The Vancouver Business Thread

[hollywoodnorth]

Originally Posted by LeftCoaster

^yeah to be honest i dont really care for the guy personally, and I disagree with a lot of things he does, but his tax policies have done enough good to get my vote again and again.

Sorry for the big update here guys, but I've been really busy and not up to date with my posting.

Lots to read!

can I get a Go Gordo Go?

[LeftCoaster]

Go Gordo Go!

Originally Posted by SFUVancouver

Thanks for all of the business pieces. I enjoyed reading them. It appears as if numerous Vancouver-headquartered mining companies are having a good quarter.

Yeah it's really been a good year for all of BC's resource based companies. The Euro zones follies have certainly helped the gold companies, but mining in general should be quite strong if the economy can hold up. With India, China and so many other nations industralizing the world hasnt experienced demand for base materials like this in its history so it should bode very well for the mining industry in particular.

Newstrike buying Mexican gold project from Goldcorp for $2.1M in cash, stock
By The Canadian Press

VANCOUVER - Newstrike Capital Inc. (TSXV:NES) announced Friday it has a definitive agreement to acquire 100 per cent of an exploration stage gold project in Mexico from a subsidiary of Goldcorp Inc. (TSX:G).

Vancouver-based Newstrike will acquire the Ana Paula project for $1.5 million in cash and $600,000 in Newstrike shares in a deal with Desarrollos Mineros San Luis, S.A. de C.V..

Ana Paula is an advanced, exploration-stage gold project located in the north-central part of Guerrero state in southern Mexico, the company said in a news release.

It consists of two contiguous and two discrete concessions covering 7,622 hectares that collectively comprise internal claims to Newstrike's existing land position. Newstrike's entire land position in the Guerrero gold belt now covers just over 88,952 contiguous hectares.

"Newstrike is pleased and excited by the acquisition of the Ana Paula project, an advanced exploration project that we look forward to developing through aggressive exploration and drilling," said president and CEO Richard Whittall.

Newstrike Capital Inc. is a gold-silver focused explorer, targeting known and historic mining districts in Mexico.

http://www.canadianbusiness.com/mark...ntent=b3358051

[LeftCoaster]

Caterpillar dealer Finning optimistic about coming quarters as economy picks up
By David Friend, The Canadian Press

Finning International Inc. (TSX:FTT) executives are confident that the world's biggest dealer of Caterpillar heavy equipment is heading into calmer waters as the economy shows signs of life and some of its customers begin to ramp up projects.

"We do see things trending more positively," Finning Canada president Dave Parker said of the company's Canadian operations.

"And we may see some improvement in new equipment deliveries in the second quarter."

Parker told analysts on a conference call Friday that the company's latest quarterly results might have looked weak, but that there was optimism to be found in the details.

On Thursday, Finning reported profits dropped 55 per cent to $20 million or 12 cents a share from $45 million or 26 cents a share a year earlier.

Revenue fell 25 per cent to $1 billion from $1.36 billion, mainly because of a drop in sales of new equipment around the world.

However Parker remained upbeat, saying that the results were an improvement when compared with the fourth quarter of 2009.

Consolidated order backlogs for the quarter were up 60 per cent from the fourth quarter to $900 million, pushed higher by mining companies ramping up equipment orders.

National Bank analyst David Newman said the increase in orders signals that commodity markets are coming back and the economy is recovering, something he expects will continue to benefit Finning.

"Clearly, their backlog is rising from the lows of last year, and the order activity and amount of bidding that's going on is increasing," Newman said in an interview.

"I think the prospects for a strong second half and 2011 look fairly good at this juncture."

Executives also gave a vote of confidence to the future of the company by raising its quarterly dividend by a penny to 12 cents a share despite the lower net profits.

Finning said the move reflects strengthening business conditions, significant cash on the company's books and a strong balance sheet.

"Our outlook for the balance of 2010 is largely unchanged," said Mike Waites, president and chief executive of Finning International.

"We forecast total revenues for continuing operations for 2010 to be slightly below 2009 levels, primarily due to lower new equipment sales."

"Overall, the recovery continues to gain momentum, led by mining, which is evident by increased quoting activity and order intake in all our operations," he added.

Waites said orders are on the upswing, particularly in South America where consolidated order intake was the highest since the third quarter of 2008.

