Prepared by Technical Services Department Quintette Coal ...

Prepared by Technical Services Department Quintette Coal Limited

TITLE PAGE

1987 EXPLORATION REPORT

TRANSFER, GRIZZLY AND PERRY CREEK AREAS

COAL LICENCES: 3340, 3335, 3341, 3661, 3662, 3660, 7849; 7848, 7847, 7046, 7845, 3339: 3596, 3600, 4534.

QUINTETTE COAL LIMITED - Onner/Operator

Submitted: February 29, 1988

for: F.A.R.E. (Financial Assistance for Mineral Exploration) PROGRAM - REF # 10963-HI9

Location: Latitude - 55' 00' N Longitude - 121' 10' W

NTS Map Sheet 93-P-3 93-I-14

Peace River Land District

Work conducted between May 5, 1987 and January 16, 1988

Report prepared by: Technical Services Department Quintette Coal Limited

.

PREFACE

This report documents exploration and development work completed to the end of

1987 on the areas known as Transfer and Grizzly, and Perry Creek, on Quintette I

Coal Limited's Coal Licences in northeast British Columbia. This report is

submitted in support of the Financial Assistance for Mineral Exploration

(F.A.M.E.) Grant #10963-M19.

Exploration work has been done on Quintette's licences since 1971. The

majority of work in the Transfer and Grizzly Areas was done in 1987. All work

has been done under the supervision of Denison Mines Limited, Coal Division,

and Quintette Coal Limited. The data presented in the report is from

rotary/percussion drilling, core drilling, geologic mapping, and adits. The

1987 geologic data is recorded on geologic maps which locate the mapping,

drill holes and adits. Descriptive logs, geophysical logs and analytical data

are presented to supplement the geology plans.

The report presents regional and detailed geologic descriptions of the

resource areas.

This report references all previous geologic reports on the Quintette

Property.

Previous nomenclature for the areas discussed in this Report:

Transfer Area - Johnson Area, Hermann Area Grizzly Area - Hermann South, DuPont Licence Area Perry Creek Area - Wolverine Area, Wolverine River North

(ii)

STATEMENT OF QUALIFICATIONS

I, David G. S. Johnson, graduated from Mount Allison University, Sackville,

New Brunswick, with a Bachelor of Science Degree in Geology in May, 1970. I

have worked in Mineral Exploration for six years, managing field exploration

programs and writing reports and recommendations on those programs. I have

worked in coal exploration and mine development for the last ten years in

northeast British Columbia. I have conducted field exploration, geologic

mapping, core logging, trenching; supervised core drilling, rotary drilling,

adit driveage, and associated field work; managed exploration crews,

contractors, and reclamation; participated in mine development, coal quality

control, reserve evaluation; have prepared several structural and

stratigraphic interpretations of coal reserve areas in northeast British

Columbia, including the Mesa Extension Reserve Area and the Transfer Area.

David G. S. Johnson

Senior Geologist

Quintette Coal Limited

Tumbler Ridge, 9. C.

(iii)

0”INTE”E 0”INTE”E

(iv) (iv)

Bibliography Bibliography

Wolverine Area - Report on Exploration Work North Wolverine Area - Report on Exploration Work North

of the Wolverine River, January 1973 of the Wolverine River, January 1973

1974 Wolverine Exploration Report, December 1974 1974 Wolverine Exploration Report, December 1974

1984 Quintette Geological Report, April 1985 1984 Quintette Geological Report, April 1985

-Transfer Area Geological Report, March 1987 -Transfer Area Geological Report, March 1987

Mesa Extension Geological Report, March 1987 Mesa Extension Geological Report, March 1987

1.0

2.0

1987 EXPLORATION REPORT TRANSFER, GRIZZLY AND PERRY CREEK AREAS

Table of Contents

Page

Title page Preface Statement of Qualifications Bibliography

i ii

. . . 111

iv

INTRODUCTION

1.1 Location and Access 1.2 Physiography 1.3 Property Description

1.3.1 Coal Licences 1.4 Economic Assessment

1.4.1 Structure 1.4.2 Coal Seam Thickness 1.4.3 Coal Quality 1.4.4 Resources

l-1 l-3 1-3 l-4 1-5 l-5 1-5 l-6 l-8

EXPLORATION SDHARY

2.1 Exploration Programs Prior to 1987 2-l 2.2 1987 Objectives and Scope 2-2 2.3 Project Management and Primary Contractors 2-3 2.4 Standards and Procedures 2-4

2.4.1 Geophysical Logging 2-4 2.4.2 Rotary Drilling 2-5 2.4.3 Diamond Drilling 2-5 2.4.4 Drill Core Analysis 2-6 2.4.5 Geologic Mapping 2-6 2.4.6 Topographic Survey 2-7 2.4.7 Adits 2-8 2.4.8 Adit Sample Analysis 2-8 2.4.9 Geotechnical Studies 2-9

2.4.10 Reclamation 2-9


Table of Contents

Page

3.0 GEOLOGY

3.1 Regional Stratigraphy 3.2 Local Stratigraphy

3.2.1 Transfer 3.2.2 Grizzly 3.2.3 Perry Creek 3.2.4 Transfer Coal Seam Development

and Correlation 3.2.5 Grizzly Coal Seam Development

and Correlation 3.2.6 Perry Creek Seam Development

and Correlation

3.3 Regional Structure 3.4 Local Structure

3.4.1 Transfer 3.4.2 Grizzly 3.4.3 Perry Creek

3-1 3-1 3-1 3-5 3-5 3-6

3-a

3-9

3-10 3-10 3-10 3-11 3-11

SECTION DESCRIPTION TABLE NUMBER

2.0

3.0

1987 Exploration Summary 2.1

1987 Rotary Drilling Summary 2.2 1987 Diamond Drilling Summary 2.3 1987 Core Sampling Summary 2.4

Transfer - Summary of Interseam Strata in the Gates Member

Grizzly - Summary of Interseam Strata in the Gates Member

Transfer Average Seam Thickness Grizzly Average Seam Thickness

3.1


LIST OF TABLES

3.2

3.3 3.4

SECTION DESCRIPTION FIGURE NUMBER

1.0

2.0

3.0



LIST OF FIGURES

Quintette Coal Limited - General location 1.1

Northeast British Columbia Properties 1.2 Site Infrastructure 1.3 Quintette Coal Licences 1.4

1987 Drill Core Analysis Flow Diagram ' 2.1

General Stratigraphic Section 3.1 Middle Gates Formation Regional 3.2

Stratigraphic Correlation Typical Section of F Seam Typical Section of G Seam Typical Section of 3 Seam Typical Section of K Seam Simplified Geology Regional Geological Structure of the Transfer Area

3.3 3.4 3.5 3.6 3.7 3.8


INDEX - APPENDICES

DESCRIPTION DRAWING NUMBERS

Appendices in Text

T.l Legal Description of Coal Licences

T.2 Drill Hole Summaries T.2.1 Rotary Drill holes T.2.2 Diamond Drill holes

T.3 Adit Drawings - QHA8701 - QHA8702 - QHA8703 - QHA8704 - QHA8705 - QHA8706

APPENDIX 1

1.1 Exploration Location Maps (l:lO,OOO) 1.1.1 Transfer/Grizzly 1.1.2 Perry Creek

1.2 Geology Maps 1.2.1 Transfer Area (2 sheets)

1.2.2 Grizzly Area 1.2.3 Perry Creek Area 1.2.4 Regional Geology Map

88-905-25-001 88-905-25-002 88-905-25-003 88-903-25-004 88-903-25-005 88-903-25-006

87-902-28-001 87-906-28-001

87-903-20-001 87-903-20-002 87-905-20-001 88-906-20-001 77-002-20-002

(i)


INDEX - APPENDICES

1.3 Survey Maps 1.3.1 Transfer and Grizzly Areas

1.3.2 Adit Locations

1.3.3 Perry Creek Area 1.4 Topographic Maps - 1987 Topographic Index Map

- Sheet 1 - Sheet 2 - Sheet 3 - Sheet 4 - Sheet 5 - Sheet 6 - Sheet 7 - Sheet 8 - Sheet 9 - Sheet 9a - Sheet 10 - Sheet 11 - Sheet 12

APPENDIX 2

87-76-l 87-76-2 87-76-4 87-76-5 87-76-6 87-76-7 87-76-9 a7-76-9a 87-76-9b 87-76-9c 87-76-9d 87-76-a 88-902-12-01 88-902-30-01 88-902-30-02 88-902-30-03 88-902-30-04 88-902-30-05 88-902-30-06 88-902-30-07 88-902-30-08 88-902-30-09 88-902-30-10 88-902-30-11 88-902-30-i2 88-902-30-13

2.1 Analytical Results 2.1.1 Core Analysis 2.1.2 Adit Sample Analysis

2.2 Geotechnical and Hydrogeological Assessment for Grizzly/Transfer Project

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INDEX-APPENDICES

Addendum I Geophysical Logs

Addendum II Volume I Descriptive Logs

QHD87001 to QHD87006

Volume II Descriptive Logs

QHD87007 to QHD87012

Note: The two Addenda are supplied to the Ministry of Energy, Mines

and Petroleum Resources, Victoria, only (2 copies of each).

Other copies and originals are on file at the Administration

Building, Quintette Coal Limited, Tumbler Ridge.

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1.0 INTftODUCTION l-1

The Quintette property is situated in northeast British Columbia in the Peace

River Land District in the inner foothills of the northern Rocky Mountains.

Quintette Coal Limited (QCL) has a contract to produce five million tonnes of

clean metallurgical coal per year. All coal production is from the Lower

Cretaceous Gates Formation.

Work on the QCL property was initiated in 1971 and has proceeded almost

continually through mine startup in 1982 to the present. Exploration of the

Transfer Area reserve began with regional scale and geologic mapping. Initial

drilling was performed in 1976 in the Transfer Area, in 1984 in the Grizzly

Area, and in 1971 in the Perry Creek Area. Drilling and mapping have

continued as the need to evaluate the reserve potential has increased.

Extensive sampling and testing programs have confirmed that QCL coal is a good

quality medium volatile coking coal. It is a strong coking coal, and is

capable of replacing most of the world's best medium and low volatile coking

coals in blends.

Potential mineable reserves on the QCL property are estimated at 2.8 billion

tonnes of coal in-place to a maximum depth below surface of 500 m.

Preliminary estimates indicate a total resource of 27.9 million tonnes of

product coal in the Transfer and Grizzly areas.

The purpose for exploration in the Transfer, Grizzly and Perry Creek Areas is

to develop mineable open pit reserves which may prove more economically

attractive than certain portions of QCL's current long term mining plan.

Drilling has been completed in all three areas of these areas in 1987.

1.1 LOCATION AND ACCESS

The QCL property is located in the Rocky Mountain Foothills belt of

northeastern British Columbia (see Figures 1.1 and 1.21. The coal bearing

trend of this region is commonly referred to as the Peace River Coal Block.

The locations of the Transfer, Grizzly and Perry Creek Areas relative to the

property's primary,infrastructure are illustrated in Figure 1.3. The focus of

recent exploration activity (1987) and this report is on the two distinct

geological structures which, in order of resource size, are Transfer and

Grizzly. A minor amount of exploration (5 rotary drill holes) was carried out

in the Perry Creek Area.

Air distances to communities surrounding the property are as follows:

City

Prince George

Dawson Creek

Chetwynd

Tumbler Ridge

Population*

67,721

10,544

2,774

4,385

*1986 Census

Distance

160 km southwest

106 km northeast

98 km north

20 km east

The property is accessible by three routes: the Boundary Road (Heritage

Highway) from Tupper, British Columbia; the Fellers Heights Road (Heritage

Highway) from Dawson Creek/Fellers Heights; and Highway 29 from Chetwynd to

Tumbler Ridge. The distances for the routes are as follows:

Boundary Road - Dawson Creek to Tumbler Ridge 210 km

Fellers Heights Road - Dawson Creek to Tumbler Ridge 127 km

Chetwynd to Tumbler Ridge 100 km

Tumbler Ridge to plantsite 18 km

Access within the property is gained by several existing roads developed for

the Mine. The 1986 and 1987 Exploration Programs established 4-wheel drive

access routes from the exi,sting roads into the exploration areas. The

location of these routes is shown on the geology plans in Appendix 1.2 and on

the Exploration Location Maps in Appendix 1.1.

