PROJECT UPDATE 2013 October COLONIAL COAL INTERNATIONAL - - PowerPoint PPT Presentation

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PROJECT UPDATE 2013 October COLONIAL COAL INTERNATIONAL - - PowerPoint PPT Presentation

HUGUENOT PROJECT UPDATE 2013 October COLONIAL COAL INTERNATIONAL CORPORATION LOCATION HUGUENOT = 85 km (approx.) FLATBED = 30 km (approx.) from TR COAL MINE PROPERTIES HUGUENOT COAL LICENSE AND APPLICATIONS COAL LICENSES = 6,467 has.


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HUGUENOT PROJECT UPDATE 2013 October

COLONIAL COAL INTERNATIONAL CORPORATION

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LOCATION HUGUENOT = 85 km (approx.) FLATBED = 30 km (approx.) from TR

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COAL MINE PROPERTIES

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HUGUENOT COAL LICENSE AND APPLICATIONS

COAL LICENSES = 6,467 has. COAL LICENSE APPLICATIONS = 17,550 has.

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SLIDE 5

HUGUENOT PROPERTY GEOLOGY

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HUGUENOT DRILL HOLES

DIAMOND = 28

  • 1976,78,79 = 9 (DENISON MINES)
  • 2011 = 13
  • 2012 = 6

LARGE DIAMETER = 33

  • 2008 = 10
  • 2011 = 4
  • 2012 = 19

ROTARY = 44

  • 2008 = 17
  • 2011 = 16
  • 2012 = 11
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HUGUENOT COAL SEAMS & MINING SECTIONS

Seam North Block Middle Block South Block 9 0.67 0.77 0.62 8 3.02 1.72 0.96 6B 2.19 0.89 0.89 6L 1.87 3.27 3 5 5.93 6.55 4.37 4/4U 0.71 1.1 1.93 3B 1.37 0.82

  • 2 Zone
  • 3.64

2A 0.72 1.07

  • 1

3.41 7.88 2.99

AVERAGE THICKNESSESS ( MINING SECTION )

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SLIDE 8

HUGUENOT PROPERTY GEOLOGY

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NORTH BLOCK : CROSS SECTION AA'

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NORTH BLOCK : CROSS SECTION BB'

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NORTH BLOCK : CROSS SECTION CC'

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NORTH BLOCK : CROSS SECTION DD'

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MIDDLE - SOUTH BLOCK : CROSS SECTION KK'

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MIDDLE - SOUTH BLOCK : CROSS SECTION JJ'

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MIDDLE - SOUTH BLOCK : CROSS SECTION HH'

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MIDDLE - SOUTH BLOCK : CROSS SECTION GG'

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MIDDLE - SOUTH BLOCK : CROSS SECTION EE'

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SUMMARY OF COAL RESOURCES

DEPOSIT TYPE MEASURED (Mt) INDICATED (Mt) INFERRED (Mt) SURFACE

96.2 35.75 0.53

UNDERGROUND

18.85 126.88 118.66

TOTAL

115.05 162.63 119.19

Measured Indicated Measured & Indicated Inferred Measured Indicated Measured & Indicated Inferred Mt Mt Mt Mt Mt Mt Mt Mt North Block

58.32 7.91 66.23 7.18 30.41 37.59 86.84

Middle Block

37.88 9.02 46.9 0.53 11.67 19.5 31.17 1.58

South Block

18.82 18.82 76.97 76.97 30.24

Total

96.2 35.75 131.95 0.53 18.85 126.88 145.73 118.66

Surface Resources Underground Resources

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QUALITY COMPARISON: Huguenot HCC vs. Canadian Export Coking Coals1

Huguenot Canadian Canadian Coking Coal* NEBC HCC** SEBC HCC** Total Moisture % as received 9 8 - 9 8 Volatile Matter % dry 22.5 - 23.5 23 - 24.5 21.0 - 27.0 Ash Content % dry 8.5 - 9 8.25 - 8.60 8.5 - 9.6 Sulphur Content % dry 0.4 0.45 - 0.55 0.35 - 0.75 Free Swelling Index (FSI) 6.5 - 7 7 - 8 6 - 8 Mean Max Reflectance of Vitrinite % 1.15 - 1.20 1.15 - 1.25 1.08 - 1.35 Gieseler Maximum Fluidity (ddpm) 100 150 - 300 40 - 300 Phosphorus in Coal % dry 0.044 0.008 - 0.040 0.010 - 0.065 Base/Acid Ratio of Ash 0.08 - 0.010 0.12 - 0.18 0.07 - 0.10 Coke Strength after Reaction (CSR) 60 - 65 58 - 60 68 - 72 *Results based on laboratory scale washing and testing of exploration samples **Results based on full washing plant under operating conditions

1Reproduced from the report Marketing Study for the Huguenot Property , Kobie Koornhof Associates Inc., August,2013

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SUMMARY OF OPEN PIT AND UNDERGROUND RESOURCES

PIT TYPE YEARS ROM (+) PLANT YIELD PRODUCT TONNES (+) SURFACE 15 86 MM 70% 39 MM UNDERGROUND 31 66 MM 76% 50 MM TOTAL 122 MM 89 MM LIFE OF MINE PRODUCTION

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ECONOMIC ANALYSES RESULTS ($ MILLIONS)

5% 7.50% 10% IRR (%) 5% 7.50% 10% IRR (%) US$192.50/t 1,579.00 $ 1,100.00 $ 780.00 $ 32 1,181.00 $ 790.00 $ 530.00 $ 24 US$165/t 680.00 $ 407.00 $ 230.00 $ 16 272.00 $ 85.00 $ 32.00

  • $

9 US$225/t 2,634.00 $ 1,910.00 $ 1,420.00 $ 49 2,238.00 $ 1,602.00 $ 1,173.00 $ 42

Coal Price NPV (US$M) at Varying Discount Rates with IRR w/ Capital Cost Contingency Only w/ Capital and Operating Cost Contingency

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FIELD PHOTOS

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FIELD PHOTOS

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FIELD PHOTOS

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FIELD PHOTOS`

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FIELD PHOTOS

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FIELD PHOTOS

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FIELD PHOTOS

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FIELD PHOTOS

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FIELD PHOTOS

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FIELD PHOTOS

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FIELD PHOTOS

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FIELD PHOTOS

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FIELD PHOTOS

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FIELD PHOTOS

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FIELD PHOTOS

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FIELD PHOTOS

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FIELD PHOTOS

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FIELD PHOTOS

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FLATBED PROJECT UPDATE 2013 OCTOBER

COLONIAL COAL INTERNATIONAL CORPORATION

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FLATBED PROJECT LOCATION MAP

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FLATBED PROJECT PROPOSED WORK & COAL LICENSE APPLICATIONS

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FLATBED PROJECT SCHEMATIC CROSS-SECTION