Pennsylvania

CURRENT OPERATIONS – JEANSVILLE

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Jeansville Mine, also known as Hazleton Shaft South, is located on the south side of Hazleton, 3.5 miles south west of Stockton Mine. The Mine lease and current permit area covers 465 acres with additional rights to mine a further approx. 450 acres.

Limited mining had taken place as part of the Spring Mountain Mine in the west of the lease area with Hazleton Shaft Corporation as contractor and the new permit to Hazleton Shaft Corporation was issued in December 2016.
Current reserves are 3.8 million tons but work is currently being undertaken which could significantly increase this figure.

The Mammoth seam here is 25 to 30 feet thick but is only approx.200 feet below surface compared with over 400 feet at Stockton. The Primrose seam is also present at Jeansville and is extracted along with the Mammoth seam.
Jeansville Mine was operated by dragline operation which although relatively cheap in terms of excavation cost per cubic yard is not well suited to the steeply pitching and multi seam mines in much of the Pennsylvania anthracite coalfields being inflexible and resulting in considerable wastage of coal particularly from the thinner seams. Stockton was successfully converted from dragline to shovel and truck, ie hydraulic shovel and mine truck, operation utilising modern Komatsu mining equipment and the same approach was taken at Jeansville with $20 million of new leased Komatsu plant. This also involved substantial re-engineering of the pit which took place August to October 2016 with a capital expenditure of over $1.2 million and will enable Jeansville Mine to operate efficiently for some years to come.

Jeansville run of mine coal (“ROM”) is currently hauled to the Hazleton Shaft processing plant to produce clean anthracite product but plans are now in place to relocate the Stockton washing plant to the Jeansville Mine which will eliminate ROM haulage cost from Jeansville to Hazleton Shaft with substantial cost savings (Stockton ROM is now processed at the adjacent Hazleton Shaft processing plant).

A major abandoned mine reclamation project was already underway at Jeansville prior to the acquisition and this will continue through to completion in the latter part of 2017. This work is being undertaken as contractor to the Pennsylvania Department of Environmental Protection, Bureau of Abandoned Mine Reclamation and is a significant revenue generator for the Company.