Senior Mine Design Senior Mine Design ProjectProject
David Allan Coal CompanyDavid Allan Coal CompanyHasben Mine ProjectHasben Mine Project
Justin Bushneck & Kris LillyJustin Bushneck & Kris LillySelected slides from Oral PresentationSelected slides from Oral Presentation
Area Mining HistoryArea Mining HistoryThe Hasben Mine Project The Hasben Mine Project Property is Surrounded by Property is Surrounded by 5 Inactive Mines in The 5 Inactive Mines in The Pittsburgh SeamPittsburgh Seam
Gateway MineGateway MineMather MineMather MineRobena MineRobena MineNemacolin MineNemacolin MineCrucible MineCrucible Mine
1 Operating Mine RAG 1 Operating Mine RAG America’s Emerald MineAmerica’s Emerald Mine
Reserves Reserves and Qualityand Quality
MAXIMUM
%
AVERAGE %
MINIM
UM %
STANDARD
DEVIATIO
N
ASH 14.08 10.03 8.19 0.58C-ASH 8.67 7.68 6.22 0.36SUL 5.67 2.12 1.08 0.37C-SUL 2.36 1.56 1.00 0.19YLD 96.87 93.35 87.24 0.96
MAXIMUM
AVERAGE
MINIM
UM
STANDARD
DEVIATIO
N
THK (Ft) 8.12 6.68 5.3 1.92BTU 13,910 13,596 12,989 113C-BTU 14,395 14,119 13,937 68
In Place Reserves
10 yr. Clean Recoverable
TonsAcres 12,452 4,260Total Tons 157,352,594 17,640,464Measured & Indicated Tons
116,308,486 3,660
Inferred Tons 41,044,107 3,660
Coal
Reserves Reserves and and
Quality Quality (Sulfur)(Sulfur)
Subm
ain
D
61
60
59
58
75
76
77
78
8786
85
84
Main #4 Left54
50
51
52
53
32
31
30
29
28
27
26 25
24
23
11
82
Main #4 Right
57
56
55
80
81
12
13
14
15
16
10
9
8
7
6
Blee
der P
anel
Mai
n #3
Main #2Main #1
22
Subm
ain
A
18
19
20
21
5
4
3
2
1
Insufficien
t Data
Insufficien
t Data
Project Name
Drawing Name
Date:
Checked By:
Scale:
Drawn By:
DRAWING No.Ju s ti n Bu sh n ec k
Justin Bushneck
Hasben Mine
Pittsburgh Raw Sulfur Map(Full Seam)
Kris Lilly
10-1-031" = 4000' SUL-001
David Allan Coal Company
17
68
Subm
ain
C
Subm
ain
B
49 79 83
63
624438
41
42
43
67
66
65
64
40
39
45
46
4748
37
36
35
34
33
74
6970
71
72
73
Reserve ClassificationReserve ClassificationMeasured & Measured & IndicatedIndicated
Acreage: 9,204 Acres Acreage: 9,204 Acres TotalTotalAcreage: 3,660 (10 Acreage: 3,660 (10 yr)yr)
Inferred Inferred Acreage: 3,258 AcresAcreage: 3,258 AcresAcreage: 600 (10 yr)Acreage: 600 (10 yr)
Average Influence / Average Influence / Drillhole: 134 Acres
Project Name
Drawing Name
Date:
Checked By:
Scale:
Drawn By:
DRAWING No.J us tin Bu sh n ec k
Justin Bushneck
Hasben Mine
Pittsburgh Seam Reserve Classification Map
Kris Lilly
11-19-031" = 4000' RES-001
David Allan Coal Company
Inferred
Indicated
Measured
Insuffic
ient D
ata17
68
Subm
ain
C
Subm
ain
B
49 79 83
63
624438
41
42
43
67
66
65
64
40
39
45
46
4748
37
36
35
34
33
74
6970
71
72
73
Subm
ain
D
61
60
59
58
75
76
77
78
8786
85
84
Main #4 Left54
50
51
52
53
32
31
30
29
28
27
26 25
24
23
11
82
Main #4 Right
57
56
55
80
81
12
13
14
15
16
10
9
8
7
6
Blee
der P
anel
Mai
n #3
Main #2Main #1
22
Subm
ain
A
18
19
20
21
5
4
3
2
1
Drillhole: 134 Acres
Mine PlanMine PlanRoom and Pillar OperationRoom and Pillar Operation1.6 Million Tons Annually1.6 Million Tons AnnuallyRiver Transportation River Transportation PanelsPanels
