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ASSET RETIREMENT OBLIGATIONS

3 Months Ended

Mar. 31, 2016

ASSET RETIREMENT OBLIGATIONS [Text Block]

7. ASSET RETIREMENT OBLIGATIONS

The following table summarizes the Company’s asset retirement obligations:

		March 31,			December 31,
		2016			2015
Asset retirement obligations, beginning of period	$	8,573		$	5,683
Revision of estimate		-			877
Acquisition of Uranerz		-			2,145
Accretion of liabilities		175			494
Settlements		(248	)		(626	)
Asset retirement obligations, end of period	$	8,500		$	8,573
Asset retirement obligations:
Current	$	751		$	1,000
Non-current		7,749			7,573
Asset retirement obligations, end of period	$	8,500		$	8,573

Revision of estimates is as a result of a change in estimates of the amount or timing of cash flows to settle asset retirement obligations. Changes to the asset retirement obligations are recorded in profit and loss.

The asset retirement obligations of the Company are subject to legal and regulatory requirements. Estimates of the costs of reclamation are reviewed periodically by the applicable regulatory authorities. The above provision represents the Company’s best estimate of the present value of future reclamation costs, discounted using credit adjusted risk-free interest rates ranging from 8.5% to 11.5% and an inflation rate of 2.0% (March 31, 2015 – 2.0%). The total undiscounted decommissioning liability as at March 31, 2016 is $32.30 million (March 31, 2015 - $27.40 million). Reclamation costs are expected to be incurred between 2016 and 2038 in the following manner: 2016 – 2020 - $2.83 million, 2021 – 2025 - $2.32 million, 2026 – 2030 - $2.69 million, 2031 – 2035 - $8.78 million, 2036 – 2038 - $15.68 million.