See figure 1.0
There is evidence of coal located on each of the Brazion Group exploration properties (Hudette, West Brazion, Mink Creek, and Johnsen Creek), but insufficient work has been done to quantify reportable resources. These properties will be the target of future exploration programs.
Additional historical resources exceeding 100 million tonnes have been reported on the other Falls Mountain Coal Inc. license groups (Pine Pass, Crassier Creek, Falling Creek, and Willow South) by previous operators, but they have not been evaluated by Western or classified according to NI 43-101 standards, so are not relied upon. The historical estimates are relevant because they confirm the existence of coal on these properties which represent significant exploration potential. Willow Creek and associated exploration properties are considered part of the Brazion group.
The combined historical resource estimates for the four main potential surface mineable areas that fall within the Belcourt Group and the Saxon Group indicate that there may be in excess of 150 Mt of coal accessible to the Joint Venture. Historical resource estimates (not tabulated above) within proposed open pits for the Belcourt North, Belcourt South, Saxon East and Saxon South deposits were prepared by the following independent consultants:
- Monenco Consultants Pacific Ltd., Project Feasibility Study (1977): estimated in-place coal resources for the Saxon South open pit deposit at 72.3 Mt.
- Wright Engineers Ltd., Belcourt Feasibility Study (1982): estimated in-place coal resources at 107 Mt and 63 Mt for those portions of the Red Deer (Belcourt North) and Holtslander (Belcourt South) pits that fall within the current Belcourt license block.
- Norwest Mine Services Ltd., Report on the Saxon East Coal Property (1977): estimated in-place coal resources a 48 Mt.
- Beacon Hill Consultants (1988) Ltd., Belcourt Project Qualification Report (1998): estimated in-place coal resources for Red Deer at 33 Mt and for Holtslander at 23 Mt.
- Norwest Mine Services Ltd., Belcourt Project Preliminary Feasibility Study (2000): estimated in-place resources at Belcourt North at 32 Mt and for Belcourt South at 13 Mt.
These resources were estimated at stripping ratios ranging from approximately 4.5:1 to 9.5:1.
These historical resources estimates are relevant as they cover those parts of the project that are the focus of work currently being conducted by the Joint Venture. The estimates are based upon extensive detailed geological mapping, diamond drilling and rotary drilling, surface trenching and underground bulk sampling conducted by major mining companies between 1970 and 1980, plus data from drilling undertaken by the Company on Belcourt South in 1998. However, these historical estimates have not always conformed to the guidelines contained within GCS Paper 88-21 or National Instrument 43-101. Consequently, the Joint Venture does not consider these estimates to be current and therefore they should not be relied upon. Independent Qualified Person, John H. Perry reviewed previous work on the Saxon properties for joint venture partner NEMI Northern Energy & Mining Inc., predecessor company to Peace River Coal Corp., in 2004 and estimated and classified Indicated Resources of 53 Mt and Inferred Resources of 55 Mt on the Saxon East Property, Inferred Resources of 67.5 Mt on Saxon South and Inferred Resources of 44.8 Mt on Omega (Summary Report on the Saxon Coal Project for NEMI Northern Energy & Mining Inc., JHP Coal-Ex Consulting Ltd., February 19, 2004).
As this was prepared for another party, and significant additional field work has subsequently been carried out on the property, the Company does not consider these estimates to be current and therefore they should not be relied upon.
Based upon mining studies conducted to date, the Joint Venture considers the properties to have the potential to support significant mining operations. Additional exploration has been undertaken, and it is the intent of the Joint Venture to advance the project to feasibility.
See figure 1.1
Coal Resources/Reserves - Figure 1.0
| As of March 31, 2008 | ||||
| Measured | Indicated | Measured & Indicated | Inferred | |
| Wolverine | ||||
| Mt. Spieker (EB) (100%) | – | 11.8 | 11.8 | – |
| Hermann (100%) | 32.1 | 0.4 | 32.5 | – |
| Brazion | ||||
| Burnt River–Brule (100%) | 35.1 | – | 35.1 | – |
| Burnt River–Blind (100%) | 0 | 2 | 2 | – |
| WIllow Creek (100%) | 31.2 | 4.8 | 36 | – |
| Total | 113.4 | 34.6 | 148 | 9.6 |
Notes:
- EB resources from “Revised Technical Report on the EB Project”, November 2007, Marston Canada Ltd. Qualified Person (QP) for purposes of NI 43-101 is Edward H. Minnes, P.E.
- Perry Creek surface resources from “Technical Report on the Perry Creek Mine”, February 2008, Marston Canada, Ltd. Qualified Person (QP) for purposes of NI 43-101 is James McQuaid, P.Eng.
- Perry Creek underground resources have been impacted by update of Perry Creek open pit resources and not yet re-quantified so are not included here.
- Hermann resources from “Technical Report on the Hermann Project Feasibility Study”, December 2007, Marston Canada Ltd. QP is Edward H. Minnes, P.E.
- Brule and Blind resources from “Updated Technical Report on the Brule Coal Project”, December 2007, Marston Canada, Ltd. QP is Edward H. Minnes, P.E.
- Willow Creek resources from “Resource and Reserve Estimate for the Willow Creek Coal Mine Property”, Moose Mountain Technical Services. QP is Robert Morris, P. Geo.
- Resources for Perry Creek and Brule have been adjusted to reflect mining extraction to March 31, 2008.
Coal Resources/Reserves - Figure 1.1
| Reserves as at March 31, 2008, included in the resources tabulated above, are shown below: | ||||
| million tonnes run of mine | Proven | Probable | Proven & Probable | |
| Wolverine Group | ||||
| Mt. Spieker (EB) (100%) | – | 8 | 8 | |
| Perry Creek Surface (100%) | 31.1 | – | 31.1 | |
| Hermann (100%) | 10.7 | – | 10.7 | |
| Brazion Group | ||||
| Burnt River Brule (100%) | 21.5 | – | 21.5 | |
| Willow Creek | 14.8 | 0.9 | 15.7 | |
| Total | 78.1 | 8.9 | 87 | |
Notes:
- All coal reserves are run-of-mine (ROM) tonnages. They include provisions for mining dilution and losses, but not effects of coal washing or processing to saleable product.
- Perry Creek and Brule reserves are reduced by quantities removed by mining.
- QP for Perry Creek Reserves is James McQuaid, P. Eng.
- QP for EB, Brule and Hermann Reserves is Edward H. Minnes, P.E.
- QP for Willow Creek Reserves is Robert Morris, P. Geo.
