LOZAR RADAR INTRODUCTORY PRESENTATION COAL SURVEYING

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LOZAR RADAR INTRODUCTORY PRESENTATION COAL SURVEYING WWW.LOZARRADAR.COM

ABOUT LOZAR RADAR Lozar Radar is a ground-scanning device, which verifies and investigates the presence of mineral resources and geological features, with unrivalled clarity and speed up to a depth of 200m. Existing ground penetrating radar technologies traditionally only penetrate to 25 meters in conducive conditions. The radar technology is derived from a requirement of the Russian space program to scan for water on Mars. Our radar is a leading technological tool, where, with minimum cost, information can be obtained about the geological structure of the section and prospective areas identified with real time speed.

WHY LOZAR RADAR? FINANCIAL ADVANTAGE Advantages of Lozar Radar Technology to penetrate to depths of up to 200m Versatile and highly portable Delivers financial savings to the client: Low cost & accurate resource targeting Verification of drill hole data More powerful - 100,000 times the power of traditional GPR Our surveys enable drilling and trenching to be targeted more efficiently Localised and light operational footprint Reduced drilling expenditure Real time data processing and analysis Improved mine planning Lozar can accurately locate: Minimal impact on the environment and surrounding operations Speed of data collection: acquisition of up to 4km of line surveyed profiles a day. Faults & Voids Bedrock Contact & Ore Bodies Alluvial Horizons & Oxidised Zones

ADVANTAGES IN EXPLORATION Traditional methods of IP or Seismics, or trenching and combining with drilling in early stages of resource identification can be replaced with Radar and less drilling: With an overall decrease in expenditure Improving on the required level of accuracy and quality of data No comprising on quantifying resource estimates Faster acquisition with real time display Reduction in initial drilling to define conductive/dielectric areas of interest Cost Analysis: Can provide a detailed costing for a comparative survey to illustrate the potential savings upon obtaining past expenditure details on the traditional survey methods of IP and drilling. More powerful - 100,000 times the power of traditional GPR

SURVEYING FOR COAL 4

COAL RADARGRAM EXAMPLE # 1 Coal bed Coal bed DH Data Above 5

COAL SCHEMATIC EXAMPLE # 1 Drill hole used for calibration Coal bed Coal bed Schematic representation of Radargram on previous page 6

COAL RADARGRAM EXAMPLE # 2 Distance 600m Down hole Reference in vicinity of profile Coal bed Coal bed 7

COAL RADARGRAM EXAMPLE # 3 (COMPLETE PROFILE) 8

COAL RADARGRAM EXAMPLE # 3 (SECTION) Sandstone / shale mix Shale Coal Layer 2 Thermal Coal Coal Layer 3 Coking Coal Sandstone Bedrock 9

COAL CASE STUDY #1 AFRICA Start of Profile Top of Pit Wall Coal & Shale Seams Target Coal Seam Fig 10 10

COAL CASE STUDY # 1 AFRICA Radargram below displays the Overburden, Shale and Coal Layers, contact with Bedrock and Faulting. The profile is 750m in length and took 30 mins to collect and 4 hours to process. The profile was taken from the coal pit wall (previous slide) so calibration was possible from visual observation. Start Distance (750 m) Finish Overburden Shale Coal Layer Coal bed Bedrock Depth (110m) Undulation is very pronounced due to compressing of image. 11 Faults

COAL CASE STUDY #1 AFRICA To survey the heavily faulted zone to position fault locations and the coal seams. Profiles Taken SURVEY OBJECTIVES: 1. Estimate volume & location of resource 2. Assist client with planning a targeted drilling program & reduce the # of DH required. Faults 12

COAL CASE STUDY # 2 AFRICA Task: Concession Drilled in 1970 s Run profiles through the DH, confirm presence and structure of coal. Coal bed Above: Whole profile is 2.6km long, and passes through 2 drill holes. Note, the profile is compressed for ease of viewing the coal does not roll so much in reality. The drilling identified the roof of the coal. Left: Detail the drill hole record was for coal roof to be seen at 77m. The profile shows geophysical boundaries that are most likely the upper coal resource. It is not known what the lower black signatures are. Conclusion: 6km of survey completed in 1 day, verifying disposition of coal resource in remote area. Data turned around instantly. 13

