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Celsius Resources Limited Capital/Financing Update 2014

Mar 23, 2014

10450_rns_2014-03-23_593c03ef-ac2f-4f14-abcc-0ced33614046.pdf

Capital/Financing Update

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CELSIUS ANNOUNCES 40 MILLION TONNE INCREASE

IN JORC RESOURCE

AT UZGEN BASIN COKING COAL PROJECT

HIGHLIGHTS

  • Total Inferred JORC Code Resource increased by 40Mt to 295Mt of coal at the Uzgen Basin Coking Coal Project.

  • Major Inferred resource increase of 35Mt to new total of 60Mt at Kokkia being a 140% increase over prior Resource level.

  • 5Mt increase in Inferred Resource to 235Mt for Kargasha.

  • Consistent quality data with continuing very low moisture, low ash, low phosphorus and moderate sulphur.

  • Open Pit Resources now being estimated and auger mining study progressing.

Celsius Coal Limited (ASX Code: CLA) ( Celsius or the Company ) is pleased to announce a updated JORC Code compliant Resource estimate for the Company’s flagship Uzgen Basin Coking Coal Project located in Kyrgyz Republic (Figure 3).

Commenting on the new JORC compliant Resource statement Technical Director Mr. Alistair Muir stated “Much of the aim of the this years drilling program was the first exploratory work in the Kokkia area of the Uzgen Basin Coking Coal Project. We’re very happy with the 140% increase in inferred Resource in this area of the deposit, and this builds upon the favorable coal quality data we have received for the drilling works to date, both at Kokkia and Kargasha.”

RESOURCE SUMMARY

The updated Resource statement for Celsius’ Uzgen Basin Coking Coal Project includes total Inferred JORC Code Resources of 295 million tonnes. The total Inferred Resource estimate comprises 235 million tonnes at Kargasha and 60 million tonnes at Kokkia (Table 1). This represents a growth in total resource of 40 million tonnes or approximately 16% over the prior 2013 Resource statement. The coal Resource is based on results from Celsius’ 2012/2013 drilling (18 drill holes), Soviet era drilling of 54 drill holes, information from circa 164 adits and extensive field mapping within the project areas (Figure 1).

The Coal Resource Statement was completed by Australian technical coal specialist resource estimation firm G&S Resources using the advanced Vulcan resource modelling package.

The Company has now significantly grown its Resource level based on the second year of diamond drilling, and has also completed the first year of drilling and coal quality testing for the Kokkia deposit. The work done over the last exploration season continues to show the potential of the Uzgen Basin to be a major Central Asian coking coal resource.

Table 1: Inferred JORC Code Resources at Uzgen Basin Coking Coal Project

Inherent
Volatile		 Total
Inferred Ash Moisture
Matter		 Sulphur
Project Area Resource Mt % (ad) % % (ad) % (db)
Kargasha 235 14.2 1.2
31.4		 0.64
Kokkia** 60 18.8 0.9
30.5		 0.83
Total (rounded) 295 15.1 1.2
31.2		 0.68

** Note: For Kokkia, 25Mt of the estimated Resource is derived from areas outside the last points of observation but has been included in the Resource Statement because of the strong evidence of geological continuity based on adits, trenching and comprehensive geological mapping.

The diagram below presents the distribution of points of observation for drill holes and adits that have been used for resource modeling purposes (Figure 1).

ASX RELEASE | PAGE 2

Figure 1: Location of drill holes and adits – Kargasha and Kokkia

==> picture [487 x 464] intentionally omitted <==

KOKKIA RESOURCE DESCRIPTION

The Inferred Resource of 60 million tonnes at Kokkia is contained in 11 seams across the tenement. For Resource estimation purposes a seam thickness cut off of 0.5m has been applied. Details of the Resource on a seam-by-seam basis are as follows (Table 2):

ASX RELEASE | PAGE 3

Table 2: Inferred Resource at Kokkia on a Coal seam basis

(Summation down columns may not precisely equate to totals due to rounding)


Ash
% (ad)
Inherent
Moisture
%
Total
Sulphur
% (db)
Average
Seam
Thickness
(m)
Volatile
Matter
% (ad)
Seam
Name		 Million
tonnes
Q 3.79 27.5
0.8		 29.2 1.19
0.6
N3 7.64 17.7
1.0		 31.4 0.72
0.8
M3 0.48 12.3
1.2		 32.3 0.72
0.6
K1 16.59 13.2
1.0		 32.9 0.82
1.7
J1 10.18 25.7
0.8		 31.0 0.75
0.9
H 0.73 16.3
1.0		 30.7 1.10
0.6
G 7.17 22.2
0.8		 27.9 1.22
0.9
F 1.76 15.4
0.8		 30.2 1.37
0.7
E 9.39 18.9
0.8		 27.8 0.52
0.9
D 2.13 12.1
0.9		 30.2 0.64
0.7
B 0.33 9.5
0.9		 30.0 0.57
0.5
Total
(rounded)
60 18.8
0.89		 30.5 0.83

25Mt of the Resource estimate at Kokkia is based on five fully cored drill holes DD13KK001-5 drilled in 2013, trenching undertaken in 2012 and extensive field mapping completed in 2013.

KARGASHA RESOURCE DESCRIPTION

The Inferred Resource of 235 million tonnes at Kargasha is contained in 17 seams across the tenement. For Resource estimation purposes a seam thickness cut off of 0.5m has been applied. Details of the Resource on a seam-by-seam basis are as follows (Table 3):

ASX RELEASE | PAGE 4

Table 3: Inferred Resource Kargasha on Coal seam basis

(Summation down columns may not precisely equate to totals due to rounding)


Million
tonnes
Ash
% (ad)
Inherent
Moisture
%
Total
Sulphur
% (db)
Average
Seam
Thickness
(m)
Volatile
Matter
% (ad)
Seam Name
P 3.83
13.2
1.2		 31.0 0.79
0.7
N3 33.21
14.2
1.4		 34.0 0.58
1.0
N2 1.31
14.1
1.3		 34.9 0.61
0.6
N1 1.72
11.1
1.3		 34.0 0.98
0.6
M3 9.50
13.5
1.3		 34.0 0.76
0.8
M2 2.90
25.4
1.4		 30.3 0.89
0.6
M1 2.96
24.7
1.1		 34.4 0.73
0.9
L1 17.31
14.6
1.2		 32.7 0.69
0.9
K2 14.40
21.1
1.1		 32.5 0.73
0.9
K1 78.77
12.6
1.3		 29.3 0.53
1.2
J2 1.49
10.1
1.2		 35.3 0.68
0.6
J1 21.18
14.9
1.1		 31.9 0.69
0.7
H 6.56
10.3
1.3		 33.8 0.71
0.7
G 17.05
15.8
1.2		 30.9 0.81
0.8
F 14.77
13.0
1.1		 30.6 0.73
0.8
E 8.11
11.9
1.1		 29.2 0.58
0.7
D 2.14
9.4
1.1		 30.0 0.75
0.7
Total(rounded) 235
14.2
1.2		 31.4 0.64
-

The Resource estimate at Kargasha is based on seven fully cored drill holes DD12TK001-7 and six fully cored drill holes DD13TK008-13 completed by Celsius in 2012 and 2013 respectively, 54 Soviet era drill holes (approximately 29,000m) SV001-060 completed 1945-1954, circa 164 adits developed between1945-1954 and field mapping completed in 2013.

ASX RELEASE | PAGE 5

Figure 2: Kargasha and Kokkia Resource estimate boundary for all Coal seams

==> picture [456 x 609] intentionally omitted <==

ASX RELEASE | PAGE 6

DEPTH CONSIDERATIONS

From a depth consideration the resources are categorized in Table 4 below:

Table 4: Resources by Depth

Kargasha Kokkia Kokkia
Depth
Increment		 Increment
Mt
Cumulative
Mt		 Increment
Mt		 Cumulative
Mt
0-300m 46.3
46.3		 30.0 30.0
300-600m 124.4
170.7		 26.5 56.6
600m-900m 64.4
235.2		 3.6 60.1
Total
(rounded)
235 60

COAL QUALITY SUMMARY

Float sink and coal quality analyses on 2013 drilling is still in progress, however from Celsius’ 2012 drilling results at Kargasha the key features of the coal quality are demonstrated by the analyses from washed composites (though it equally applies to raw low ash samples). This data is summarized as follows:

  • Air dried inherent moisture (IM) is low and consistent at 0.9%.

  • Ash averages 5% (ad), with the lowest at 2.6% and highest 7.5%.

  • Volatile matter (VM) on a dry ash free (daf) basis averages 39.2% and has a relatively small range.

  • Gross calorific value (GCV) is high due to the generally low ash of the composites averaging 7862 kcal/kg (ad).

  • Total sulfur (TS) values are moderate to low, averaging 0.71% on a dry basis (db) and range from 0.44% to 1.00%.

  • Phosphorus is generally low at 0.021% (db).

  • Hard-grove Grindability Index (HGI) is reasonably consistent averaging 51, with a range of 43 to 60.

  • Ultimate carbon (daf) averages 85.0%, which is consistent with the rank of the coal and shows little variability.

  • Hydrogen is reasonably consistent at 5.46%.

  • Nitrogen is consistent and relatively low, averaging 1.46%.

The plastic properties of the washed coking composites are generally good and consistent across the coal seams:

  • Free-swell Index (FSI) averages 7 to 7.5, with an overall range of 6 to 8.5.

