Coal-measures in the Bingay Main area are hosted by the Mist Mountain Formation of the Kootenay Group, of latest Jurassic to earliest Cretaceous age. The Mist Mountain Formation is underlain by Jurassic rocks of the Morrissey and Fernie formations. At the crest of the Greenhills Range, east of the Bingay Main property, the Mist Mountain Formation is overlain by the younger coal-measures of the Elk Formation, also of Cretaceous age. Although younger coals are known from the overlying Elk Formation in the Greenhills Range, the Elk coals appear to have been stripped away by erosion within the Bingay Main property. At least 32 coal beds, whose true thickness ranges from 0.3 to 16.2 metres are present. Of these coals, 24 typically are at least 1 metre thick, inclusive of contained bands of rock. Cumulative thickness of these coals is 62.6 metres, within an overall coal-bearing rock thickness of 460 metres; coal thus forms about 13.6% of the coal-bearing rocks at Bingay Main. Bedrock in the proposed mine area consists primarily of siltstone, mudstone and sandstone with interbedded coal seams, which are exposed in the central Bingay Hill and along the east side of the proposed open pit adjacent to the Elk River. The mudstone, siltstone and coal layers appear relatively soft, however coal-bearing erosion resistant sandstone layers form prominent bedrock ridges in the southwestern part of the proposed mining area and along Bingay Creek.

Overburden, generally consisting of c ........

The project will produce metallurgical coal at an annual maximum production rate of 2 million clean tonnes. The lifespan of the project is planned for 20 years of coal production at a constant rate, using shovel and truck operation open pit mining method in the first 10-15 years, and then underground mining for the remaining years. The optimal ratio of surface to underground mining is currently being evaluated.

The Bingay Main coal deposit is planned to be mined using the conventional bench-bybench (15 metre) open-pit mining method, which includes excavation of overburden, drilling and blasting of rock, ripping and dozing coal, loading with a hydraulic shovel and a front-end loader, and hauling coal with 100 t capacity trucks and waste rock with 240 t capacity trucks. The strip ratio is variable but is expected to average 6.0 bank cubic meters (BCM) per clean tonne mined (CMT). The entire open pit mine is located in the measured/indicated resource portion of the coal deposit. Auxiliary equipment includes dozers, graders, front-end-loaders, service trucks and general equipment to support and conduct maintenance.

Based on the level of production and the strip ratio, the mining fleet planned for the operation consists of one P&H2800XP electric shovel (or equivalent), one hydraulic shovel, eight 240-tonne capacity haul trucks, four 100-tonne capacity trucks, two diesel electric rotary drills, two large front end loaders and two D10 dozers.

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