Last week, Finning announced the sale of its troubled British business, the Hewden division, for $171 million.

In Friday trading on the TSX, Finning shares fell 54 cents to $18.65, a drop of nearly three per cent. The company has a 52-week high of $20 and low of $13.25.

Finning has 10,700 employees after the sale of its British division. The Vancouver-based company sells, leases, finances, rents and services Caterpillar equipment in B.C., Alberta, the Yukon, the Northwest Territories and Nunavut.

The company also operates in Argentina, Bolivia, Chile, Uruguay, and the United Kingdom.

http://www.canadianbusiness.com/mark...ntent=b3357667

[LeftCoaster]

Ivanhoe Mines Q1 triples on one-time charge and higher exploration spending
By The Canadian Press

VANCOUVER - Vancouver-based Ivanhoe Mines (TSX:IVN) reported its first-quarter loss more than tripled to $193.9 million compared with a year ago as the company more than doubled exploration spending and recorded a big one-time charge.

That loss amounted to 45 cents per diluted share for the quarter, compared with a loss of $56 million, or 15 cents per share in the year-earlier period.

Revenue for the period ended March 31 was $13.9 million, up from $3.5 million.

The company said it spent $71.4 million on exploration, up from $34.1 million a year ago. Ivanhoe also took a $154.3-million charge related to the conversion of a convertible credit facility.

The costs were slightly offset higher coal sales of $13.9 million, $4.6 million in interest income, $6.6 million in income from discontinued operations and $1.7 million in foreign exchange gains.

Earlier this week, Ivanhoe announced it anticipates its Oyu Tolgoi mine in Mongolia will have estimated average annual production of 1.2 billion pounds of copper and 650,000 ounces of gold for the first 10 years.

Shares in the company, which reported its results after markets closed, were unchanged in Friday trading at $15.70 apiece.

http://www.canadianbusiness.com/mark...ntent=b3362697

[LeftCoaster]

Keg Royalties Income Fund reports Q1 profit down from year ago, sales fall
By The Canadian Press

VANCOUVER - The Keg Royalties Income Fund (TSX:KEG.UN) saw its first-quarter profit shrink compared with a year ago as sales fell.

The steak house income trust said Friday it earned $3.3 million or 34 cents per unit for the quarter ended March 31 compared with a profit of $3.5 million or 36 cents per unit.

Sales by restaurants included in the royalty pool totalled $117 million, down from $120.9 million, while same store sales fell 3.2 per cent in Canada and by 14.4 per cent in the United States.

However, the fund said consumer sentiment in North America as improving.

"We expect that positive trend, combined with increased spending intentions, to translate into improved restaurant sales," David Aisenstat, president and CEO of Keg Restaurants Ltd., said in a statement.

"Given our leadership position and brand awareness in Canada, we expect those positive signs to begin to generate greater same store sales growth."

The fund earns a four per cent royalty on sales at Keg restaurants in Canada and the United States.

Units in the fund, which reported its results after the close of markets, were up 15 cents at $10.95 on the Toronto Stock Exchange on Friday.

http://www.canadianbusiness.com/mark...ntent=b3363496

[Waders]

BC mining industry does seem to be in good shape.

Company reopens dormant B.C. mine
By: ctvbc.ca
Date: Sunday May. 16, 2010 6:34 PM PT

After a decade of inactivity at the Afton open pit mine near Kamloops, B.C., a new company has invested about $200 million to get at the ore deep underground.

"We've identified a deeper ore body now and defined it that the economics are there to mine it profitably," said Ron Allum of New Gold Mining.

The B.C. mining industry has continued to flourish amid the struggling Canadian economy, making $2.3 billion in revenue in 2009. According to a new report it was the second best year in the province's history.

"In fact, in the way of employment we have had the best year. Even though the industry has had a little less revenues and a little less profit than last year we've seen a growth of employment by more than 100 people to almost 7,700 people," said Len Boggio of Pricewaterhouse Coopers.

New Gold Mining has spent close to $16 million this quarter to drill tunnels another 742 metres into the earth.

"New Afton's got excellent copper grades," said New Gold engineer Kurt Keskimaki. "It's an interesting project bringing a new mine into production."