  • G Index averages 71 and is reasonably consistent ranging between 66 and 85.

ASX RELEASE | PAGE 7

  • The Y index is consistent averaging 15mm and ranging from 13mm to 19mm. J seam has the highest average of 17mm.

  • Maximum dilatation averages 61% and has significant variation between samples ranging from 31% to 91%.

With regard to laboratory washability testing there is a wide range of head ash ranging up to 35%. All the samples exhibited pronounced separation characteristics with only relatively minor amounts of middlings material. At a cumulative float density of 1.50g/cc (CF1.50RD) the theoretical yield ranges between 41% to 94%, with 84% of values being >60%.

Note: The theoretical yields referred to in this document are laboratory float/sink yields on crushed material only. They have not been obtained from properly pretreated and sized material, and they do not take into account such factors as coal loss and dilution during mining, process plant design and efficiency, or differences in feed and washed product moisture levels.

FURTHER STUDIES

Celsius is continuing with coking laboratory test work and has commenced open pit mining studies on the Kokkia deposit and auger mining studies on various prospective areas of both deposits.

COMPETENT PERSONS STATEMENT

The information in this announcement that relates to resource estimates is based on information compiled by Dr Gavin Springbett, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Dr Springbett is acting as a consultant to Celsius Coal Limited and is an employee of G&S Resources. Dr Springbett has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Springbett consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to Exploration Results is based on information compiled by Dr David Hornsby, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Dr Hornsby is acting as a consultant to Celsius Coal Limited and is an employee of Gallagher Consulting Services Pty Ltd and is a member of The Minserve Group Pty Ltd. Dr Hornsby has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”). Dr Hornsby consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

ASX RELEASE | PAGE 8

Figure 3: Location of Celsius coal projects, Kyrgyz Republic

==> picture [525 x 274] intentionally omitted <==

ASX RELEASE | PAGE 9

Figure 4: Uzgen Basin Coking Coal Project geology and schematic cross-sections

==> picture [514 x 400] intentionally omitted <==

ASX RELEASE | PAGE 10

ABOUT CELSIUS COAL

Celsius Coal Ltd is focused on developing coking and thermal coal deposits in the Kyrgyz Republic. ASX RELEASE | 11 March 2013

Celsius owns 80% of its Uzgen Basin Coking Coal Project (comprising: Kargasha; Kokkia; and Min Teke), which cover an established Soviet-era coking coal resource. It also owns 90% of its Alai Range Projects (comprising: Sary Mogol and Bel Alma).

For more information, please visit www.celsiuscoal.com.au or contact Mr Ranko Matic, Company Secretary on +61 (08) 9226 4500.

ASX RELEASE | PAGE 11

Page No. A1

Statement of Coal Resources 2014, Kargasha and Kokkia Coal Projects, Kyrgyz Republic

APPENDIX A JORC Code, 2012 Edition – Table 1 Report Template

Appendix A: Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria JORC Code explanation Commentary
Sampling • Nature and quality of sampling (eg cut • Samples were predominately obtained by core sampling, with all drilling fully cored.
techniques channels, random chips, or specific Some sampling was also undertaken in adits and inclines excavated in the vicinity of
specialised industry standard measurement seam subcrop.
tools appropriate to the minerals under • Specific documentation of sampling/testing objectives and procedures in pre Celsius
investigation, such as down hole gamma Coal exploration (i.e. Soviet investigations over 1947-1955) are unavailable.
sondes, or handheld XRF instruments, etc). However, the general scheme deduced from the analytical data set in drill holes and
These examples should not be taken as adits, appears to involve ply sampling in line with lithological variation. Specifically,
limiting the broad meaning of sampling. coals do not appear to be combined with adjoining coaly/carbonaceous horizons and
• Include reference to measures taken to coal bands as fine as 0.1m were sampled separately. Rare exceptions include thin
ensure sample representivity and the intraseam clastic beds up to 0.1m. A maximum sample length of approximately 1m
appropriate calibration of any measurement appears to have been applied, as thicker seam developments are typically sub-
tools or systems used. divided.
• Aspects of the determination of • Seams are not always fully sampled in Soviet drilling, especially where split by non-
mineralisation that are Material to the Public coal intraseam horizons, or parting and the reason for this apparent omission is
Report. unclear. Roof and floor samples were generally not collected, unless composed of
• In cases where ‘industry standard’ work has coaly shale.
been done this would be relatively simple (eg
•		 During Celsius Coal exploration over 2012 – 2013, ply sampling was undertaken to a
‘reverse circulation drilling was used to maximum thickness of 1.0m and down to 0.3m. All coal intervals >0.2m were
obtain 1 m samples from which 3 kg was sampled and for coal bands exceeding 0.5m thick, roof and floor samples of 0.1m
pulverised to produce a 30 g charge for fire were also collected. Seams less than 0.2m were sampled where immediately
assay’). In other cases more explanation adjacent to other coal horizons. Sample definition is based on lithological variations
may be required, such as where there is (e.g. coal type changes, nature and extent of clastics interbeds, seam boundaries
coarse gold that has inherent sampling etc.). Inseam clastics <0.1m thick were sampled together with the adjacent coal in
problems. Unusual commodities or 2012 drill holes, while <0.05m was applied in 2013 exploration.
mineralisation types (eg submarine nodules) • Sample selection and preparation of 2012-213 exploration was supervised by Celsius
may warrant disclosure of detailed Coal. Cores were handled to minimise moisture losses and preserve core condition.
information.
Drilling • Drill type (eg core, reverse circulation, open- • Drilling was undertaken in four principal phases and a total of 78 full cored drill holes
techniques hole hammer, rotary air blast, auger, completed(Appendix D). These include:(i)SV Series(Soviet era)core drilling: 17

GSR_Kargasha_Kokkia_Resource_Statement_March2014.pdf

G&S RESOURCES

Page No. A2

Statement of Coal Resources 2014, Kargasha and Kokkia Coal Projects, Kyrgyz Republic

Criteria JORC Code explanation Commentary
Bangka, sonic, etc) and details (eg core drill holes comprised of SV001 to SV015, SV022 and SV023 (1947-1951, Soviet
diameter, triple or standard tube, depth of exploration); (ii) SV Series core drilling: 43 drill holes comprised of SV015 to SV060,
diamond tails, face-sampling bit or other excluding SV022 and SV023 (1954-1955, Soviet exploration); (iii) TK Series core
type, whether core is oriented and if so, by drilling: 7 drill holes comprised of TK0001 to TK0007 (2012, Celsius Coal Limited
what method, etc). exploration) mostly twinning pre-existing Soviet drilling. (iv) TK/KK Series core
drilling: 11 drill holes comprised of TK008 to TK0013 and KK0001 to KK0003 (2013,
Celsius Coal Limited exploration) representing infill and extension drilling.
• For SV series drilling a variety of hole diameters were reported, with the most
common 75, 85, 89, 91, 101, 110, 130 and 146mm. The corresponding core
diameters are unknown. Drilling generally penetrates the Kokkia Formation
underlying the coal bearing interval, or Silurian basement. However, some
exceptions occur reflecting operational difficulties during drilling.
• The 2012 Celsius Coal drilling primarily recovered HQ (and NQ) core, i.e. 63 mm and
47.6 mm, respectively using standard core barrels. 2012 sites generally twin older
Soviet drill holes and only occasionally intersect basement.
• The 2013 Celsius Coal drilling involved 9 HQ and 2 PQ cored holes (63 and 85mm)
using a 3m HQ3 split triple tube core barrel and 1.5m PQ core barrel, respectively.
Drillingwas undertaken to the base of the coal sequence.
Drill sample • Method of recording and assessing core and • Core recovery data is available for all drilling with the exception of 12 Soviet series
recovery chip sample recoveries and results assessed. drill holes (viz. 001, 002, 018, 030, 033, 034, 035, 036, 050, 055, 057 and 060).
• Measures taken to maximise sample • In Soviet drilling, the recovered core thickness assigned to each lithological interval
recovery and ensure representative nature of and the corresponding interpreted thickness were used to determine percentage
the samples. recovery (i.e. lineal basis). The precise methodology by which the losses were
• Whether a relationship exists between assigned over a run is not fully documented, but is believed to involve standard
sample recovery and grade and whether procedures developed by the Soviet Ministry of Geology.
sample bias may have occurred due to • In 2012 – 2013 Celsius Coal drilling, the drillers’ records of run length and geologists
preferential loss/gain of fine/coarse material. core measurements were applied to calculate core recovery. There appeared to be
very little transfer of core from run to run, although this was reviewed prior to
sampling. In cases where losses occurred at coal/shale boundaries, the missing
portions (typically <0.2m) were generally allocated to coal.
• Core recovery over individual seams varies considerably, ranging from <10% to
100%. In general, core recovery in initial Soviet drilling was poor, but increased over
time, presumably with increased drilling experience in the area. Low core recoveries
and/or incomplete sampling in SV series drilling precluded use of ~half the available
analytical data within any given seam. Recovery tended to be consistently high in
the 2012 - 2013 drill holes (exceeding 95% over the coal bearing Tuyuk Formation).
• Core recovery is assessed for each individual seam during the modelling process.
Furthermore, this is combined with the portion the seam sampled/analysed, as some
variabilityexistsin historical(i.e.Soviet) drilling,whereby portions of theseam may

