Geological Setting, Deposit Types and Mineralization.
The coal deposits in the eastern USA are the oldest and most extensively developed coal deposits in the country. The coal-bearing formations on the properties are Carboniferous in age, being in the Pennsylvanian system, which includes the Monongahela, Conemaugh, Alleghany, and Upper Pottsville groups. These coal-bearing formations contain two-fifths of the nation’s bituminous coal deposits, extend over 900 miles from northern Alabama to Pennsylvania, and are part of what is known as the Appalachian Basin. The Appalachian Basin is more than 250 miles wide and in some portions, contains over 60 coal seams of varying economic significance. Seams are typically between 1 foot and 6 feet in thickness, with relatively little structural deformation. Coal in the region is classified as high- to low-volatile bituminous with rank increasing to the east. Coals are typically characterized as low to medium sulfur and high heat content.

Mineralization.
Mineable coal seams within the properties are typically low-ash, low to high-sulfur, and high- thermal content bituminous coals. Regionally, the coals are typically low-volatile in rank, with rank increasing from west to east. The maximum seam thickness may reach over 6.0 feet where multiple coal benches occur in proximity to one another; however, the average mineable thickness of the seams in this evaluation generally ranges from 1 foot to 4 feet. Seams are generally continuous, but may be locally absent. Secondary discontinuity due to erosional features is present in most areas, resulting in seam outcropping, or visible exposure of the seam at the surface. Other than oxidation of the coal exposed at the surface, erosion of the seams has no significant impact on the mineralized deposits. Mineable seams associated with the properties are generally outcrop-accessible. Coal seams are characterized by both single-bench and multiple-bench coal horizons with parting (non-coal) material varying by seam and area. Seam parting is common within the coal seams on the properties with intra-seam parting material increasing drastically in some areas. Roof strata are typically shale or sandy shale with zones of sandstone roof being common. Floor strata are typically sandstone, shale, sandy shale, fireclay, or in the case of the Upper Kittanning, limestone.

Coal Seams of Interest.
Surface-mineable Seams.
There are seven primary coal seams (and associated splits) identified on the properties exhibiting surface-mineable potential. Surface-mineable coal seams are contained within the upper and middle portions of the stratigraphic section and include coal seams from the Sewickley through the Lower Kittanning coal seam. There are 11 areas within the properties where coal seams exhibit surface-mineable potential including: Bassett, Berwind Lohr, Bluelick 4, Byers, GAZ, Downey, Hart, Rhoads II, Schrock Run/Schrock Run Extension, Hamer and Shaffer. Hamer and Byers are directly adjacent to each other and are therefore reported together herein as Hamer-Byers.

Hamer-Byers – Upper Freeport, Upper and Middle Kittanning Seams .
Hamer-Byersis in Somerset County, Pennsylvania within the USGS Somerset 7.5-Minute quadrangle. The property contains surface and associated auger mineable reserves. The Hamer mine was completed at the date of site visits by MM&A, and the adjacent Byers permit was projected to commence mining in the future. Surface mining rights are reported as controlled on this property, and the mineral is controlled through lease and the reserves are permitted. Based on information provided by Corsa, it has been estimated that approximately 100 percent of the Upper Freeport and Middle Kittanning coal production from this property and 65 percent of the Upper Kittanning production could potentially enter the metallurgical coal market, with the remainder going to the steam market. The property is projected to produce a metallurgical grade product although the average sulfur content of the Upper Kittanning is 1.7%. Surface mining ratios within the reserve area are approximately 7.3:1.

NAPP currently operates the Hamer Mine, a surface mine utilizing contour and highwall mining methods.

Recovery Methods.
Materials Handling and Coal Preparation.
Raw coal produced from the mine is currently delivered by truck to the Cambria and Shade coal preparation facilities. In addition to the Cambria and Shade plants, Corsa has the Rockwood plant on care-and-maintenance status which can be reactivated in the future when production level exceeds the capacity at the Cambria and Shade plants.

Some raw coal produced from the mine is shipped directly to the customer on a raw basis or blended with processed or purchased coal, depending on coal quality and specific customer requirements. Corsa preparation facilities have raw coal handling systems consisting of a rotary breaker and screen used to remove large rock and size raw coal. Raw coal is then shipping on a raw basis or blended with washed coals from the preparation plant.

Raw coal to be processed is stockpiled, then loaded by a wheel-loader into a hopper for conveyor transport into the coal preparatio ........