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Quality of the Cameo average as follows: <br />• <br />!loisture, as received 7.68X <br />Btu, as received 10,224 <br />Ash, dry 19.717. <br />Volatile ZWtter, dry 35.85X <br />Fixed Carbon, dry 44.43X <br />Btu, dry 11,082 <br />Sulfur, dry 0.92'/. <br />FSI 1 <br />C. (dry 63.17X <br />R (dry) 4.517. <br />N (dry) 1.357. <br />Cl (dry) O.O1X <br />0 (dry) 10.32X <br />"Reserve Base" estimates were calculated in accordance with General <br />Mining Order Ro. 1. The "Coal Reserve Base Map" shows the location of <br />drill holes which were used to calculate tonnages. A work map has been <br />included which shows how the lease was divided into sections so acreages <br />could be obtained. The "Coal Recovery Chart - Reserve Base" shows each <br />• block along :rith coal thicknesses and calculated in place tons. Reserve <br />base on the total 2550.92 acres amounts to 29,640,799 tons. <br />"Mineable" reserves were calculated using an 8.0 foot maximum seam <br />height. This amounts to 29,497,259 tons which is within less than 1X of <br />the "Reserve Base". <br />Due to certain factors, i.e., OSM, subsidence, State of Colorado, <br />etc.; no detailed mine plan has been drawn up at this time. Recoverable <br />reserves were therefore calculated by first deducting coal contained in <br />a 50 foot boundary strip (453,573 tons) and then using a recovery factor <br />of 50X for the remaining acreage. This results in a total of 14,521,543 <br />tons. Thicknesses in excess of 8.0 feet were not used because of anticipated <br />mining techniques, which include room and pillar methods and retreat <br />• longwall systems. the roof supports used in longwall mining are limited <br />as to the amount of vertical travel. Iherefore, these supports have to <br />be sized to be effective iii the lowest coal encountered, which in tt~i.s <br />