2010-12-17_REVISION - C1981019 ‎(116)‎

• Permit No: C1981019
• IBM Index Class Name: Revision
• Doc Date: 12/17/2010
• Doc Name: Exhibit 6 Item 8 Addendum to Pre-Feasibility Report
• Type & Sequence: PR3
• Media Type: D
• Archive: No

Addendum to the Collom Area Geology Pre - Feasibility Report
• 6.0 Comparison of Resource Estimates
HGC compared the resource estimates of the August 2005 report to the
resource estimates present in this report. Table 6.1 illustrates the
differences between leased Collom Mine Area resource estimates from the
August 2005 Report and this report. The table shows that the total tonnage
has increased by 1.7 %. This increase is most likely due to influences of new
drilling and re- interpretation of seam limits.
Table 6.1
Comparison of Leased In -Situ Collom Area Resource Estimates
Report
Measured
Indicated
Resource Base
Inferred Total Resource Coal
August 2005
82,808
15
82,823
- 82,823
September 2006
77,536
6,674
84,210
- 84,210
Difference
(5,272)
6,659
1,387
- 1,387
% Difference
-6.4%
44391.1%
1.7%
0.0% 1.7%
• Table 6.1 also shows that the volume of 'measured" resources decreased
and 'indicated" resources increased. These changes are due to the re-
evaluation of resource classification distances as described in section 5.1.
Table 6.2 presents the difference in As- Received basis quality between the
August 2005 Report and this report. Table 6.2 shows very little difference
between coal quality estimates between the two reports.
Table 6.2
Comparison of Leased Collom Area Coal Quality Estimates*
Report
Moisture
Ash
Btu /Lb
Sulfur
ASG
Ash Fusion
August 2005
14.57
5.73
10,743
0.48
1.31
2,507
September 2006
14.95
5.45
10,745
0.47
1.32
2,500
Difference
0.37
(0.28)
2
(0.02)
0.01
(7)
% Difference
2.6%
-4.9%
0.0%
-3.3%
1.1%
-0.3%
*As- Received Moisture Basis
Based on the comparisons shown on Table 6.1 and Table 6.2, HGC believes
• that the Collom Mine Area is well defined. Additional exploration in the area
September 2006 Page 20 of 25