Discovering Canada’s Coal resources
Intersected 23 metres of Black Coal - Border property 50km north of the town of Hudson Bay, SK
Message: Answers to some questions from Fred
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Burnhard,
My answers in blue below.
From: &&&&&&&&... [mailto:&&&&&&am...
Sent: August 8, 2008 1:08 PMTo: Fred Cooper
Subject: Re: a request!
Thanks for the fast reply Fred,
I myself am concerned about the trash talk on forums and am seeking clarity on a number of fronts. Namely first of all the quality of the coal. What is your opinion on the sulphur content (1.5% average is high) will this decrease the price paid for this coal? Or is the relationship between sulphur content and coal price minimal? (I have read scientific articles on this relationship, which is supposedly weak, however due to higher demand in the field of environment and health... This relationships may be more serious in the future)
I myself am concerned about the trash talk on forums and am seeking clarity on a number of fronts. Namely first of all the quality of the coal. What is your opinion on the sulphur content (1.5% average is high) will this decrease the price paid for this coal? Or is the relationship between sulphur content and coal price minimal? (I have read scientific articles on this relationship, which is supposedly weak, however due to higher demand in the field of environment and health... This relationships may be more serious in the future)
Those that are saying 1.5% is high are trying to deceive you, this is a very acceptable number. The ultimate price paid for the coal will be determined by many factors eg: btu content, amount available, amount deliverable per day, month or years. quality, sub bituminous, bituminous, or higher, coking potential and numerous other variables. Coal is not a one price structure like gold, silver or copper. At this stage we need to find how much we have and the quality. The price will be determined from this answer.
Another concern is transportation, how easily can we get this coal on the move towards the potential selling point? Yes there are raillines running next to the discovery, but is this the mode of transport which is most viable?
Another concern is transportation, how easily can we get this coal on the move towards the potential selling point? Yes there are raillines running next to the discovery, but is this the mode of transport which is most viable?
Rail is the accepted mode of transport for coal across land. There is nothing that I am aware of that is less expensive. In our case we would just have to load the product on rail cars which run right through the property. There are other companies that have to build this type of infrastructure or truck it to a rail head, we already have it in place. The rail going through our property has connections which can take it to the west coast, up to the deep sea port of Churchill, east down to Thunder Bay as well as down to the US which has massive rail connections. Rail is how Peabody supplies all of their huge customer base. The coal could even stay in Saskatchewan. They do use coal now for their power and that is just the lignite mined in the south of the province. Our coal would provide much higher btu as well as being cleaner.
My last concern for now is the overburden, 80m approximately, is not remote. I know when we look at the wyomming basin, a HUGE area full of coal. Alot has not been accessed due to extensive overburden thickness (of up to 500ft). Do you see this as a potential threat? In other words, how sure are you that this will become an openpit mine?
My last concern for now is the overburden, 80m approximately, is not remote. I know when we look at the wyomming basin, a HUGE area full of coal. Alot has not been accessed due to extensive overburden thickness (of up to 500ft). Do you see this as a potential threat? In other words, how sure are you that this will become an openpit mine?
An 80 metre overburden is not that difficult. That is close to what Peabody is currently mining now. I cannot say today that this will become an open pit mine. We have drilled five holes. After the next 200 holes we may have an idea, the coal could end up being thicker and deeper and warrant an underground operation. What we do know is that we have found a very large amount of coal with a few holes. The liklihood that there is more is very high. How much more is the main question and why we have aquired as much property around the discovery holes and why we are exploring.
Ok, I think thats enough for now. Again, I say all this with the highest respect for your work. I believe you are doing the best you can. This is why I am putting alot of investment potential in you, and sharing the chance with others. I would be greatful to receive a structured reply to my email.
Burnhard, if you have any more questions let me know. I will do my best to answer them for you. The next few months should prove very interesting for our shareholders as we further develop this property. We are also awaiting the lab results, which will confirm for us what type of coal we actually do have.
Have a great weekend,
Regards,
Fred
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