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Reclamation and Environmental | 12 Months Ended
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Jun. 30, 2018
Environmental Remediation Obligations [Abstract] |
Reclamation and Environmental | Note 8. Reclamation and Environmental: The Company holds an insurance policy which is in effect until 2033 related to its Sleeper Gold Project. The policy covers reclamation costs up to an aggregate of $25 million in the event the Company’s bond is insufficient to cover any mandated reclamation obligations. As a part of its insurance program, the Company has funds in a commutation account which is used to reimburse reclamation costs and indemnity claims. The balance of the commutation account at June 30, 2018 is $1,769,501 (June 30, 2017 - $2,086,562). Reclamation and environmental costs are based principally on legal requirements. Management estimates costs associated with reclamation of mineral properties and properties under mine closure. On an ongoing basis the Company evaluates its estimates and assumptions; however, actual amounts could differ from those based on estimates and assumptions. The asset retirement obligation at the Sleeper Gold Project has been measured using the following variables: 1) Expected costs for earthwork, re-vegetation, in-pit water treatment, on-going monitoring, labor and management, 2) Inflation adjustment, and 3) Market risk premium. The sum of the expected costs by year is discounted using the Company’s credit adjusted risk free interest rate from the time it expects to pay the retirement obligation to the time it incurs the obligation. The reclamation and environmental obligation recorded on the balance sheet is equal to the present value of the estimated costs. The current undiscounted estimate of the reclamation costs for existing disturbances at the Sleeper Gold Project is $3,835,050 as required by U.S Bureau of Land Management and the Nevada Department of Environmental Protection. Assumptions used to compute the asset retirement obligations for the year ended June 30, 2018 for the Sleeper Gold Project included a credit adjusted risk free rate and inflation rate of 9.76% (2016 – 9.76%) and 2.0% (2016 – 2.0%), respectively. Expenses are expected to be incurred between the years 2018 and 2056. Changes to the Company’s asset retirement obligations for the year ended June 30, 2018 are as follows:
|  | June 30, 2018 |  |  | June 30, 2017 |
Balance at beginning of year |  | $ | 1,261,034 |  |  | $ | 1,402,039 |
Accretion expense |  |  | 150,736 |  |  |  | 137,288 |
Payments |  |  | (339,219 | ) |  |  | (278,293 | )
Change in estimate of existing obligation |  |  | — |  |  |  | — |
Balance at end of year |  | $ | 1,072,551 |  |  | $ | 1,261,034 |
The balance of the asset retirement obligation of $1,072,551 (2017 - $1,261,034) is comprised of a current portion of $101,593 (2017 - $216,101) and a non-current portion of $970,958 (2016 - $1,044,933).

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- Definition The entire disclosure for environmental loss contingencies, such as presence of hazardous waste, relevant information from reports issued by regulators, and estimated costs to achieve compliance with regulatory requirements. This element may be used for all of an entity's disclosures about environmental loss contingencies. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 30 -URI http://asc.fasb.org/subtopic&trid=2175709 + Details
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- References No definition available. + Details
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