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1-3

The current road distance from the Preparation Plant and Mine Service Complex

to the three target areas are listed as follows:

,. Exploration Areas Current Road Access Distances

From I To I Distance (km) I Transfer I Preparation Plant 8 22 I

I Mine Service Complex i 13 I

Grizzly I Preparation Plant I 7 ! Perry Creek 1 Preparation Plant I 28 I

I Mine Service Complex i 20 !

1.2 PHYSIOGRAPHY

The Transfer and Grizzly Areas range from sub alpine to well below tree line

in the Murray River Valley. Stands of spruce and pine with cottonwood and

poplar are predominant. The Perry Creek Area is also below tree line in the

Wolverine River Valley and has been partially logged. The range in elevation

for each area is as follows:

Maximum and Minimum Elevations Above Sea Level

!Area lTransfer IGrizzly iPerry Creek

Maximum Elevation (ml 1 Minimum Elevation (m) 1650 , 780 1150 I 780 1100 I 925

i I

1.3 PROPERTY DESCRIPTION

The QCL property consists of 136 Coal Licences covering an area of

33,001 ha and Coal Lease #6 consisting of 11,667 ha. The original QCL

licences were acquired by Denison Mines Limited (DML) in 1969 and 1970. The

first coal exploration on the property was undertaken by DML in 1970. A

significant exploration program was conducted each of the following years to

1977. Smaller programs were completed in 1979 and 1980. In 1981, large scale

exploration was again undertaken.

For the purpose of developing the Coal Licences, QCL was incorporated under

the laws of British Columbia, December 20, 1971.

DML was appointed by QCL to manage the QCL project through the feasability and

construction/development stages of the project and to assume responsibility

for the management of operations thereafter.

Current major partners in Quintette Coal Limited are DML, Charbonnages de

France, the .Japanese Steel Industry, Mitsui Mining, Tokyo Boeki, and Sumitomo

Corporation.

The Grizzly and Transfer Areas are situated between the two sections of Coal

Lease #6. The Transfer Area is approximately 3 km long and 700 m wide

(average) while the Grizzly Area is 1.6 km in length and 500 m wide on

average. Slopes vary from gentle (0' to 10') to maximum natural slopes of

36'.

The Perry Creek Area is situated north of Mesa Pit on the North bank of the

Wolverine River Valley. Its slopes are predominately gentle with local small

cliffs due to thick conglomerates in the Middle Gates Formation.

1.3.1 Coal Licences

The location of coal licences covering the exploration areas is illustrated in

Figure 1.4. QCL's coal licences are described in Appendix T.l.

The following table lists the exploration areas and the specific licences that

cover each area.

Area lCoa1 Licences !Type of Work performed Transfer 13340,3335,3341 lRotary and Core Drilling, Adits, Mapping

13661,3662,3660,7849) Grizzly 17848,7847,7846, iRotary and Core Drilling, Adits, Mapping

17845,3339 ! Perry Creek 13596,3600,4534 iRotary Drilling

l-5

1.4 ECONOMIC ASSESSMENT

Exploration.in the Transfer and Grizzly Areas has indicated the potential to

~develop mineable open pit reserves which may prove more economically

attractive than other portions of QCL's long term mining plan.

In the Perry Creek Area, the favourable structure and thick coal may prove an

attractive economic situation.

Maps showing the location of exploration activities are presented in Appendix

1.1.

1.4.1 Structure

Resources have been measured on anticline limbs in both the Transfer and

Grizzly Areas based on data to the end of 1986. These structures are similar

in nature to the Shikano Anticline currently being mined, with their limbs

generally dipping from 35' to 65' with northwesterly plunges from 10' to 30'.

The Transfer Area has a larger resource potential, mainly attributed to the

near surface Middle Gates Formation along the axis of the Transfer Anticline.

In the Perry Creek Area, the Perry Creek Syncline has long been recognized as

an open fold with a very shallow dipping west limb. It is in this

structurally simple limb that near surface coal has been identified.

1.4.2 Coal Seam Thickness

In the Transfer and Grizzly Areas, seams F, G, J, Kl and K2, have been

identified from drilling and are readily correlated to coal seams in the

Shikano deposit. In both anticlines, thin or poorly developed intersections

have been found in D and E coal seams resulting in their exclusion from

current resource evaluations. Seams F and G are well developed, forming

single, thick mining sections in both structures. The interseam partings

between J, Kl and K2 are variable in thickness such that this zone may be

mined either singly (including all partings) or as two separate mining /

sections. Seam K2 may not be recoverable in the Grizzly area due to its

thinness and the thick interseam parting between Kl and K2.

Thickness range and average values are compared to Shikano deposits as

follows: Average Mining Section Thickness*

Seam Grizzly Transfer Shikano

D 2.81 E 2.12 F 3.52 4.05 4.05 G 3.19 3.70 3 27 J 4.65 J+Kl 6.11 7.13 Kl 0.87 Kl+K2 - 1.12

*from pre-1987 data. These are averages of the values used for current

resource tonnages.

In Perry Creek Area, J is the main economic seam. From 1987 drilling this

seam has a thickness of at least 5.5 metres. This seam and its thickness is

correlateable to Jl seam in Mesa Pit. G seam was also intersected although

its thickness is only 0.9 metres. 52 seam, which exceeds 2 metres in

thickness, is separated from Jl by a parting of 1.6 metres.

1.4.3 Coal Quality

Transfer and Grizzly coal is self coking and medium to low volatile bituminous

in rank. The quality data is based on detailed analysis of coal core and bulk

adit samples.

Coal analysis indicates that the coal is typical of other QCL coals. The

following tables summarize the mean values of the raw and clean coal analysis

by seam:

7 of this report contains coal quality data, and remains confidential under the terms of the Coal Act Regulation, Section 2(1). It has been removed from the public version.

http://www.bclaws.ca/EPLibraries/bclaws_new/document/ID/freeside/10_251_2004

http://www.bclaws.ca/EPLibraries/bclaws_new/document/ID/freeside/10_251_2004�

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1-8

1.4.4 Resources

In the Transfer and Grizzly Areas, preliminary estimates based on the 1986

exploration data indicate.a total resource of 27.9 million tonnes of product

coal. These resources are summarized as follows:

Combined Grizzly Transfer Pits

Product Met (M tonnes) 5.992 20.766 26.758 Product Thermal (M tonnes) 0.337 0.772 1.109

1987 Exploration has confirmed coal thicknesses and highlighted some

structural changes from the 1986 interpretation, however, the total resource

is expected to be similar to the 1986 evaluation. A new resource calculation

will be completed for the Transfer area based on the 1987 interpretation.

In the Perry Creek Syncline, initial indications are of a recoverable resource

(open pit mining) varying from 1.5 million tonnes to 15 million tonnes of

product coal. The resource is highly dependent on a favourable shallow

dipping structure and good seam development which will be defined with future

exploration.

, 1200

NORTHWEST TERRITORIES

BRITISH COLUMBIA

: . .

DAWSON CREEK

100

ml Quintette Coal limited

GENERAL LOCATION

Fig. 1.1

MBLER RIDGE

2 I

- 55.15’ 93-P-3

?A ,.t 9

Y< D

L

E F G

93-P 2 l-

i

Q’ L

0

k

I

1

! TUMBLER I

LEASEI

SC& (Km)

5.. ,, . 0 5 y .

- 5.5. IS’-

K

)GE

E

C

K

0 I c

QUINTETTE

OUINTETTE

2-l

2.0 EXPLORATION SWMARY

A summary of exploration activity undertaken in the Transfer and Grizzly Areas

and Perry Creek Area to the end of the 1987 field season is presented in Table

2.1.

2.1 EXPLORATION PROGRAMS PRIOR TO 1987

Regional scale geologic mapping (1:5000) aided by aerial photograph

interpretation was the only form of geological assessment undertaken in the

Transfer and Grizzly Areas prior to 1976 when the first three helicopter

supported diamond drill holes were completed (QJD7641, 7642, 7643). The next

phase of work involved the completion of one rotary drill hole (QJR8001) in

1980 to test Gates Member coal thickness in the remnant syncline structure

referred to as the Hermann Syncline. This structure was' accessed in 1980 when

Nabors Drilling Limited completed a gas well (B.P. et al Murray d-83-J-93-1-

14) for British Petroleum through the structure, encountering a potentially

productive gas bearing horizon well below the coal measures. During 1982, six

rotary drill holes (QHR8201-8206) were completed on the forenoted well site

and access road to test coal thicknesses of both the Hermann Syncline and the

Hermann North Area, where a steeply dipping Gates section extends

southeasterly from the Marmot subpit in the Mesa Mine. Results of this

program led to the completion of 5 rotary drill holes (QHR8301-8305) in 1983

plus access road construction and detailed geological mapping (1:2500 scale)

in Hermann North. In 1984, the drilling of 12 additional rotary holes and

trenching were undertaken in the Hermann Syncline, plus 6 rotary holes and 3

diamond holes in Hermann North. This'season also saw the completion of 6

rotary holes in the Gething Area and the first rotary (6) and diamond (1)

holes in the Hermann South Area, now referred to as the Grizzly Area. In 1985

limited mapping and the first two diamond drill holes were placed in the

Transfer Anticline.

The 1986 Exploration program allowed for the completion of detailed geological

mapping of naturally exposed outcrops as well as those exposed by access

routes and trench construction. No rotary drilling was performed in the

Transfer or Grizzly Areas, but 7 diamond drill holes, 2 in the Grizzly Area

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2-2

and 5 in the Transfer Area were completed. This supplemented the above-noted

mapping such that a preliminary determination of resources could be made

within approximate pit limits (unscheduled mine area).

In the Perry Creek Area, the coal measures were drilled in 1971 with the

completion of six core holes on the northeastern slopes of Fortress Mountain.

These holes were drilled to test for underground potential. Hole #QWD7119,

closest to the current area of interest, intersected a thick J seam section.

2.2 1987 ODJECTIVES AND SCOPE

Primary objectives of the exploration program were to:

1. Undertake in-fill drilling to confirm seam continuity as follow-up to 1986 exploration.

2. Confirm the extent of overburden in the southeastern portion (Murray River Valley) of the Grizzly and Transfer Areas and at the same time to confirm the continuity of the coal between Transfer and Grizzly.

3. Obtain bulk samples from test adits driven in the mineable coal seams to further assess washability and to undertake pilot scale carbonization tests in Transfer and Grizzly Areas.

4. Determine the presence of a thick J seam in the Perry Creek Syncline.

In order to fulfill these objectives, 7 diamond and96 rotary drill holes were

completed in the Transfer Area while 5 diamond and 21 rotary drill holes were

located in the Grizzly Area. Three adits were driven into the mineable coal

seams in each area in order to obtain the necessary bulk samples.

In the Perry Creek Area, five.rotary holes were completed, with four holes

intersecting a thick J seam sequence.

r O”INTEnE ------I z.3 PROJECT MANAGEMENT AND qRIMARY CONTRACTORS

This report and the exploration work was completed by QCL geology staff,

consultants and contractors.


G. P. Gormley

D. G. S. Johnson (Author)

D. P. Lortie

N. C. Hori

T. Wall

K. Vandenameele

F. Worthington

Consultants

I. Kakizaki

H. Wada

R. Leeder

J. H. Perry

Contractors 1987

Loiselle Contractors Ltd

Tonto Drilling

Western Hydro Air Drilling

BPB Instruments

Target Tunnelling

Stables, Tryon and Associates

Western Photogrammetry

Commercial Testing and Engineering

Birtley Coal and Minerals Testing

Piteau and Associates

- Chief Geologist

- Senior Geologist

- Geologist

- Geological Technician

- Geologist

- Draftsperson

- Senior Coal Preparation Engineer

- Chief Geologist, Mitsui Mining

Overseas Development Company Ltd

- Geologist, Mitsui Mining Overseas

Development Company Ltd.

- Manager of Product Services, Denison

Mines Limited, Coal Division

- JHP Coal Ex Consulting Ltd

- Road and Drillsite construction

and Reclamation

- Core drilling

- Rotary drilling

- Geophysical Logging

- Adit Construction and Sampling

- Surveying

- Topographic mapping

- Core analysis

- Bulk sample washing and analysis

- Geotechnical Studies

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2-4

2.4 STANDARDS AND PROCEDURES

2.4.1 Geophysical Logging

Rotary and diamond drill holes have been logged by down hole geophysical

methods since the commencement of drilling in 1971 (Perry Creek) and 1976

(Transfer). However, in some instances, the caving of drill holes either

prevented the completion of geophysical logs or required the holes to be

logged through the drill stem.