Mining exploration was almost double last year compared to the year previous in B.C. and several new mines are expected to start up.

"The products we produce are those elements which are needed for every economy as it grows. So I would expect that we'd see strength in our mining community for years to come," Boggio said.

The Afton mine is expected to employ 250 by the time it's producing ore. It's part of a trend in an industry that's weathering the ups and downs in the world economy and outperforming expectations.

With a report from CTV British Columbia's Kent Molgat

Source: http://www.ctvbc.ctv.ca/servlet/an/l...ritishColumbia

[Locked In]

Good forestry news...

B.C.’s forest industry forecast to lead Canadian export rebound

‘A great news story behind forestry because finally … the U.S. housing market is starting to come back,’ says EDC economist

By Fiona Anderson, Vancouver Sun May 19, 2010 12:00 PM



VANCOUVER — British Columbia's forest industry will help lift exports in the province, and the country, as Canadian exports rebound from the worst year on record, according to a forecast released Wednesday by Export Development Canada (EDC).

Forest exports from B.C. — measured by dollar value of exports — are expected to grow 20 per cent in 2010 and 23 per cent in 2011, after falling almost 25 per cent in 2009.

“It's a great news story behind forestry because finally, finally since early 2006 the U.S. housing market is starting to come back,” EDC's chief economist Peter Hall said in an interview.

While the U.S. housing sector is “still stuck in the mud right now,” EDC expects that by the second half of the year balance will be restored and housing starts will grow from about 600,000 units to one million next year.

And that's not even the sustainable rate of growth, the rate that matches the number of new households being generated each year, Hall said.

“So the risk is actually on the upside. There could be more growth there,” he said.

“That's just the kind of news the forestry sector — the sawmills in the province, the engineered wood in the province — want to hear,” Hall added. “That's the news we've been waiting for for over three years.”

B.C.'s energy sector is also expected to rebound, with exports growing 20 per cent in 2010 and 17 per cent in 2011 after falling more than 30 per cent

The EDC expects total exports in the province to grow by 14 per cent this year, and 13 per cent in 2011.

Across Canada, exports will also rebound, rising 11 per cent this year and seven per cent next year. Leading the way will be motor vehicles and parts, where growth is expected to be 27 per cent this year, and forestry, energy and fertilizers, with expected growth of 19 per cent each.

[email protected]
© Copyright (c) The Vancouver Sun

Source: Vancouver Sun

[officedweller]

From the Now - but do they have an outlet store?:

Cycling apparel company sets up shop

By Janaya Fuller-Evans, Burnaby Now
May 19, 2010

Dorel Industries Inc. - producer of Sugoi, Cannondale, Mongoose, GT, Iron horse, and Schwinn cycling clothing - has opened a new factory in Burnaby.

"We acquired the building on Jan. 1," said chief operating officer, James Bottoms, during a tour, "and we were up and going by April 12."

Workers started sewing bike shorts that very day, he added.

Local politicians, Burnaby Board of Trade staff and industry representatives were all on hand for the opening, which took place on Wednesday, May 12.

Harry Bloy, MLA for Burnaby-Lougheed, spoke at the event about the importance of sports to Burnaby, focusing on the recent Olympic Games.

Burnaby Coun. Nick Volkow also spoke, mentioning that Burnaby Heights will be hosting the Italian-style bike race, the Giro di Burnaby, again in 2011. Race organizers and athletes were sure to be "knocking on your door," he joked.

The move to Burnaby occurred after Dorel purchased the Sugoi company, which was based in a former bowling alley in Vancouver for 15 years. Sugoi's offices were moved to the new Burnaby location, a 70,000-square-foot complex with more than 225 employees, where Dorel's Canadian warehouse is now located.

The company's goal is to triple its custom apparel output within the next five years, and has made a $3 million investment to upgrade the new space.

Currently the apparel division has about a four-week turnaround on orders but hopes to cut that down to one week, according to Bottoms.

The marketing division has a thinking area with couches, magazines and chocolate on hand, similar to areas set up at successful technology companies such as Google, Bottoms said.

The company offers unique incentives to its employees, including company bikes to ride to and from work to nearby Production Way SkyTrain station, where the company has rented 12 bike lockers, or around Burnaby Lake. There are also on-site showers, a fitness room and a band space for the company band.

