2013-04-10_PERMIT FILE - C1981019 (78)

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Collom Area Geology Pre - Feasibility Report 6.0 Geological Audits and Corporate Oversight RTTS personnel visited the Colowyo mine in October 2004, to perform a preliminary review of the Collom Mine development project. RTTS outlined the results of this visit in memorandum "AR2262 - Collom Interim Review Report (Draft)", December 2005, residing in Appendix G. RTTS performed a geological audit of the Collom Mine Development in March 2005. The audit is part of Rio Tinto's project development processes. The audit consisted of reviewing: • the existing geological data for Collom, • the methods of data collection and established protocols, • the drill hole database and data security, • data completeness and integrity. The findings of the Geological audit were published in the RTTS report "BR3273 - "Review of Colowyo Collom Geological Data ", May 2005 (Appendix G). RTTS found the drill hole data being collected in a complete and orderly manner. RTTS did highlight a number of data inconsistencies as part of the geological audit. Colowyo addressed and corrected these inconsistencies and drafted a reply memorandum to RTTS entitled "Response to Geological Database and Modeling Issues raised in RTTS report Review of Colowyo Collom Geological Data', May 2005" (Appendix G). RTTS highlighted several key issues of the Collom geological data that needed additional investigation. RTTS recommended performing a geostatistical review of the Collom drill hole data with respect to Colowyo mine drill hole data and production data. RTTS also highlighted concerns regarding moisture values within the coal quality data and regarding coal density or specific gravity. The results of the geostatistical review are outlined Section 6.1. Discussions regarding coal moisture and coal density reside in Section 6.2 and Section 6.3, respectively. August 2005 Page 19 of 38