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Collom Area Geology Pre - Feasibility Report <br />and Evaluation Project" report prepared in March 2004 for Colowyo by the <br />Collom Exploration Team. (Another, thicker, well developed volcanic ash <br />layer, called KM, exists across the Colowyo resource area. However, the KM <br />bed resides well below seams currently planned for mining in the CMA.) <br />Both the E2 and F1 are very continuous at Collom averaging approximately <br />5.6 and 4.5 feet thick, respectively. The D12, E2, and F1 seams are very <br />continuous seams that significantly aid correlation in the upper part of the <br />deposit. <br />The F2, F3, F5, and F6 are present between two sandy zones between the <br />F1 and the FAB. These seams generally have marginal coal quality, <br />especially, the F5. These seams generally coalesce and split more frequently <br />than adjacent seams. <br />A zone of thin coals and thick sandstone units occupy the area between the <br />F1 and the FAB. Coals such as the F7 and F9 occur in close proximity to the <br />FAB Seam and are relatively thin but thicken in areas of the deposit. <br />The FA and FB seams constitute a large percentage of the resource in the <br />CMA. The FB is the thickest unit and exhibits the highest Btu value of all the <br />coal seams planned for surface mining at Collom above the G series coals. <br />The FA and FB merge within parts of the CMA where it forms the thick FAB <br />Seam. <br />The underlying G7, G8, and G9 complex also constitutes a large part of the <br />resource in the CMA. The G7, G8, and G9 also merge in the CMA and form <br />the thick G789 unit. <br />The GA and GB seams reside at the base of the proposed mining sequence. <br />While these seams have high heat values, they contain borderline compliant <br />sulfur. <br />August 2005 Page 7 of 38 <br />