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<br />the age in which the location was mined and who had completed the <br />correlation. GEC Minerals, Inc. plans to mine the D, E, G, J and K <br />seams where they are found in sufficient thickness and where they <br />have not been mined by underground methods in proportions which <br />would make it uneconomic to recover them. Aggregate thicknesses of <br />overburden and coal average approximately 140 feet and approximately <br />12 feet, respectively. <br />Structurally, the rocks dip to the West-Southwest from 2° to 5°. <br />Surface geology is shown on Map No. 4. <br />The approximate average quality on an as received basis for the <br />coal which GEC Minerals, Inc. plans to mine is 10% ash, 45% fixed <br />carbon, 11% moisture, 34% volatile matter, 10,600 BTUs per pound, <br />and .4% sulphur. Analysis of sulfur forms is currently being <br />• performed to determine relative amounts of pyrite, sulfate and <br />organic sulfur. <br />GEC Minerals, Inc. currently is mining the aforementioned five <br />seams in an open pit type sequence. The existing and planned <br />mining operation will progress towards the South-Southwest as shown <br />on Map No. 15. Close inspection of Map Nos. 5 and 6 indicates that <br />the geological regime which GEC Minerals, Inc. currently is located <br />in is expected to remain essentially the same for the life of the <br />property. GEC Minerals, Inc. plans to conduct additional exploration <br />drilling as is required to maintain the continuity and consistent <br />operation of the mining activity. <br />Aquifers are not currently present within the existing operation. <br />In addition, drill hole information indicates that no significant <br />amounts of ground water are found within the area to be mined. <br />Current data seems to indicate that the nearest aquifer available <br />to the mine operation is the Trinidad Sandstone considerably lower <br />• in formation than the area which GEC Minerals, Inc. plans to mine. <br />2.04-12 <br />