Figure 4 Picture of the southern part of Mampun Pandan deposit

COAL RESOURCES AND RESERVES

According to John T Boyd, the Coal Reserve estimate as at 30 September 2007 for the Mampun Pandan coal deposit is summarised below:

	Recoverable Tonnes (x’000) (21% Moisture Basis)
	Proved	Probable	Total
West Area	16,283	-	16,283
East Area	6,628	1,127	7,755
Total	22,911	1,127	24,038

In addition to Reserves, the Company has Measured and Indicated Resources with the following specifications:

	Resources			Coal Quality (Dry Basis)
	Tonnes (x’000)			Moisture %		Dry Basis
Seam	Measured	Indicated	Total	A.D.	A.R.	Ash%	Sulfur	Kcal/Kg
C	31,744	3,107	34,851	12.1	20.0	8.0	0.78	7,150
B	-	860	860	9.0	16.9	20.9	0.87	6,016
A	-	1,239	1,239	9.6	18.2	22.7	1.11	5,852
Total	31,744	5,206	36,950

There are three (3) major coal seams identified as mineable within the boundaries of the coal deposit. These coal seams are:
• A Seam;
• B Seam; and
• C Seam

Both A and B seams lie partially below C Seam, approximately 45m and 20m respectively, and are limited in extent with a total resource of 1.2 Mt and 0.9 Mt respectively. It is considered that they would incur too high a strip ratio to mine and therefore would not add significantly to the reserve. These seams have not been included in this reserve estimate, with only the coal in C Seam, which ranges in thickness from 2 m to 10 m, contributing to the reserve.

 

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