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Reclamation and Environmental | 6 Months Ended
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Dec. 31, 2022
Environmental Remediation Obligations [Abstract] |
Reclamation and Environmental | Note 9. Reclamation and Environmental 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 Company has posted several cash bonds as financial security to satisfy reclamation requirements. The balance of posted cash reclamation bonds at December 31, 2022 is $499,476 (June 30, 2022 - $498,276). Paramount is responsible for managing the reclamation activities from the previous mine operations at the Sleeper Gold Mine as directed by the Bureau of Land Management ("BLM") and the Nevada State Department of Environmental Protection (“NDEP”). Paramount has estimated the undiscounted reclamation costs for existing disturbances at the Sleeper Gold Project required by the BLM to be $3,639,771. These costs are expected to be incurred between the calendar years 2023 and 2060. Paramount has also estimated undiscounted reclamation cost as required by the NDEP to be $5,280,000. These costs include on-going monitoring and new requests from the NDEP to convert three processing ponds from the historical operations to evaporation cell ponds by the 2nd half of calendar year 2023. On-going monitoring costs are expected to be incurred between 2022 and 2039. The sum of expected costs by year are discounted using the Company’s credit adjusted risk free interest rate from the time it expects to pay the retirement to the time it incurs the obligation. The reclamation and environmental costs for the Sleeper Gold Project recorded on the balance sheet is equal to the present value of the estimated reclamation costs as required by both the BLM and NDEP. The following variables were used in the calculation for the periods ending December 31, 2022 and June 30, 2022:
|  | Six Months Ended December 31, 2022 |  |  | Year Ended June 30, 2022 |
Weighted-average credit adjusted risk free rate |  |  | 9.94 | % |  |  | 9.94 | %
Weighted-average inflation rate |  |  | 2.32 | % |  |  | 2.32 | %
Changes to the Company’s reclamation and environmental costs for the Sleeper Gold Mine for the six-month period ended December 31, 2022 and the year ended June 30, 2022 are as follows:
|  | Six Months Ended December 31, 2022 |  |  | Year Ended June 30, 2022 |
Balance at beginning of period |  | $ | 4,475,270 |  |  | $ | 1,849,644 |
Accretion expense |  |  | 223,122 |  |  |  | 183,693 |
Additions and change in estimates |  |  | — |  |  |  | 2,475,169 |
Settlements |  |  | (60,000 | ) |  |  | (33,236 | )
Balance at end of period |  | $ | 4,638,392 |  |  | $ | 4,475,270 |
The balance of the reclamation and environmental obligation of $4,638,392 at December 31, 2022 (June 30, 2022 -$4,475,270) is comprised of a current portion of $120,000 (June 30, 2022 -$120,000 ) and a non-current portion of $4,518,392 (June 30, 2022 - $4,355,270). The Company recorded an accretion expense for the three and six-month period ended December 31, 2022 of $111,561 and $223,122, respectively (2021 - $45,969 and $91,938).

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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://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 30 -Section 50 -Paragraph 10 -Subparagraph (d)(5) -URI https://asc.fasb.org/extlink&oid=6393242&loc=d3e13237-110859 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 30 -Section 55 -Paragraph 11 -URI https://asc.fasb.org/extlink&oid=6571209&loc=d3e13644-110860 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 30 -Section 55 -Paragraph 17 -URI https://asc.fasb.org/extlink&oid=6571209&loc=d3e13718-110860 Reference 4: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 30 -Section 50 -Paragraph 17 -URI https://asc.fasb.org/extlink&oid=6393242&loc=d3e13328-110859 Reference 5: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 30 -Section 50 -Paragraph 10 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=6393242&loc=d3e13237-110859 Reference 6: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 30 -Section 50 -Paragraph 10 -Subparagraph (d)(4) -URI https://asc.fasb.org/extlink&oid=6393242&loc=d3e13237-110859 Reference 7: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 30 -Section 55 -Paragraph 16 -URI https://asc.fasb.org/extlink&oid=6571209&loc=d3e13703-110860 Reference 8: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 30 -Section 50 -Paragraph 10 -Subparagraph (d)(3) -URI https://asc.fasb.org/extlink&oid=6393242&loc=d3e13237-110859 Reference 9: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 30 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=6393242&loc=d3e13319-110859 Reference 10: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 30 -Section 50 -Paragraph 10 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6393242&loc=d3e13237-110859 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 30 -URI https://asc.fasb.org/subtopic&trid=2175709 Reference 12: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 30 -Section 50 -Paragraph 10 -Subparagraph (d)(2) -URI https://asc.fasb.org/extlink&oid=6393242&loc=d3e13237-110859 Reference 13: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 30 -Section 50 -Paragraph 10 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=6393242&loc=d3e13237-110859 Reference 14: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 30 -Section 50 -Paragraph 11 -URI https://asc.fasb.org/extlink&oid=6393242&loc=d3e13283-110859 + Details
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