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.

Underground-mineable Seams: There are six coal seams identified on the properties exhibiting underground-mineable potential. These coal seams are contained within the middle to lower portions of the stratigraphic section and include the Upper Freeport (E), Lower Freeport (D), Upper Kittanning (C’), Middle Kittanning (C), Lower Kittanning (B), and Brookville (A) coal seams.

Horning - Lower Freeport Seam.
Horning D is in Somerset County, Pennsylvania, within the USGS Berlin 7.5-Minute quadrangle. Horning D is an active underground mine producing metallurgical-grade coal. The property consists of owned and leased coal with lesser areas of internal uncontrolled coal and it is fully permitted. The mine plans have been extended further north toward Schrock Run into an area that, in the 2014 TR, identified an existing underground mine in the Lower Freeport seam. Further review by Corsa, along with drilling, reveals that if this mine exists in this location it is not in the Lower Freeport or overlying seams. Average seam thickness is 3.0 feet.

NAPP currently operates the Horning Mine, an underground mine utilizing the room and pillar mining method.

Mine: Horning D.
The idle Horning D mine is an active mine with a single production section. The Lower Freeport D seam is accessed via an existing boxcut along the outcrop. This mine is projected to be a metallurgical coal operation with approximately 75% of production on leased mineral property and the remaining 25% on mineral property owned by Corsa.

Production is scheduled for 255 days each year, which represents production on Monday through Friday. On each day, a single production section is scheduled to produce coal on two shifts; the third shift is reserved for maintenance and mine conveyor belt and power moves. The section is configured as regular sections with one continuous miner available for production. Productivity is planned at the rate of 180 feet of advance per shift of operation.

Principal production equipment includes a continuous miner, two roof bolters, a continuous haulage system, and one scoop. Coal is extracted from the production face with the continuous miner and hauled to the mine conveyor via continuous haulage. At the conveyor belt, the coal is discharged from the haulage system onto a feeder breaker for transfer onto the conveyor. The conveyors carry the coal to the outside, where it is stacked on the ground to await truck transport to the preparation plant and load-out. The truck haul distance is approximately 2 miles.

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 ........