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Collom Area Geology Pre - Feasibility Report <br />• Team reviewed the Collom ASG data and prepared a memorandum called <br />"Colowyo ASG Review ", May 2005. This memorandum resides in Appendix <br />G. <br />Colowyo had SGS reanalyze 70 ASG samples. The reanalyzed samples <br />generally displayed an increased ASG value (probably due to sample <br />aging /drying of the samples) but failed to show any improved correlation <br />between ash and ASG. <br />The Colowyo ASG Review memorandum presented RTTS with a rigorous ASG <br />sampling and testing program to assist in isolating ASG calculation issues. <br />RTTS has yet to respond to Colowyo about performing the proposed ASG <br />testing program. <br />The Colowyo ASG Review also examined the use of SGS' equation for <br />• calculating ASG. The SGS equation does not provide a good estimation of <br />ASG because calculated ASG values in low ash coals are too low and <br />calculated ASG values higher ash coal are too high relative to measured ASG <br />values. The Colowyo ASG Review memorandum presented a revised ASG <br />calculation formula based on weight averaged values of moisture, coal and <br />ash densities. <br />The Colowyo ASG Review also determined that use of the Preston - Sanders <br />method for calculating product coal density values is not applicable at <br />Colowyo. The Preston - Sanders method requires the use of inherent moisture <br />of coal. Colowyo does not have inherent moisture data. <br />• <br />August 2005 Page 24 of 38 <br />