© Copyright (c) Lower Mainland Publishing

http://www.burnabynow.com/Cycling+ap...346/story.html

[LeftCoaster]

Too much good news guys, here's some bad news to even things out a bit.

Mercator Minerals reports wider first quarter loss, despite higher revenues
By The Canadian Press

VANCOUVER - Mercator Minerals Ltd. reported Monday a widened loss in the first quarter of the year, despite an over 300 per cent rise in revenues over the year earlier period.

The loss amounted to $11.5 million or six cents per share, compared to a $10.65 million or 11 cents per share for the period in 2009.

Vancouver-based Mercator (TSX:ML) said the net loss included $3.56 million of interest payments and $5.36 million in non-cash items during the period. The miner said it significantly increased the amount of copper, molybdenum and silver shipments compared to the year-ago period.

Revenue for the period ended March 31 was $23.88 million, rising from $6.34 million in the year-earlier period.

However, mill recoveries in the first quarter were affected by circuit testing and tonnage testing, but have seen significant improvements since.

Mercator Minerals Ltd. owns and operates the Mineral Park Mine in Arizona and is developing the El Pilar copper project in Mexico.

Shares in the company fell 16 cents or eight per cent to $1.80 apiece Monday morning on the Toronto Stock Exchange.

http://www.canadianbusiness.com/mark...ntent=b3381348

[LeftCoaster]

Neovasc Q1 loss drops to $471,129 from $1.7M; revenue nearly triples to $1.1M
By The Canadian Press

VANCOUVER - A nearly threefold increase in revenue and a big reduction in expenses helped Neovasc Inc. sharply pare first-quarter losses, the medical device company said Monday.

Neovasc (TSXV:NVC) said its loss for the period ended March 31 narrowed nearly 75 per cent to $471,129 or two cents a share from a year-earlier loss of $1.7 million or 10 cents a share.

Revenue soared to $1.1 million from $355,484, buoyed by higher sales from its tissue products and services business. Vancouver-based Neovasc also reduced expenses by more than $1-million in the quarter.

The company, which saw sales at its consulting services business rise nearly fivefold, said it will expand that segment "where possible."

Looking ahead, the company said the fifth consecutive quarter of sales increase should continue the rest of the fiscal year. "We expect to continue to see significant year-over-year revenue growth for 2010," chief executive Alexis Marko said in a release.

Neovasc Inc. develops, manufactures and markets medical devices for the vascular and surgical industry.

Shares of the company last traded Thursday at 30 cents on the TSX Venture market.

http://www.canadianbusiness.com/mark...ntent=b3382371

[LeftCoaster]

Silver Wheaton signs deal with Ventana Gold, gets right of refusal for silver
By The Canadian Press

VANCOUVER - Silver Wheaton Corp. (TSX:SLW) said Monday it has signed a deal to acquire a stake in Ventana Gold Corp. (TSX:VEN) and a right of first refusal for any silver production from the company's Colombian properties.

Under the agreement, Silver Wheaton has agreed to buy 1.8 million units in Ventana at a price of $11.50 per unit for a total of $20.7 million.

The units include one common share and half of one common share purchase warrant. Each whole warrant has an exercise price of $15 for one year from the date of closing.

Ventana's main asset is the La Bodega project.

Shares in Silver Wheaton, which doesn't own mines but rather invests in other companies' silver production, were down 65 cents at $21.19 on the Toronto Stock Exchange, while Ventana shares were down a penny at $10.93.

http://www.canadianbusiness.com/mark...ntent=b3384085

[LeftCoaster]

Independent report criticizes Goldcorp's human rights record in Guatemala
By Kristine Owram, The Canadian Press

TORONTO - Goldcorp Inc. should halt all land acquisition, exploration activities and mine expansion projects in Guatemala until local communities are properly consulted, according to a new assessment.

The independent report, released Monday, says the Canadian gold miner and the Guatemalan government didn't do enough to get the approval of indigenous communities before the Marlin mine was constructed.

To remedy this, Goldcorp should avoid any new activities at the mine until proper consultations are held and agreements are reached with the communities to structure future land acquisitions, according to the report.

The human rights assessment was undertaken by an independent consultant at the behest of Goldcorp after "a group of socially responsible shareholders" asked the company to assess its track record in Guatemala, the company said.

