The general stratigraphic sequence of the Project area, beginning with the oldest sediments is: Rundle Group, Rocky Mountain Group, Spray River Formation, Fernie Formation, the Kootenay Group and the Blairmore Group [Samuelson 1996].

The Kootenay Group strata, which contain all of the coal seams, consist of the Morrissey Formation, the Mist Mountain Formation and the Elk Formation [Gibson 1979a]. While the entire Kootenay Group has some coal seams within it, technically all the economic seams occur in the Mist Mountain Formation. The Moose Mountain Member of the Morrissey Formation and the Elk Formation lie respectively under and over the main coal-bearing Mist Mountain formation. The Moose Mountain Member is a resistant, generally cliff-forming unit comprised of massive, medium to coarse-grained, medium-gray weathering sandstone. There are commonly two coal horizons within this sandstone, but their small thickness (rarely over one metre) and the overlying massive sandstone make them unattractive for economic consideration. The distinctive nature and prominence of this unit makes it an easily traceable marker horizon throughout the Elk Valley Coalfield of southeastern BC.

The Mist Mountain Formation is the main coal-bearing unit of the Kootenay Group. It overlies the Moose Mountain Member with an abrupt but conformable contact. It is comprised of a generally recessive, interbedded sequence of brownish tinted sandstones, gray to brown siltstones, gray an ........

The Project is located within the East Kootenay region in the southeastern portion of BC. The Project area is located in the Dry Creek and Grace Creek drainage basins, both tributaries to the Fording River. This area forms part of the Front Ranges of the Canadian Rockies, with elevations reaching over 2,550 metres (m) above sea level.

Line Creek supplies steelmaking and PCI coal to a variety of international and domestic customers. The Line Creek property consists of approximately 8,200 hectares of coal lands.

The LCO Phase II Dry Creek operating area includes the development of two open pit mining areas at LCO: Burnt Ridge North and Mount Michael.

Conventional open-pit truck and shovel mining method is employed to extracting coal and waste material.

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