GSR_Kargasha_Kokkia_Resource_Statement_March2014.pdf

G&S RESOURCES

Page No. A3

Statement of Coal Resources 2014, Kargasha and Kokkia Coal Projects, Kyrgyz Republic

Criteria JORC Code explanation Commentary
be omitted and/or thin intraseam non-coal material excluded.
Logging • Whether core and chip samples have been • Lithological logs are available for all drill holes, with a broadly consistent level of
geologically and geotechnically logged to a detail across the various exploration programs. This includes rock type, lithological
level of detail to support appropriate Mineral description, stratigraphic identifier, seam correlation and bedding angle. In addition,
Resource estimation, mining studies and drilled thickness and core recovery are provided for each lithological interval.
metallurgical studies. • In Soviet drill holes, lithological logging was undertaken to an interval of ~0.01m and
• Whether logging is qualitative or quantitative recorded in a paper format. Logs were then reproduced within geological reports in
in nature. Core (or costean, channel, etc) an interpreted, depth corrected form, with both graphical and tabular outputs. The
photography. 2012 - 2103 Celsius Coal geological logging is based on the ACARP 2012 borehole
• The total length and percentage of the data standard for the Australian Coal Industry (CoalLog V1.1). Over the coal bearing
relevant intersections logged. interval, lithological characteristic were logged to ~0.05m detail and all information
recorded in an electronic form.
• A specific program was undertaken by Celsius Coal to capture the paper based
lithological data for SV001 to SV060 (see “Database Integrity” item of this table).
Logs for 2012 - 2013 drilling were prepared in a digital format concurrent with
exploration by Celsius Coal.
• Interpreted limits of soil and scree are included within Soviet lithological logs and
vary from <1m to 38m, averaging ~8 m, while base of weathering interpretations
are not included.
• Geotechnical core logging was undertaken by Celsius Coal for 2013 drill holes. Point
load testing was conducted at ~2m throughout the Tuyuk Formation and samples
taken at ~5-10m intervals for Slake Durability, UCS and indirect tensile strength.
• Core was photographed during both the 2012 and 2013 drilling programs.
• Most drill holes have some form of geophysical log (i.e. 50 of 60 SV drill holes and 16
of 18 drill holes from 2012-2013). The 1947-1955 Soviet drilling was geophysically
logged using electrical lateral tools. The operator is unknown, but is thought to be a
government geophysical logging agency.
• Celsius Coal’s 2012 exploration drilling was geophysically logged by Kyrgyz
Geophyzica, a Kyrgyzstan based company, operating from Bishkek. The logging suite
included long spaced density (~30cm source-detector spacing), caliper, gamma and
electrical and SP. Several logs were obtained either within drill rods, or casing and
data was acquired in 5 of the 7 TK series drill holes, with caving precluding logging in
TK0002 and TK0006. Of the logged holes only TK0004, TK0005 and TK0007 provided
density logs in open hole conditions.
• The 2013 exploration drilling was geophysically logged by Monkarotaj, a Mongolian
company working in co-operation with Australian logging contractor Auslog (a part of
Weatherford International Ltd.). Logs acquired included short and long spaced
density, gamma, caliper, sonic, resistivity and deviation. Log resolution was
considerablyimproved over the 2012 suite(consistent with significantlyimproved

GSR_Kargasha_Kokkia_Resource_Statement_March2014.pdf

G&S RESOURCES

Page No. A4

Statement of Coal Resources 2014, Kargasha and Kokkia Coal Projects, Kyrgyz Republic

Criteria JORC Code explanation Commentary
probe technology) and 6 of the 2012drill holeswere re-logged.
Sub-sampling • If core, whether cut or sawn and whether • Sampling of cores in both Soviet and Celsius Coal evaluations are based on full cores
techniques and quarter, half or all core taken. (i.e. no core splitting was undertaken). The total sample was submitted to the
sample • If non-core, whether riffled, tube sampled, laboratory for analysis.
preparation rotary split, etc and whether sampled wet or • Sampling in adits and inclines involved channelling through the seam (~0.15m wide,
dry. by ~0.1m deep). Analysis of samples from adits and inclines essentially replicates
• For all sample types, the nature, quality and the criteria applied for testing of cores from Soviet drill holes.
appropriateness of the sample preparation • During 2012 – 2013 drilling all coal and carbonaceous intervals were wrapped in
technique. plastic to maintain moisture immediately after cleaning and measurement of core
• Quality control procedures adopted for all recovery.
sub-sampling stages to maximise • Samples were selected in line with lithological characteristics during 2012 – 2013
representivity of samples. exploration (refer “Sampling Techniques” item of this table) to ensure they reflect
• Measures taken to ensure that the sampling inherent coal quality variations. Similar procedures are thought to have occurred in
is representative of the in situ material the Soviet era exploration.
collected, including for instance results for
field duplicate/second-half sampling.
• Whether sample sizes are appropriate to the
_grainsizeof the material being sampled. _
Quality of assay • The nature, quality and appropriateness of • Coal quality testing during Soviet exploration normally included proximate analysis
data and the assaying and laboratory procedures used (ash, moisture and volatile matter) and total sulphur. Calorific value and the
laboratory tests and whether the technique is considered Sapoznikov X and Y indices were often determined and ultimate carbon and hydrogen
partial or total. occasionally undertaken. Analysis was typically performed on the individual ply
• For geophysical tools, spectrometers, samples and composite samples were rarely created.
handheld XRF instruments, etc, the • The sampling and testing program was expanded significantly for 2012 - 2013
parameters used in determining the analysis drilling. Ply samples from the 2012 exploration drilling were tested for: proximate
including instrument make and model, analysis, RD, CV and total sulphur. Moisture Holding Capacity (MHC) was also
reading times, calibrations factors applied determined on plies of <60% (ad) ash, with the exception of drill hole TK001. HGI
and their derivation, etc. testing was undertaken on approximately 1 in 5 samples and phosphorous 1 in 10.
• Nature of quality control procedures adopted Composite testing was undertaken on a full seam basis, typically >0.5m thick,
(eg standards, blanks, duplicates, external excluding partings >0.3m and roof/floor dilution. For seams of <10% ash (ad)
laboratory checks) and whether acceptable composite analysis was completed on the raw material. Specifically, these samples
levels of accuracy (ie lack of bias) and were float/sink tested and cumulative floats 1.50RD washed composites constructed.
precision have been established. Both the raw and washed composites were typically analysed for proximate, calorific
value, total sulphur, phosphorous, ash composition, ultimate, FSI, G index,
Sapoznikov X and Y indices, dilatation, vitrinite reflectance and maceral composition.
HGI was determined where there was sufficient sample. The testing was virtually
uniform across all 25 washed composites and on most of the 17 raw composites.
• The analytical program for 2013 drilling replicated that developed in 2012. In
addition the two PQ core holes were sampled for washability, G Caking Index, Aru
Dilatometer,dropshatter,small scale coke oven and coke strength after reaction.

GSR_Kargasha_Kokkia_Resource_Statement_March2014.pdf

G&S RESOURCES

Page No. A5

Statement of Coal Resources 2014, Kargasha and Kokkia Coal Projects, Kyrgyz Republic

Criteria JORC Code explanation Commentary
• Analytical testing of Soviet drilling (i.e. SV0001 to SV060) was undertaken in
government laboratories and may have occurred at the Laboratory of Middle Asia,
Tashkent. The specific analytical procedures, standards and control procedures
applied during the Soviet exploration are unknown. However, it is assumed that the
program conformed with the appropriate government standards and protocols in
place at the time.
• Testing of 2012 samples and 2013 HQ core samples was performed at the SGS
Novokuznetsk laboratory. The laboratory routinely conducts coal sample preparation
and testing according to Russian (GOST) standards, or to ISO, ASTM, or Australian
standards where appropriate. As part of the program to maintain acceptable levels
of accuracy and precision, the facility regularly participates in international
proficiency test programs conducted by Laboratory Quality Services International
(involving testing of standard samples on a monthly, bi-monthly or quarterly basis).
• PQ cores recovered during 2013 were analysed by ALS Coal Laboratories, Queensland
aNATAaccreditedlaboratory.
Verification of • The verification of significant intersections by
•		 The historical (1947-1955) geological data set at Kargasha and Kokkia is problematic
sampling and either independent or alternative company with respect to independent verification (i.e. in line with the limited resolution of
assaying personnel. borehole geophysics and variable core recovery associated with this data). However,
• The use of twinned holes. the extensive adit/incline excavations and associated structural, seam thickness and
• Documentation of primary data, data entry coal quality data, together with some twinned drilling, provided a basis for
procedures, data verification, data storage evaluation. In particular, an integrated assessment of data source specific properties
(physical and electronic) protocols. (viz. 2012-2013 drilling vs. 1947-1955 drilling, 1947-1955 drilling vs. adit/incline
• Discuss any adjustment to assay data. excavations) was attempted.
• With respect to the drilling, seven sites of twinned drill holes (2012-2013 vs. 1947-
1955) exist with lateral separations of <100m. At five of the seven sites the
repeatability of coal identification, correlation and thickness was reasonable within
well-developed seams (i.e. >0.5m in thickness). However, the resolution of thinner
seams was considerably reduced in the older drilling, probably reflecting lower core
recoveries and limited resolution geophysics. Of the remaining two drill sites, one is
interpreted as significantly faulted, while the other involved a borehole encountering
major drilling difficulties, precluding meaningful comparison. Assessment of coal
quality between twinned SV and TK drill holes was not feasible, due to a lack of
consistently high core recoveries and full seam sampling across the respective data
sets. However, a broad statistical assessment of the Soviet and 2012 drill hole coal
quality data sets, while not conclusive, indicates that comparable data populations
were reasonably consistent.
• Sites for comparison of drill holes and adits are limited to southern Kargasha where
two Soviet boreholes penetrate, or are drilled within an adit. Seam thicknesses and
depths are similar in the respective data sets (within 15% and 1m, respectively).
However,drill hole thickness interpretations in both instances are based on low core

