By Gary Collinge, ManagerLog Harvesting

We have had an unexpected end to our Kennedy flats program, leaving us scrambling to get wood moving in Stewardson. The first barge will be a heli package. We are currently falling an 80% retention block that has the best cedar we have seen in TFL54. This will be a good opportunity for the mill. As well I think our timing will give the mill a chance to hit the market at the right time, if there is going to be a right time this year.

Road building is proceeding in four other blocks which will access wood for barges 2 and 3. We will be yarding for a couple of weeks before load and haul to ensure we can hit budgets once we start. There is a possibility of a 4th barge from Stewardson but it will depend on being able to sell the wood as it is hemlock. I think we will start yarding mid May and load and haul at the end of May. Weather and market permitting.

We are reviewing third quarter options in TFL54. Probably Cypre, 11000m3 conventional. and 19,000m3 and Rankin with 20,000m3 conventional are the best options. The Kennedy flats option is never very far away either. If the lumber markets improve, we are ready to chase the opportunity.

The Coulson Group of Companies - Head Office:

4890 Cherry Creek Road, Port Alberni, BC, Canada V9Y 8E9 Phone: (250) 723-8118 Fax: (250) 723-7766