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8. Asset Retirement Obligation
 12 Months Ended
Dec. 31, 2017
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. Obligations were established for the New Jersey mill in 2014 and the Golden Chest mine in 2016. Activity for the years ended December 31, 2017 and 2016 is as follows:

 

 

 

 

2017

 

2016

Balance at January 1

$

72,218

$

28,656

Accretion expense

 

8,456

 

5,291

Revision of estimated reclamation costs

 

40,886

 

38,271

Balance at December 31

$

121,560

$

72,218

 

 

In 2016 management estimated the initial cost to reclaim the Golden Chest mine to be $42,182. During the year ended December 31, 2017, the obligations for the Golden Chest and New Jersey mill properties were revised in consideration of additional disturbance activity and timing of future reclamation. 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.