Bowron River Project

Summary

The Bowron River Project is located approximately 60 km east of the town of Prince George, British Columbia within the Bowron Coal Measures of the Nechako Basin.

The project, which now totals 3,000 hectares, is contigous with ground held by Phalanx Coal Canada Limited where 87 diamond drill holes have been completed and where historical resource estimates (compliant under NI 43-101) are reported as 49Mt with a potential additional resource of 96Mt.

It is accessible from Prince George by 50 km of paved road on Highway 16 and then by 10 km of all-weather gravel road. The closest access to rail is Hansard, a distance of 35 km to the north.

Prince George is a large industrial and commercial hub in north central British Columbia, with daily scheduled commercial airline transportation. It also serves as a major staging point for both British Columbia Rail and the Canadian National Railway.

Salient Facts

Location

Local Geology

The area of the Bowron River Coal Project is covered extensively by glacial till and alluvial deposits. This has made it difficult to adequately understand the stratigraphy of the area. The Bowron River Coal Project area is located in a north – north-westerly trending basin containing sedimentary rocks of Upper Cretaceous – Early Tertiary age. The basin is surrounded and unconformably overlies rocks of the Antler Formation which is comprised of volcanic, minor diorite and gabbro and lithic sandstone, of Carboniferous age.

The Bowron River Coal Measures are a sedimentary package of approximately 700 m thickness comprising of conglomerates, coaly shales, siltstones, sandstones and coal. The sedimentary basin is interpreted to be a south plunging syncline which is terminated by a north east trending transverse fault. The western edge of the basin has dips of upwards of 45 degrees toward the north-east, and dips on the eastern margin of 8 – 15 degrees toward the south west indicating an asymmetrical syncline.

Coal Seams

Three main coal seams have been identified in the Bowron River Coal Measures, the Upper, Middle and Lower, all occurring in the lower 100 m of the sedimentary sequence.

The Lower coal seam occurs approximately 100 m above the Antler Formation and contains coal plies interbedded with stone plies. The average thickness of the seam is 3.4 m. Exploration drilling carried out in the 1981 phase demonstrated the continuity of the seam in the south and east of the project area. A major stone band develops in the southern portion of the area, splitting the seam into two seams.

The Middle seam is thinner and lacks lateral continuity. Its thickness ranges between 0.3 m and 3 m and is approximately 25 m above the Lower Seam.

The Upper coal seam is approximately 50 m above the Lower seam and is composed of two plies separated by a relatively thick stone parting averaging 1 m. The average thickness of the coal is 2.4 m.