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12. Asset Retirement Obligation
 6 Months Ended
Jun. 30, 2017
Notes  
12. Asset Retirement Obligation

12.          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 six month ended June 30, 2017 and the year ended December 31, 2016 is as follows:

 

 

Six Months Ended

Year Ended

 

June 30, 2017

December 31, 2016

 

 

 

 

 

Balance at beginning of period

$

72,218

$

28,656

Accretion expense

 

3,988

 

5,291

Incurred on Golden Chest mining operations

 

14,882

 

38,271

Balance at end of period

$

91,088

$

72,218

 

 

During 2017 and 2016, the Company established an asset requirement obligation for its Golden Chest mine.  At June 30, 2017, management estimated that the cost to reclaim the property based upon disturbance to be $60,215. 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.