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Collom Area Geology Pre - Feasibility Report <br />petrographic work on the KM bed, both determining that the unit is volcanic <br />in origin. <br />3.4 Paleochannels <br />Drilling data within Collom show occurrences of paleochannels across the <br />CMA. The paleochannels can greatly thicken and thin over relatively short <br />distances. Thus, interburden thicknesses between seams also vary with the <br />same magnitude. An interpreted paleochannel increases the interburden <br />thickness between the FB and G7 seams to over 100 -feet in less than a <br />quarter -mile. Abrupt thickening and thinning of burden sequences can cause <br />locally steep dips ( >15 degrees) and might create local operational <br />difficulties. <br />3.5 Affects of Burn <br />Natural burning of coal occurs along the perimeter of the Collom coal deposit. <br />The extent of burn varies from a few feet to several hundred feet in depth. <br />Observations of burn within the Colowyo West Pit and exploration drilling <br />indicate that burned areas occur in association with primary and secondary <br />jointing. <br />The extent of natural burn is greatest along the west - facing slope of Collom <br />Gulch, which occurs on the west side of the CMA. Thick burn occurred in drill <br />holes C -04 -10 and C -04 -12 (Sections 2 and 3, T. 3 N., R. 94 W) where the <br />FAB and G789 existed. Burned coal areas delineated in 2004 exploration <br />reduced the estimated coal resource estimates within the CMA by <br />approximately 11 %. (2005 drilling to date has not found any large areas of <br />burn like those seen in C -04 -10 and C- 04 -12.) <br />During the 2004 Exploration Program, drill hole C -04 -15 (SW, NW, Section <br />35, T. 4 N., R. 94 W) contained elevated down hole temperatures exceeding <br />800 which indicated the probable presence of active burning within the E2 <br />Mrali" <br />August 2005 Page 9 of 38 <br />