The types of geophysical logs completed include:

1. Gamma

2. Neutron

3. Density

4. Caliper

5. Deviation

6. Resistivity

Geophysical logging was conducted by BPB Instruments Ltd and by QCL during

1987. Mining section thicknesses are determined from the core holes using

detailed geophysical logs. Seam depths are determined from the 1:20 scale

density geophysical log. The core descriptive log is then adjusted to these

depths and missing core locations identified. The coal seam thickness is

determined by adjusting the apparent seam thickness (distance between top and

bottom as picked on the geophysical log) by the cosine of the measured bedding

angle in the core.

Rotary drill holes are used for seam and rock thicknesses in the sense that

the tops and bottoms of coal seams and correlation points are marked on the

profile of the drill holes on the sections. The interpretation then uses

these intersections when the top (and at times, the bottom) structure contour

of each seam is drawn.

2-5

Copies of all geophysical logs are available in the Administration Building of

Quintette Coal Limited and copies of all logs are presented as Addendum I to

this report.

2.4.2 Rotary Drilling

The contract rotary drilling companies have drilled both vertical holes and

angle holes (to -45'1 with both downhole hammer and conventional rotary bits,

using reverse circulation equipment. During 1987, no sampling of the rotary

cuttings was done. The drill rig used for all 1987 drilling was Western Hydro

Air's Schramm model 685 (1980). The drillers daily reports are kept on file

at the Administration Building, Quintette Coal Limited. These reports record

coal intersections, water levels and estimated flow rates. The locations of

all rotary drill holes are on the geology plans in Appendix 1.2.

Appendix T.2.1 contains summary sheets of.all rotary holes which identify seam

intersections. Table 2.2 lists all rotary holes with their location,

elevation, and depth.

2.4.3 Diamond Drilling

During 1987, Tonto Drilling Limited drilled vertical and angle holes of H.Q.

core size (64 mm diameter) with conventional wireline recovery equipment using

a Longyear 44 drill rig. Each drill hole was geophysically logged followed by

detailed visual core descriptions and complete sampling of all mineable coal

sections.. Approximately 5 kilograms of coal sample was taken from each metre

of mineable section and sent to Commercial Testing and Engineering for

washability and related analyses as described in the following section.

The location of diamond drill holes in the Transfer and Grizzly Areas are

shown on the geology plans in Appendix 1.1 and a summary sheet of each 1987

core hole is found in Appendix T.2.2. The detailed written descriptions of

all cored drill holes are available in the QCL Administration building.

Copies of each descriptive log are presented as Addendum II (Volumes 1 and 21

to this report. Table 2.3 lists all diamond holes with their location,

elevation and depth.

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2.4.4 Drill Core Analysis

Drill core samples of mining sections where 80% or better core recovery has

been achieved, normally provide the primary data points for the assessment of

in-place ash content, washability yield predictions, and other physical,

rheological, and chemical properties. Normal procedures involve the

segregation of a selected mining section into various sample components based

on coal and rock partings. These samples are then combined into a single

sample or composite, representing the actual section to be mined.

All 1987 core analysis was conducted by Commercial Testing and Engineering,

Vancouver, B.C. The analytical procedure is presented in Figure 2.1. The

analytical test results from the drill core sampling are presented in Appendix

2.1.1. Table 2.4 identifies all 1987 component samples, the sample intervals

and the composite samples.

2.4.5 Geologic Mapping

Geologic mapping in the Transfer and Grizzly Areas was conducted at 1:2500

scale by Quintette personnel and Mitsui consultants.

The majority of mapping was conducted along exploration roads constructed

during 1987. These roads provided excellent rock and coal exposures. Control

was based on survey points spaced at approximately 100 m intervals along the

roads. Survey control was by Stables, Tryon and Associates, Dawson Creek,

British Columbia. These survey control maps are presented in Appendix 1.3.

All of the geologic mapping was plotted on the Geology plans presented in

Appendix 1.2.

Reconnaissance mapping off the exploration roads was controlled by previously

established survey points, airphoto control points, geologic control points

and drill holes. Accuracy was maintained by closing the traverses to one of

the known points.

2-7

Field data was recorded on map cards at 1:2500 scale. The mapping was done by

a modified plane table method using a chain and compass. Lithologies,

structural and sedimentological features, and bed orientation were recorded on

the map cards.

No geologic mapping was carried out in the Perry Creek area during 1987. The

geology plan presented in Appendix 1.2.3 is based on regional mapping in the

early 1970's.

2.4.6 Topographic Survey

During 1987, the Transfer/Grizzly Area was flown and 1:2500 scale topographic

maps were prepared. Surveying of airphoto targets was by Stables, Tryon and

Associates, Dawson Creek, British Columbia. The location of these targets are

found on the survey maps in Appendix 1.3. Survey control for the topographic

mapping is described as follows:

"Photo targets numbered 1 to 13, and A to E were surveyed in the summer of 1987 by Stables, Tryon and Associates under the personal supervision of Tom Tryon,British Columbia Land Surveyor. Distances were measured by a "Model 14A" Geodometer and angles were measured using a "Wild T16" Theodolite. Co-ordinates and Elevations of targets 9, 11, 12 and "E" were determined from those of Triangulation Station "Airy". All others were surveyed from stations along conveyor and power lines Right-of-Way, from values tabulated by McElhanney and Associates."

Topographic mapping was done by Western Photogrammetry, Edmonton, Alberta.

The maps were prepared from three east-west flight lines. Aerial

Triangulation and preparation was undertaken on WILD PUG III and BCl

analytical system. The numerical adjustment was done using the PATM-43

program. The data was stream digitized (data tapes are stored at Quintette

Coal Limited, Administration Building) on WILD BCl using the T Map software

system for graphics edit. The final copy topographic maps are presented in

Appendix 1.4.

The topography on the geology maps presented in Appendix 1.2 is from 1:5000

maps sheets enlarged to 1:2500 scale. Survey control and cartographic

description is discussed in the Transfer Area Geological Report, March 1987.

2-8

In 1987, adits were driven into the mineable coal seams in both the Transfer

and Grizzly Areas. The following table summarizes the adit driveage:

1987 Transfer/Grizzly Adits

Area ! Adit # : Length (ml ! Seams Sampled I I ,

Grizzly ! QHA87001 I 34.3 I J, Kl I QHA87002 1 39.3 I G I QHA87003 I 38 ! F I ! I

Transfer I QHA87004 : 45 I F : QHA87005 ; 44 i J, Kl, K2 I QHA87006 I 49.5 I G

Total driveage:

Target Tunnelling Limited, Strathmore, Alberta constructed and sampled all

adits. Adits were constructed by drilling and blasting along the coal seam.

Coal waste and coal samples were removed'by an air tugger or wheelbarrow

depending on conditions. The adits were ventilated by a forcing fan. Adit

drawings are presented in Appendix T.3. Adit locations are plotted on the

Geology Maps in Appendix 1.2 and on the Exploration Location Map in Appendix

1.1.1.

2.4.8 Adit Sample Analysis

Bulk samples from the major seams (F, G, J, K) were obtained in both the

Transfer and Grizzly Areas. These samples were shipped to Birtley Coal and

Minerals Testing, Calgary, Alberta, for raw analysis, pilot scale washing and

clean coal analysis. The results of this testing program are presented in

Appendix 2.1.2.

The Transfer J seam bulk sample was rewashed using different cut points that

more closely simulated actual Quintette Preparation Plant conditions. This

resulted in a clean coal product with a lower ash level.

2.4.9 Geotechnical Studies

During 1987, Piteau and Associates were contracted to carry out a geotechnical

and hydrogeological assessment of the Transfer and Grizzly Areas. This report

is presented as Appendix 2.2.

2.4.10 Reclamation

Reclamation of the 1987 and some 1986 disturbances was conducted by Loiselle

Contractors Limited, Tumbler Ridge, British Columbia.

The program included bucking of all slash to ensure rapid decomposition and to

inhibit fires. Spruce slash was burned although some slash will not be

totally disposed of until the 1988 field season when it will be drier. All

slash requiring burning has been piled.

All roads have been crossditched as required for erosion control as well as

seeded. Some main access roads were not seeded since they will be used in the

1988 exploration season. Recontouring of the exploration road beyond QHD87008

was completed since topography is very steep in this area and it is close to a

natural drainage.

Adit sites were totally reclaimed by burying the waste coal and resloping

these piles. At QHA8704, a small drainage was reopened. All sites were

seeded.

The equipment used for reclamation was a D6 or D7 bulldozer, a small backhoe,

chainsaws and a seeder/spreader. The fertilizer mix was 8-36-17 at 125 kg per

hectare. The seed mix was creeping red fescue 55%, kentucky blue grass 25%,

alfalfa 20% at 50 kg per hectare.

I ‘1 Area IActivity INo,

Transfer'Road Constructioni iGeologic Mapping 1 I I iRotary Drilling 146 I I ICore Drilling [ 8 lAdits I3 I I

Grizzly iRoad Constructionl lGeologic Mapping [ IRotary Drilling 121 ICore Drilling i 4 lAdits I 3

Table 2.1

1987 Exploration Sumary

Perry. Creek

I i

!Road Construction! 1Rotary Drilling ) 5 -

Totals:

Rotary holes 72 Core holes 12 Roads Adits 6

'otal ! ength lComents

14.7 km / ]A11 new access roads were mapped plus lreconnaissance areas.

;169.1 m 1QHR87021-87068 (excluding 87046 and 1050)

251.38 m 1QHD87004 - QHD87011 139 m jQHA87004,5,6. Seams sampled:F,G,J,Kl,KZ

6.7 km !A11 new access roads were mapped.

074.9 m 1QHR87001-020 plus QHR87050 592.67 m !QHD87001-OD3 plus QHD87012 112 m iQHA87001,2,3. Seams sampled:F,G,J,Kl.

1.3 km / 259.6 m !QPR87001-005

8503.6 m 1844.05 m

22.7 km 251 m

Hole #

RHR87001 RHR87002 C?HR87003 RHR87004 LJHR87005 RHR87006 OHRa7007 RHR87008 QHR87009 RHR87010 OHR87011 C?HR87012 flHR87013 tJHR87014 OHR8703.5 CJHR87016 ixiRa7017 NHRa70i8 OHR87019 RHR87020 nHRa7021 RHR87022 CIHR87023 RHR87024 OHR8702.5 OHR87026 flHR87027 OHRa7028 CJHRR7029 cJHR87030 oHRa7031 RHR87032 CJHR97033 RHR87034 OHR87035 RHR87036 RHR87037 ‘JHRa7038 RHR87039 CIHRB7040

OHR87041 l?HR07042 RHR87043 OHR87044 RHRa7045 RHR87047 OHRa7048 OHR87049

Table-Z.2

1987 Rotary Drilling Sumary

UTH

Elevation forcing II

624678.720 6096302.760 848.18 624465.260 6096356.150 879.90 624278,690 6096422.350 895.45 624117,600 6096486.650 931 l .67 623827,890 6096582.540 985.67 623311.920 6096741.680 1057 . a7 623136.870 6096526.690 1117 t 65 623196,400 6096594.040 1107 ‘t 99 623293.440 6096471,160 1108 97 623296.430 6096347.630 1109 ‘* 67 623132.370 6096681.670 1107 . 81 623063.540 6096590.370 1116.81 623477.310 6096728,480 1041.15 623194.300 6096773+650 1076.90 623456.490 6096508.620 1079.99 623627.550 6096078+360 1071.99 623801.660 6095936.650 1014.93 624093.480 6095705,400 970.03 624210.700 6095531.260 9i6.10 624079.720 6096256.360 797.81 620569.250 6096160,320 i572.82 620508,120 6096087.300 1580.60 620432,720 6095983.110 1601.62 620712,890 6096026.860 1564.25 620647.170 6095957+560 1585.04 620701,800 6095680.630 1573.08 620804.170 6095842,940 1549.64 620421.700 6096294.420 1542.16 620866.580 6095579.200 i545.46 621163.260 6095302.310 1489.50 621267.200 6095747.640 1425.42 62l.106.040 6095887.350 1451 .a7 621293.370 6095148.030 1437.70 621750.450~6095778.160 1319.00 620293.660 6096125.300 1558.01 620351.140 6096202.090 1544.31 620771.320 6095758 . 620942,670 6096017 ‘. 621016.010 6095418 622166.770 6095283 623801.940 6095150 623748,750 609508i

