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As was stated previously no "?lineable" or "Recoverable" reserve was <br />• calculated for this block because of the high ash conteac'inherent is <br /> the Carbonera coal seam. <br />2. Cameo Seam <br />This is the seam currently being mined at the Roadside ;Sine <br />which is just north of this lease. Thickness in the south entries <br />approaching this property is currently about 5.5 feet. Drill hole <br />information shows 9.39' (CC-76-1) and 9.51' (CC-76-5) in the holes <br />nearest to the lease. Because of the discrepancy between mined and <br />drilled, a thickness of 6.95 was used for calculation purposes. <br />Quality of the Cameo averages as follows: <br />Moisture, as received <br />Btu, as received <br />. ~ Ash, dry <br />Volatile !Satter, dry <br />Fivnrl ('ar}+n?~, dry <br />Stu, dry <br />Sulfur, dry <br />FSI <br />C (dry) <br />H (dry) <br />N (dry) <br />CI (dry) <br />o (ary) <br />7.68X <br />10,224 <br />19.71X <br />35.85X <br />44.432 <br />11,082 <br />0.92X <br />1 <br />63.17X <br />4.51X <br />1.35X <br />0.07.X <br />10.32X <br />"Reserve Base" estimates were calculated in accordance with General <br />!fining Order No. 1. Because there are no holes on this lease information <br />from an adjacent lease was used in calculating reserves. Using an <br />average thickness of 6.95' over 40 acres results in a reserve base of <br />500,040 tons. This tonnage will also be used for "::ineable" reserve. <br />Due to certain factors, i.e., OSI•i, subsidence, State of Colorado, <br />• etc.; no detailed mine plan has beett drawn up at this time. Recoverable <br />reserves acre therefore calculated by first deducting coal contained in <br />