2015-08-18_PERMIT FILE - C1982056A (4)

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Regional seismic data suggest that the minor fault could be the result of very small oblique -slip movements related to deeper thrust faults (ramps) that do not reach the shallower Wadge coal seam horizon (RE: Seismic lines Getty 1982 and Amoco 1985). The 9th Right fault appears to be part of a series of northwest - striking minor lateral faults. The second mine fault in the series was encountered (August 1989) in the 5th Left gate development within the West Mining District (Map 5, Surface Geology). The nature of the fault geometry within the mineable portions of the Twentymile Park Basin have made it difficult to accurately predict small displacement faults (< seam thickness of 10 feet) within a virgin mining district. Once two or more gate roads have been developed, the accuracy of prediction for the linear features improves greatly. Several attempts have been made to use seismic methods to map the lateral fault traces well in advance of mining in the West and East Mining Districts. Interpretation of the available seismic data (varying from older high resolution shots, recent 93 mini thumper and regional oil exploration lines) to date has not yielded an accurate tool for small offsets. The seismic, however, has greatly improved the overall mapping of larger structures. The 9 -Right fault that was encountered in July 1995 has seismic lines crossing perpendicular to its strike approximately 800 and 1,400 feet to the south. None of the lines clearly defined a fault offset. The poor to moderate seismic results are partly the result of the small offsets (most less than 10 feet) and the rapid scissoring of the lateral faults. The 9 -Right fault is a good example of how the scissoring and splintering nature of the local faults (Exhibit 9B, 9 -Right Gate -road Faulting) can produce little or no vertical displacements along the lateral faults' strike. The faults encountered produced minor inflows of water, and the measured flow from the fault at XC -36 produced 10 gpm; the fault at XC -47 produced 20 gpm. The measurement was obtained during July, 1995. The water temperature of the flows was 66 degrees and 70 degrees, respectively. A sample from each of the inflow points was obtained and sent to the laboratory for full -suite analysis. Only temperature was obtained and no field pH and EC measurements were made due to equipment problems. The lab results for the two samples, as presented in Exhibit 9B, are inconclusive and indicate the source of the water may be from the Wadge Overburden. Additional sampling will be conducted to try to verify the source of the water. Exploration holes drilled within the planned permit area are identified on Map 5, Surface Geology, and in Exhibit 52, Exploration Drilling Information. Groundwater was encountered within the Twentymile Sandstone, the strata immediately above and including the Wadge and Wolf Creek seams, and also within the Trout Creek Sandstone. Complete chemical analyses of the Wadge Seam are presented in Exhibit 10, Geochemical Analysis of Wadge Seam. Data from the following drillholes are presented: 006- 82 -46, 006- 82 -48, 006- 82 -48A, CH- 82 -58, CH- 82 -59, CH- 82 -28, CH- 82 -71, 021 -81 -022, 021 -81 -011, 021 -81 -020, 027 -82 -033, and CH- 82 -36. No significant acid - forming, toxic - forming, or alkalinity- producing materials have been identified as being associated with the Wadge Seam. Lateral continuity and consistency of the Wadge Seam is good to excellent. Chemical analyses for the Wolf Creek Seam, are presented in Exhibit 53, Wolf Creek Reserve Geologic and Mine Plan Information, for the following drillholes: WC- 2013- UG001, WC- 2013- UG005, WC -003, WC -004, and WC -008. No significant acid - forming, toxic - forming, or alkalinity- producing materials have been identified as being associated with the Wolf Creek Seam. Lateral continuity and consistency of the Wolf Creek Seam is good, although bench and interburden thickness are variable within the WCR area. Sample locations are illustrated on Maps 12, Sample Location, and EX53 -M1 through M3, and in Exhibit 52, Exploration Drilling Information. Lithologic characteristics, physical properties, and chemical analyses of the stratum immediately above (0 -10') and immediately below (0 -5') the Wadge Seam and Wolf Creek Seam are presented in Exhibit 11, Geochemical Analysis of Wadge Seam Overburden and Exhibit 53, Wolf Creek Reserve Geologic and Mine Plan Information, respectively. Samples were analyzed for all soluble salts and toxic elements listed in the "Guidelines for the Collection of Baseline Water Quality and Overburden Geochemistry Data" (CMLRD, 1982). Data from the following Wadge Seam drillholes are presented: CH- 82 -74c, CH- 82 -68, CH- 82 -64, CH- 82 -67, CH- 82 -59, CH -82- 29, CH- 82 -14, and CH- 82 -54. Analyses for the Wolf Creek Seam included drillholes WC- 2013- UG001, WC- 2013-UG005, WC -003, WC -004, and WC -008. Lithologic logs of these drillholes are included in Exhibit 12, Lithologic Core Logs, and Exhibit 53, Wolf Creek Reserve Geologic and Mine Plan Information. Sample locations are illustrated on Maps 12, Sample Location, EX53 -Ml through M3, and in Exhibit 52, Exploration Drilling Information. TR13 -83 2.04 -16 11/03/14