3,500 to 4,500 Feet Long3,500 to 4,500 Feet Long10 Entries.10 Entries.35 to 45 Blocks Long35 to 45 Blocks Long
EntriesEntries18 Feet Wide18 Feet WideFull Seam Mining HeightFull Seam Mining Height100’ X 100’ Center to Center100’ X 100’ Center to Center
Coal Production by YearCoal Production by YearDate
Raw Coal (tons)
Clean Coal (tons)
Revenue @ $30/ton
2005 802,142 609,628 $18,288,8282006 1,030,924 783,502 $23,505,0632007 1,864,665 1,417,146 $42,514,3692008 2,009,278 1,527,051 $45,811,5272009 2,118,994 1,610,436 $48,313,0652010 2,115,931 1,608,107 $48,243,2152011 2,222,801 1,689,329 $50,679,8562012 2,134,505 1,622,224 $48,666,7142013 2,189,929 1,664,346 $49,930,3902014 2,205,016 1,675,812 $50,274,3692015 2,282,635 1,734,803 $52,044,0832016 2,234,317 1,698,081 $50,942,430
23,211,136 17,640,464
Unmined Coal
Pow
er C
ente
rPo
wer
Bel
tT
ail P
iece
Bar
rier
Pill
ar
Bar
rier
Pill
ar
Drawing Name:
Project Name:
David Allen Coal Co.Justin Bushneck
Panel Cut Sequence
Hasben Mine
1" = 100'Scale:
Just in Bushneck
Drawn By:
PC-002DRAWING No.
4-24-04Date:
Kris LillyChecked By:
6765
35 29 24 20 14 1033 26 22 17 12 7
25
28
30
32
61
63 64
58
34
31
27
23
56
54
51
21
19
16
53
50
48
18
15
13
46
44
41
11
9
6
43
39
37
8
4
2
40
38
36
5
3
1
68 66 62 60 59 57 55 52 49 47 4245
Panel Cut Panel Cut SequenceSequence
Ground ControlGround Control
100’ X 100’ Center to Center Pillars100’ X 100’ Center to Center Pillars82’ X 82’ Block Size82’ X 82’ Block SizeSFSF
Development Loading 3.52Development Loading 3.52One Side & Active Gob 1.99One Side & Active Gob 1.99Active Gob 2.03Active Gob 2.03
100’ Barrier Pillars Between Panels100’ Barrier Pillars Between Panels120’ Barrier Pillars Between Properties120’ Barrier Pillars Between Properties
Roof BoltingRoof BoltingSpacing Spacing
3 Feet From Rib3 Feet From Rib4 Feet Between Bolts4 Feet Between Bolts
Bolt TypesBolt Types#6 Rebar Grade 60#6 Rebar Grade 608’ Long 8’ Long 8” X 8” Plates8” X 8” PlatesFully Grouted ResinFully Grouted Resin
Additional Support Will Be Installed if Additional Support Will Be Installed if NeededNeeded
VentilationVentilationProjected Seam Gas Content: 100 ftProjected Seam Gas Content: 100 ft33/t to 300 /t to 300 ftft33/t /t At 300 ftAt 300 ft33/t of Methane, 30,000 cfm is Needed in /t of Methane, 30,000 cfm is Needed in Last The Last Open Crosscut to Keep Methane Last The Last Open Crosscut to Keep Methane Below 1%Below 1%Four Sections Require 240,000 to 320,000 cfmFour Sections Require 240,000 to 320,000 cfmFace Ventilation Types:Face Ventilation Types:
Main & Submain: Twin SplitMain & Submain: Twin SplitProduction Panel: Single SplitProduction Panel: Single Split
Joy Joy AxivaneAxivane Mine Fan, Model M120Mine Fan, Model M120--7979--710 710 8” of Water Gage @ 300,0008” of Water Gage @ 300,000 cfmcfm
Panel VentilationPanel VentilationSingle SplitSingle Split
Unmined Coal
Inta
ke
Inta
ke
Neu
tral
Neu
tral
Return
Return
Neu
tral
Checked By:
Kris LillyJustin BushneckScale:
Drawn By:
1" = 100'Ju st in Bushneck
4-25-04Date: DRAWING No.