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Criteria JORC Code explanation Commentary
recovery intervals. For drill sites located at distances exceeding 100m from adits,
seam thicknesses are broadly comparable with closer spaced data sets, although
showing slightly increased variability. With respect to coal quality, ash contents in
drill holes are generally similar with the range shown in surrounding adits, however
on average there is a tendency for the adits to show a slightly lower ash (~2 to 4%
ad).
• In summary, findings from the data comparisons between historical Soviet data and
2012-2013 Celsius Coal data are informative, but not entirely conclusive, or
definitive. Notwithstanding possible slight systematic differences based on
procedures and criteria associated with seam definition and/or sample selection and
some seam thickness/ash content variability, there is a relatively good degree of
agreement across the recent Celsius Coal drilling, Soviet drilling and adit/incline data
sets. Based on these findings and the general data sparsity, it was not considered
valid to globally exclude data source specific information from the current modelling
and resource evaluation. However, a progressively diminishing reliance on historical
data should be a key objective of ongoing evaluation at Kargasha and Kokkia.
• Further data scrutiny and validation of historical data was undertaken during
modelling (refer “Estimation and Modelling Techniques” item of this table).
• With respect 2012-2013 Celsius Coal exploration, the 18 drill holes provide reliable
geophysically logs, show high core recovery, apply current standardised industry
procedures for logging,samplingand testingand are considered reliable.
Location of data • Accuracy and quality of surveys used to • The co-ordinates for Soviet drill holes were provided in geological reports and all
points locate drill holes (collar and down-hole represent surveyed collar positions. Co-ordinates for SV001 – SV032 were initially
surveys), trenches, mine workings and other surveyed in Pulkovo 32, while those for SV033 – SV060 were acquired in Pulkovo 42.
locations used in Mineral Resource The surveying organisation used for SV drilling programs is unknown. Conversion of
estimation. drill hole co-ordinates to a WSG84 grid system was performed by Celsius Coal using
• Specification of the grid system used. proprietary GIS software routines (Mapinfo Co-ordinate Extractor and TNTmips).
• Quality and adequacy of topographic control. • 2012 and 2013 drill holes were surveyed in WSG84 by ALP project Ltd (ALP) and
Alpstroy Ltd, respectively. During the latter program, 29 historical Soviet drill sites
and the 2012 collar positions were also resurveyed.
• The entrance positions of adits and inclines are defined on 1:1,000 survey plans and
1:10,000 geological maps, for southern Kargasha and northern Kargasha-Kokkia,
respectively. The precision associated with the determination of excavation start
coordinates is estimated to be within 5 to 10m (1:1,000 plans) and 10 to 50m
(1:10,000 plans). Surveyed RL’s were available for southern Kargasha (i.e. where
1:1,1000 survey plans exist) while elsewhere RL’s were derived from 1:25,000
topographic plans. Co-ordinates were converted from Pulkovo 32 and 34, to WSG84
by Celsius Coal, using an identical methodology to the drill hole data. The surveying
organisation responsible for the positioning of adits and inclines is unknown.
• Topographic data was acquired in 1961 and consists of 10m contours and occasional

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Criteria JORC Code explanation Commentary
spot height point data. The agency responsible is unknown, although it is considered
to be of government origin (possibly military). Topographic data was acquired in
Pulkovo 1942, zone 13, then digitised and converted to WSG84, zone 43 by ALP in
December 2012. The conversion was undertaken using TNTmips software.
• A comparison of Soviet XY survey data converted to WGS84, against re-survey
positions from 2013 showed variable offsets of ~10-20m, thought to correspond to
the expected conversion difference from Pulkovo 42 to WGS 84 for the Kyrgyz
Republic region. The variations showed no systematic trend and the updated XY
survey positions (as acquired in WGS84) were used for collar positioning. However,
comparison of Soviet Z Pulkovo 42 acquired values against WGS84 levels, showed a
consistent offset of ~40m. A clear explanation of this discrepancy is unavailable at
present. For the current evaluation Z levels in: topographic data, Soviet surveyed
borehole and adit/incline survey data were retained as per the MapInfo and TNTmips
conversions, while 2012 – 2013 drill hole collar positions and Soviet boreholes re-
surveyed in 2013, were modified (by +37.9m) to derive a consistent Z level basis
across all data sets.
• A validation check of the Soviet drill hole collar heights against topographic contours
generally showed reasonable agreement, given the extent of natural surface variation
over the project areas (average offset ~6.5m). Four drill holes were identified where
variations exceed 20m and a further ten showed differences between 10 and 20m.
The larger variations mostly occur in the initial phase of Soviet drilling (i.e. 1947-
1951).
• All survey data was either converted to, or acquired in a WSG84 grid system.
Modellingwas undertakenon WSG84.
Data spacing • Data spacing for reporting of Exploration • Access over the Kargasha and Kokkia area is locally challenging (in line with the
and distribution Results. rugged topography) and the establishment of a regular drilling grid problematic.
• Whether the data spacing and distribution is However, a drill hole spacing of approximately 1 km has been achieved over much of
sufficient to establish the degree of the Kargasha tenement, although separations between adjacent boreholes may vary
geological and grade continuity appropriate from 250m to 1400m. A zone approximately 2.5km wide along the north-eastern
for the Mineral Resource and Ore Reserve portion of the tenement (coinciding with a zone of elevated topography, i.e. >
estimation procedure(s) and classifications 3000m) is yet to be explored by drilling. At Kokkia drilling is restricted to the western
applied. portion of the tenement where five drill holes occur, at an approximate spacing of 1 -
• Whether sample compositing has been 1.5km.
applied. • Adits and inclines are unevenly distributed at Kargasha and Kokkia and occur along
the three outcrop zones (viz. the ~west-east trending Kargasha River in the north,
and south-central and southern outcrops associated with the ~north-south trending
Tuyuk River).
• The current distribution of drill hole, adits/inclines and extensive surface geological
mapping over the Kargasha and Kokkia tenements is judged to be acceptable for
definition of Inferred Resources.

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Criteria JORC Code explanation Commentary
• No compositing of samples has been undertaken, other than the combination of
contiguousplysamples to facilitate testingover full seam intervals.
Orientation of • Whether the orientation of sampling achieves
•		 Downhole deviation data was measured in most Soviet drilling (i.e. SV016 – SV060,
data in relation unbiased sampling of possible structures and excluding SV022-SV023) and in all 2012- 2013 drill holes.
to geological the extent to which this is known, • Deviation measurements in Soviet drilling primarily utilised Polyakov’s inclinometer,
structure considering the deposit type. with the ISh-2 inclinometer occasionally employed. Both are thought to involve a
• If the relationship between the drilling hydrofluoric acid methodology (and in some cases copper sulphate). The downhole
orientation and the orientation of key measurement interval was usually ~50m. The majority of the boreholes drilled
mineralised structures is considered to have showed no significant deviation, with appreciable offsets restricted to nine drill holes.
introduced a sampling bias, this should be Where measurements commenced midway down the drill hole, a smoothed trajectory
assessed and reported if material. was simulated by projection back to the collar position (i.e. progressive fitting) to
ensure a smooth fit. The remainder of the SV series exploration showed no
detectable deviation and drill holes are treated as vertical. Drill holes drilled prior to
SV016, where directional data is unavailable, are also treated as vertical.
• During 2012 drilling, deviation data was collected using a Reflex-Ez-Shot electronic
single shot orientation instrument. Measurements were typically acquired at vertical
intervals of 30 to 50m, with separation decreasing downhole. Deviation typically
ranged from 1 to 3° at total drilled depth (i.e. 300 to 600m). Azimuth was recorded in
four of the seven drill holes undertaken during this program.
• Deviation data was acquired in 2013 drilling during geophysical logging operations,
with measurements acquired at vertical intervals of 0.1m. Borehole deviation was
limited during this program (typically <4° for depths of 500m).
• Drill hole derived samples (i.e. nominally vertical orientated, but showing slight
deviation with depth) are not considered to introduce any bias for coal quality
evaluation and modelling. Furthermore, the down hole position is accounted for
duringmodelling (see “Estimation and ModellingTechniques”)
Sample security • The measures taken to ensure sample • Limited details are available regarding sample handling, transport and security in
security. Soviet drill holes. It is understood the majority of logging and sampling occurred at
the drill site. Furthermore, it is assumed samples were under government control
from the drill site to the laboratory and during analysis, limiting the potential for
disturbance of any kind.
• For 2012 -2103 drilling, core boxes were handled in accordance with advice provided
by the Snowden Consulting Group, whereby core trays containing coaly material were
wrapped in cling wrap after core recovery, padded to minimise disturbance and
transported to the base camp for logging, photography and sampling. Samples were
double bagged and tagged in heavy duty plastic bags and stored in poly weave sacks.
They were typically processed to this stage within 48hrs from initial sample layout.
Samples were dispatched by road to Bishkek and subsequently to the SGS laboratory
in Novokuznetsk,Russia. Theprocess from drill site to laboratorytook between 2 and

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Criteria JORC Code explanation Commentary
10 weeks.
Audits or • The results of any audits or reviews of • Celsius Coal engaged Snowden Consulting Group to provide advice on sampling and
reviews sampling techniques and data. testing prior to the 2012 exploration program. The Minserve Group were subsequently
engaged in 2013 to assist with the design of the analytical test program.

