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RECLAMATION OBLIGATIONS | 12 Months Ended
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Dec. 31, 2016
RECLAMATION OBLIGATIONS |
RECLAMATION OBLIGATIONS | NOTE 9 RECLAMATION OBLIGATIONS The Company is responsible for reclamation of certain past and future disturbances at its properties. The two most significant properties subject to these obligations are the Tonkin property in Nevada and the El Gallo 1 mine in Mexico. The Final Plan for Permanent Closure (“FPPC”) and the Amended Plan of Operations for the Tonkin property was approved by the Nevada Division of Environmental Protection (“NDEP”) and by the Bureau of Land Management (“BLM”) pursuant to the Finding of No Significant Impact in March 2012 and September 2015, respectively. Subsequently, on October 3, 2015 the BLM requested an updated bonding requirement in the amount of $3.6 million, which is covered within the surety bonds that the Company has as of December 31, 2016. Under current Mexican regulations, surety bonding of projected reclamation costs is not required. The Company’s reclamation expenses consisted of the following:
|  | Year ended December 31,
|  | 2016 |  | 2015 |  | 2014
Reclamation Adjustment reflecting updated estimates |  | $ | 89 |  | $ | — |  | $ | —
Reclamation Accretion |  |  | 506 |  |  | 429 |  |  | 407
Total |  | $ | 595 |  | $ | 429 |  | $ | 407
As outlined in Note 2 Summary of Significant Accounting Policies, except for the Company’s 49% interest in the San José mine, none of the Company’s properties contain resources that satisfy the definition of proven and probable reserves. Therefore, the upward adjustment reflecting updated estimate of reclamation of El Gallo 1 mine is included in the Statement of Operations and Comprehensive Income (Loss) and since El Gallo 1 mine is an operating site, the adjustment is included in the Production Costs Applicable to Sales. The Company’s asset retirement obligations for years ended December 31, 2016 and 2015 are as follows:
|  | 2016 |  | 2015
Balance at beginning of the period |  | $ | 7,784 |  | $ | 7,471
Settlements |  |  | (66) |  |  | —
Accretion of liability |  |  | 506 |  |  | 429
Adjustment reflecting updated estimates |  |  | 1,619 |  |  | (116)
Balance at December 31 |  | $ | 9,843 |  | $ | 7,784
Current portion |  |  | (537) |  |  | (215)
Non-current portion |  | $ | 9,306 |  | $ | 7,569
The Company utilized the following assumptions in the calculation of its asset retirement obligations for years ended December 31, 2016 and 2015:
|  | Year ended December 31,
|  | 2016 |  | 2015
Undiscounted Cash Flows |  | $ | 10.7 million |  | $ | 9.5 million
Remediation timeline |  |  | 2017-2025 |  |  | 2016-2022
Inflation rate |  |  | 1.6-2.4% |  |  | 1.4-1.7%
Credit adjusted risk free rate |  |  | 4.2-4.6% |  |  | 6.8%

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- Definition The entire disclosure for an asset retirement obligation and the associated long-lived asset. An asset retirement obligation is a legal obligation associated with the disposal or retirement from service of a tangible long-lived asset that results from the acquisition, construction or development, or the normal operations of a long-lived asset, except for certain obligations of lessees. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6392692&loc=d3e7535-110849 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6392692&loc=d3e7569-110849 + Details
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- References No definition available. + Details
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