Summary:
Geology of the Properties
The geology of the properties is consistent with regional structural trends. In Maryland, the local Casselman synclinal fold is evident in the Casselman mine. Coal seams of economic importance on the properties typically range from 1 foot to 6 feet in thickness and are primarily low-volatile in rank. There are 11 coal seams on the properties that demonstrate reserve or resource potential including, in descending stratigraphic order: Sewickley, Redstone, Pittsburgh, Bakerstown, Upper Freeport, Lower Freeport, Upper Kittanning, Middle Kittanning, Lower Kittanning, Brookville, and Mercer.
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.
Limestone beds occur within the various stratigraphic groups of the region. Some of these limestone beds are extracted in conjunction with surface mining of the Sewickley coal in particular.
Schrock Run – Lower Freeport and Upper Kittanning Seams Reserve
This property is immediately west of the Cambria Preparation Plant. The Lower Freeport seam has been previously surface and underground mined within the project boundary of this property. Lower Freeport reserve tonnage will include some surface remining of existing underground mine workings. The Upper Kittanning seam reserves include highwall mining tons. The highwall mining area was previously designated for auger mining. Based on information provided by Corsa, it has been estimated that approximately 55 percent of coal production from this property could potentially enter the metallurgical coal market, with the remainder going to the steam market.
The Schrock Run (including the associated Schrock Run Extension area) property is active. Surface mining rights are reported as controlled on this property, the mineral is controlled through lease and ownership and the reserves are permitted. Surface mining ratios are 27.4: 1 within the reserve area.
Deposit Types
The coal reserves reported herein are bituminous coals. The primary coal-bearing formations on the properties are Carboniferous in age, being in the Pennsylvanian system, which includes the Monongahela, Conemaugh, Allegheny, and Pottsville groups. The average mineable seam thickness for coal horizons in these formations ranges from 1 foot to over 6 feet. The coal seams are generally continuous and non-complex but may vary in thickness and may also be locally absent. Seams retain normal stratigraphic sequence throughout the properties and no evidence has been observed that seams have been modified from pre-deformational thicknesses.