay Projects During Fiscal 2018 and Fiscal 2019, we had communications and filings with the Ministry of Public Works and Communications (“MOPC”), the mining regulator in Paraguay, whereby the former MOPC took the position that certain concessions forming part of the Company's Yuty and Alto Parana Projects were not eligible for extension as to exploration or continuation to exploitation in their current stages. While we remain fully committed to our development path forward in Paraguay, we have filed certain applications and appeals in Paraguay to reverse the MOPC's position in order to protect our continuing rights in those concessions.
| ● | Yuty Project, Paraguay
The Yuty Project is a property under one exploitation concession and is subject to an overriding royalty of $0.21 per pound of uranium produced from the Yuty Project.
| ● | Oviedo Project, Paraguay
The Oviedo Project is a property under one exploration permit and is subject to a 1.5% gross overriding royalty over which we have an exclusive right and option at any time to acquire 0.5% for $166,667 and a right of first refusal to acquire all or any portion of the remaining 1.0%.
| ● | Alto Paran á Titanium Project, Paraguay
The Alto Paraná Titanium Project is a property under certain titanium mineral concessions located in the departments of Alto Parana and Canindeyú in Paraguay. The Alto Paraná Titanium Project is subject to a 1.5% net smelter returns royalty. We have the right, exercisable to July 2023, to acquire 0.5% of the net smelter royalty at a purchase price of $500,000.

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