COAL CASE STUDY # 2 AFRICA Coal bed Existing Drill Hole Data Showing roof of coal bed 14

COAL CASE STUDY # 2 AFRICA Distance 900m Depth 110m Coal bed Coal bed 15

RADARGRAM FORMATS & REPORTING DELIVERABLES : Reports contain the following: Analysed geophysical data Radargrams displaying the data Relevant geo referencing Summary & recommendations Analysed data is provided in the following formats: RAW file TXT file Filtered (Radargram will be provided as standard) 3D Model where appropriate Other formats available upon request 17

RADARGRAM FORMATTS & REPORTING Product to client: Profiles are shown in one of three settings Fig 8 (above): Waveform mode of representation 18

OPERATIONS AND CLIENTS Lozar Radar is working with industry leading mining majors and governments, through to junior exploration companies Globally 19

TECHNICAL SPECIFICATIONS 22

TECHNOLOGY OVERVIEW The company uses a 4th generation Ground Penetrating Radar system. The radar scheme has been completely revised: pulse transmitter power has been increased by a minimum of 100,000 times, and the stroboscopic transformation replaced to direct detection of signal. The antennas used by Lozar use RC-loaded dipoles. This ensures the exclusion of interference in the received signal that suppresses weak signals, whilst also permitting the reception of strong signals. The transmitter uses a high-pressure hydrogen discharge, and the transmitter operates in stand-alone mode without synchronization. This avoids the requirement for connecting lines which also introduce strong interference from the transmitter. Technical Parameters The capacity of the EM transmitter is either 1, 10, 20, or 48MW Megawatt Working frequency range (MHz) 1-50 Number of samples per scan (ns) 512, 1024, 2048, 4096, 8192 Antennas can be 1m, 1.5m, 3m, 6m, 10m and 15m 23

RADAR CONFIGURATION The Radar uses different sized antennas, transmitters, receivers and consoles Fig 1 Below: displays a typical radar setup FIG 1 RECIEVER The Radar is configured as follows: Transmitting Antenna Transmitter Receiver Receiving Console Laptop with proprietary software TRANSMITTER CONSOL Scanning to different depths or achieving certain resolutions, requires the same configuration, with component parts changed to suit the target and objective. 24

RADAR CONFIGURATION Penetration to 15m 1 & 1.5 Meter Antennas Real Time Display Download data to Laptop in minutes Penetration to 200m 6/10/15 Meter Antennas 1 MW High-Feq Transmitter 20 MW High-Feq Transmitter High Resolution High Resolution Lightweight, Portable, Highly Deployable Penetration to 45m 3 Meter Antennas 1 MW Low -Feq Transmitter High Resolution 25

REQUIREMENTS FROM THE CLIENT FOR DATA ACQUISITION Requirement for Geo-Support: It is important to have a fully qualified and experienced geologist on site. Surface mapping will also augment the radar survey. Requirement for Casual Labour: Casual-labour clearance teams and manual pulling assistance is required. Larger antennas require more manpower. 1 man can pull a 6m antenna, 2 men for a 10 or 15m antenna. Requirement for a Surveyor with DGPS: A surveyor with a DGPS should be provided, as the Radar has real time reporting where structures are identified, real time marking can be achieved. 26

DATA ACQUISITION The antennas require to be flush with the surface highest performance achieved on machine prepared grids / lines. The use of 4x4 vehicles as the tow vehicle is the preferred approach but not essential with the 4 x 4 in low range travelling at a crawl at @ 1km per hr The operator sets the radar to fire automated regular shots such as once every half second or one second. Fig 2 (Left): Pictures of well cleared profile lines Above & Right: the device is pulled along well cleared profile lines. The lightweight, highly portable system allows for rapid mobilization and deployment. The Radar is towed either by hand, behind a 4x4 or quad bike. 27