000 1562.42 010 1490.85 960 1522.50 740 1361.19 740 a91 +53 350 891 .I0 360 902.11

. 623622.990 6094827. 623705.190 6094992.350 aao+o4 623932,450 6094837.800 838.09 623977.7130 6094922.280 838.73 624037,450 6095005.910 836.82 623876.650 6094780.330 841.24

Page 1 of 2

Depth m

189.60 156.30 140.00 121.80 117.50 182.00 170.20 107.30 132.30 164.40 121.50 183.30 143.70 207.40

56.70 146.60 164.80 123.00 110.70 244.00 168.80 144.60 3.71*00 128.50 110.00 i40.00

80.00 172.00 110.00

a6.au 50.00 92.70 98.70

108.00 129.00 117.60

91.80 129.00

99.00 98.20

187.80 129.70 116.40 135.70

99.00 79.00

111.30 90.80

Hole #

RHR87050 624327.410 6095263.270 844.50 91.80 nHR87051 622728.370 6093986.570 857.50 147.70 RHR87052 622093.220 6093829,310 951.88 127.90 flHR87053 622065.950 6094070,220 1034.79 86.00 RHR87054 6220’?1+590 6094207.210 1049.43 99.00 GHR87055 622506.620 6093811.200 890.45 55.60 RHR87056 623134.020 5093869.500 857.51 91.30 RHR87057 623303,900 6094089.280 876.83 91.30 OHR87058 623438.870 6094282.630 881.64 79.20 OHR87059 621392,130 6095942.590 1368.63 190.60 RHR87060 621503.170 6095749.250 i346.09 80.30 RHR87061 620875.610 6095928,120 1527.81 99.20 RHRB7062 620103.840 6096057.410 1544.99 178.90 RHR87063 620168.560 4096279,540 1508.25 109.90 RHR87064 620”=7 ‘70 6096360.010 A....- .- 1499.61 103.60 OHR87065 619929,820 6096311,430. 1519.31 146.70 RHR87066 620077.600 6096322.920 1505.69 85.20 CIHRB7067 619995.340 6096417.410 1499.61 42.00

OHR87068 620065.100 6096527.440 1484.15 79.30

RPR87001 612398.180 6105215.210 918.24 73.50

RPR87002 612049.340 6104982.650 954.63 60.50

CdPR87003 612166.360 6105131.430 945.01 44.40

CJPRD7004 612307.370 6105276.760 930.10 37.90

OFREt 612422.970 6105449.840 923.61 43.30

Table 2.2.

1987 Rotary Drilling Sumary

urn

Northing Easting Elevation IA In m

=========

8244.00 ****xx***

Page 2 of 2

Depth II

==zz======

259.60 ***#x8***

Hole #

Table 2.3

1987 DDamond Drilling Sunmary

UT?4

Northing Easting Elevation Depth m m al II

RHD87001 623618,590 6096689.550 1021.15 160.79 tIHD87002 623250.510 6096678.450 1081.36 99.12 QH087003 623915.720 6095802.930 996.29 177.52 CIHR87004 620622.540 6095885,150 1589.74 151.10 RHn87005 620230,280 6096045,680 1573.26 185.78 0H087006 620295.840 6096470.670 1486.07 202.44 6HO87007 622018,430 6095442,390 1329.15 120.63 OH087008 621727.190 6094538,030 1167*00 138.62 OHDG7009 622957.500 609508i3,700 1108.43 105.14 C?HDR7010 623642.350 6094879.670 894.89 158.55 OHnEt 623875,170 6095267.550 877.77 189.12 QHTf87012 624826,020 6096370.570 818.91 155.24

=========

1844.05 **:x*x****

Table 2.4

Transfer/Grizzly

1987 Core Sampling Sunmary

Drill Hole Component Sample A

core Interval (m) Seam Composite #

QHD87001 1000 1001 1002

118.46 - 118.82 118.82 - 119.88 119.88 - 120.79 120.79 - 122.16

G2P 62 G3P 63

1008 141.76 - 147.69 J c3 *Not included in composite

17.14 - 17.71 Fl 17.71 - 18.00 F2P c4 18.00 - 20.55 F2 20.55 - 20.87 61.85 - 62.44 G': & G2P 7-

1015 62.44 - 63.57 62 1016 63.57 - 63.77 G3P c5

1017 1018

1019 1020

63.77 - 64.57 63 82.25 - 87.45 J C6

87.45 - 87.89 KOP - 87.89 - 88.21 KO 3 KlP

1021 88.21 - 89.83 1022 92.68 - 93.48 1:

QHD87003 1147 24.17 - 24.80 Dl 1148 24.80 - 25.24 D2P 1149 25.24 - 25.98 D2

1023 82.64 - 83.17 1024 83.17 - 83.53 ;;P 1025 83.53 - 87.22 F2 1013 87.22 - 87.60 F3 1026 109.89 - 110.69 62 1027 1028 1029 1030 1031 1032

c”,‘* *No composite

analysis - Petrography onl

?

c9

110.69 - 111.33 G3P 111.33 - 112.09

129.08 - 133.22 133.22 - 133.94 133.94 134.40 ;;’ 1 KlP - 1

134.40 - 135.41 Kl Cl2

1 Cl0 Cl1

2

Transfer/Grizzly 1987 Core Sampling Summary

QHD87004 1033 1034 1035 1036 1037 1038 1039 1040 1041 1042 1043 1044

QHD87005 1141 1142 1143 1144 1145 1146 1045 1046 1047 1048 1049 1050 1051 1052 1053 1054

QHD87006 1136 1137 1138 1139 1140 1055 1056 1057 1058 1059 1060 1061 1062 1063 1064 1065

85.14 - 86.56 86.79 - 87.78 87.78 - 87.98 87.98 - 88.84 88.84 - 89.56 89.56 - 90.48

104.60 - 108.60 108.60 - 109.35 109.35 - 109.62 109.62 - 110.61

iOP

K": 3

KlP

110.61 - 111.28 K2P 111.28 - 112.53 K2

15.47 - 18.63 100.96 - 101.96 101.96 - 102.25 102.25 - 102.50 103.64 - 104.45 104.45 - 105.02 123.48 - 124.09 124.09 - 124.55 124.55 - 127.44 157.47 - 158.67 158.67 - 158.75 158.75 - 159.61 159.61 - 160.18 160.18 - 161.33 175.50 - 180.40 183.85 - 184.96

15.43 - 16.58 83.08 - 84.30

105.93 - 106.46 106.46 - 106.89 106.89 - 108.25 135.77 - 136.23 136.23 - 136.94 136.94 - 140.41 161.71 - 163.02 164.65 - 166.02 186.83 - 192.19 192.19 - 192.70 192.70 193.26 - 193.26 - 194.26 195.39 - 196.41 196.41 - 197.17

Gl-A Gl G2P Y 62

I

Cl3 G3P 63

Cl4

a5

Cl6

!2 E2 E2 E3 E3 lower Fl F2P

G': G2P 62 G3P 63 J K2

Cl7

X18

i El

E2 Fl F2P F2 Gl 63

iOP c22

KO 3 KlP 1

Kl K2 K2 lower

C23

Transfer Grizzly 1987 Core Sampling SumMry

QHD87007 1066 32.22 - 33.40 1067 33.40 - 33.95 1068 33.95 - 38.68 1069 72.66 - 73.93 1070 73.93 - 74.15 1071 74.15 - 75.62 1072 75.62 - 76.00 1073 76.00 - 78.50 1074 103.12 - 109.99 1075 111.76 - 113.28 1076 116.54 - 118.16

QHD87008 No Samples Taken

QHD87009 1077 1078 1079 1080

24.70 - 25.34 25.34 - 25.71 25.71 - 27.56 61.08 - 61.93

1081 61.93 - 62.10 62.10 - 63.23 63.23 - 63.65 63.65 - 65.20 88.12 - 93.94

QHD87010 1133 22.18 - 23.40 1134 23.40 - 23.76 1135 23.76 - 24.03 1086 89.91 - 90.82 1087 90.82 - 91.13 1088 91.13 - 91.94 1089 91.94 - 92.40 1090 92.40 - 94.48 1091 114.91 - 117.62 1092 117.62 - 118.24 iOh 118.24 - 118.80 1094 118.80 - 119.81 1095 128.06 - 131.11

EP F2 Gl G2P 62 G3P 63 J Kl K2

FF:p

G': G2P 62 G3P 63 J

Dl (E3?) D2P D2 Gl G2P

EP 63 J

;;' KlP I

Kl K2

C24

i

C25

C26

I C27

C28

c30

c31

;32 c33

4

Transfer Grizzly 1987 Core Sampling Sumary

QHD87011 1127 1128 1129 1130 1131 1132 1096 1097

1099 1100 1101 1102 1103 1104 1105 1106 1107

@ID87012 1120 1121 1122 1123 1124 1125 1126 1108 1109 1110 1111 1112 1113 1114 1115 1116 1117 1118 1119

61.40 - 62.22 62.22 - 62.64 62.64 - 63.47 97.80 - 98.39 98.39 - 98.72 98.72 - 99.07

121.53 - 121.92 121.92 - 122.08 122.08 - 125.93 146.22 - 147.27 147.27 - 147.59 147.59 - 148.41 148.41 - 148.88 148.88 - 150.42 170.19 - 175.22 175.22 - 175.76 175.76 - 176.36 176.36 - 177.43

24.66 - 26.41 26.41 - 26.74 26.74 - 27.64 46.80 - 47.18 47.18 - 48.11 48.11 - 48.49 48.49 - 48.85 71.44 - 72.01 72.01 - 72.43 72.43 - 76.51

118.83 - 119.16 119.16 - 119.27 119.27 - 120.73 120.73 - 121.96 121.96 - 123.22 141.94 - 148.00 148.00 -(148.64)

(148.64)- 149.30 149.30 - 150.90

01 D2P D2 E3 E3 E3 Fl F2P

G': G2P

i:P 63 J KOP KO 3

KlP

Kl

Ill D2P 02 E3 E3 E3 E3 Fl F2P F2 Gl-A G2P 62 G3P

c34

c35

C36

c37

C38

63 c40 J c41 KOP KO 3

KlP -

Kl ;42

QUINTETTE COAL LIMITED 1987 DRILL CORE ANALYSIS FLOW DIAGRAM

va

.TrizE$+ ( 1 3’4 l SCREEN ON 28 MESH

t 1 RESERVE 1, L I

L I .28 2a.o

I TOTAL

FLOATS AT 1.6 S.G.

-

l- AN0 ANALYSE AN0 ANALYSE

. r

RESERVE +1 FOR OTHER TESTS

ANALYSIS WHEN

Fig. 2.1

3-1

3.0 GEOLOGY

3.1 REGIONAL STRATIGRAPHY

The stratigraphic succession exposed on the Quintette property ranges from

Upper Jurassic to Lower Cretaceous in age. It consists of an interfingering

of shales and sands both marine and continental in origin. Most of the coal-

bearing strata is derived from deltaic and near-shore environments. The table

of formations for Quintette is outlined in Figure 3.1 and indicates general

formation thickness ranges and coal zones as encountered by past exploration.

The coal seam of economic thickness and quality are found in the Gates and

Gething Formations. The regional distribution of these formations is

illustrated on the Regional Geology Map in Appendix 1.2.4. Further

descriptions of the formations encountered at QCL can be found in previous QCL

Geological Reports.

3.2 LOCAL SIRATIGRAPHY

3.2.1 Transfer

The stratigraphic sequence drilled and exposed in the Transfer Area is the

Boulder Creek Formation, Hulcross Formation, Gates Formation, Moosebar

Formation and Gething Formation. The Geology Map (Appendix 1.2.11 illustrates

the distribution of these stratigraphic units, where they are exposed, and the

position of the economic coal seams.

Boulder Creek Formation

The Boulder Creek Formation, the uppermost unit exposed in the Transfer Area,

is distributed in the northeast limb of the Transfer Anticline and in the core

of the Transfer Syncline. 'This formation consists mainly of massive sandstone

and conglomerate with minor shale and thin inferior coal seams. It is known

to create ridges in this region. In the Transfer Area, a ridge formed by the

lower part of the Boulder Creek Formation is conspicuous and easily traced

both in the field and on the topography maps. The formation thickness is

estimated at approximately 130 metres.

