Ann: Columboola JV Increases Resource to 1.297 Bi, page-5

re: Ann: Columboola JV Increases Resource to ... Banksy,
Looked at their Canadian project on their website a while back.
Couple of points from memory:
- there resource/reserves showed a o/c highwall of 400m. Not saying thats engineering impossible but my cutoff is 150m and that reduces the resource by 2/3.
- Seams were very banded so u/g of the highwall probably not a possibility. Also adjacent to the Rockies so faulting probably a big issue for u/g
- I think they had a 50% recovery of mined coal in their feasibility
- not familiar with the rail line but think it was a fair way to the west coast over some challenging terrain. Train sizes might have to be small to accommodate which means high rail cost.
- its average thermal coal and compares with 3rd gen projects in Australia but proximity to market from west coast an advantage
In short, I think its got possibilities but not at the production tonnages of 10million they are talking. My opinion only!