DATA ACQUISITION THE RADAR IN ACTION The spacing of the radar shots For small objects (pipes, cables, small voids etc.), shots may be taken along the profile is chosen taken every 20 cm to 30cm, for shallow geological surveys (e.g. according to the required scale of the alluvial deposits) spacing may be 50-100 cm. target objects. 28

DATA ACQUISTION - technical The radar can be set to automatic when dragged behind a 4x4 or quadbike. The timing of the shots depends on what mode the system is set to. Binary is quick (1 shot every half second), logarithmic delivers more detailed data and has a longer calculation time (one shot every second). Fig 3&4 (above): Recording of the EM wave, showing different parameters - binary is a quick method using just one pulse of energy, Logarithmic uses many pulses to determine more detail. 29

DATA ACQUISTION technical continued At each measurement point, the arrival time of the signal is recorded from the geological boundaries. The profile Radargram is formed in real time on the operators console LCD screen in the form of a binary plot depicting radar return time of the subsurface reflections. The EM wave travel times, depending on the reflector depth and propagation velocity, vary along the profile giving a picture of subsurface layered structure. Fig 5 (above): The operators console displays the wave form (right side) and the build up of the profile (left side) Experienced operators can therefore recognize features such as voids, as the EM wave travels faster in voids than in the surrounding material. 30

DATA ACQUISTION technical continued Results of the survey, including the wave-forms for each point/ shot in the survey (every 10cm to 110cm depending on the objective), are stored in the console memory, which can then be instantly downloaded into a normal laptop computer for instant review. This real-time capability means that the operator can mark features of interest as the profile is taken. Therefore a Differential GPS (DGPS) operator should be onhand, walking with the operator, to mark points of interest. This allows the client to mark the features on his own software for subsequent actions to be accurately delivered (drilling etc.). 31

IDNETIFYING STRUCTURE & SHOT SPACING Vertical structure, we see this as the diagram below attempts to portray. We do see vertical structure quite well because we get the signal reflection not only from horizontal boundaries. Fig 6 (Left): Capturing Structural Detail The Radar operator can either manually operate the firing switch or it can be set to automatic. Shot spacing is determined by the clients objective, and the speed of the traverse. Where we have competent horizontal coal layers we may take a shot every 1.5m. Fig 7 (above): Shot spacing 32

! ANALYSIS Above: A coal seam is shown over sandstone bedrock.! Data is collected and downloaded onto a laptop for analysis on proprietary software. Typically taking 12hrs to fully analyse 1km line of data. Preliminary analysis on the laptop can be conducted immediately in the field to check data quality and features of interest. The final report will be delivered no later than 21 days following the completion of data collection. 31

DATA ACQUISITION PRODUCTION & CALIBRATION Rate of Collection: We assume that by manual data collection, we will generate between 2.5km to 3.5km of line kilometres per day on land. A video example can be seen at (a) http://youtu.be/jxeiahfuaww and (b) http://youtu.be/ddbg9ivf0sw This is an arbitrary calculation, and when surveying for voids, it may be necessary to have a much greater shot concentration i.e. more shots over shorter distances, so that several shots pass through each void. Factors such as definition and detail required, size of target features, and antenna/transmitter arrays all define the speed. Adaptable Planning: As mentioned above, Lozar sees features in real time, and can instantly download data to obtain an initial analysis. Often the client will amend the profile plan due to Lozar s immediate ability to understand the geological conditions, or due to topographical/ vegetation obstructions. Liaison with the project geologist is essential, and mutual collaboration is required. Calibration: Where possible, the profiles should pass through a point of reference, such as an augur hole, or drill hole, where the stratigraphy and assay data is known, or perhaps from a visible feature like a pit-face, that enables the geo-electric signature in the radargram to be definitively identified. The sub-surface geoelectric signature can then be matched along the profile, and recognised in other profiles taken locally where there is no calibration point. 33