Owners: Huiyong Holdings (BC) Ltd. - 55%, Canadian Dehua International Mines Group Inc. - 40%

 

Murray River Coalfield is located in eastern side of the Rocky Mountains, 10 km Southwest of Tumbler Ridge, BC, Canada. It is a part of Low piedmont of Rocky Mountains. The altitude is between 762.0 m to 1371.6 m. Murray River Project is 160 square kilometers with the target area of 36 square kilometers. Most of the project is covered by forest. Murray River and Wolverine River flow through the coal fields, which are two major perennial rivers. The climate here is mild in summer, and cold and long in winter. Average annual temperature is 10ìC with the maximum temperature of 34ìC and the minimum temperature of -46.0ìC. The average winter temperature is -15ìC. The average rainfall is 519.4 mm and average snowfall is 185.2 cm. The Project began in July 2009. 
 

The coal seam occurred in formation of Gates and Gething in on Cretaceous of Mesozoic. The strata in coalfield are exposure from early layers to late. Dunvegan (Kd), Cruiser (Kc), Hasler (Kha), Boulder Creek (Kb) occurred from northeast to the Southwest were Voluble group with coal mining are mainly occurring in the Gates. Based on sedimentary cycle seam of coal is divided into three groups, and the total of coal seam is eight. All the coal seam gradually deeper form southwest to northeast. 
 

The total number of exploration drilling hole is 52, which is planning and arrangement by Canadian Dehua international in Murray River project. In the first stage of the project, 12 boreholes have been drilled with the total footage 10,474.87 meters. Accumulated expose coal seams is 80 or more layers. In the first stage, 249 coal samples and 467 GT samples had been collected and been analyzed. Proved and inferred reserves the coal seam area is 17 square kilometers. And then, cooperate with to start the second stage of exploration. Planed 21 drilling holes and the total depth deigned is 17,890 meters. There are 12 drilling hole has been achieve the task, 6 holes is still drilling, and 3 hole is in the planning. The total footage is 14145.45 meters. (Calculated until March 1, 2011) 
 

In second stage of Murray River project, the total number of coal sample collected is 166, the group of GT samples is 103 (412 GT samples) Accumulated expose coal seams is 98. The Drilling project has been completed about 75%. All the logging work for finished wells has been logging by one of the world famous companies WeatherFord. Dehua International hired Petrol Logic Services to complete 2-holes, 14 test samples of coal bed methane analysis in first stage of the project. Canadian Dehua has been completed 36 coal bed methane sample analytical which is under the guidance by Shenyang Branch of China Coal Research Institute in second stage. 
 

Canadian Dehua and Huiyong Group has been complete and comprehensive geological report on drilling. Rescan Environmental services Ltd has been contracted to carry out Murray River Project environmental assessment and baseline study. On another hand, Norwest will do the feasibility study of annual output of 500 tons production and prepare Canada NI43-101 Technical Report.