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Collom Area Geology Pre - Feasibility Report <br />Each of these reviews indicate that the total moisture (as- received) values of <br />the UII drill hole data are lower than moisture values collected by Colowyo. <br />The 2004 drilling data supports this observation as well. The GEM and Korte <br />reviews applied blanket adjustments to the UII moisture values of +4% and <br />+3 %, respectively. (These values were applied directly to the coal quality <br />values in the historical spreadsheets creating erroneous data). <br />The Steve Korte and Collom Exploration team memoranda state that <br />equilibrium moisture values are more consistent than total moisture values <br />across the Collom Resource Area data. <br />The coal quality data from the 2004 drilling data supports both findings that <br />the Utah International total moisture values are too low, and that equilibrium <br />moisture values are more consistent than total moisture, see Figure 6.1 and <br />Figure 6.2. <br />Figure 6.3 compares the relative distribution of total moisture, equilibrium <br />moisture and the Colowyo mine 'product moisture ". The chart illustrates <br />that the equilibrium moisture is less variable than the total moisture. <br />Additionally, the equilibrium moisture values shown in Figure 6.2 are <br />generally less variable than the total moisture values shown in Figure 6.1. <br />August 2005 Page 21 of 38 <br />