In early 2005, Hillsborough completed the acquisition of a group of 11 coal properties located in the area of Tumbler Ridge in Northeast British Columbia. The properties primarily contain metallurgical coal from both the Gates and Gething formations, with some including PCI and thermal coals as well. The most significant of the properties is the Five Cabin, containing a large synclinal structure, which along with five other of the properties comprises the Murray River group.

Five Cabin Syncline
Located 15 kilometres southwest of the Quintette mine site, the Five Cabin property is close to railhead and easily accessible through the Murray River valley by all weather roads. Historical estimates filed previously by Denison Mines limited in the 1970’s report resource estimates of 450 million tones of coal in the Gates formation and 160 million tones of coal in the Gething formation, based on cumulative coal seam thicknesses of 15.2 metres in the Gates formation and 4.6 metres in the Gething.


Northeast B.C. Properties

While we consider these historical estimates to be relevant to the property, they must be qualified as they have not been confirmed by Hillsborough and the estimation procedures and classification criteria used may not have been in accordance with those now prescribed under National Instrument 43-101. Drilling on the property commenced in March 2005 to confirm and delineate the resource.

This program is expected to continue for much of the balance of the year. We will be developing resource estimates during 2005 and will proceed to develop pre-feasibility plans for mining operations. A number of development scenarios are under consideration, not only for high-volume mining but for alternatives that would enable Hillsborough to generate more immediate scaled production.

Additional Properties in the Murray Group
Five properties acquired in addition to Five Cabin together form the Murray River Group .Those properties have known existence of gates and Gething metallurgical coals and general geological structures. The resources developed within this group could be processed through plant facilities centered on the Five Cabin resulting in what could be one of the more significant mining projects in the province.

Regional Properties
The remaining five properties acquired by Hillsborough are also in the same general region, containing metallurgical, PCI, and thermal coals and are in varying stages of resource development. They include the Reesor and Mesa properties, containing Gates and Gething coking coals and favourably located adjacent to the CN rail line through the Wolverine River valley. The development prospects for each of these additional properties will be investigated and furthered over the coming years.

“These properties truly represent Hillsborough’s horizon for growth. That is our future.”

David Slater, President and CEO


Hillsborough Developments and Operations