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8. Asset Retirement Obligation
 12 Months Ended
Dec. 31, 2016
Notes  
8. Asset Retirement Obligation

8. Asset Retirement Obligation

 

The Company has established asset retirement obligations associated with the ultimate closing of its mineral properties where there has been or currently is operations. Activity for the years ended December 31, 2016 and 2015 is as follows:

 

 

 

 

2016

 

2015

Balances at January 1

$

28,656

$

23,366

Accretion expense

 

5,291

 

5,291

Incurred on Golden Chest mining operations

 

38,271

 

 

Balance December 31

$

72,218

$

28,656

 

 

During 2016, the Company established a asset requirement obligation for its Golden Chest mine. Management estimated that the cost to reclaim the property based upon disturbance to date to be $42,182. The estimated reclamation costs were discounted using credit adjusted, risk-free interest rate of 5.0% from the time the obligation was incurred to the time management expects to pay the retirement obligation.