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Collom Area Geology Pre - Feasibility Report <br />The Collom LBA area overlaps most of the CMA (Phase 1 & 2). Smaller <br />portions of the Collom LBA exist in the Phase 3 area, the Phase 4/I -Pod area, <br />and in a small area adjacent to the north end of the CMA. <br />8.3 Estimated Coal Resources <br />8.3.1 Total Collom Resource Estimate <br />The grand total of estimated recoverable coal resources of the Greater <br />Collom Area compiled from the sum of the CMA, Phase 4/I -Pod area and the <br />Phase 3 area is 484.4 million tons. Approximately 451 million tons belong to <br />the "Measured + Indicated" category with an estimated recovery factor of <br />90 %. Table 8.2 illustrates the breakdown of measured, indicated and <br />inferred tons of coal over the entire Collom area. <br />Table 8.2 <br />Estimated Recoverable Coal Resources of the Greater Collom Area <br />Measured <br />Resource Area Measured Indicated Indicated Inferred Total <br />Collom Mine Area <br />74,161 <br />13 <br />74,174 <br />- 74,174 <br />Total Controlled <br />74,161 <br />13 <br />74,174 <br />- 74,174 <br />Collom Mine Area <br />90,493 <br />19,146 <br />109,639 <br />577 110,217 <br />Phase 4/I -Pod <br />74,811 <br />95,237 <br />170,048 <br />32,038 202,087 <br />Phase 3 62,801 39,968 102,770 1,129 103,899 <br />Total <br />Uncontrolled 228,105 154,352 382,457 33,745 416,202 <br />Grand Total 302,266 154,365 456,631 33,745 490,375 <br />Note: all values in thousands of tons <br />The estimated product quality of the Measured + Indicated resources in the <br />Greater Collom Area is: <br />August 2005 Page 33 of 38 <br />