COAL MINING – Quinsam to restart mining at 2 South pit

BRITISH COLUMBIA - HILLSBOROUGH RESOURCES of Vancouver says it will begin mining again this month from the 2 South pit at its Quinsam coal mine near Campbell River. Recovering the 60,000 tonnes of run-of-mine coal will take about three months.

The Quinsam mine is scheduled to increase production 26% to 850,000 tonnes in 2008. The additional tonnage will come from the newly developed extensions at 1 Mains and 5 South. Further plans to boost production to 1.0 million t/y are being examined. To reach this level, the 4 South underground mine is being reopened.

Hillsborough says the high coal price - as high as $101/tonne for thermal coal - is the reason it can expand eventually to 2.0 million t/y. To reach that goal over four or five years, the company is testing a 100,000-tonne sample from 4 Seam. The Quinsam North mine is ready to be developed when work at the current mine begins to wind down in 2012.

The company has also begun work on a $1.5-million update to the wash plant. This is expected to be complete in the third quarter of 2008.

Visit www.HillsboroughResources.com to get the facts about the Quinsam mine.