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

• Permit No: C1981019
• IBM Index Class Name: Permit File
• Doc Date: 4/10/2013
• Doc Name: Geology Pre-Feasibility Report
• Section_Exhibit Name: Volume 17 Exhibit 6 Item 7
• Media Type: D
• Archive: No

Collom Area Geology Pre - Feasibility Report
Table of Contents
ExecutiveSummary ................................................ ............................... i
Table of Contents ............................................... ............................... iii
1.0 Introduction and Project Location ....................... ............................... 1
1.1 Location and Physiography ....................... ............................... 1
2.0 Surface Control and Coal Control ....................... ............................... 3
3.0 Regional Geology, Coal Seam Development and Structural Geology ...... 5
3.1 Regional Geology .................................... ............................... 5
3.2 Collom Coal Geology ............................... ............................... 6
3.3 KM Bed .................................................. ............................... 8
3.4 Paleochannels ........................................ ............................... 9
3.5 Affects of Burn ....................................... ............................... 9
3.7 Miscellaneous Geological Issues ................. .............................11
3.7.1 Abandoned Geophysical Probe ....... .............................11
3.7.2 X -Seam Coal Resources and Potential Spoil Site ............ 11
4.0 Exploration History ............................................ .............................12
4.1 2004 Exploration Program ......................... .............................12
4.1.1 2004 Exploration Drilling ............... .............................13
4.1.2 2004 Coal Quality ........................ .............................14
4.2 Pre -2004 Collom Exploration ..................... .............................15
4.3 2005 Exploration Program ......................... .............................16
5.0 Resource Area Targeting and Margin Rank Studies .............................17
5.1 Colowyo Cost Ranking Study ..................... .............................17
5.2 Geological Resource Review ...................... .............................17
5.3 Collom Area Margin Rank Study ................. .............................18
6.0 Geological Audits and Corporate Oversight ........... .............................19
6.1 Geostatistical review of Collom drill hole data ...........................20
6.2 Review of Collom Moisture ........................ .............................20
6.3 Review Apparent Specific Gravity ............... .............................23
7.0 Correlation, Geological Database and Geological Modeling ...................25
7.1 Seam Correlation ................................... ............................... 25
7.2 Drill Hole Database .................................. .............................26
7.3 Geological Modeling ................................. .............................27
7.4 Coal Quality Model ................................... .............................29
8.0 Coal Reserve and Reserve Estimates ................... .............................31
8.1 Resource and Reserve Parameters ............. .............................31
8.2 Collom Resource and Reserve Areas ........... .............................32
8.3 Estimated Coal Resources ......................... .............................33
8.3.1 Total Collom Resource Estimate ..... .............................33
8.3.2 Collom Mine Area (Phase 1 & 2) Resource Estimate ....... 34
8.3.3 Phase 4/I -Pod Area Resource Estimate ........................35
8.3.4 Phase 3 Resource Estimate ........... .............................36
August 2005 Page iii