The Hulcross Formation is conformably overlain by the Boulder Creek Formation.

It is essentially characterized by homogeneous dark grey marine

shales/siltstones interbedded with very fine sandstones. Intermittent thin

beds of sandstone, calcareous shale and bentonite have been identified within

this sequence as well. In the top and bottom 5 metres of the formation,

siltstone is dominant and contains interbeds of shale. The base of the

formation is marked by a thin bed of pebble conglomerate or coarse sandstone.

The thickness of the Hulcross Formation is approximately 90 to 100 metres.

Owing to its very fine grained nature, the Hulcross Formation has little or no

definitive outcrop in the area although the access road from the Gething to

the Transfer Area provides good continuous exposures. The formation's

location is defined as the recessive strata which exists between the

resistant, ridge-forming conglomerate in the lower Boulder Creek Formation and

the resistant, ridge-forming conglomerates and sandstones in the upper

sequence of the Gates Formation.

Gates Formation

The Gates Formation contains the economic coal seams of the Transfer Area, and

is widely distributed in both limbs of the Transfer Anticline. The formation

can be divided into three members: Upper, Middle and Lower. Although each of

the members contains coal, seams of economic thickness occur only in the

Middle Gates Member. The total thickness of the formation is 235 metres.

(+ 20 metres).

(7) Upper Gates Member:

The upper member of the Gates Formation is defined as between the base of the

Hulcross Formation and the top of the first productive coal seam, namely Dl.

This sequence is approximately 90 metres thick.

3-3

The upper half of this member is non-marine and consists of fluvial and I estuarine channel deposits (interbedded sandstones, siltstones, mudstones) and

thin coals typical of a coastal plain environment. Occasional thin and

continuous c-onglomerates have been identified.

In the Transfer Area, as well as other areas of the property, three coal zones

designated as A, B and C seams are found in this upper portion. All three are

considered to be uneconomical due to their thinness (usually less than 0.5

metresl and inconsistent development. In the Transfer Area, A and C seams are

poorly developed, present only as carbonaceous shale. The thickness of B seam

may exceed 2.5 metres in the nose of the Transfer Anticline (see QHD87005).

The lower sequence of Upper Gates is basically a shallow marine to near shore

distributary set of regression deposits. Very fine and fine sandstone are

predominant with subordinate amounts of shale and siltstone. Halfway through

this section is a tuffaceous horizon, used as a marker for stratigraphic

correlation. The conglomerate present at the base of the Upper Gates in the

Transfer Area is stratigraphically equivalent to the so called "caprock" found

in the Mesa, Wolverine and Shikano Pits. The thickness of the conglomerate is

relatively thin compared to other locations and ranges from 2.75 metres in the

southwest of the area to less than one metre (or non-existent) in the rest of

the area.

(ii) Middle Gates Member

The lower limit of the Middle Gates Member is marked by the floor of K2 seam.

The member contains six coal seams (D, E, F, G, J and K in descending order)

which readily correlate to the coal seams in Shikano Pit (See Figure 3.2).

Only the last four coal seams should be termed "mineable" in the Transfer

Area, since D and E seams have poorly developed thickness and quality.

Interseam strata are related to fluvial channels and overbank deposits,

composed mainly of shale with minor sandstone and siltstone, or of alternating

beds of shale and sandstone. In some places, discontinuous channel sandstones

are found at different horizons creating variations in interseam thickness

3-4

(ie; between D and E in QHD 86003, and F and G in QHD 86008). The thickness

ranges and general lithologies of the interseam strata are summaried on Table

3.1 The Middle Gates Member is approximately 100 metres thick.

(iii) Lower Gates Member

The Lower Gates Member is a thickened, coarsening upward sequence of fine to

medium sandstones. This unit was deposited in a near shore/shoreface-beach

environment occasionally cut by distributary channels as evidenced by coarser

less well sorted conglomerate and coarse sandstones.

The top massive light or pale green sandstones grade to underlying thinner

beds of fine and very fine sandstones interbedded with sandy shales and shales

of a marine transgression referred to as a transition zone. One thin coal

seam designated as L seam is found at the base of this section approximately

40 metres below K2. The thickness of the Lower Gates Member is approximately

110 metres.

Moosebar Formation

The Moosebar Formation is a marine sequence grading from very fine sandstones

and interbedded siltstones and shales at the top, to marine shales with thin

bentonite layers at its base. The unit is defined as between the base of the

first thick sandstone in the Lower Gates Formation transition zone to the top

of the Gething. In the Transfer area it is interpreted as 85 metres thick.

Gething Formation

The Gething Formation has been drilled and mapped at some locations in the

Murray River Valley. It is divided into three zones with the upper zone,

approximately 50 metres containing coal seams exceeding 2 metres thick. The

middle zone is a marine coarsening up sequence of approximately 90 metres

thickness while the lower zone is approximately 70 metres thick and made up of

thin channels and overbank deposits, but no significant coal.

3-5

3.2.2 Grizzly

The stratigraphy underlying the Grizzly Area is indentical to that of the

Transfer Area: Boulder Creek, Hulcross, Gates, and Moosebar Formations in

descending order. Four coal seams of mining interest, F, G, J and K seams,

are found in the Middle Gates Member. The development of the Middle Gates

Member is the same as that of the Transfer Area, with the following primary

differences:

i) a thick conglomerate and sandstone bed of zero to 25 metres is

present between F and G seams, thickening the interval.

ii) the interseam thickness between J and Kl is relatively thin

(0.38 metres - 0.58 metres) for most of the area.

iii) the interval between Kl and K2 is thicker (3.0 metres - 3.7 metres)

than the Transfer area where it can be less than one metre thick.

The thickness ranges and general lithologies of the interseam strata are

summarized on Table 3.2. The distribution of the various stratigraphic units

is also illustrated on the Grizzly Geology Map in Appendix 1.2.2

3.2.3 Perry Creek

The stratigraphic sequence exposed in the Perry Creek Area is similar to the

regional Quintette Stratigraphy. In the immediate area, the sequence is from

the Boulder Creek Formation at the top of Fortress Mountain to the Gething

Formation exposed in Perry Creek and the Wolverine River Valley.

Of particular interest is the Middle Gates Formation exposed in the Perry

Creek Syncline. The Middle Gates sequence in this area contains a significant

number of channel conglomerates between the coal seams. These conglomerates

are best developed between what are tentatively identified as seams E and G

(Seams 6 and 3 in 1974 correlation) and seams G and J (Seams 3 and 2 in 1974

correlation).

The remaining stratigraphy is similar to other Quintette areas. For their

descriptions, see the Transfer Area stratigraphy in this report and the

descriptions in prnvious Quintette Geological reports.

3.2.4 Transfer Coal Seam Development and Correlation

As mentioned in the stratigraphic descriptions, six coal seams are present in

the Middle Gates Member in the Transfer Area, four of these (F, G, J and K

seams) are termed "mineable". The cummulative coal seam thickness (F,G,K,Kl

and K2) in the Transfer Area exceeds 14 metres.

Both D and E seams are split into thin coal portions by partings and

designated as "non-mineable" for most of the area. In some drill holes,

however, these seams have a mineable thickness of more than 1 metre ie; D seam

in QHD86005 and E seam in QHD86003, and further exploration may delineate

areas in which D and or E seams are recoverable. Table 3.3 summarizes average

seam thickness for the Transfer Area.

F seam is well developed in thickness throughout the Transfer Area, averaging

more than 4 metres. The columnar section depicted in Figure 3.3 shows a

typical F seam development. The seam is generally divided into three portions

designated as FI, F2 Parting and F2 from top to base. In the vicinity of

QHD86003, Fl is not present and the parting (F2P) forms the top pprtion of F

seam. The parting between Fl and F2 (F2P1 is composed mainly of high ash coal

and carbonaceous shale. F2 comprises the major portion of the seam, and

consists mainly of low ash coal with two to four discontinuous thin partings.

The thickness of the partings is normally less than 10 centimetres, but the

parting developed at the middle of F2 can be relatively thick and in fact,

results in the lower portion of F2 being unmineable in the vicinity of

QHD8700g. The roof and floor of the seam consist of shale or carbonaceous

shale, with coal stringers.

3-7

G seam

G seam is characterized by two major continuous partings, and is divided into

five portions: three coal portions identified as Gl, 62 and 63; and two

partings denoted as G2P and G3P. Figure 3.4 shows a typical G seam section.

Gl has little or no partings. G2P is composed of shale, carbonaceous shale,

and inferior coal. 62 occasionally contains one or two very thin partings in

the lower half. G3P is composed of shale and siltstone, in somes places

(QHD86001, 86007) consisting entirely of siltstone with very thin bands of

shale at the top and bottom. 63 is characterized by a group of partings near

the base. The roof of G seam is shale, occasionally with a thin

carbonaceous layer underlying it. The floor of G seam consists of

carbonaceous shale.

J Seam

J seam is well developed in thickness throughout the Transfer Area, averaging

more than 4.5 metres. Figure 3.5 shows a typical J seam section. Although no

major parting appears in J seam, many thin inferior coal bands (fusinite?),

usually less than 5 centimetres thick, are present. The roof consists of

shale or carbonaceous shale, and the floor is carbonaceous shale with coal

bands.

K Seam

K seam is composed of two separate sub-seams identified as Kl for the upper

and K2 for the lower. A typical K seam section is shown in Figure 3.6.

(i) Kl Seam

Kl seam is characterized by alternating thin beds of coal and carbonaceous

shale in the upper portion. The seam grades to carbonaceous shale in some

areas and is therefore excluded from coal mining sections.

For most of the Transfer Area, the interval between J and Kl is less than 1

metre.

(ii) K2 Seam

K2 seam has one or two discontinuous thin partings. The interseam strata

between Kl and K2 consist of shale, siltstone and carbonaceous shale with coal

stringers, with sandstone appearing in the eastern part of the area. The

thickness of the interseam is normally greater than 1 metre, increasing to

more than 3 metres toward the southeast (Grizzly). In some areas the

interseam is less than 1 metre in which case J to K2 Seam may form a single

mining section.

3.2.5 Grizzly Coal Seam Development and Correlation

The characteristics of each mineable coal seam in the Grizzly Area are very

similar to that of the Transfer Area. Only points of significant difference

are described here. The cummulative mineable coal seam thickness (excluding

K2) in the Grizzly Area exceeds 12 metres. Table 3.4 summarizes the average

seam thickness for the Grizzly Area.

F Seam

F seam is relatively thin compared to the Transfer Area, averaging more than a I half metre less in thickness.

G Seam

In the northeast limb of the Grizzly Structure, the thickness of the lower

parting (G3P) thickens to just under 1 metre.

G seam is overlain directly by a thick conglomerate and sandstone bed.

The overall seam thickness is similar to the Transfer Area.

J Seam

J seam has a similar development with a slightly thinner average thickness.

Kl Seam

3-9

Kl seam may be mined together with J seam in a single mining section owing to

the thin interval between the two seams.

K2 Seam

K2 seam is thinner, and is separated by a thick interseam (up to 3.8 metres)

from Kl.

3.2.6 Perry Creek Seam Development and Correlation

The most recent correlation in the Perry Creek Area was done in 1974 (see the

1974 Wolverine Exploration Report). In this correlation, seams were

identified as 1 through 8. The following is a tentative comparison to current

nomenclature:

1974 Seam designation 1987 Seam Identification

8 D 7 E 6

2 F? Gi?

3 62

:: (Kll

The most significant seam is Jl. The 1987 drilling intersected a consistent

Jl seam development of more than 5.5 metres. From the 1974 correlation, it is

expected that the mineable section of J seam will decrease where the overlying

channel conglomerate thickens. The underlying 52 seam is expected to maintain

a consistent thickness of approximately 2 metres throughout the area.

G seam was also intersected in the 1987 program and may be correlateable to 62

seam in the Mesa and Wolverine Pits. Its thickness does not exceed 1 metre.

3-10

The seams in the upper section of Middle Gates Formation were not drilled in

1987. From previous drilling (1971 and 1974), thickness of these seams will

not exceed 2 metres except where two seam coalesce (as do seams 6 and 7 (E?)

in QWD7118).