V-002
Hasben MineProject Name:
Drawing Name: Panel Ventilation
David Allen Coal Co.
Bar
rier
Pill
ar
Bar
rier
Pill
ar
Bel
t
Pow
erPo
wer
Cen
ter
Tai
l Pie
ce
CurtainLine CurtainStoppingReturnNeutralIntake
KEY
Underground TransportationUnderground Transportation
Track Haulage for Men & SuppliesTrack Haulage for Men & SuppliesTrack Ends at Mouth of PanelsTrack Ends at Mouth of Panels
Men will Ride to Section on Super Xcited Men will Ride to Section on Super Xcited MantripMantrip
Foremen & Mechanic Will Use Xcited Supercar on Foremen & Mechanic Will Use Xcited Supercar on SectionSection
Supplies Will be Taken from The Track to The Supplies Will be Taken from The Track to The Section By The Powell ScoopsSection By The Powell Scoops
Return Headings Will Be Traveled By The Return Headings Will Be Traveled By The StingerStinger
Equipment SelectionEquipment SelectionUnderground (Per Underground (Per Section)Section)
Dash Three Continuous Dash Three Continuous MinerMinerHDDR Fletcher BolterHDDR Fletcher Bolter10SC Shuttle Cars10SC Shuttle CarsPowell ScoopPowell Scoop
Bucket DusterBucket DusterCogar FeederCogar FeederPower CenterPower CenterJohnson IndustriesJohnson Industries
Xcited SupercarXcited SupercarSuper Xcited Super Xcited MantripMantripStinger Stinger MantripMantrip
Brookville Track Mantrips
SurfaceSurfaceBucket LoaderBucket LoaderTrack DozerTrack DozerDump TruckDump TruckCraneCraneGraderGraderCinder TruckCinder TruckSkid steerSkid steerForkliftForkliftBucket TruckBucket TruckUtility TruckUtility TruckPickupsPickupsExcavatorExcavator
Brookville Track Mantrips
HaulageHaulage
Mains & SubmainsMains & Submains48” Belt48” Belt1000 Tons Max Belt Potential1000 Tons Max Belt PotentialOperating at 600 Ft. Per MinuteOperating at 600 Ft. Per MinuteMax 700 Ft. Per MinuteMax 700 Ft. Per Minute
PanelsPanels36” Belt36” Belt600 Tons Max Belt Potential600 Tons Max Belt Potential650 Ft. Per Minute650 Ft. Per Minute
Electrical PowerElectrical PowerIncoming Distribution PowerIncoming Distribution Power
138,000 VAC138,000 VAC
SubstationSubstation25,000 KVA @ 12,470 VAC25,000 KVA @ 12,470 VAC
Surface and Underground Are Separate Power Surface and Underground Are Separate Power Systems from the same SubstationSystems from the same SubstationAll Sections Have Same Power CenterAll Sections Have Same Power Center
12,470 VAC Primary12,470 VAC Primary995, 480, 240, 120 VAC Secondary995, 480, 240, 120 VAC Secondary300 VDC Rectified Secondary300 VDC Rectified Secondary
Water ControlWater ControlWater Inflow SourcesWater Inflow Sources
Surrounding MinesSurrounding MinesCoal & Rock StrataCoal & Rock StrataMining MachineryMining MachineryPersonnel Errors Personnel Errors
Sump Type & Sump Type & LocationLocation
Main Sumps Bottom of Main Sumps Bottom of Return ShaftReturn ShaftSubmainSubmain Sumps, Each Sumps, Each Belt Drive or 5,000 Ft. Belt Drive or 5,000 Ft. IntervalsIntervalsProduction Sumps, Production Sumps, 2,500 Ft. from 2,500 Ft. from Beginning of Panel
Project Name
DRAWING No.