APPENDIX A: Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria JORC Code explanation Commentary
Mineral • Type, reference name/number, location and •
The Kargasha and Kokkia Project areas are covered by exploration licenses 1963-CP
tenement and ownership including agreements or material and 2593-CP, respectively.
land tenure issues with third parties such as joint •
A significant portion of the Kokkia tenement is believed to lie within the Saimaluu
status ventures, partnerships, overriding royalties, Tash National Park (boundaries poorly defined). The Kyrgyz Government has
native title interests, historical sites, undertaken a “land swap” such the area can be removed from the Park, the signing
wilderness or national park and of a governmental decree to achieve this is expected shortly. The Kargasha
environmental settings. tenement is outside of the National Park.
• The security of the tenure held at the time of •
The land within the area is agricultural and no permanent settlements exist. The
reporting along with any known impediments precise nature of land ownership within the tenement areas is unclear, but is
to obtaining a licence to operate in the area. thought to be under the control of local authorities.
•
Land tenure and exploration/mining titles held by Celsius Coal have not been
specifically validated by G&S Resources in preparing the resource statement.
Exploration • Acknowledgment and appraisal of exploration •
Historical drilling, adit/incline excavation and analytical testing undertaken during
done by other by other parties. Soviet era investigations (1947 - 1955) is incorporated with the recent Celsius Coal
parties exploration in each of the specific criteria items of this table.
Geology • Deposit type, geological setting and style of •
The Kargasha and Kokkia tenements contain 29 correlated coal seams over a
mineralisation. stratigraphic interval of ~100 to 150m. Seam thickness typically ranges from <0.5m
to 1m, with occasional developments exceeding 2m. K1 Seam is the thickest and
most regionally extensive, with other significant seams including F, G, J1, L1, M3
and N3. Several seams are restricted,or best developed in the northernportion

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Criteria JORC Code explanation Commentary
Kargasha and Kokkia.
•
Seams outcrop in the north (over the full east – west extent of Kargasha and
Kokkia) and partially in the south. An isolated area of local outcrop also occurs in
the southern portion of Kargasha.
•
The sequence is moderately folded, with dips of 10 to 15° typical in the southern
and central areas. Significantly higher dips up to ~40° occur in the north.
Sediments predominately strike east-west and several broadly westerly plunging
axial planes are inferred.
•
Three major, ~NW-SE trending faults have been interpreted based on drilling and
mapping in the Kokkia area dip data, with displacements in the order of 50 – 200m.
Additional, significant faults from 10 to 100m displacement, predominately oriented
~north –south have been inferred from mapping in the northern and southern
Kargasha outcrop zones. Significant faulting is also inferred along the southern
boundary in Kargasha and moderate faulting interpreted between adits and drill
holes. However, the precise extent, distribution and nature of faulting in the project
areas is poorly defined at present. Additional drilling and mapping is likely to result
in increased fault detection.
•
The coal beading sequence is covered by a veneer of scree and alluvium, which
appears quite variable in line with topographic characteristics and varies from ~7m
to ~45m.
•
No igneous bodies have been identified from drilling and within adits.
•
More in depth discussion of the geology of the Kargasha and Kokkia areas including
representative diagrams arepresented in Section 2 of the resource statement.
Drill hole • A summary of all information material to the •
Drilling was undertaken in four major phases with a total of 78 drill holes
Information understanding of the exploration results completed. All drill holes are fully cored and 66 drill holes have verifiable
including a tabulation of the following geophysical logs, including at least electrical properties. A geophysically logged
information for all Material drill holes: suite of density, caliper, natural gamma and resistance logs was acquired in the 16
o easting and northing of the drill hole of the 18 drill holes completed in 2012/2013. Coal quality data is sourced from ~45
collar drill holes.
o elevation or RL (Reduced Level – •
Individual drill hole results including: collar position (E, N, RL), total depth dip and
elevation above sea level in metres) of azimuth of the hole, down hole length and seam intersection depths are presented in
the drill hole collar Appendix D.
o dip and azimuth of the hole
o down hole length and interception depth
o hole length.
• If the exclusion of this information is justified
on the basis that the information is not
Material and this exclusion does not detract
from the understanding of the report, the
Competent Person should clearly explain why

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Criteria JORC Code explanation Commentary
this is the case.
Data • In reporting Exploration Results, weighting • Where multiple samples were taken over a single correlated seam, the individual
aggregation averaging techniques, maximum and/or results were weighted by RD and sample length to develop seam average quality.
methods minimum grade truncations (eg cutting of Where RD analysis was unavailable (i.e. historical SV series drilling) a RD value was
high grades) and cut-off grades are usually estimated from an ash content (% ad, see Appendix C) and applied for weighting
Material and should be stated. purposes.
• Where aggregate intercepts incorporate short • Where multiple ply samples were combined into a single sample for analysis at the
lengths of high grade results and longer laboratory, the sample compositing process was undertaken at the laboratory using
lengths of low grade results, the procedure industry standard procedures.
used for such aggregation should be stated • Coal quality was modelled for individual seams using analytical values corresponding
and some typical examples of such to the full seam interval (either from an individual sample spanning the seam, or an
aggregations should be shown in detail. aggregation of multiple ply samples taken over the seam).
• The assumptions used for any reporting of • Other than the compositing of coal quality data to develop a full seam value, no
metal equivalent values should be clearly further aggregation of analytical data, truncation, or averaging was undertaken.
_stated. _
Relationship • These relationships are particularly important • Coal resources of the Kargasha and Kokkia areas occur within a moderately folded
between in the reporting of Exploration Results. stratigraphic sequence.
mineralisation • If the geometry of the mineralisation with • All drilling was undertaken vertically, however, some deviation occurs over the
widths and respect to the drill hole angle is known, its borehole extent. Downhole deviation surveys are available for most the historical
intercept nature should be reported. drilling and all 2012 - 2013 exploration, although data precision varies with era (see
lengths • If it is not known and only the down hole “Orientation of Data in Relation to Geological Structure” item of this table). For 2012-
lengths are reported, there should be a clear 2103 exploration, deviation is typically <4° for depths of 500m.
statement to this effect (eg ‘down hole • Data from adits and inclines were extracted as vertical thickness measurements.
length, true width not known’). • Deviation data is incorporated into the borehole database. During modelling,
apparent thicknesses from drill hole intersections were adjusted using measured
downhole deviation, to derive vertical thickness and corrected seam roof/floor
positions. All seam and interburden thickness models reflect vertical values.
Diagrams • Appropriate maps and sections (with scales) • A map of the surface geology over the Kargasha and Kokkia areas is presented in
and tabulations of intercepts should be Section 3 of the resource statement, showing the extents of the coal bearing Tuyuk
included for any significant discovery being Formation. Drill hole locations, including differentiation between historical Soviet
reported These should include, but not be exploration and recent Celsius Coal drilling (2012 – 2013) and the position of adits
limited to a plan view of drill hole collar and inclines is also included. The location of inferred faults and folds are shown.
locations and appropriate sectional views. • Other diagrams presented in Section 3 of the resource statement include: (i)
representative north–south and east-west cross sections; (ii) a generalised
stratigraphic column showing coal distribution within the Tuyuk Formation and gross
seam characteristics and (iii) a composite profile showing typical geophysical
responseover the coalsequenceand seamattributes.
Balanced • Where comprehensive reporting of all • A tabulation of all drill holes and coal seam picks from the Kargasha and Kokkia
reporting Exploration Results is not practicable, tenements is included in Appendix C.

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Criteria JORC Code explanation Commentary
representative reporting of both low and high
grades and/or widths should be practiced to
avoid misleading reporting of Exploration
Results.
Other • Other exploration data, if meaningful and •
An		 extensive program of adits and inclines were constructed along seam outcrops
substantive material, should be reported including (but during Soviet exploration between 1943 and 1955. The former were oriented to
exploration data not limited to): geological observations; achieve an approximately horizontal excavation, while the latter follow dip.
geophysical survey results; geochemical •
The total adit/incline data suite may be summarised as follows: (i) Kargasha
survey results; bulk samples – size and (southern outcrops) – 92 adits and 187 inclines, averaging 48.0m and 10.4m,
method of treatment; metallurgical test respectively. The maximum excavation length is 683m for adits and 80m for
results; bulk density, groundwater, inclines; (ii) Kargasha (northern outcrops) – 51 adits and 113 inclines, averaging
geotechnical and rock characteristics; 27.7m and 6.9m, respectively. The maximum excavation length is 128m for adits
potential deleterious or contaminating and 40m for inclines; (iii) Kokkia – 25 adits and 31 inclines, averaging 10.8m and
substances. 9.8m, respectively. The maximum excavation length is 58m for both adits and
inclines. In the southern portion of Kargasha, excavations primarily targeted Seams
K1 and J1, while those in the north and at Kokkia, tend to be more evenly
distributed through the coal sequence. Typical working heights and widths in
adit/inclines were in the order of 1.5 to 2m and widths approximately 1.5 to 2m.
Where positioned in thicker seams (or inter-banded coals) regularly spaced drives
up and down were made to intersect seam boundaries.
•
Excavations were mapped in fine detail and show: lithological information,
(including thin intraseam clastics bands and highly carbonaceous horizons
associated with the coal), seam boundaries, seam splitting and structural features
(faults, shear zones etc.). Full and part seam channel samples were collected
periodically along excavations.
•
Structural data has been extracted from approximately 30% of the excavations for
the current modelling and resource evaluation. Coal quality data for Kargasha is
sourced from ~15% of the adits/inclines, with K1 Seam the most frequently tested.
At Kokkia, excavation derived structural and coal quality data is not applied for
resource evaluation due to uncertainties associated with the precise seam
assignment.
•
Celsius Coal undertook two field mapping campaigns in 2013. The first was
conducted in conjunction with SRK Consulting, over the Kargasha and Kokkia
tenements. The objective was to conduct structural and geological mapping,
establish a structural framework for the Kargasha and Kokkia regions and identify
implications for ongoing coal exploration. A second campaign was undertaken by
Celsius Coal to continue the Kokkia mapping, focussing on coal outcrops and
basement positioning. The programs collected extensive dip/direction data to assist
modelling, mapped faults and folds, refined formation boundaries and generally
enhanced the structural understatingover tenement areas.

