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4.0 MINING OPERATION <br />Underground mining operations at the Deserado Mine will be conducted in the B and D coal seams. <br />Although eight (8) seams have been identified from the results of Western Fuels' exploration drilling, <br />only the B and D Seams attain sufficient thickness over an adequate azeal extent to be considered <br />economically recoverable. <br />4.1 Coal Quality <br />' 4.1.1 RangE and Averagg nuality Deserado Mine area coal quality analyses consist of basically two <br />' types: along proximate analysis (moisture, ash, volatile matter, fixed carbon, calorific value and sulfur <br />content) and a full analysis which generally consisted of the long proximate analysis plus ultimate <br />analysis, mineral analysis of ash, ash fusion, equilibrium moisture, Hardgrove grindability, free swelling <br />index, sulfur forms, trace elements, water soluble alkalies and apparent specific gravity. In summary, <br />long proximate analyses were performed on samples from 26 cores from the B Seam and 20 cores from <br />the D Seam. Full analyses were conducted on 25 cores from the B Seam and 19 cores of the D Seam. <br />' Coal quality has therefore been determined from the analysis of 51 cores of the B Seam and 39 cores <br />of the D Seam. Multiple quality analyses of a core from individual seams were performed on a majority <br />' of the cores. The results of those analysis were weight averaged to determine coal seam quality at each <br />specific core hole location. <br />The rank of Deserado Mine coal is on the border of subbituminous A and high volatile C bituminous <br />(ASTM Standard D-388-77). However, using the "Pao Formula" for calculating the moist, mineral <br />matter free, calorific value indicates that the D Seam coal and the average of the D Seam and B Seam <br />analyses indicates a rank of high volatile C bituminous. Sulfur content in the lease area is low, <br />' averaging 0.41% and ash content is moderate to high, averaging 14.12%. <br />Table 4-1 summarizes the range and average coal quality as determined by analyses of core samples <br />from the Deserado Mine area. Table 4-2 is a summary of the mineral analyses of the ash and also the <br />chlorine content. Water soluble sodittm analyses range from 0.016 wt % to 0.160 wt % and average <br />0.091 wt % for the B Seam. In the D Seam, water soluble sodium ranges from 0.043 wt % to 0.120 <br />wt % and average 0.091 wt %. <br /> <br /> <br />15 <br /> <br />