Goldcorp said Monday it will issue a response and action plan once it has reviewed the report, but did not make any other comment.

Activists who have worked with the Guatemalan communities that have been affected by the Marlin mine said the report raised important questions of indigenous rights.

"This is one of the things that the communities have highlighted this whole time, that the procedures that were used to acquire land in the communities were flawed and didn't respect indigenous rights," said Kristen Genovese, a senior attorney for the Centre for International Environmental Law, which has been working with the communities near the Marlin mine for about two years.

However, Genovese and her colleague Beth Geglia criticized the report for failing to ask communities to participate in its assessment process.

"The communities have always been very clear, that they don't want the mine there anymore and have asked Goldcorp to close the mine," Genovese said. However, she acknowledged that not everyone wants the mine closed and those employed by the operation tend to support it.

The report also found the Goldcorp (TSX:G) hasn't properly addressed the health impacts of mine contamination and has actively discouraged the formation of a union at the mine.

"There is reasonable evidence that during 2006 (Goldcorp) infringed on the right to freedom of association by taking retaliatory action up to and including dismissal against employees that attempted to form a union," the report says.

The report also found that employees' safety is at risk due to an ongoing pattern of social unrest at the mine, including a person who was killed by public security forces while blockading the mine's equipment and shots being fired at buses transporting employees.

However, it also commended Goldcorp on some aspects of its human rights record in Guatemala, including the mine's contribution to local communities and government revenue streams through employment of local people.

"The ability to hire and retain local, indigenous workers with lower levels of literacy or formal skills is made possible in large part through the focus (Goldcorp) has given to on-the-job training rather than formal qualifications," the report says.

The report concludes with a series of recommendations.

Among the suggestions are a recommendation that Goldcorp needs to address how it will monitor the environmental impacts of the mine's eventual closure; repair houses that have been cracked by blasting and heavy traffic; and support collective bargaining and establish a grievance mechanism for workers.

The International Labour Organization called in March for the suspension of mining activity at Marlin due to alleged human rights violations.

Representatives from communities that have been affected by Goldcorp's mines in Central America plan to attend the company's annual shareholders' meeting in Toronto on Wednesday to push it to end its operations in Guatemala and Honduras.

Analyst John Ing said this type of human rights assessment is commonplace in the mining industry.

"Mining companies are well used to having to engage everything from environmental to social issues. It's all part and parcel of mining," said Ing, president of Toronto-based investment dealer Maison Placements.

http://www.canadianbusiness.com/mark...ntent=b3382636

[LeftCoaster]

[Quote]Canasia to acquire 31 rare earth claims in Quebec
By The Canadian Press

VANCOUVER - Canasia Industries Corp. (TSXV:CAJ) has an option to acquire 31 rare-earth mineral claims covering 1,456 hectares in Quebec, the company announced Tuesday.

Under the agreement with an unidentified arms-length vendor, Canasia would issue five million shares — currently worth nine cents each, or just under $500,000 — and pay $17,500 upon approval by the TSX Venture Exchange.

Canasia would also commit to $850,000 of work over four years.[Quote]http://www.canadianbusiness.com/mark...ntent=b3389729

[LeftCoaster]

Oceanside gets option to buy 60 per cent of B.C.-based copper-gold property
By The Canadian Press

VANCOUVER - Oceanside Capital Corp. (TSXV:OCC.P) has a $2.3-million deal that gives it the right to acquire a 60 per cent interest in the Indata gold and copper property in British Columbia from Eastfield Resources Ltd. (TSXV:EFT).

Oceanside announced Tuesday that under the agreement dated May 14 it would receive the stake in return for a combination of cash, shares and $2 million of spending on the property before Dec. 31, 2013.

Eastfield would receive $160,000 cash and $120,000 of Oceanside stock

The Indata property is north of Fort St. James, B.C. and consists of 15 claims covering 3,060 hectares. Eastfield has owned the property since 1986.

The agreement still requires TSX Venture Exchange approval and is subject to other approvals.

http://www.canadianbusiness.com/mark...ntent=b3390322

[LeftCoaster]

best business name ever...

Who wants to bet the founder of this company is a Simpsons fan?