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Criteria JORC Code explanation Commentary
Further work • The nature and scale of planned further work •
The rugged topography and significant drill depths throughout much of the project
(eg tests for lateral extensions or depth areas, combined with general data sparsity and considerable reliance on historical
extensions or large-scale step-out drilling). data sets with problematic core recoveries and sometimes unclear procedures;
• Diagrams clearly highlighting the areas of presents a challenging environment for geological evaluation. This is reflected by
possible extensions, including the main some level of uncertainty with respect to correlation, fault delineation and coal
geological interpretations and future drilling quality assessment, consistent with the Inferred Resource Category.
areas, provided this information is not •
To advance the geological understanding and improve resource status, further data
commercially sensitive. enhancements are essential. Key geological issues to be addressed at Kargasha and
Kokkia include: improved seam correlation, refinement of the structural fabric
including resolution of major faults and/or structural corridors, collection of
additional coal quality inputs (with respect to both regional distribution and the
parameters tested). These issues would be largely addressed by a reduction in the
drill hole spacing, continuing use of high resolution borehole geophysics and
ongoing core testing, including sampling from larger diameter cores. Furthermore,
as the drill hole data set expands, the reliance on historical SV series exploration
(burdened by the uncertainties associated with the procedures applied, problematic
recoveries and limited geophysical resolution) will be progressively diminished.
•
Additional drilling in the north-eastern sector and Kargasha where drilling is very
limited/absent and in the eastern portion of Kokkia (beyond the current drilling
limit) is also warranted for improved confidence and resource extension,
respectively.
•
The base of weathering is poorly defined with interpretation limited to 2012 -2013
Celsius Coal drilling. It also appears to vary significantly with inferred depths
ranging from ~7m to ~45m. Specific investigation, together with the evaluation of
scree characteristics/thickness and their relationship to topography is required.
•
Resolution of the discrepancy between survey data recently acquired in WSG84 and
data converted from alternate systems is necessary.

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APPENDIX A: Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

Criteria JORC Code explanation JORC Code explanation Commentary Commentary
Database • Measures taken to ensure that data has not • A specific program was undertaken by Celsius Coal from November 2012 to January
integrity been corrupted by, for example, transcription 2013 to capture the paper based lithological data for Soviet era drill holes (SV001 to
or keying errors, between its initial collection SV060). The graphic logs forming the “raw” data source for this process utilised
and its use for Mineral Resource estimation drilled depths (i.e. downhole measurements), however additional data including
purposes. “true” thickness, calculated from drilled thickness and bedding angle, were also
• Data validation procedures used. available. In reconstructing the log, Celsius Coal initially recovered drilled depths of
all coal boundaries from graphic logs, so that they are identical to the drilled
depths/drilled thickness in the Soviet logs. However, outside the coal zone the
thickness of individual non-coal intervals was recalculated from true thickness
tabulations and corresponding dip.
• Coal quality data from the Soviet drilling was reported on a drill depth basis for
SV001 – SV025. For these drill holes, analysis is generally only available over the
coal seam (i.e. does not cover roof, parting, or floor material). The process used to
integrate analytical information with the depth corrected lithological records was as
follows: (i) apply the seam interpretations in the respective data set to establish a
general link between files; (ii) review the depths and interpreted thicknesses in the
lithology and coal quality files; (iii) where a single coal lithology interval and a single
sample exist for the seam (typical of sampling in SV001 - SV025) and thicknesses
are approximately equivalent, merge the respective data; (iv) where multiple,
contiguous coal samples exist and the cumulative thickness is similar to the
lithological interpreted interval, then integrate the respective data. Analytical data
for SV026 - SV060 was provided on a depth corrected basis and was simply merged
with the corresponding lithological interval.
• The Soviet geophysical logging identified highly resistive zones including coal within
drill holes. Soviet geologists used the geophysical logs to apportion core loss and
interpret coal thickness. However, the data was judged insufficient by Celsius Coal
for a quantitative seam boundary definition, consistent with the 40% (ad) ash cut-
off. Seam boundaries were therefore adjusted to rely exclusively on core, resulting
in the occasional reduction of anomalously thick (geophysically based) Soviet seam
interpretations. In zones of low core recovery the Soviet boundary interpretations
were retained.
• A second geological data capture program, was undertaken by Celsius Coal over
November 2012 – January 2013 to recover information from adits and inclines. Raw
datatook the formofdetailedcross sectional representations,typically at 1:100

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Criteria JORC Code explanation Commentary Commentary
scale, showing
seam boundaries, lithological banding and splitting, structural
fabric/shearing and the location and nature of samples. Additional graphic logs
were also included at specific localities along cross sections, showing the detailed
lithological composition of seams. The location of adit entrances are shown of either
1:1,000 (survey) or 1:10,000 (geological) plans. Analytical data was reported as a
graphic log of lithological components (i.e. defining sample extent and lithologies
sampled) and a corresponding tabulation of coal quality test results.
• The adit/incline entrance location XYZ, was deduced from either survey, or
geological maps. Positions along the cross section were then defined (i.e. where
information was to be extracted) and the corresponding XYZ calculated, using the
surveyed dip and azimuth of the working and the distance (scaled along the section)
from the entrance. Seam thicknesses were scaled from the cross section at the
selected points. Information was extracted from workings at separations ranging
from <5m to ~50m (i.e. in larger excavations). Data was collated in spreadsheet
format output files, including for each point of observation: XYZ co-ordinates, seam
thickness, strata dip, distance from the adit entrance, adit/incline number and
report number. A unique point identifier was also defined. The XYZ positions of coal
quality data points were determined in an identical manner. The relevant analytical
data was then matched and extracted using sample number (as defined on the
cross sections and report tabulations). Spreadsheet format output files detailing:
XYZ co-ordinates, seam thickness, distance from the adit entrance, sample
identification, the portion of the seam sampled, analytical results, adit/incline
number, report number and a unique point identifier were prepared. For structural
data, positions were selected beyond the weathering zone and away from local
structural anomalies, to ensure representative seam thickness.
• Drill hole data from 2012 – 2013 Celsius Coal drilling was prepared in a series of
spreadsheet files, for lithological, analytical, deviation and collar position. These
represent a collation of the Celsius Coal geologists’ interpretations and raw data
provided by surveyors, geophysical loggers and laboratories, either concurrent with
the exploration, or soon thereafter. Lithological and analytical data was output on a
geophysically depth corrected basis.
• Borehole derived geological data, including collar position, coal seam intersections,
lithological information, coal quality and downhole deviation were uploaded into a
Vulcan format, user definable ISIS database. Geological data sourced from adits
and inclines, including: seam floor positions, thickness, analytical information and
dip measurements were imported to parameter specific layers within a Vulcan
design database. String and point data including topography, surface features,
tenement boundaries and geological mapping were also uploaded to a Vulcan design
database.
• Data validation continued through the modelling phase,wherebyscrutinyof the

