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• Quality of the Carboncra averages <br />as follows: <br />boundary <br />strip (466,717 tons) <br />and then using <br />Moisture, as received <br />7.16% <br />FSI <br />50% for <br />1 <br />Btu, as received <br />10,426 <br />C <br />(dry) <br />63.11' <br />Ash, dry <br />20.12% <br />H <br />(dry) <br />4.65% <br />Volatile natter, dry <br />36.05% <br />N <br />(dry) <br />1.26% <br />Fixed carbon, dry <br />43.84% <br />Cl <br />(dry <br />0.02% <br />Btu, dry <br />11,232 <br />0 <br />(dry) <br />9.76% <br />Sulfur, dry • <br />0.872 <br />"Reserve Base" estimates were calculated in accordance with General <br />Mining Order No. 1. The "Coal Reserve Base Map" shows the location of <br />drill holes which were used to calculate tonnages. A work map has been <br />included which shows'how the lease was divided into sections so acreages <br />could be obtained. The "Coal Recovery Chart - Reserve Base" shows each <br />block along with coal thicknesses and calculated in-place tons. <br />In calculating the "Reserve Base" for this lease all 2522.37 acres <br />• were used resulting iu 39,123,317 tc:..,. Although more information is <br />needed in the northern portion.of the lease, this is the tonnage calculated <br />using the guidelines given. <br />Figuring "Mineable Reserve", thicknesses ranging from 5.26 to 7.80 <br />feet were used in the calculations. These heights provide us with a <br />seam, the quality of which, would be good enough to economically mine. <br />In some areas, if thickness was increased additional partings would be <br />picked up greatly increasing the ash content of the mine run coal. This <br />results in total "Mineable Reserve" of 31,260,176 tons. <br />Due to certain factors, i.e., OSM, subsidence, State of Colorado, <br />etc., no detailed mine plan has been drawn up at this time. Recoverable <br />reserves were therefore calculated by first deducting coal contained in <br />• <br />a 50 foot <br />boundary <br />strip (466,717 tons) <br />and then using <br />a recovery <br />factor of <br />50% for <br />the remaining acreage. <br />This results <br />in a total of <br />15,396,730 tons. No allowance has been made for coal under more than <br />2000 feet of cover. This will have to be determined as mininG progresses. <br />