26 The r e c ov e r a b l e a m ount s of c a s h ge n e r a ti n g u n its CGU a n d i n divi dua l a s s e ts ha ve b e e n de t e r min e d b a s e d on the hi ghe r of va l ue in us e c a l c ul a tion s a n d fa ir va l ue l e s s c o s t to s e l l Th e s e c a l c u l a tion s r e q uir e th e us e of e s tima t e s a n d a s s umpti on s I t is r e a s o n a b l y poss ib l e tha t th e gol d pr ic e a s s umpt ion ma y c ha n ge whic h ma y th e n i mpa c t the e s t ima te d l ife of min e de t e r min a n t a n d ma y the n r e q uir e a ma te r ia l a djus tme n t t o th e c a r r ying v a l ue of pr o pe r ty pl a n t a n d e q uipm e n t The C o mpa n y r e vi e ws a n d te s ts th e c a r r yi n g va l u e of a s s e ts whe n e ve n ts or c ha n g e s in c ir c ums ta n c e s s ugg e s t tha t the c a r r yi n g a moun t ma y n ot b e r e c ov e r a b l e b y c om pa r in g e x pe c t e d futur e c a s h fl o ws to th e s e c a r r yi n g va l ue s A s s e ts a r e gr oup e d a t th e l o we s t l e ve l f or whic h ide n tif ia b l e c a s h fl ow s a r e l a r ge l y i n de pe n d e n t of c a s h fl ow s of othe r a s s e ts a n d l i a b il iti e s I f th e r e a r e in dic a tion s tha t im pa ir me n t ma y ha v e oc c urr e d e s tima te s a r e pr e pa r e d o f e x p e c te d futur e c a s h fl ow s o f e a c h gr ou p of a s s e t s E xp e c t e d futur e c a s h fl o w s us e d t o de t e r mi n e th e va l ue in us e a n d fa ir va l ue l e s s c osts to s e l l of pr o pe r ty pl a n t a n d e q u i pme n t a r e i n he r e n tl y u n c e r ta in a n d c oul d ma te r ia l l y c ha n ge ov e r t im e The y a r e s ign i fica n tl y a ff e c t e d b y a n u mb e r of fa c tor s i n c l udin g r e s e r ve s a n d pr oduc tio n e s ti ma te s toge th e r wi th e c o n omic fa c tor s s uc h a s s pot a n d fut ure g ol d pr ic e s disc ount r a t e s for e ig n c ur r e n c y e xc ha n ge r a te s e s tima te s of c osts to p r oduc e r e s e r ve s a n d fu tur e c a pit a l e xp e n d itur e A t J un e 30 2013 the C omp a n y ha s de t e r mi n e d tha t its o pe r a t in g min e a s s e ts a r e n ot imp a ir e d Th e s ign ifi c a n t a s s umpt ion s i n d e t e r mi n i n g th e futur e c a s h fl ow s for its C G U a t J u n e 3 0 2013 in c l ud e d a l on gt e r m gol d pr ic e of U S 1300 pe r ou n c e a n d a US t o C a n a dia n dol l a r e xc ha n g e r a te of US 100 pe r 10 5 Ex p l or a t io n a nd ev a l u a t i o n a sse t s The a pp l ic a tion o f SAS a c c ount in g pol ic y fo r e xpl or a tion a n d e va l ua tion e xp e n ditu r e r e q uir e s judge me n t i n de t e r mi n in g whe th e r it is l ik e l y tha t fu ture e c o n om ic b e n e fi ts wi l l b e a c hie v e d a t c e r ta in pr op e r t ie s whic h m a y b e b a s e d on a s s umptio n s a b out fu tur e e ve n ts o r c ir c ums ta n c e s E a c h pr op e r ty is r e vi e w e d fo r i n dic a tor s o f i mpa ir me n t a n d if i n fo r ma tio n b e c ome s a va il a b l e s ugg e s tin g tha t the r e c ov e r y of th e a s s e t is u n l ik e l y th e a moun t c a p ita l ize d is w r itt e n do w n i n t he s ta t e m e n t o f ope r a tion s in th e pe r iod wh e n th e n e w i n fo r ma ti on b e c ome s a va il a b l e Th e C omp a n y c o n duc ts this r e vi e w o n a s e mi a n n ua l b a s is or wh e n the r e is a ma j or c ha n ge in ma r k e t c on diti o n s Mi ne r a l r es er ve s e st im a t e s M in e r a l r e s e r v e s a r e e s t im a te s of th e a mou n t o f p r o duc t tha t c a n b e e c on o mic a l l y a n d l e ga l l y e xt r a c te d fr o m th e C omp a n ys pr op e r t ie s In or d e r to c a l c ul a te th e mi n e r a l r e s e r v e s e s tima t e s a n d a s s umption s a r e r e q ui r e d a b out a r a n g e of ge ol ogica l t e c hnica l a n d e c o n o mic fa c to r s in c l udi n g b ut n ot l imi te d to q ua n ti tie s gr a de s pr oduc tio n t e c hni q ue s r e c ov e r y r a t e s pr oduc tio n c osts tr a n s po r t c osts c ommo d ity d e ma n d c ommo d ity p r ic e s a n d e xc ha n ge r a te s E s tima tin g the q ua n tity a n d gr a d e of the m i n e r a l r e s e r v e s r e q u ir e s th e s ize s ha pe a n d d e pth of or e b odi e s to b e d e te r mi n e d b y a n a l y z in g ge ol ogica l da ta s uc h a s the l oggin g a n d a s s a ying of dr il l c or e s a mpl e s This pr oc e s s ma y r e q uir e c omp l e x a n d dif ficu l t ge ol og ic a l judg e m e n ts a n d c a l c ul a tion s to in t e r p r e t th e da ta The C om pa n y is r e q ui r e d t o d e t e r min e a n d r e po r t o n the m i n e r a l r e s e r ve s i n a c c or da n c e wi th th e C a n a dia n I n s ti tute of M in i n g M e ta l l urgy a n d P e t r ol e u m C IM Sta n da r ds N ove m b e r 2010 E s tima te s o f m in e r a l r e s e r ve s ma y c ha n g e fr o m y e a r to ye a r du e t o th e c ha n ge i n e c on omic a s s umption s us e d a n d due t o a ddit ion a l ge ol ogica l or o p e r a tio n a l da ta b e c omi n g a va il a b l e du r i n g the c our s e of op e r a tio n s C ha n ge s in r e po r te d pr ove n a n d pr o b a b l e m i n e r a l r e s e r v e s ma y a ff e c t th e C omp a n ys fin a n c ia l r e s ul ts a n d posi tion in a n u mb e r of wa ys in c l udin g th e f ol l ow in g A s s e t c a r r yi n g va l ue s ma y b e a ff e c te d du e t o c ha n g e s i n e s tima t e d c a s h fl ow s De p r e c ia tio n a n d a mor ti z a ti on c ha r g e s to th e s ta t e m e n t of op e r a tion s ma y c ha n ge a s the s e a r e c a l c u l a te d on th e un its of p r oduc tion m e thod or wh e r e t he us e ful e c o n om ic l ive s of a s s e ts c ha n ge