The coal seam intersections are recorded on the drill hole summary sheets in

Appendix T.2.1. Since the strata dips at less than 10' where these holes were

drilled, these intersections can be considered as a true seam thickness.

Average thickness and thickness ranges are as follows:

3.3

Perry Creek Sync1 ine

Seam Thicknesses from 1987 Rotary Drilling

Seam Thickness Range (m) Average (m)

G 0.84 - 0.90 0.87

Jl 5.2 - 7.04 5.84 Parting (J2P) 1.3 - 1.66 1.57 52 2 - 2.36 2.22

REGIONAL STRUCTURE

The regional geologic structure of the Transfer/Grizzly Area is best

illustrated in Figures 3.7 and 3.8. As shown in these figures, the area is

characterized by northwesterly trending folds. Three pairs of folds are

arranged in parallel and identified as the Shikano Anticline and Syncline, the

M-9 Anticline and Syncline, and the Transfer Anticline and Syncline (from

north to south). The Transfer Area is located on the Transfer Anticline and

the Grizzly Area is on the Shikano Anticline.

3.4 LOCAL STRUCTURE

3.4.1 Transfer

The dominant structure in the Transfer area is the northwest-southeast

trending Transfer Anticline that plunges (loo-20') to the northwest. The

coal-bearing Gates Formation is distributed on both limbs of the anticline.

3-11

Dips on the northeast limb of the anticline are 35' to 40' in the western half

of the limb, becoming steeper toward the southeast, with a maximum of 57' at

the eastern end. On the southwest limb, dips are relatively steep and range

from 50' to 60'. No major faults have been confirmed in the area although

minor faults are expected along fold axes.

3.42 Grizzly

The geologic structure of the Grizzly Area is controlled by the Shikano

Anticline plunging loo-30' to the northwest. This anticline has a broad or

box-like top of about 100 metres in width. The strata dip 55' to 65' on the

northeast limb of the anticline and about 45 ' on the southwest limb. No

major faults have been found in the area. As in the case of the Transfer

Area, further minor faults will likely occur along or near fold axes.

3.4.3 Perry Creek

The Perry Creek exploration target is the Perry Creek Syncline which is an

open fold plunging gently to the northwest. The west limb of the fold is

expected to have dips of less than 10' while the east limb will have dips of

up to 45O.

Table 3.1

Sumnary of Interseam Strata in the Middle Gates Member

Transfer

Interval

D seam tc E seam

E seam to F seam

F seam to G seam

G seam to J seam

J seam to Kl seam

Kl seam to K2 seam

\pproximate Thickness Lange (in1

12 - 27

16 - 31

13 - 33

13 - 21

0.4 - 1.5

0.7 - 4.3

General Lithology

Mainly shale with minor very fine sand and channel sandstone

Southwest limb of Transfer Anticline- dominant sandstone with shale.

North limb of Transfer Anticline - shale with minor sandstone and sandy shale.

Alternating beds of shale and sandstone, channel sandstone.

Shale sandstone. A3 - 4 metre sandstone zone occurs at

3 metres above J seam.

Shale, carbonaceous shale.

Shale, carbonaceous shale and very fine to fine sandstone

Interval

D seam tc E seam

E seam to F seam

F seam to G seam

G seam to J seam

J seam to Kl seam

Kl seam to K2 seam

Table 3.2

Sumnary of Interseam Strata in the Middle Gates Member

Grizzly

Approximate Thickness !ange (m)

12 - 30

19 - 23

18 - 39

13 - 18

0.4 - 1.1

3- 7

General Litholoav

Carbonaceous shale with very fine to medium sand.

Very fine to fine sand grading to shales and carbonaceous shales towards F seam.

Conglomerate and fine sandstone. Shale with fine sandstone bed in upper

6 to 9 metres.

4lternating beds of shale, siltstone and fine sandstone.

Carbonaceous shale and siltstone.

Shale with very fine to fine sandstone beds.

Table 3.3

1Approximate Thickness! Seam IRange (ml

i I F

G

J*

Kl *

K2

2.4 - 5.5

2.8 - 5.1

3.9 - 6.0

0.8 - 1.4

0.8 - 1.4

Seam Thickness Range

Transfer

* Anomolous thickness of 1.90 m (QHD87010) not included. ** Anomolous thickness of 0.54 m (QHD87010) not included.

Table 3.4

Seam

F

G

J

Kl

K2

Seam Thickness Range

Grizzly

!I\ IR

7- I I I

I

,pproximate Thicknes: :ange (m)

3.3 - 4.2

2.8 - 4.4

4.0 - 4.9

0.9 - 1.5

0.8 0. 5-

‘-I I

I

I I

I

IHAFTESEURI

FORMATION

l82+ ml

MOOSEBAR FORMATION

t 120 - 215m)

GETHING

FORMATION

(120 - Zoom)

AOOMIN 15.45

MI NNES GROUP

( - 2lOOm.J

. . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . Toorrens hlerler ,.,..,~;,..;;;:. ;~ ,.,.. : ::;:::L(;;:.:.-

QUINTETTE COAL LIMITED

GENERAL STRATIGRAPHIC SECTION

FIGURE 3.1

WOLVERINE PIT-X MESA PIT+ TRIWSFER AREP. SHIKANO PIT* BA.BCOCK AREAS _

REGIONAL STRATIGRAPHIC

CORRELATION FIGURE 3.2

LEGEND

VERTICAL SCALE (metred

0 I 2

1.: FEB 18.1987

QUINTETTE COAL ._ LIMITED

P‘o,*ct Manager

DENISON MINES LIMITED COAL Dl”lSlON

TYPICAL SECTION

OF F SEAM

TAKEN FROM OH0 8600

Rev. FIGURE 3.3 0

VERTICAL SCALE (metred

LEGEND

, TRANSFER AREA

a.: FE8 16 ( ,987 TYPICAL SECTION

Irip”: HTB QUINTETTE COAL LIMITED

OF G SEAM

‘awn: Pmisct Manager KJ” TAKEN FROM PHD86008

Xk’ DENISON MINES LIMITED Rev. COAL Ol”lSlOH FIGURE 3.4 0

L

VERTICAL SCALE (met&

LEGEND

TRANSFER AREA I

It.: FEE 16, ,987

ou:::‘. -. . - --. .- - .._.. . --

k.gn: HTB I OF J SEAM IIN rt?TTE COAL LIMiTED

TYPICAL SECTION

‘awn: Project Manager KJY TAKEN FROM OH0 BSOC

Sk; DENISON MINES LIMITED Rev. COCL Ol”l3lON FIGURE 3.5 0

VERTICAL SCALE hetres)

LEGEND

QUINTETTE COAL LIMITED TYPICAL SECTION

OF K SEAM

r*“: KJV

.ho,ect Manager TAKEN FROM QHD 660

SW DENISON MINES LIMITED Ret C0P.L Dl”lSlON FIGURE 3.6 0

ITlCilNE

XLINE .*

SHIKA /

KCmCg) Commotion Formation’ (gates mrmbrr)

FIGURE 3.7

Appendix T-1

1987 Exploration Report

Legal Description of Coal Licences

Licence No Date Issued

3633 May 27175 93-P-3 C 3632 May 27/75 93-P-3 C 3631 May 27/75 93-P-3 C 3630 May 27/75 93-P-3 C 3629 May 27/75 93-P-3 C 3628 May 27/75 93-P-3 C 3627 May 27175 93-P-3 C 3626 May 27/75 93-P-3 C 3618 May 27175 93-P-3 6 3606 Apr 29/75 93-P-3 F 3605 Apr 29/75 93-P-3 F 3604 Apr 29/75 93-P-3 F 3603 Apr 29/75 93-P-3 F 3602 Apr 29/75 93-P-3 F

3601 Apr 29/75 93-P-3 F

3600 Apr 29/75 93-P-3 G 3599 Apr 29/75 93-P-3 G 3598 Apr 29/75 93-P-3 C 3597 Apr 29/75 93-P-3 C 3596 Apr 29/75 93-P-3 B 3595 Apr 29/75 93-P-3 B 3594 Apr 29/75 93-P-3 B 3593 Apr 29/75 93-P-3 B 3592 Apr 29/75 93-P-3 B

3406 Feb l/75 93-P-3 F 3405 Feb l/75 93-P-3 D 3404 Feb l/75 93-P-3 D 3402 Feb l/75 93-P-3 D

3401 Feb l/75 93-P-3 C

3400 Feb l/75 93-P-3 C 3399 Feb l/75 93-P-3 C 3398 Feb l/75 93-P-3 C 3397 Feb l/75 93-P-3 C

3396 Feb l/75 93-P-3 C 3395 Feb l/75 93-P-3 C 3394 Nov 25/74 93-P-3 F 3393 Nov 25/74 93-P-3 F 3392 Nov 25174 93-P-3 F

APPENDIX 1 LEGAL DESCRIPTION OF THE QUINTETTE COAL LICENCES

Series Block Units

63, 64, 73, 74 47, 48, 57, 58 25 23, 33

21, 22, 31, 32 15

3, 4, 13, 14

11, 12 3, 4, 13, 14

25, 35 23, 24, 33, 34

21;22, 31, 32

5, 6, 15116 3, 4, 13, 14

1, 2, 11, 12 9, 10, 19, 20 8, 18

83, 84, 93, 94

81, 82, 91, 92 100 87, 88, 97 69, 79 67, 68, 77, 78 66, 76

7, 17 83, 84, 93, 94 81, 82, 91, 92 61. 71. 72 89; 90; 99, 100

87, 88, 97, 98 85, 86, 95, 96 69, 70, 79, 80 67, 68, 77, 78

65, 66, 75, 76 49, 59, 60 89, 99 87, 88, 97, 98 86

1 of 4

Paying Hectares

297 297

75 149 298

75

298 149 298 149 297 297 297 297 297 297 149 297 297

75

223 149 297 149 149 297 297 223 297 297 297 297 297

297 223 149 296

75

Licence No Date Issued

3391 Nov 25/74 3390 Nov 25/74 3389 Nov 25174 3388 Nov 25/74 3387 Nov 25/74 3386 Nov 25/74 3385 Nov 25/74 3384 Nov 25/74 3383 Nov 25/74 3382 Nov 25/74 3381 Nov 25/74 3380 .Nov 25/74 3374 Nov 25/74 3373 Nov 25/74 3371 Nov 25174 3369 Nov 25/74 3367 Nov 25/74 3366 Nov 25174 3364 Ott 16/74 3362 Ott 16/74 3361 Ott 16/74 3360 Ott 16/74 3359 Ott 16/74 3358 Ott 16/74 3357 Ott 16/74 3356 Ott 16/74 3355 Ott 16/74 3354 Ott 16/74 3353 Ott 16/74 3352 Ott 16/74. 3351 Ott 16/74 3350 Ott 16/74 3349 Ott 16/74 3346 Ott 16/74 3345 Ott 16/74 3344 Ott 16/74 3343 Ott 16/74 3341 Ott 16/74 3340 Ott 16/74 3339 Ott 16/74 3336 Ott 16/74 3335 Ott 16/74 3326 Ott 16/74

Series

93-P-3 93-P-3 93-P-3 93-P-3 93-P-3 93-P-3 93-P-3 93-P-3 93-P-3

93-P-3 93-P-3 93-I-14 93-I-15 93-I-15 93-I-15 93-I-15 93-I-14 93-I-14 93-I-15 93-I-14 93-I-14 93-I-14 93-I-14 93-I-14 93-I-14 93-I-14 93-I-14 93-I-14 93-I-14 93-I-14 93-I-14 93-I-14 93-I-14 93-I-14 93-I-14 93-I-14 93-I-14 93-I-14 93-I-14 93-I-14 93-I-14 93-I-14 93-I-14

Block Units Paying Hectare:

F 67, 68, 77, 78 297 F 65, 66, 75, 76 297 F 63, 64, 74 223 F 45, 46, 55, 56 297 F 43, 44, 53, 54 297 F 41, 42, 51, 52 297 G 50 75 G 29, 30 39, 40 297 G 27, 28 149

