Hillsborough Resources Limited

Hillsborough Resources Limited

July 16, 2008 09:30 ET

Hillsborough Resources Limited: Crossville Coal Targetting Coking Coal Production

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 16, 2008) - Hillsborough Resources Limited (TSX:HLB) announces that its subsidiary Crossville Coal Inc (Crossville) has completed a first phase, 23-hole drill program to delineate coal resources northwest of the old open-pit. The closely-spaced drilling has confirmed that the Sewanee coal bed in this part of the Crossville property is present in mineable thicknesses averaging 2.13 m (7 feet).

A second phase program is planned as soon as a core drill is available. This program will focus on coal quality for the target mining area. In addition, several exploration holes are planned on a nearby block of land under option. A single hole drilled on this block in 2004 intersected a seam thickness of 3.12 m (10 feet).

A bulk sample of approximately 1.7 tonnes (3750 lb) was recently taken from the pit highwall on the edge of the target mining area and is undergoing washability and analytical work. Results confirm that a good coking coal product can be produced with potential secondary production of a by-product thermal coal.

Engineering design has commenced for a push back of the open-pit highwall for a portal site and for layout and design for the underground mine plan.

Crown Coal & Coke Company of Pittsburgh has been retained as Sales Agent for coal sales with a focus on the coking coal sales. With respect to by-product thermal sales, Crossville has entered into an agreement with TVA for by-product sales to its Kingston power plant.

Management is very encouraged with results to date and, with continued positive results, expects that a new mine can be opened in the near future, noting that the existing wash plant and coal handling equipment can be restarted with minimal capital cost.

About the Corporation

Hillsborough Resources Limited is a coal mining company that operates the Quinsam underground thermal coal mine near Campbell River, British Columbia, serving the local and west-coast U.S. cement industry and is increasing export sales. The Company is a limited partner in the Peace River Coal Limited Partnership, which has substantial metallurgical coal properties both in production and under development near Tumbler Ridge, British Columbia. In addition, the Company is developing the proposed Wapiti thermal coal mine in the same region. Hillsborough also holds the Bingay Creek metallurgical coal property located in the Elk Valley region of southeast British Columbia and plans to resume pre-development work programs this year.

This release may contain forward-looking statements regarding the Corporation's business or financial condition. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Corporation expects are forward-looking statements. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Actual results could differ materially from those described in this news release as a result of factors including but not limited to the following: adverse exploration or development results; adverse due diligence findings; re-assessments of corporate or development objectives and requirements; additional technical developments and considerations; unexpected increases in the costs of producing coal, changes in international coal or transportation markets, a rapid change in the value of the Canadian dollar particularly with respect to the US dollar, a fundamental slow down in the North American, Asian or worldwide economies; and other factors. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements.

Contact Information

  • Hillsborough Resources Limited
    David Slater
    President & C.E.O.
    (604) 684-9288
    (604) 684-3178 (FAX)
    Hillsborough Resources Limited
    Ian Kirk, C.A.
    (604) 684-9288
    (604) 684-3178 (FAX)
    Website: www.hillsboroughresources.com