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<br /> <br />3.0 GENERAL GEOLOGY AND MINERAL <br />The Deserado Mine Logical Mining Unit is located in Rio Blanco County, Colorado in Townships 2 <br />and 3 north, Range 101 west. Figure 3-1 shows the general location of the Deserado Mine Federal coal <br />leases. The Deserado Mine area is semi-arid with precipitation averaging 8.93 inches per year. Mean <br />summer time temperature is about 67 degrees F. and mean winter temperature is about 29 degrees F. <br />' Westem Fuels has drilled ?81 holes at 217 different locations on or adjacent to the Deserado Mine <br />Logical Mining Unit. Some of these holes were twinned to recover core for coal quality determination. <br />' Structural and stratigraphic interpretations are based on Westem Fuels exploratory drilling and surface <br />geologic mapping information. <br />' 3.1 Structural Geology <br />The Deserado Mine area is located on the southwest flank of the Red Wash Syncline, an asymmetrical <br />' flexure on the northeast flank of the Rangely Anticline. The axis of the syncline trends <br />norOtwest/southeast and plunges to the southeast into the much ]azger synclinal structure of the Piceance <br />' Basin. <br />Plate 2, "Structure Contour on Top of D Coal" shows the elevation (feet above mean sea level) and <br />attitude of the top of the D coal seam. Posted elevations represent the top of the coal and are based on <br />property-wide seam correlations. As indicated on this map, strike and dip aze generally consistent. <br />' Strike of the coal beds within most of the mine area is approximately North 46 degrees West. Dip <br />within most of the mine area is approximately 7 degrees to the northeast. As the synclinal axis is <br />' approached, dip becomes nearly horizontal. North of the synclinal axis, dip reverses steeply to the <br />southwest, forming steeply dipping east/west trending hogback ridges along the north limb of the <br />syncline. No evidence of faulting was detected during field mapping and exploration drilling by <br />t Western Fuels. Because of the degree of folding in the Red Wash Syncline, the presence of localized <br />shallow angle bedding plane and/or strike slip faults is a possibility. If present, such faulting is not <br />' likely to create major obstacles to mining. <br /> <br /> <br />1 <br />1 <br />