'B 86, 95, 96 223 C 71, 72 149 J 51, 52 149 E 85, 86, 95, 96 298 E 83, 84, 93, 94 298 E 63, 64, 73, 74 298 D 90, 100 150 G 83, 84, 93, 94 298 A al, 82, 91, 92 299 E 9, 10, 19, 20 299 J 5, 15 149 J 3, 4, 13, 14 298 H 69, 70, 79, 80 298 H 67, 68, 77, 78 298 H 65, 66 149 H 49, 59, 60 224 H 47, 48, 57,58 298 H 45, 46, 55, 56 298 H 43, 44, 53, 54 298. H 37, 38 149 H 25, 26, 35, 36 299 K 83, 93, 94 223 K al, 82, 92 223 K 71 75 J 83, 84, 93, 94 298 J 69, 70, 79, a0 298 J 63, 73, 74 223 J 61, 62, 71, 72 298 I 89, 99 149 I 87, 88, 98 223 I 85, 86, 95 223 I 69, 70, 79, a0 298 I 67, 68, 77, 78 298 I 29, 30, 39, 40 298

2 of 4

Licence Ho Date Issued Series Block

3325 Ott 16/74 93-I-14 I 3324 Ott 16/74 93-I-14 I 3320 Ott 16/74 93-I-14 I 3319 Ott 16/74 93-I-14 I 3316 Ott 16/74 93-I-14 H 3315 Ott 16/74 93-I-14 H

3314 Ott 16/74 93-I-14 H 3313 Ott 16/74 93-I-14 H 3312 Ott 16/74 93-I-14 H 3304 Ott 16/74 93-I-15 E 3303 Ott 16/74 93-I-15 E 3302 act 16/74 93-I-15 E 3301 Ott 16/74 93-I-15 E 3300 Ott 16/74 93-I-15 E 3299 Ott 16/74 93-I-15 E 3298 Ott 16/74 93-I-15 E 3297 Ott 16/74 93-I-15 E 3296 Ott 16/74 93-I-15 E 3295 Ott 16/74 93-I-15 E 3293 Ott 16/74 93-I-15 E 3292 Ott 16/74 93-I-15 E 3291 Ott 16/74 93-I-15 E 3290 Ott 16/74 93-I-15 E 3289 Ott 16/74 93-I-15 E 3288 Ott 16/74 93-I-15 F 3287 Ott 16/74 93-I-15 F

3286 Ott 16/74 93-I-15 F 3285 Ott 16/74 93-I-15 F 3284 Ott 16/74 93-I-15 F 3282 Ott 16/74 93-I-15 F 3281 Ott 16/74 93-I-15 F 3280 Ott 16/74 93-I-15 F 3279 Ott 16/74 93-I-15 F 3662 Sep 27/76 93-I-14 J 3661 Sep 27/76 93-I-14 I 3660 Sep 17/76 93-P-3 B 4532 Jan 15/79 93-P-3 B 4533 Jan 15/79 93-P-3 B 4534 Jan 15/79 93-P-3 B 4535 Jan 15/79 93-P-3 C 4537 Jan 15/79 93-P-3 C

3 of 4

Units

27, 28, 37, 38 25, 26, 35, 36

7, 8, 17, 18

5, 6, 15, 16 85, 86, 95, 96 83, 84, 93, 94

81, 82, 91, 92 73 61, 62, 71, 72 89, 90, 99, 100 87, 88, 97, 98 69, 70, 79, 80 67, 68, 77, 78 65, 66, 75, 76 59,. 60 47, 48, 57, 58 45, 46,55, 56

43, 44, 53, 54 41, 42, 51, 52 25, 26, 35, 36 23, 24, 33, 34 21, 22, 31, 32

3, 4, 13, 14

1, 2, 11, 12 49, 50, 59, 60 48 29, 30, 39, 40 27, 28, 37, 38 25, 26

7, 8, 17, 18

5, 6, 15, 16 3, 4, 13, 14 2

81, 82, 91, 92 90, 100

1, 2, 11,12 70, 80 98~ 89, 90, 99

1, 2 26, 35, 36

Paying Hectare!

298

298 298 298 298 298 298

75 298 298 298 298 298 298 149 298 298 298 298 299 299 299 299 299 298

75 299 299 150 299 299 299

75

298 149 298 149

75 223 149 223

Licence No Date Issued Series Block Units

Paying

Hectares

4538 Jan U/79 93-P-3 C 27, 28, 37, 38 297 4540 Jan E/79 93-P-3 C 43, 44, 53, 54 297

4541 Jan 15/79 93-P-3 C 45, 46, 55, 56 297 4542 Jan 15/79 93-P-3 C 61, 62 149

4544 Jan 15/79 93-I-14 K 91 75 7845 Aug 184 93-I-14 I 96 75 7846 Aug /84 93-I-14 I 97 75 7847 Aug 184 93-P-3 s 5, 6, 15, 16 300 7848 Aug /84 93-P-3 A 7, 8, 17, 18 300 7849 Aug /84 93-P-3 A 9, 10, 19, 20 300 7850 Aug /84 93-P-3 B 21, 22, 31, 32 300 7851 Aug /84 93-P-3 B 43, 44, 53, 54 300 7852 Aug /84 93-P-3 B 65, 75 150 7853 Aug /84 93-P-3 B 85 75

4 of 4

Total hectares 33,001

Ammdix T.2

W7 Exploration Report

Drill Hole Smrjes

Appendix T-2.1

Rotary Drill Holes

isI Quintette Coal limited

8, :I

DRILL HOLE SUMMARY SHEET

)

PROJECT G R/‘2zcd

PAGE / OF L%--

HOLE NUMBER HOLE ANGLE COLLAR BEARING TOTAL DEPTH CORE SIZE MAP / SECTION NUMBER

/c-I I - =a -2/o o /8%,. U. T. M. COORDINATES DATE (from/to)

COLLAR Et EVATION 61, ; NORTH EAST DRILLED CORE LOGGED I I I

GEOPHYSIC AL

SCALE lDENl ERDl LSDiHRDlGAMiNEUTl Ft

DATA ,., I OVERBURDEN

I I I I I I ,E FBS CAL D,dF “FT* DEPTH COMPOSITION

I2ooI~l II/IV1 L/ WV

I I I I I

MINING S ECT I’ON

@I Quintette Coal limited DRILL HOLE SUMMARY SHEET PROJECT

PAGE .-iii-- OF -


&-2-&37mI

U. T. M. COORDINATES COLLAR ELEVATION

DATE (from /to) 0’. :NORTH EAST DRILLED CORE LOGGED

I

: ! i,. !

isI Quintette Coal limited DR I LL HOLE SUMMARY SHEET PROJECT

PAGE - OF --%---

ml DRILL HOLE SUMMARY SHEET G? Quintetth Coal limited

PROJECT f L.zLL/

PAGE / OF%


@?M8?002 /L --g30 2/o - /s9* 3 6% "6-r'. IJ. T. M. COORDINATES DATE (from /to)

COLLAR ELEVATION .I’1 ‘: NORTH EAST DRILLED CORE LOGGED I I

b /q B- 2283

hP * 22.x- z-3,0

h2 z-3,0- 23,r3

/ ’ ! a Quintette Coal limited

DR

/ ,’

ILL HOLE SUMMARY SHEET PROJECT

PAGE i?- OF ‘L

HOLE NUMBER I HOLE ANGLE COLLAR BEARING MAP / SECTION NUMBER

I

TOTAL DEPTH 1 CORE SIZE 1

I I I I

U. T. M. COORDINATES DATE [from /to)

COLLAR ELEVATION ad’1 ; NORTH EAST DRILLED CORE LOGGED

I I

GEOPHYSICAL DATA OVERBURDEN

SCALE DEN BRD LSD HRD GAM NEUT FBE FBS CAL DIR ‘lTT DEPTH COMPOSITION

I I I I I

DRILL HOLE SbMMARY SHEET PROJECT Q 43..ZZL\/ cl q Qu I-.-AA- n--a I I-Z.-A Illltxlt: blltll l.IIlII1txl

PAGE I OF-

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Q&?87om 1 -60- /-a/ o I U. T. M. COORDINATES DATE (from/to)

COLLAR ELEVATION ;!N~RTH EAST DRILLED CORE LOGGED I


SCALE DE,N BRD LSD HRD GAM NEUT FBE FBS CAL DIR “F’ DEPTH’ COMPOSITION

L/VW e- WV

I

; i I ,! ,. ‘j

ml Quintette Coal limited DRILL HOLE SUMMARY SHEET PROJECT

PAGE 3 OF ‘2-

DRILL HOLE SUMMARY SHEET PROJECT / 0 Ouintette Coal limited I

PAGE I OF G , 1 HOLE NUMBER I HOLE ANGLE 1 COLLAR BEARING 1 TOTAL DEPTH CORE SIZE 1 MAP / SECTION NUMBER

MINING ‘S E C T I 0 N

ml DRILL HOLE SUMMARY SHEET PROJECT

Quintette Coal Limited PAGE z OF -x

I I I

DRILL HOLE

f HOLE NUMBER I HOLE ANGLE 1 COLLAR BEARING 1 TOTAL DEPTH I CORE SIZE 1 MAP / SECTION NIIMRFR 1

@M 8700 $1 -&so 208 0

I //7.5’ U. T. M. COORDINATES DATE (from/to)

COLLAR Et EVATION ;,NORTH EAST DRILLED CORE LOGGED

qwi .b-+

‘.

(n,09bR%2..6 lo 23%a3.%=l

GEOPHYSICAL DATA I OVERBURDEN

SCALE DEN ERD LSD HRD GAM NEUT FBE FBS CAL DIR “2’ DEPTH COMPOSITION

/:.2&J r/ L. L- -Y: .--- -0 Y

/:w - v v


PAGE z OF ‘2

t HOLE NUMBER I HOLE ANGLE 1 C0IIAR RFARING 1 ToTAl nFPTH I c-,-,QF <17F MAP / SECTION NUMBER I ----.-.. --“““.- I --,.- “,__

I U. T. M. COORDINATES DATE (from/to)

COLLAR Et EVATION I” ,;.NORTH EAST DRILLED CORE LOGGED

MINING SECTION

@I Quintette Coal Limited DRILL HOLE SUMMARY SHEET PROJECT G RI’2ZLV /

PAGE - OF z

i I MAP / SFCTlnN NIIMRFR 1 HOLE NUMBER HO$E (iNGLE COLLAR BEARING) TOTAL DEPTH CORE SIZL , --- ..-.. ..-...--..

aff? 87ooG p&f+&.& /82 K St %/I.

U. T. M. COORDINATES DATE (from/to) COLLAR ELEVATION 1 II\ ,NORTH I EAST DRll I Fll I

-- Quintette Coal limited unr LL I-IULIZ ~uIvIMARY SHEET PROJECT

PAGE 3 OF2-

HOLE NUMBER HOLE. ANGLE COLLAR BEARING TOTAL DEPTH CORE SIZE MAP / SECTION NUMBER

Ga? $700-6 U. T. M. COORDINATES DATE (from /to)

COLLAR ELEVATION 01 .,:,NORTH EAST DRILLED CORE LOGGED

I

I I I I GEOPHYSICAL DATA OVERBURDEN

SCALE DEN BRD LSD HRD GAM NEUT FEE FBS CAL DIR “2, DEPTH COMPOSITION

MINING SECTION

c . -

A

cl q Quintette Coal limited DRILL HOLE SUMMARY SHEET

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HOLE NUMBER ! HOLE ANGLE 1 COLLAR BEARING 1 TOTAL DEPTH 1 CORE SIZE 1 MAP / SECTION NUMBER

,,,, U. T. M . COORDINATES DATE (from/to) COLLAR ELEVATION , ‘>NORTH EAST DRILLED CORE LOGGED

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PKWERY !N!?F.F!M DATE DATE ^“...r ̂ C...^.C^ -+wLE COMP. .lc.. LAB NC.. COMMENTS

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.,,,,,, ,lJ. T. M. COORDINATES I DATE (from /to) COLLAR ELEVATION 1 WORTH I EAST I


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HOLE NUMBER I HOLE ANGLE 1 COLLAR BEARING 1 TOTAL DEPTH t CORE SIZE 1 MAP / SECTION NUMBER 1 A. ,r\*

U. T. M. COORDINATES I DATE ffrom/tol t

COLLAR ELEVATION 1 I 131 ‘i$ ‘#,)qORTH I EAST 1 DRILLED 4

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PAGE I OF ’


&%it?8706~ 90 - 7 9. 3 s‘i q2Jf

., ,. , , U. T. M . COORDINATES DATE (from /to)

COLLAR Et EVATION ’ ,z.I, ;.iNORTH EAST DRILLED CORE LOGGED

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IPACIL ~. HOLE NUMBER I-I 0 L E A 14 G 1 C COLLAR MCARING ~-- IO’IAL DEPTH 5clRE LILL ---.--~-~~ _--~_-. MAP / SECTIObd lllJMl3CR

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COLLAR ELEVATION -

DATE (from /I<>) .-_--- -~_--~~~.. --. .~.-.--. .~ . .-_-. .~

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9+.sh 6 (2(66 836 0 7/o f5’ GEOPHYSICAL DATA OVERBURDEN

- _.-_-~ --

SCALE DLN BRD LSI, IIRD GAM NEUT FEE FBS CAL DIR s;-;;r” D E P T ,~I iOMPOSITloN .-_-~-.-._ -----~- ---.- .-... -. .____~~_ .~~_.~~

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COMMENTS

cl llrg Quintette Coal Limited DRILL HOLE SUMMARY SHEET

HOLE NUMBER Ii01 t ANGLE COLLAR f!sEAl<lNG lf>TAl DFPT1-I COKE SILL MAI’/ SECIIuI.4 IJUMBCR -.-- -.-. dWR8 70& 90 37.9 ~-SC, '$?f.

