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Collom Area Geology Pre - Feasibility Report <br />• Little Collom Gulch North - X Seam contour strip and highwall miner <br />development. <br />• South Collom "I -Pod" surface mining to the "I" seams or possibly L <br />seams. <br />• Colowyo West Pit highwall mining extension to locate highwall <br />mineable coal immediately south of the current west pit in East Taylor <br />Creek. <br />• Y95 Pod - develop Y95 Seam contour strip and highwall miner <br />development. <br />The 2005 exploration plan was developed in part to collect additional <br />geological data for the Lower Wilson I -Seam, the Little Collom Gulch North - <br />X Seam, the South Collom "I- Pod ", the Colowyo West Pit Extension areas, <br />and the Y95 pod. No additional drilling was outlined for the South Taylor <br />area. However, the South Taylor area is currently being reviewed to <br />determine the viability of surface mining to the E2 seam. <br />Details of the Geological Resource Review are located in the Collom project <br />area as "Prospective Resources ". <br />5.3 Collom Area Margin Rank Study <br />In April 2005, Rio Tinto Technical Services (RTTS) performed a detailed <br />margin ranking study for Colowyo of the Collom Resource Area. The margin <br />ranking study highlighted the CMA, the South Collom "I -Pod" area and the <br />Little Collom Gulch North - X Seam area as areas with the most favorable <br />margins across the Collom resource area. RTTS is currently preparing the <br />final report of the Margin Ranking Study. <br />August 2005 Page 18 of 38 <br />