Scorpio Mining Q1 sees profit surge to $18.6M on big one-time gain
By The Canadian Press

VANCOUVER - Scorpio Mining Corp. (TSX:SPM) cited a big one-time gain on the dilution and deconsolidation of Scorpio Gold Corp. for a massive increase in net earnings in the first quarter.

The Vancouver-based miner said it earned $18.6 million or 17 cents a share in the quarter compared with a loss of $400,000 or less than a penny a share in the first quarter of 2009. However, that included a gain of $19.8 million on Scorpio Gold.

Revenue was $6 million, including $1.3 million from mining operations, up from $2.3 million, including $900,000 from mining operations, in the 2009 quarter.

Scorpio shares were up three cents at 83 cents in midday trading Tuesday on the Toronto Stock Exchange.

http://www.canadianbusiness.com/mark...ntent=b3392833

[LeftCoaster]

More bad news for BC's biggest company...

Higher levels of heavy metals found in people living near Goldcorp mine
By The Canadian Press

TORONTO - A study of a small sample of people living near Goldcorp's Marlin mine in Guatemala raises questions about how the operation is affecting locals' health.

The study by two University of Michigan professors was released Tuesday, a day before a planned protest at the company's annual meeting and a day after a group called for Goldcorp to consult with communities near the mine.

The study examined 23 residents. It found that those living near the mine had higher levels of mercury, copper, arsenic and zinc in their urine — and lead in their blood — than those living seven kilometres away from the mine.

However, none of the samples showed metal levels exceeding what is considered acceptable by the U.S. Centers for Disease Control and Prevention.

The study also found "significant differences" in the quality of water samples taken just downstream from the mine, compared to upstream and a site farther downstream.

"Little is known about the cumulative and combined health impacts on humans — especially children — following chronic exposure to complex, real-world mixtures," Howard Hu, a medical doctor who co-authored the report.

"That’s why it is imperative that large-scale, long-term epidemiological and ecological follow-up studies be conducted," added his co-author Niladri Basu, also with the university's Department of Environmental Health Sciences.

Representatives from indigenous communities plan to attend Goldcorp's (TSX:G) annual shareholders' meeting in Toronto on Wednesday to push it to end its operations in Guatemala and Honduras.

The Marlin mine was the subject of an independent human rights assessment, released Monday, that said the company should halt all land acquisition, exploration activities and mine expansion projects in Guatemala until local communities are properly consulted.

Goldcorp said Monday it will issue a response and action plan once it has reviewed the report, but did not comment further.

Goldcorp operates the San Martin mine in Honduras, as well as several other mines in Mexico, Argentina, the U.S. and Canada.

Shares in Goldcorp (TSX:G) lost 41 cents to $45.84 in early afternoon trading Tuesday on the Toronto Stock Exchange.

http://www.canadianbusiness.com/mark...ntent=b3392654

[LeftCoaster]

Canadian forestry companies and environmental groups reach groundbreaking deal on logging
By Charmaine Noronha, The Associated Press

TORONTO - Canada's major pulp and paper companies said Tuesday they will restrict logging in the northern boreal forest as part of a groundbreaking deal with environmental groups.

The Forest Products Association of Canada, representing the most of the country's largest loggers, said its members have agreed to a three-year logging moratorium covering 75 million acres (30 million hectares) of boreal forest — an area roughly the size of Montana.

"We have identified a more intelligent, productive way to manage economic and environmental challenges in the boreal," said Avrim Lazar, the association's president and CEO.

Canada's boreal forest stretches like a giant green belt southeast from the Yukon to Newfoundland and represents about 75 per cent the country's woodlands.

The forest is home to two-thirds of the country's estimated 140,000 species of plants, animals and micro-organisms. The area is also a prime caribou habitat, and its preservation has been a major objective of environmentalists.

The 21 members of the forestry organization, agreed to suspend logging in the region for three years so a plan can be developed to preserve the region's 36,000 woodland caribou.

In exchange, environmental organizations will suspend international "Do Not Buy" anti-logging campaigns against Canadian lumber.