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Criteria JORC Code explanation JORC Code explanation Commentary Commentary
data sets in an integrated manner was undertaken and resulted in the identification
of assorted local anomalies. An iterative process of raw data review/verification,
modification of the database where appropriate and remodelling was undertaken,
resultinginprogressivelyimproving database integrity.
Site visits • Comment on any site visits undertaken by • A site visit was undertaken by Dr Springbett (Competent Person for this resource
the Competent Person and the outcome of statement) during the 2013 drilling and field mapping program. Survey, drilling,
those visits. logging and mapping operations were discussed/observed, in addition to the
• If no site visits have been undertaken appraisal of several coal seam exposures. Recommendation for the2013 mapping
indicate why this is the case. and drilling program were subsequently submitted to Celsius Coal.
Geological • Confidence in (or conversely, the uncertainty
•		 A structured deposit with moderate folding, significant faulting and thin/multi-seam
interpretation of) the geological interpretation of the coal developments, is interpreted for the area. Within this setting and based on
mineral deposit. currently available data, assorted geological uncertainties exist.
• Nature of the data used and of any • The availability of current industry standard borehole geophysics (from 2013
assumptions made. exploration) has assisted in the evaluation of coal characteristics and the degree of
• The effect, if any, of alternative inherent seam variability. However, there is some inconsistency between the often
interpretations on Mineral Resource quite rapidly changing seam characteristics displayed in adits/inclines cross sections
estimation. (and potentially in twinned recent-historical drill holes) and the relatively more
• The use of geology in guiding and controlling benign seam form deduced from the 2012-2013 geophysically logged borehole
Mineral Resource estimation. suite. Resolution of this issue is problematic in the generally thin seams typical of
• The factors affecting continuity both of grade Kargasha and Kokkia and is clouded by the relatively coarse spacing of 2012 – 2013
and geology. drill sites. The precise extent of inherent seam variability is unlikely to have a
material impact on total Inferred Resources, but could be very significant during
mining operations.
• Seam correlation will continue to improve as additional drill hole data is acquired.
Any resultant changes are likely to be refinement of the current scheme and are not
considered likely to effect the Total Inferred Resource.
• Evidence of significant structuring in the Kargasha and Kokkia Project areas exists,
with moderate to locally steep folding and some major faulting (up to ~200m
displacement) interpreted. However, the faulting in particular is not well resolved
and it is likely that with additional drilling, the frequency of fault detection (and
possibly also the extent of dip variability, including angle and direction) will
increase. Furthermore, the precise nature of fault characteristics is largely unknown.
While some resource losses may be associated with major fault zones and more
frequent faulting, these are considered unlikely to have an appreciable effect on
total Inferred Resources. However, these features could have significant mine
planning implications.
• The limits of weathering and scree are currently inferred at 20m. This position
determines the uppermost coal limit in each seam and has a direct effect on
resources. Inpotentiallyopen cut areas alongthe outcrop,raisingor loweringof this

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Statement of Coal Resources 2014, Kargasha and Kokkia Coal Projects, Kyrgyz Republic

Criteria JORC Code explanation JORC Code explanation Commentary Commentary
level could result in locally significant increased/decreased shallow coal resources,
respectively. Weathered coal is occasionally observed at outcrop, however depths of
weathering and scree appear to vary significantly. This matter will only be resolved
with further investigation.
Dimensions • The extent and variability of the Mineral • The extent of coal seam occurrence in the Kargasha tenement is ~8.5km from the
Resource expressed as length (along strike northern outcrop zone, to the southern outcrop/sedimentary limit of seam
or otherwise), plan width, and depth below development (Figure 2.3). In an east west orientation, the seams are interpreted to
surface to the upper and lower limits of the occur over the full 7km tenement extent.
Mineral Resource. • Within the Kokkia tenement the coal bearing Tuyuk Formation has been mapped over
a lateral, NW-SE strike extent of ~7.5km (Figure 2.3). Of this some ~5.5km has
been included in the Inferred Resource, with the eastern portion of the tenement
currently undrilled. Seams are interpreted to continue from outcrop to the southern
tenement boundary (a zone of typically 0.5 to 1km). Significant faulting is inferred in
the area and local repetition of the coal sequence is postulated. The dimensions of
the repeated zone (located near the northern Kokkia tenement boundary) are
unknown.
• The upper limit of the resource is defined by the base of weathering (set 20m below
surface topography).
• No specific lower limit is applied with resources estimated to the lowest seam
exceeding 0.5m in thickness, for which acceptable sampling points are available
(Seam B).
Estimation and
•		 The nature and appropriateness of the • A Harp (Horizon Adaptive Rectangular Prism) format, Vulcan block model of the
modelling estimation technique(s) applied and key contiguous Kargasha and Kokkia Project areas was developed over January - March
techniques assumptions, including treatment of extreme 2014. The block model and all inputs were generated on a WSG84 grid system.
grade values, domaining, interpolation • Topographic contours at 10m contours and supplementary point data (fully covering
parameters and maximum distance of tenement areas) was applied to generate a surface topography model.
extrapolation from data points. If a computer
•		 The base of weathering is inferred at a position 20m below the topographic surface.
assisted estimation method was chosen This is based on (i) the average depth inferred from the seven drill holes where
include a description of computer software weathered Tuyuk Formation sediments are encountered (21.8m); (ii) the historical
and parameters used. Soviet average of a 50m lateral limit of oxidation (i.e. deduced from adit entrances)
• The availability of check estimates, previous applied in conjunction with the average topographic gradient (~23º).
estimates and/or mine production records • Seam thickness and interburden thickness models are based on acceptable points of
and whether the Mineral Resource estimate observation (i.e. cored drill hole intersections) supplemented with adit/incline
takes appropriate account of such data. measurements of seam thickness. The drill hole derived component used
• The assumptions made regarding recovery of interpolated (Vulcan Fixdhd) mapfiles as modelling inputs. Where seams are absent
by-products. (i.e. not developed or not detected) a zero value was applied for thickness
• Estimation of deleterious elements or other modelling. At twin drill sites (i.e. Celsius Coal and historical SV) the latter was
non-grade variables of economic significance excluded from modelling. One additional SV hole, interpreted to be significantly
(eg sulphur for acid mine drainage faulted was also excluded from modelling.
_characterisation). _ • Seamstructure modelling utilisedthe K1Seam flooras designatedreference

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Statement of Coal Resources 2014, Kargasha and Kokkia Coal Projects, Kyrgyz Republic

Criteria JORC Code explanation JORC Code explanation Commentary Commentary
• In the case of block model interpolation, the surface (in line with its higher data frequency and greater regional continuity,
block size in relation to the average sample relative to other seams). Data inputs to the reference surface included: drill holes
spacing and the search employed. intersections, adits/inclines floor measurements and strata dips to control structure
• Any assumptions behind modelling of (particularly where extensive field mapping was available at northern Kargasha and
selective mining units. Kokkia), the mapped Tuyuk Formation floor boundary (adjusted to the K1 Seam
• Any assumptions about correlation between level) and interpreted faults. Inferred control points were locally required beyond
variables. drilling limits to extend the K1 Seam floor model to tenement boundaries. Other
• Description of how the geological seam structure surfaces were derived by addition/subtraction of coal and
interpretation was used to control the interburden thickness models, commencing at the K1 Seam floor.
resource estimates. • Analytical data from drill holes, weighted by length and density (i.e. where multiple
• Discussion of basis for using or not using sample exist over a seam) were applied to derive seam quality values for the
grade cutting or capping. modelled parameters: total moisture (% ad), ash (% ad), volatile matter (% ad)
• The process of validation, the checking and total sulphur (% db). These together with full seam samples from adits/inclines
process used, the comparison of model data were used as data inputs for coal quality modelling._In situ_density models were
to drill hole data, and use of reconciliation developed from a relationship to ash (% ad) on a seam specific basis. Where low
data if available. core recoveries and incomplete sampling were identified in drill holes (based on
<75% of the seam recovery and analysed) or core recovery over the seam was
unknown, the corresponding analytical data was excluded from modelling. This
resulted in a significant number of data exclusions, typically ~half of the available
Soviet era drill holes_[Note: The 75% recovery + analysis limit was applied_
specifically for coal quality modelling and is unrelated to the assignment of
_acceptable points of observation and definition of resource estimation limits]._No
specific exclusions were applied to adit/incline sourced coal quality data, providing
the full seam interval was sampled and analysed. However, elevated moistures (i.e.
exceeding 2.5% ad) typically from shallow adits in the northeast of Kargasha and
the Kokkia area) were considered to reflect weathering modification and were
excluded from modelling. The corresponding ash, volatile matter and sulphur data
appeared generally consistent with surrounding drill holes, and/or deeper adits and
was retained.
• Structural models were generated using a triangulation methodology on a 20m x
20m grid mesh. A second order regional trend was applied to the K1 Seam floor
reference surface. Thickness models were generated using a triangulation
procedure and a 20m x 20m grid. All coal quality models were modelled using an
inverse distance gridding technique at 20m x 20m nodes.
• A Harp format block model was constructed using the seam surfaces (converted to
triangulations) and coal quality grids. Key criteria include: a cell size in X of 20m, a
cell size in Y of 20m, sub-blocks in X and Y direction of 1 (i.e. no sub-blocking), axis
aligned model (i.e. no rotation), co-ordinate range of 398800-411200 in X and
4535000-4547300 in Y, a Z tolerance of 2, minimum thickness of zero, upper
modellinglimit defined bysurface topographyand the lower limit defined bythe

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Statement of Coal Resources 2014, Kargasha and Kokkia Coal Projects, Kyrgyz Republic

