WESTWATERMINING LTD. 2001 Coal Assessment Report for the Dove Creek Coal Property Volume I:Geology Coal Licence Nos. 383367 to 383374, inclusive Vancouver Island - Comox Land District NTS 92 FA1 Latitude: 49O 43’ north Longitude: 125O 04’ west Licences held by: Neil Swift Operator: Priorit j Ventures Ltd. Consu Ita nts: W estwate r Mi n i ng Ltd. Authors: C.G. Cathyl-Bickford, P.Geo., D. Meckert, Ph.D. and K.V. Slater Work performed: June-August 2001 Date submitted: September 9, 2002 TABLEOF CONTENTS VOLUME1: GEOLOGY 1 SUMMARY ......................................................................................................................................................... 1 2 LOCATION. ACCESSIBILITY AND INFRASTRUCTURE ........................................................................ 3 2 . 1 TOPOGRAPHY.ELEVATION AND VEGETATION ................................................................................................ 3 2.2 ACCESS.......................................................................................................................................................... 3 2.3 POPULATION CENTRES AND MEANS OF COMMUNICATION ............................................................................... 3 2.4 CLIMATE........................................................................................................................................................ 5 2.5 MNNGINFRASTdUCTURE ............................................................................................................................. 5 2.5. I Surface access for mining purposes ...................................................................................................... 5 2.5.2 Electrical power supply ......................................................................................................................... 6 2.5.3 Water supply .......................................................................................................................................... 6 2.5.4 Miners and tradespeople ....................................................................................................................... 6 2.5.5 Mine waste and tailings diyposal .......................................................................................................... 6 2.5.6 Equipment and supplies ......................................................................................................................... 6 2.5. 7 Plant sites .............................................................................................................................................. 6 3 COAL LANDS ..................................................................................................................................................... 7 3.1 PROPERTY HISTORY ....................................................................................................................................... 7 3.2 DESCRIPTIONOF THE CURRENT PROPERTY ..................................................................................................... 7 3.2. I Coal licence details ............................................................................................................................... 7 3.2.2 Current status of the coal licences ........................................................................................................ 8 3.3 COMPANY'S INTERESTS IN THE PROPERTY ...................................................................................................... 8 3.4 DISCLAIMERCONCERN~NG MINERAL TITLES ................................................................................................... 8 4 SUMMARY OF EXPLORATION WORK ...................................................................................................... 9 4. 1 pRE-200 1 EXPLORATION ................................................................................................................................ 9 4 . I . I Details of Canadian Collieries (Dunsmuir) Ltd . 's boreholes ................................................................ 9 4.1.2 Details of Vancouver Coal Prospecting Company's borehole ............................................................ 14 4.1.3 Deta1j.y of Weldwood s boreholes ........................................................................................................ 14 4.2 EXPLORATIONWORK DURING THE SUMMER OF 200 1 ................................................................................... 14 4.2.I Geological mapping ............................................................................................................................ 14 4.2.2 Details of Priority Ventures ' drilling .................................................................................................. 15 4.2.2.1 Borehole design ............................................................................................................................................ 15 4.2.2.2 Near-surface drilling by water-well rig ......................................................................................................... 15 4.2.2.4 Core-logging methods ................................................................................................................................... 17 4.2.2.5 Lessons leariied during drilling ..................................................................................................................... 18 1.2.3 Coal analyses ...................................................................................................................................... 18 4.2.3.1 Ply samples ....................................................................................................................................................... 18 4.2.3.2 Canister samples ................................................................................................................................................ 19 4.2.4 Geophysical logging ............................................................................................................................ 19 4.2.j Trenches, pits and adits ....................................................................................................................... 19 4.2.6 Road construction and maintenance ................................................................................................... 20 4.3 RECLAMATION............................................................................................................................................. 20 5 COAL RESOURCES........................................................................................................................................ 21 5.1 COAL DEPOSIT MODEL .................................................................................................................................. 21 5.2 H~STORICALCOAL PRODUCTION ................................................................................................................... 21 5.3 H~~TORICALCOAL RESOL!RCE ESTIMATES .................................................................................................... 21 5.3. I H.,4. Rose's 1923 estimate ................................................................................................................... 21 j.3.2 F . W. Gr u).. 's I952 estimate .................................................................................................................. 21 Coal assessment report on [he Dove ('reek coal properr: 2001 rsplorution rcw/ts 5.4 SLIhikl.4RY OF RESOURCEEVALL'ATIO?~ ....................................................................................... j . 4 . ] Coal reso;irce blocks ........................................................................................................................... 23 j . 4.2 Method of resource calculation ........................................................................................................... 27 5.5 D~scussio~................................................................................................................................................. 32 5.6 CAVE.4TS ...................................................................................................................................................... 33 6 GEOLOGY OF THE DOVE CREEK COAL DEPOSIT .............................................................................. -10 6 . 1 REGIO~ALGEOLOGICAL CONTEXT ............................................................................................................... 40 6. I . I Basement ................................................................ .................................... .......................... 11 6.1.2 Coal-measures ........................................................ ....................................................................... 11 6. 1.3 Covering rocks .................................................................................................................................... 41 6. 1 . I Post coal-measures intrusions ............................................................................................................. 11 6 . 1.5 Drft cover ........................................................................................................................................... 11 6.2 LOCAL GEOLOGY OF THE DOVECREEK COAL LICENSES ............................................................................... 42 6.2.I Coal bed maps ....................................................................................................................................