"This is our best chance to save woodland caribou, permanently protect vast areas of the boreal forest and put in place sustainable forestry practices," said Richard Brooks, Greenpeace forest campaign co-ordinator and a spokesman for the nine participating environmental groups.

http://www.canadianbusiness.com/mark...ntent=b3395256

[LeftCoaster]

Drilling supports higher gold estimate for Fronteer's Long Canyon project
By The Canadian Press

VANCOUVER - Fronteer Gold (TSX:FRG) has increased its resource estimate for the Long Canyon gold deposit in Nevada, saying the results from its 2009 drilling program have clearly demonstrated the project's development potential.

The company said Wednesday the deposit has are 657,000 ounces of gold on a measured and indicated basis — 81 per cent above the previous estimate, using a 0.30 grams per tonne cutoff in both cases.

On a less stringent cutoff of 0.20 grams per tonne, which was used for a preliminary economic assessment of the project issued in December, there are 672,000 ounces of gold on a measured and indicated basis.

Fronteer and its joint venture partner plan a $19.8-million development and exploration program this year. Currently, five rigs are operating.

The Vancouver-based company is operator of Long Canyon and its majority owner, with 51 per cent.

http://www.canadianbusiness.com/mark...ntent=b3401581

[LeftCoaster]

Lionsgate plans 5 Asian films in 2 years as part of Singapore deal
By Min Lee, The Associated Press

HONG KONG - Lionsgate Entertainment Corp. plans to make at least five Asian-language films budgeted at $3 to $5 million each in the next two years in partnership with Singapore's Media Development Authority, the head of the Canadian-American independent studio said Wednesday.

The movies will help support the two TV channels recently launched in Asia by Lionsgate unit Tiger Gate Entertainment — the horror channel Thrill and the action-themed Kix, Lionsgate chief executive Jon Feltheimer told reporters in Hong Kong.

"If you look at what Asia exports to the rest of the world, it's action content and it's horror film content," Tiger Gate Entertainment co-founder Paul Presburger said.

The other co-founder, William Pfeiffer, said the company is currently evaluating more than a dozen possible movie projects from Japan, South Korea, China and Singapore.

Lionsgate's recent English-language releases include "Precious," ''Rambo," ''The Forbidden Kingdom" and the hit TV series "Mad Men."

Tiger Gate Entertainment is partnership between Lionsgate and media mogul Haim Saban's Saban Capital Group. The Egyptian-born billionaire is best known for licensing the Power Rangers from Japan in the 1990s and setting up the Fox Family Channel with Rupert Murdoch's News Corp.

Feltheimer wouldn't elaborate on Lionsgate's announcement on Monday that it would explore the possibility of negotiating with billionaire Carl Icahn, who has been attempting a hostile takeover of the company. Icahn owns nearly 19 per cent of Lionsgate shares.

But he reiterated Monday's statement that the company considers Icahn's $7-per-share offer is "grossly inadequate."

"We're not letting it slow us down in any of our businesses. We're keeping our eye on the ball. We're continuing to build value and we'll see what happens," Feltheimer said.

http://www.canadianbusiness.com/mark...ntent=b3403474

[LeftCoaster]

I take back what I said before.... this is the best company name ever!

American Bonanza to buy mill for Arizona mine for US$650K in cash and stock
By The Canadian Press

VANCOUVER - American Bonanza Gold Corp. (TSX:BZA) announced Wednesday it has an agreement to purchase a milling and flotation circuit for its 100 per cent owned Copperstone mine in Arizona in a cash and stock deal.

"The purchase of the mill at US$650,000 represents a significant cost savings and is expected to reduce the capital cost of the Copperstone project by over $500,000," the company said in a news release.

Bonanza paid an initial deposit of US$75,000 to purchase the 700 ton per day milling and flotation/gravity plant, including a pre-engineered mill building. It must pay an additional US$325,000 and issue 1.25 million common shares before July 25 in order to complete the purchase.

The identity of the vendor was not disclosed in Bonanza's release.

"The mill has operated for only two years and is in very good condition, and comes with a full set of engineering drawings, which will help accelerate construction timelines and reduce costs," Bonanza said.

The company is now working out the logistics for dismantling, transporting and re-erecting the mill at the Copperstone mine from its current location in Calumet, Mich..

The mill does not include a crusher and crusher building, which Bonanza will purchase separately.

American Bonanza shares were down a penny at 17 cents at midday Wednesday on the Toronto Stock Exchange.

http://www.canadianbusiness.com/mark...ntent=b3403650