Criteria JORC Code explanation JORC Code explanation Commentary Commentary
basement contact. Coal quality was populated by effectively placing values from
grid nodes of each modelled parameter, into the vertically aligned blocks and
corresponding seams (i.e. no further manipulation of grid inputs was undertaken).
The 20m by 20m block size at Kargasha represents ~2% of the “typical“ drill hole
spacing.
• The scree and weathering contact was introduced into the block model using the
base of weathering surface triangulation and a tri blocking methodology. Post
processing inside the block model included: generation of cover depth and tenement
definition.
• Assorted model validation activities were undertaken including: (i) detailed
comparison of drill hole measurements (thickness, coal quality) against mapfile, grid
and block model values at selected drill sites; (ii) assessment of seam thickness
models and investigation of anomalous drill hole/adit values; (iii) cross sectional
comparison of the block model (in particular; seam boundaries, Tuyuk Formation
boundaries and basement) against drill hole intersections and mapping; (iv)
statistical assessment of block model thicknesses/coal quality and (v) comparison of
borehole collars against the topographic model. In addition, comparisons were
undertaken between mapping sourced dip measurements vs. model structure.
• Resources were estimated using Vulcan V8.2 software and in particular the advanced
block model reserves module. Polygons were generated to precisely limit the region
of inferred resource estimation and together with geological limits including: a
minimum 0.5m seam thickness, the base of weathering and overburden depth (all
defined within the block model) provided the necessary areal cut-off
definition/classification. Resources were estimated on a seam basis in line with cover
depth increments, seam thickness increments and resource block, with reporting of
average seam thickness and raw coal quality (i.e. ash (% ad), moisture (% ad),
volatile matter (% ad),_in situ_density and total sulphur (% db)). Resources were
also estimated within the zone of extrapolation (i.e. beyond the last point of
observation) at Kokkia.
• Specific validation activities associated with the resources outlined in this statement
include: evaluation of individual resource polygons by alternate estimation
techniques within Vulcan and coarse checks of selected resource polygons using
qualitatively estimated area, thickness and density values. The current resource
estimate represents an increase of ~40Mt over the March 2013 estimation. The
increase is primarily a reflection of increased regional drill hole coverage from the
2013 exploration program.
• Resource estimation was completed on 19 March 2013, using a block model prepared
on 17 March 2014.
Moisture • Whether the tonnages are estimated on a • Resources are estimated on an_in situ_ moisture basis (i.e. the density is derived to
dry basis or with natural moisture, and the reflect_in situ_moisture conditions). However,the modelled and reported moisture

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Statement of Coal Resources 2014, Kargasha and Kokkia Coal Projects, Kyrgyz Republic

Criteria JORC Code explanation JORC Code explanation Commentary Commentary
method of determination of the moisture basis of coal quality parameters associated with the resource estimates varies.
content. Specifically, ash, moisture and volatile matter are reported on an air dried basis (%
ad), while total sulphur is reported on a dry basis (% db).
• The methodology of_in situ_moisture determination is outlined in Appendix C.
Cut-off • The basis of the adopted cut-off grade(s) or • An ash content limit of 40% (ad) was applied for coal/non-coal boundary definition.
parameters quality parameters applied. No resource exclusions were made in line with coal quality (other than ash content).
• In instances where seams of <0.5m thick (i.e. below the resource cut off thickness)
show ash contents exceeding 40% ash (% ad) reflecting lateral facies change and
quality deterioration, the analytical data is on occasions utilised for coal quality
model controlpurposes.
Mining factors
•		 Assumptions made regarding possible mining
•		 Coals of the Kargasha and Kokkia areas have been considered as potentially
or assumptions methods, minimum mining dimensions and underground mining resources.
internal (or, if applicable, external) mining • The 0.5m coal thickness limit (i.e. for each seam) was applied for definition of
dilution. It is always necessary as part of the resource extents.
process of determining reasonable prospects • In all seams other than K1, the 0.5m seam thickness is defined by drilling. A
for eventual economic extraction to consider southern 0.5m seam thickness limit was inferred for K1 Seam, based on a
potential mining methods, but the combination of drill hole intersections and deductions from regional mapping.
assumptions made regarding mining • No overburden limit has been applied for resource estimation. Over the project area
methods and parameters when estimating overburden to the uppermost seam ranges from 0 to ~950m and averages
Mineral Resources may not always be approximately ~400m. The average overburden to K1 Seam is ~470m.
rigorous. Where this is the case, this should • Coal above the inferred base of weathering is excluded from resource estimates. A
be reported with an explanation of the basis depth of 20m below topography was allowed for scree and weathering.
of the mining assumptions made. • No specific resource adjustments have been made for faults.
• Further discussion of mining factors and assumptions is included in Appendix D,
includingthesourceofadvice indevelopingminingfactorassumptions.
Metallurgical • The basis for assumptions or predictions • The analytical program for 2013 cores including two PQ cores included assorted
factors or regarding metallurgical amenability. It is detailed testing including: Free Swell Index (FSI), washability, Sapozhnikov Test, G
assumptions always necessary as part of the process of Caking Index Test, Arnu Dilatometer Test, drop shatter testing, small scale coke
determining reasonable prospects for oven and Coke Strength after Reaction (CSR). Following assessment of this data
eventual economic extraction to consider coal characteristic with the Kargasha and Kokkia will be further defined.
potential metallurgical methods, but the • At present ash content (40% ad) is the only coal quality cut-off applied.
assumptions regarding metallurgical
treatment processes and parameters made
when reporting Mineral Resources may not
always be rigorous. Where this is the case,
this should be reported with an explanation
of the basis of the metallurgical assumptions
made.
Environmental • Assumptions made regarding possible waste • Environmental and archaeological studies have not been undertaken.

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Statement of Coal Resources 2014, Kargasha and Kokkia Coal Projects, Kyrgyz Republic

Criteria JORC Code explanation JORC Code explanation Commentary Commentary
factors or and process residue disposal options. It is • Studies regarding the potential environmental impacts of mining have not been
assumptions always necessary as part of the process of undertaken.
determining reasonable prospects for • No environmental, or historical features that could preclude mining operations have
eventual economic extraction to consider the been identified by Celsius Coal.
potential environmental impacts of the • No known infrastructure constraints have been identified by Celsius Coal.
mining and processing operation. While at
this stage the determination of potential
environmental impacts, particularly for a
greenfields project, may not always be well
advanced, the status of early consideration
of these potential environmental impacts
should be reported. Where these aspects
have not been considered this should be
reported with an explanation of the
environmental assumptions made.
Bulk density • Whether assumed or determined. If • Raw coal quality from Celsius Coal 2012 - 2013 drill holes was used to develop a
assumed, the basis for the assumptions. If relationship between_in situ_density and ash content (% ad). The evaluation was
determined, the method used, whether wet undertaken by Dr David Hornsby, from Gallagher Consulting and is based on data
or dry, the frequency of the measurements, available as at 31 January 2014 (see Appendix C).
the nature, size and representativeness of • _In situ_moisture levels of 2.3% to 3.0%, averaging 2.6%, were initially predicted
the samples. using several empirical, multi-linear regression equations involving an assortment of
• The bulk density for bulk material must have analytical data including: moisture holding capacity, solids relative density (RD),
been measured by methods that adequately ash, volatile matter, ultimate carbon, vitrinite reflectance and petrographic
account for void spaces (vugs, porosity, etc), composition. The raw RD (ad), air dried moisture and ash (% ad) data were then
moisture and differences between rock and used with the average_in situ_moisture prediction via the Preston Saunders formula
alteration zones within the deposit. to derive a relationship between ash (% ad) and_in situ_density. The relationship is
• Discuss assumptions for bulk density as follows:_In situ_density = 1 / (0.7871-0.00426 * ash (% ad)).
estimates used in the evaluation process of • Derived_in situ_density was estimated on a seam specific basis from raw ash models
the different materials. and applied to resource estimation.
Classification • The basis for the classification of the Mineral • All resources at Kargasha and Kokkia are classified as Inferred. Criteria applied to
Resources into varying confidence define this included: drill hole density, adit location, the number of and spacing of
categories. coal quality points and significant reliance on historical geological data.
• Whether appropriate account has been taken
•		 The confidence associated with resource estimates at Kargasha and Kokkia is
of all relevant factors (ie relative confidence consistent with the “Inferred Mineral Resource” category definition as outlined in the
in tonnage/grade estimations, reliability of 2012 JORC code. In particular, estimates are based on limited geological evidence
input data, confidence in continuity of and sampling, which is sufficient to imply, but not verify geological and coal quality
geology and metal values, quality, quantity continuity.
and distribution of the data). • Within each seam, acceptable points of observation from drill holes and adit/incline
• Whether the result appropriately reflects the excavations were used to establish the limits of Inferred resources. A maximum
Competent Person’s view of the deposit. interpolated interval of 4 km and maximum extrapolated extent of 2 km were

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Statement of Coal Resources 2014, Kargasha and Kokkia Coal Projects, Kyrgyz Republic

Criteria JORC Code explanation JORC Code explanation Commentary Commentary
applied.
Audits
or		 • The results of any audits or reviews of • The resource evaluation process and key criteria used in the assessment were
reviews Mineral Resource estimates. subject to a peer review process by Mr Charles Parbury, from McElroy Bryan
Geological Services (MBGS). MBGS are a specialist coal geology consultancy based in
Sydney, Australia.
Discussion
of		 • Where appropriate a statement of the • Based on existing distribution and nature of geological data in the Kargasha and
relative relative accuracy and confidence level in the Kokkia tenements, the information provides a level of confidence consistent with the
accuracy/ Mineral Resource estimate using an approach Inferred Resource classification. There is every expectation that with additional
confidence or procedure deemed appropriate by the investigation, such as outlined in the “Further Work“ item of this table, that portions
Competent Person. For example, the of the resource could be upgraded to Indicated Resources.
application of statistical or geostatistical • There are no mine operations in the tenements and it is therefore not possible to
procedures to quantify the relative accuracy apply production data to assist in the assessment of resource accuracy.
of the resource within stated confidence
limits, or, if such an approach is not deemed
appropriate, a qualitative discussion of the
factors that could affect the relative accuracy
and confidence of the estimate.
• The statement should specify whether it
relates to global or local estimates, and, if
local, state the relevant tonnages, which
should be relevant to technical and economic
evaluation. Documentation should include
assumptions made and the procedures used.
• These statements of relative accuracy and
confidence of the estimate should be
compared with production data, where
available.

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G&S RESOURCES

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