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18. RECLAMATION PROVISION
12 Months Ended
Dec. 31, 2019
Reclamation Provision  
Note 18 - RECLAMATION PROVISION

 

Management’s estimate of the reclamation provision at December 31, 2019, is $1,524 (December 31, 2018 – $10,799), and the undiscounted value of the obligation is $1,985 (December 31, 2018 – $16,356).

 

The present value of the obligation was calculated using a risk-free interest rate of 6.86% (December 31, 2018 – 8.62%) and an inflation rate of 3.54% (December 31, 2018 – 3.80%). Reclamation activities are estimated to begin in 2021 for the San Gonzalo Mine and in 2028 for the Avino Mine.

  

  A reconciliation of the changes in the reclamation provision during the years ended December 31, 2019, and 2018, is as follows:

 

   

December 31,

2019

   

December 31,

2018

 
             
Balance, beginning   $ 10,799     $ 11,638  
Changes in estimates     840       (437 )
Disposition of Bralorne (Note 5)     (10,828 )     -  
Unwinding of discount related to Bralorne     217       256  
Unwinding of discount related to continuing operations     104       122  
Effect of movements in exchange rates     392       (780 )
Balance, ending   $ 1,524     $ 10,799  
Less: current portion     -       (296 )
Non-current portion   $ 1,524     $ 10,503