MSP-001
Drawing Name
Date:
Checked By:
Scale:
Drawn By:
Justin Bushneck
Main Sump Drawing
Kris Lilly
3-22-041" = 12'
Hasben Mine
David Allan Coal Company
6" Discharge Pipes
8" Discharge Pipe
Top of Return Shaft
Treatment Pond
EntryEntry
Sump
200'
Beginning of Panel
Processing PlantProcessing Plant1000 Ton Per Hour1000 Ton Per Hour4 Circuits4 Circuits
CoarseCoarseMediumMediumFineFineUltra FineUltra Fine
Plant Total Recovery 76%Plant Total Recovery 76%
Size Plant Capacity Clean Coal RefuseCircuit Distribution Raw (TPH) Product (TPH) (TPH)Coarse -2 inch +1/4 inch 68.60% 684 488 196Intermediate -1/4 inch +28 µm 21.61% 215 192 24Fine -28 µm +200 µm 5.14% 51 44 7Ultra Fine -200 µm +0 µm 4.65% 46 43 4
100.00% 997 766 231
TonnagesSize DistributionSignificant Size
Distribution in Plant
Totals(Dry Basis, Undiluted, 1.55 Float)
Preparation Plant Flow sheetPreparation Plant Flow sheet
Static Thickner
Spirals Protection Sieve Screen
Double Start Spirals
Centrifuge Effulent
Pond
Spiral Refuse Screen
Sump & Pump
Density and Gauge Flowmeter
High Capacity Screen Bowls
Spiral FineCoal Screen
Van Tube
Screen Bowl Distributor
Classifying Cyclone
Spiral FeedDistributor
Flotation Cells
Clean Coal Centrifuge Dryer
H.M. Vessels
H.M. Vessesl Refuse D&R Screen
Clean CoalCrusher
RocksGrizzly Screen
Rotary BreakerRock Pile
RailProject Name
DRAWING No.
Flow-001
Drawing Name
Date:
Checked By:
Scale:
Drawn By:
Justin Bushneck
Processing Plant Flow Sheet
Kris Lilly
4-21-041" = 5000'
Hasben Mine
David Allan Coal Company
500TPH1000TPH
3 TPH
997 TPH
313 TPH
684 TPH
684 TPH
227 TPH 724 TPH
57.4 TPHFeeder
215 TPH
97 TPH
7 TP
H
24 TPH
44 T
PH192
TPH
196
TPH
220
TPH
488
TPH
243 TPH
44 T
PH
46 T
PH
51 T
PH
2 TP
H
+1/4"
-1/4"
-1/4"
+1/4"
+28µm-28µm
-28µm
+0µm
-28µm +200µm
+2"
-2"
-2"
-2"939.6 TPH
H.M. Cyclone Refuse D&R Screen
Sieve Screen
H.M. Cyclone
H.M. Cyclone Clean Coal D&R Screen
Clean Coal Centrifuge Dryer
Dilute Media Sump and Pump
1500 Ton Silo'sRefuse Disposal Area
Sieve Bend
Spiral Feed Sump and Pump
Heavy Media Cyclone Feed Sump and Pump
Refuse Screen
Dilute Media Sump and Pumps
Belt Press
Barge
Coarse Clean Coal Centrifuge Dryers
Clean Coal
Nuclear Density Device
Magnetite Storage Bin with Rotary Feeder
Nuclear Density Device
Overdense Media Sump and Pumps Coarse Dilute Media
Sump and Pumps
Magnetic Separator
Distrubutor
Overland 48" Conveyor BeltFrom Portal Opening
Raw Coal Stacker100,000 Tons Raw Coal Storage
Conveyor to Plant
Raw Coal Screen
Pre-Wet Screen
Magnet
43 T
PH
3 TP
H1 TPH
Agitator
Caterpillar 769D Off High Dump Truck
