.The analyses and rankings confirm the “visual characteristics” reported in the Company’s news release dated April 28, 2008.
The Company believes that the coal encountered in the drill holes is from the Mannville/Swan River Group of Cretaceous age.
The coal is black and moderately hard and the 47 samples have been ranked according to ASTM - D388 as follows; High
volatile bituminous B (1); High volatile bituminous C (21) Sub-bituminous A (20); Sub-bituminous B (4); Sub-bituminous
C (1). Overall, the initial proximate analyses for the 22.6 metres of continuous coal in each hole show a range of Calorific
Values (dry basis) of 18,900 to 23,150 Kj/Kg (8,100 to 10,000 BTU/lb) with an average of approximately 21,000 Kj/Kg (9,200
BTU/lb). The initial sulfur content ranges from 0.25 to 3.84% with an average around 1.5%. Coal intervals with partings
located below the continuous coal seam intercepts have widths of 4.6 and 10.0 metres respectively. These lower intervals have
Calorific Values of 13,700 Kj/Kg (5,900 BTU/lb) and 10,400 Kj/Kg (4,400 BTU/lb).
Average Spot Coal Prices
(Dollars per Short Ton) |
| Week Ended | Central
Appalachia
12,500 Btu,
1.2 SO2 | Northern
Appalachia
13,000 Btu,
<3.0 SO2 | Illinois Basin
11,800 Btu,
5.0 SO2 | Powder
River Basin
8,800 Btu,
0.8 SO2 | Uinta Basin
11,700 Btu,
0.8 SO2 |
| 03-July-08 | $117.60 | $130.00 | $70.00 | $14.00 | $54.00 |
| 11-July-08 | $134.55 | $138.00 | $70.00 | $14.00 | $56.00 |
| 18-July-08 | $139.30 | $138.00 | $70.00 | $14.00 | $56.00 |
| 25-July-08 | $140.00 | $149.00 | $71.00 | $12.50 | $62.00 |
| 01-Aug-08 | $140.00 | $149.00 | $71.00 | $12.50 | $62.00 |