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Kiska Metals Corporation
Notes to the consolidated interim financial statements
March 31, 2012 and 2011
(Expressed in Canadian Dollars)
(Unaudited – Prepared by Management)
16. Provisions (continued)
Rehabilitation provision
The Group’s exploration activities are subject to various federal, provincial and state laws and regulations
governing the protection of the environment. These laws and regulations are continually changing and
generally becoming more restrictive. The Group conducts its operations so as to protect public health and
the environment, and believes its operations are materially in compliance with all applicable laws and
regulations. The Company has made, and expects to make in the future, expenditures to comply with
such laws and regulations. The Group makes full provision for management’s current estimate of
reclamation and other future site restoration costs to be incurred for existing mineral property interests on
a discounted basis.
The undiscounted amount of the estimated cash flows required to settle the obligations, which are
expected to be paid over the next four years, is $181,156. The amount recorded is not discounted as the
effect of the time value of money is immaterial.
The rehabilitation provision represents the present value of rehabilitation costs relating to mine sites,
which are expected to be incurred up to 2019. These provisions have been created based on the Group’s
internal estimates. Assumptions, based on the current economic environment, have been made which
management believes are a reasonable basis upon which to estimate the future liability. These estimates
are reviewed regularly to take into account any material changes to the assumptions. However, actual
rehabilitation costs will ultimately depend upon future market prices for the necessary decommissioning
works required which will reflect market conditions at the relevant time.
17. Accounts payable and accrued liabilities
March 31,
2012
December 31,
2011
Trade payables $ 3,165 $ 203,417
Accrued liabilities 172,559 246,926
$ 175,724 $ 450,343
All trade payables are non-interest bearing and are normally settled on 30-day terms.
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