U. T. M. COORDINATES DATE (from /to) COLLAR ELEVATlOll NORTII EAST DRILL~IJ CORE LOGGEO

_Ix _ .-.-- .

93 O./O 6-/osr276.67 6 (2 307.37 87/o&- GEOPHYSICAL DATA I 0 V E R 8 LI R D E N

DRILLED lNTERVAl COMMENT5

cl m Quintette Coal Lirplited DRILL HOLE SUMMARY SHEET

HOLE NUMBER HOI E ANGLE COLIAR BEARING I~JTAL cPT1-l CORk blik - ~~_ )~ _ ~~.~~ ~~.~ __ MAP / SECTlord I.JUMBL.R

cPK87oo!c 70 o 43.3 .~--/I, .&f - ~~~--. ---. ---. ‘

U. T. M. COORDINATES ---.-- ____ DATE ( fror!‘.!si~.~. _- ..__ -_ __~_~... _.

COLLAR ELEVATION NGRII-I EAST DRllllU CORE LOGGED -.~._~ e-3.6 / 6 /0Gww3~ 612422,q7 53 7/o PC-


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-&a -MY _ _ w v Lb- L,

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HOLE NUMBER HOLE ANGLE COLLAR BEARING TOTAL DEPTH CORE SIZE ._ ---~_-

CJ?Mk$9,3S’ ----~--..---~_ __-.. . ..----~ ._-. .- _~

90 ” 270.6


COLLAR ELEVATION NORTH EAST I I

I /262.4n I I GEOPHYSICAL DATA OVERBURDEN

SCALE DEN BRD LSD HRD GAM NEUT FEE FBS CAL DIR “2’ DEPTH COMPOSITION ----

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Appendix T.2.2

Diamond Drill Holes

@I Quintette Coal Liyited DRILL HOLE SUMMARY SHEET P R 0 1 F C T 6? !‘k&d~..

PAGt . OF ---~~~~-~ /

HOLE NUMBER HULf ANGLE COLLAR BEARING TOTAL DEPTH CORE SIZE MAP / SECTION NUMBER ..-.~-. --. ~.-.-.-..-- _ _....~._~_~ ..-~~- .~. __- .~~ ~~

QHDG-i;F I - 6s” 2/S” /Lo. 753 fk2 U. T. M. COORDINATES DATE (from /to)

COMMENTS

cl II Quintette Coal Limited DRILL HOLE SUMMARY SHEET PROJECT--- ____-_-_._

PAbL ~~ 3 2_ OFFS ~~,~._ -. __ .~_~~._ HOLE NUMBER HOLE ANGLE COLLAR BEARING TOTAL DEPTH COKE SIZE MAP / SECTION NUMBER -._ --.--~-. ~.._~ ._~~_ __~~._~~~~ ~.~

U. T. M. COORDINATES DATE (from /to) --

COLLAR ELEVATION NORTH EAST DRILLtD-7 LOGGEL.

GEOPHYSICAL DATA I OVFR II R D F N

MI

OAL/RO(

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ml Quintette Coal Limited DR I LL HOLE SUMMARY SHEET

PAGt / IIF _.~ 7 Y

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Q\+Jy‘r--~ 0 0 > d -.“. qa2 P-L Ma

U. T. Id. COORDINATES DA’ I cott*\R ELEVATION I N n R f c4 I FACT

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GEOPHYSICAL OVERBURDEN __

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M I ~

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cl 4 Quintette Coal Limited DRILL HOLE SUMMARY SHEET

HOLE NUMBER Ii 0 L t A N G L E COLLAR ktAI<ING TOTAL DEPTH CORE SlLt MAP / SECTION NUMBER

,@tJ ii 87002

-..-..--...

U. T. M. COORDINATES -._ .---.-.. --.--.-.--. - -..-.- DATE [from/to)

COLLAR ELEVATION N 0 R 1 IH EAST --. lo 81.36 60 ?667i3.4s,i

GEOPHYSICAL DATA

55 c M I I --. .--

OAL/RCK

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I OVERBURDEN -__-- ._.- --_--.-.-- -.-.-. _. I I DtPrW I rOMPOSITIlrN

G SECTION

COMMENTS

DRILL HOLE SUMMARY SHEET Quintette Coal Limitd

HOLE NUMBER HOLE ANGLE COLLAR BEARING TWAL DEPTH CljKE SIZf. MAP / SECTlOt? NUMBER

Q ‘k3%?~~03 -6~” 03s/(” /7x 5’2 f-f+ U. T. M. COORDINATES

COLLAR ELEVATION 1 I

DATE (from/to)- -_~-- NORTH FAST n I) I I I F r, c n D F I A c c I- I’,

=-=-(a .2c, .,_ . . ;jFW.-,y b23Ci I5 -7-z


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COMMENTS

nllirltette Coal Limited DRILL HOLE SUMMARY SHEET PROJFCI--- .-- .____ _~-.-

PAGE 2 _-~~ OF A-3 .~

HOLE NUMBER HOLE ANGLE COLLAR BEARING TCJTAL DtPTH CORE SlZt MA v / 5 ECTION NUMBER .-~-

U. T. M. COORDINATES --- __._. ---- -.... -.-~-~~.~~-~ DATE (from /to)

NORIH EAST GRILLED CORE LCiGGED --- -_--_ --_

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GEOPHYSICAL DATA OVERBURDEN - ---~ -

SCALE DEN &RD LSD HRD GAM NEUT FBE FBS CA, C*,K s’arr’ DEPTH I-OMPOSITION -- ..-- ~~~.- _~-- ~~ -.___._ .~~ ~.

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DRILLED INTERVAL AYC B.C., -

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HO1 E NUMBER HOI E ANGLE _~._ , - _. ~__ _~ _~ .____ ~


COMMENTS

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cl w Quintette Coal Limited DRILL HOLE SUMMARY SHEET PKOJ I< , TKl’l.A:r&c~ _.

PAGL .I OF _ L. HOLE NUMBER ‘HOLE ANGLE COLLAR BFARING IUTAL DtPTh CORE 5IZfi --.~~ ~-.~ - ---.~~. ..__~_~. ~~~., .-...__ ~~~ MAP / 5ECTl0lJ NUMBER

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COMMENTS

@!#I Quintette Coal Limited DRILL HOLE SUMMARY SHEET P R 0 1 I c T 2 ,. I.’ 3 .’ L.A- _

Par,i ,‘,I - HOLE NIJMBER I--- HOLF ANGLF COLLAR BEARING

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TOTAL GEPTII CORE :IZt MAP / SECTION NUMBCP .~. .~ -~~

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LJ. T. M. COORDINATES _.. __. _ COLLAR ELEVAllOt4

I I I GEOPHYSjCAL DATA

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SCALE DEN BRD LSD HRD GAM NEUT FEE FES CAL DIR s”‘ir - .----~~~.~ ~. ..- _~.. --~-.

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U. T. M. COORDINATES DATE (frm /tu) _---~-.-^.- ..-.-. COLLAR ELEVATION N (J R T i-1 EAST

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DRILL HOLE SUMMARY SHEET %axYxL. - I’ II 0 J E c T _ _ Quintette Coal Limited

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DRILL HOLE SUMMARY SHEET PRO, EC, ._z&/&f--:L~ n., ,~ / ,. ~ 0, I I3 Y u .I _ _ ” r _ ~.-K..

HOLE NUMBER I-I 0 L E A N G I. E COLLAR BkARING lOTAL DEPTH CORE SIZE ~__~ --.. MAP / SECTlOk FJUMBER

C3HD ‘%3003 70 o - /20.63 l-J 8.

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COLLAR ELEVATION NORTH EAST DRILLLD CORE LOGGtC _- L?++-&. -.

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Quintette Coal Lir#ed DRILL HOLE SUMMARY SHEET

HOLE NUMBER HOLE ANGLE COLLAR BEARING TOTATDEPTH CORE SlrE- -- --- .__.- .

I I U. T. M. COORDINATES

-~ COLLAR ELEVATION NORTH EAST

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FORM 79-0850-11

Quintette Coal Lir+d

MINING SECTION _..__~ - .~ - ____-.-- _ COAL,ROCK RECO”ERY INTERSEAM DATE DATE

TI1ICKNESS DRILLED SAMPLED -- “--

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PAGt .--~..m~ ___._ OF -2-.-e

HOLE NUMBER HOLE NUMBER HOLE ANGLE HOLE ANGLE COLLAR BEARING COLLAR BEARING TOTAI. DEPTH TOTAI. DEPTH CORE SIZE CORE SIZE MAP / SECTION NUMBER MAP / SECTION NUMBER - - -. -. -- -- ---- ---- -_-. -_-.

c.Th R7oof3 c.Th R7oof3 U. T. M. U. T. M. COORDINATES COORDINATES DATE (from/to) DATE (from/to) --__.., --__..,

COLLAR ELEVATION COLLAR ELEVATION 1 NORTH NORTH I EAST - EAST - DRILLED DRILLED 1 CORE LOGGED CORE LOGGED --


SCALE DEN BRD LSD HRD GAM NEUT FEE FBS CAL DIR sLTT DEPTH COMPOSITION -~-_- .-

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COMMENTS

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Quintette Coal Limited DR I LL HOLE SUMMARY SHEET I’R 0 J L c I Ii3sqx!! ._ ,.- .

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COMMENTS

9

Quintette Coal Limited DRILL HOLE SUMMARY SHEET

HOLE NUMBER’ HOLE ANGLE COLLAR BEARING TOTAL DEPTH CORE SIZE MAP / SECTION NUMBER ~- - -_--- .- -_-.-..- ------..--.___-. -_- __. ____ _ __~_~ ___-.__. -_ - ..^_ -

@?h8300~


I_ COLLAR ELEVATION NORTH EAST DRI t;-:p;


FES I CAL I DIR I s?NTI I

I I DEPTH I COMPOSITION

COMMENTS

@I DRILL HOLE SUMMARY SHEET PROJECT

Quintette Coal limited 7LRILsdlSfF&.

PAGE / OF 2-

MINING SECTION

cl w Quintette Coal limited DRILL HOLE SUMMARY SHEET PROJECT

PAGE z

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MINING SECTION

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Quintette Coal Limited DRILL HOLE SUMMARY SHEET PROJECT

PAGE 2 OFL

IAMPLE COMP. TAG NO. LAB NO. COMMENTS

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1101 c35

,102 035

\ IO.3 c.35

hm I-. 3b

l\o5/06

---~

1

@I Quintette Coal limited DRILL HOLE SUMMARY SHEET PROJECT GR/k-2.W

PAGE A OF 3

l3RIII HnlF SIIMMD rRY SHEET PROJECT -. . . -- . .--- --. . . . . . . PAGE & OF-

ltette Coal limited

HOLE NUMBER 1 HOLE ANGLE 1 COLLAR BEARING 1 TOTAL DEPTH 1 CORE SIZE 1 MAP / SECTION NUMBER

I U. T. M. COORDINATES DATE (from/to)

COLLAR ELEVATION ( NORTH EAST DRILLED CORE LOGGED

Appendix T.3

Adit Drawings

Prepared by Technical Services Department Quintette Coal ...

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Transcript of Prepared by Technical Services Department Quintette Coal ...