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good internal consistency (R value of 0.907 and 0.911 respectively) with consequently lower <br />Btu /Ib values. <br />The recent Collom drilling shows good internal relationship between ash and energy on a dry <br />basis (R value of 0.997) with a little scatter. <br />This relationship predicts a slightly higher energy than all three previous test programs. With <br />the data generated from the Collom exploration program, it should be possible to adopt a <br />similar relationship for Specific Energy determinations for all historical records. <br />2.3.5 Coal Quality - Data Density <br />The density of data on Collom varies according to the coal quality parameter. The average <br />data spacing is approximately 1,000 ft (300 m) for the Utah International Inc. (UII) data. <br />KEC's hole spacing in Collom is between 2,000 and 4,000 ft (600 — 1200 m). Not all holes <br />have ply data, although almost all have full analyses on a physical composite. <br />There are significant amounts of drill hole data in the current and previous mining areas <br />(West Pit, East Pit and Section 16). In addition, there is a significant amount of historical and <br />recent continuous sampling of blast holes on each mined seam for quality control. <br />TS recommend that CCC use all these data to test for continuity. This will assist with <br />• - Evaluating drill hole spacing in Collom <br />- Interpolation between holes in Collom <br />- Understanding the variability and confidence levels (risk) in the resource <br />2.3.6 Burn Line Identification <br />Identification of burnt coal has not been consistently achieved in Collom. Elsewhere in KEC <br />the drilling density is increased to fully understand the distribution of burnt coal. <br />TS notes that burnt coal zones are often detectable through magnetic surveys and this can <br />be a more cost effective method of mapping than drilling (Figure 2.4 is an example of a linear <br />clinker zones along seam crop lines). It is recommended that CCC consider a surface or <br />airborne magnetic survey for Collom to confirm the limits of burnt coal. <br />• <br />RIO <br />TINTO <br />TS Ref: DRAFT Version: 1 10 T-hi e.] sE•-i— <br />