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<br />' Page Tvo <br />• The ash content is variable, ranging from a high of 15.2 percent to a low of 5.2 <br />percent. To maintain a consisten[ coal quality, a washing process must be used. <br />Information on the coal quality in the Cameo "C" seam in Lease No. C-078049 <br />is not available at present. <br />METHOD USED IN CALCULATION OF RESERVES <br />The in-place coal reserves of Federal Lease No. C-078049 were calculated by <br />using data from drill hole logs. Drill Hole EA was core sampled and holes A, B <br />and C were electrically logged. Numerous coal seam measurements have been taken <br />underground in the Roadside Mine in the "B" seam. Using the areas of the three <br />zones - measured, indicated, and inferred - the weighted average was found, the <br />average thickness derived, and the tonnage calculated. <br />• An average density of 90 pounds per cubic foot (1960 tons per acre-foot) was <br />calculated from analysis of samples from the current "B" seam mine workings. The <br />Cameo "C." seam has not been analyzed for this date. <br />The areal influence of the drill holes was found by using criteria from General <br />Mining Order No. 1 as follows: <br />Measured - 1/4 mile radius <br />Indicated - 1/4 to 3/4 mile radius <br />Inferred - 3/4 to 3 mile radius <br />A Planimeter was used to calculate the areas of each zone. <br />CALCULATION OF COAL RESERVE BASE, CAMEO "B" SEAM <br />(Number of Acres in Area) x (Average Thickness of Seam) x <br />{Average Density of Coal=90 lbs/f t3) x ) = <br />o <br />( Tons Per Area <br /> 2000 <br />1bs <br />Estimated coal reserves of Cameo "B" seam in Federal Lea se No. C-078049: <br />• Area (Acres) Avg . Thickness Tons <br /> (Feet) <br />Measured 422.56 5.08 4,208,000 <br />Indicated 234.55 6.94 3,191,000 <br />Inferred -- _ -- -- <br /> 657.11 7,399,000 <br />