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Asset Retirement Obligations
 12 Months Ended
Nov. 30, 2023
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations

Note 10: Asset Retirement Obligations

 

The Whistler Project’s exploration activities are subject to the State of Alaska’s laws and regulations governing the protection of the environment. The Whistler Project ARO is valued under the following assumptions:

 

   November 30, 2023   November 30, 2022 
Undiscounted amount of estimated cash flows  $385,600   $235,000 
Life expectancy (years)   10    3 
Inflation rate   2.00%   2.00%
Discount rate   9.32% to 11.40%   9.32%

 

 

U.S. GOLDMINING INC.

(formerly BRI Alaska Corp.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

 

 

 

The following table summarizes the movements of the Company’s ARO:

 

   November 30, 2023   November 30, 2022 
Balance, beginning of year  $225,871   $206,616 
Accretion   21,051    19,255 
Change in estimate   (67,042)   - 
Balance, end of year  $179,880   $225,871 

 

During the year ended November 30, 2023, the ARO for the Whistler Project was revised due to changes in the estimated timing of reclamation activities and updated assumptions regarding reclamation costs. The estimated future costs for the rehabilitation activities were updated for camp structures due to additional facilities constructed during the year and for the exploration and evaluation assets due to surface disturbance resulting from past exploration programs. The life expectancy of the ARO was extended to 10 years. The Company recorded a change in estimate to the ARO of $67,042, resulting in the corresponding camp structures being decreased by $98,434 (Note 6), and the exploration and evaluation assets being increased by $31,392 (Note 8), respectively.