Size Plant Capacity Clean Coal RefuseCircuit Distribution Raw (TPH) Product (TPH) (TPH)Coarse -2 inch +1/4 inch 68.60% 684 488 196Intermediate -1/4 inch +28µm 21.61% 215 192 24Fine -28µm +200µm 5.14% 51 44 7Ultra Fine -200µm +0µm 4.65% 46 43 4
100.00% 997 766 231(Dry Basis, Undiluted, 1.55 Float)
Totals
TonnagesSize DistributionSignificant Size
Distribution in Plant
Surface FacilitiesSurface FacilitiesMain PortalMain Portal
Life of Mine PortalLife of Mine PortalMain Load out & Main Load out & Preparation PlantPreparation PlantWater Treatment FacilityWater Treatment FacilityMain Supply DropMain Supply DropMine OfficeMine OfficeWarehouseWarehouseMine ShopMine ShopBathhouseBathhouseGuardhouseGuardhouseSubstationSubstationMine Fan
Satellite PortalSatellite PortalWater Treatment FacilityWater Treatment FacilityMine OfficeMine OfficeBathhouseBathhouseSubstationSubstationMine FanMine Fan
Refuse PileRefuse Pile25 Acres25 Acres
50 Ft. High50 Ft. High
CapacityCapacity2,2000,000 Tons Refuse2,2000,000 Tons Refuse
Plans to Purchase Plans to Purchase Additional 55 AcresAdditional 55 AcresMine Fan
Project ScheduleProject Schedule20022002
Land Acquisition in JuneLand Acquisition in JuneReview Acquired Mining DataReview Acquired Mining Data
20032003Exploration, Reserve Study, Mine PlanningExploration, Reserve Study, Mine Planning
20042004Financial Approval, Plant & Surface Design & Financial Approval, Plant & Surface Design & ConstructionConstruction
20052005January 2, 2005 Production BeginsJanuary 2, 2005 Production Begins
MarketingMarketing
Possible Sales LocationsPossible Sales LocationsFt. MartinFt. MartinHatfield's FerryHatfield's FerryFuture LongviewFuture Longview
Expected Realization $30 Per TonExpected Realization $30 Per Ton
Operating & Capital CostOperating & Capital Cost
CapitalCapital
Total Over 10 YearsTotal Over 10 Years$107,279,800$107,279,800
Capital to Full Capital to Full ProductionProduction
$101,482,816
ExpenseExpenseSuppliesSupplies
Roof ControlRoof ControlUnderground Underground Ventilation ControlVentilation ControlMaintenance ItemsMaintenance ItemsUtility ItemsUtility ItemsBeltingBeltingTrackTrack
PersonnelPersonnelRebuilt Equipment
$101,482,816
Rebuilt Equipment
EconomicsEconomicsAssumptions:Assumptions:Coal Market Price $30/ Coal Market Price $30/ Ton FOB BargeTon FOB BargeNPV Discounted at 5%, NPV Discounted at 5%, Coal Reserve Bought in Coal Reserve Bought in 20022002Production Begins 2005Production Begins 2005Full Production in 2008
NPV @ 5% is NPV @ 5% is negativenegative
IRR 3% in Ten YearsIRR 3% in Ten YearsIRR 5% in Thirty IRR 5% in Thirty YearsYears
Full Production in 2008
RecommendationsRecommendationsA More Thorough Investigation, or A More Thorough Investigation, or
Higher Realization of ProductHigher Realization of Product