mon A Pa a ene aE CT PN ETT A 7 pare eee ror tienes, bsienisinrivae. ses — Agent ri I ee eo SY nt Rae ee _ estimated costs’’. "cost estimate to’ ‘bring the mine 7 into to:production. was. $36. million, prospects for developing Dease Lake have taken a down- ~ turn, according to the 1988 an-. ‘nual’ report of North ‘American . Metals Corp. “In the report board chairman. Robert Hunter says the original . feasibility study.:for developing the mine “significantly under- A. “few. years ago, Sunday © . ~ shopping was a big issue. : It - finally went to referendum and was. ‘solidly -defeated:.. "there, . would be no Sunday shopping: in’. Terrace, But then the Supreme _.Court of B.C. decided the Holi- - day Shopping Act was unconsti- tutional and it appears that Sun- In 1987 the. pr but the current estimate is now. . AR operating gold: mine atthe. -, “Golden. Bear property west of. between $65 and $70 million. On - the basis of 357,768 ounces of | gold i in proven reserves on the _ property, the original estimate | pegged recovery costs . at US. $210-240 | per ounce. — With the revised capital « cost: recovery: estimate, however, costs have gone up ‘U.S.$360-400, a very marginal proposition in view of the cur- rent price of gold. - Last week gold -was set at: day shopping is here to stay. And, .on the surface at least, - there’s been. very little . opposi- ‘tion, Terrace council: sent a letter to Attorney: General. Bud Smith: - Outlining the referendum -re- sults, and a few businesses have complained, but in Terrace on - ES ness 3eat” : ee oe ‘Becoming an inn- _ Keeper - — part I by Phil Harti, | - Manager,.Terrace Federal Business In the preceding column, we looked at the advantages and disadvantages of becoming a motel or inn owner by buy- — _ ing an existing business. In this column, - we'll look: at what is involved i in ' starting . from scratch, Suppose you, the would-be owner of a - motel or inn, have decided on the general area in which you would like to locate your business. Your first step then should be to establish whether the: - market in that area can, in fact, support your business. . This requires. extensive preliminary re- - Development Bank search into every aspect of the business, from the price of land and construction to traffic flows and customer preferences. The results of this research should deter- mine what type of accommodation is wanted in the-area and how you can best provide it in terms of number.and price of rooms, “dining room facilities and other amenities. . The advantages in starting from scratch is that if your ‘research -is carefully done, if your planning is comprehensive, you are off toa good start with a business geared closely to the market and | _ whose facilities are all new. You can, moreover, design your ‘business in a way which will enable you to expand it, in phases, _-as it becomes established. _ The.disadvantage of starting from scratch is that it is more dif- _ . ficult to finance, if for.no reason than the absence of past | l ~ business performance upon which lenders can make a judgement: Another disadvantage i is that start-up costs are usually higher a . ‘than expected, in spite of careful budgeting, and opening day is” often delayed by the unforeseen, at your expense, ‘Starting from scratch means hiring. and training. your staff, - ‘which can be advantageous if you get the people you want. On « _ >the other hand; the staff you inherit:when buying an-existing _- business can often tell you more ¢ about your clientele than the ‘best of surveys. Starting from scratch also 1 means allowing sufficient time — _ and having the financing to carry you through it — to establish . ‘your inn or motel and begin to generate the repeat business you _ . .will‘always need, Many entering this business for the first time fail.to take the duration. of this period and its costs sufficiently into account, They. are just beginning to get the business, on its. - feet when they. run out of cash. Owning a motel or inn can be rewarding, as we noted earlier, ‘in ways other than just financial ones. But whether buying an ex- 7 isting business or starting from’ scratch, the prudent owner will - make sure of an adequate cash reserve to carry the business over _ difficult periods. For, unlike many other small businesses, motels and inns and * . other forms of tourist accommodation are more than usually ex- posed to seasonal or other changes in the economic environment. over which they have no control. The prudent owner will locate the biisiness where the impact of such changes — the rising cost of gasoline, for example — can be minimized. about U. $$390 Per ounce. ° : - S : : Hunter blamed | a -nuinber ‘of unforeseen. factors on the. cost overrun: building the road was twice as. expensive as the original estimates, and the cost of: tail- ings : disposal went up 121 per- - cent since: the first feasibility report. “Sulphur. dioxide» emis- sion standards-have been tight- ened, increasing - the ‘cost of © cleaning mill gases. Dae “Several studies are e underway ‘ 7 ing ‘GB. C.) Ltd. -boughit 73° per. t Hull urges stronger stance from | _city council.on Sunday. shopping — ~ on alternatives: ‘flowsheets, mod- ; Sundays it’s business as usual. ‘ In contrast, other: city coun- cils have been quite vocal. May-- or Brian, Northup of Smithers, for. example, ‘has. been: sending ‘letter: after. letter to councils . throughout the North in an ef-' ‘fort to organize a “‘lobby. of mayors’ .to travel to Victoria and: meet with Smith. ‘‘Munici- - palities should have the oppor- tunity to regulate fully all hours. and days of store operation if they so wish,’’ says Northup. But. Terrace council has _ re- ceived few or no complaints on the issue, and they have simply received each letter from Northup ‘‘for information only”, But one city alderman isn’t pleased: with their lack of interest. , “When the “receive for infor- mation”. motion was put-for-.:.. ~ ward by Ald. Bob Cooper last week, Dave Hull voted against it. . “] ‘didn’t think that was the best way to handle it ,”” he says. ified construction schedules ‘and _methods, . utilization of .used. equipment, and: the advisability of further exploration and/or . Suspension of project: construc- tion, * Hunter states. “The Golden Bear project is a 50-50 joint venture between - _ North American Metals and Chevron Minerals Ltd: The two “ companies have: invested $28 ‘million in the property to date. During.1988 Homestake Min- ' Hull doesn’t state any real post- a tion on Sunday shopping, some- : thing he calls a ‘‘multi-sided, complex issue’’, but he says he. doesn’t believe that just receiv- - ing .Northup’s letter was the | ‘right way to handle it, ‘‘It- at least deserves a reply,’’ he says, implying. that council should -at — least have a position in the issue. And he says the city should clearly state that position to the government, " He says he can appreciate the traditional aspects involved, He says he can understand the re- ligious side of the issue but ‘points out that Sunday isn’t a special day for every religion. And he also: says that it's dif- ficult to argue with the economic ‘and convenience side of the issue put forth by large corporations. Hull, that message should be more clearly stated , “Terrace I Review — Weanesday, ‘April 5, 1989 tae Solden Bear getting tarnished look . cent of North American through _ -a ‘tender offer made to: share- holders. Hunter said if the‘ com- pany goes ahead witha positive: - production decision on Golden -Bear, Homestake would have to ‘provide between $12-14 million in “financing for , the project. . discussions with banks and Homestake are in the :pre- liminary stage and there can be no assurance that the Company - (North. American): will: obtain: ‘the “required funds,” Hunter . told. the board. DAVE HULL: Referen- dum was “the bottom “fine”. This week in — local schools Thursday, April 6, 1:30 p.m. — The Melloyds a-capella vocal . ‘quartet will perform at Kit- wanga Elementary/Junior Sec- ondary. Saturday, April 8, 5:30 a.m. to § p.m. — Second term honor “yoll students from Thornhill But. tesidents sent a clear mes-_ ‘sage to council through referen- dum and that, he says, ‘‘is the © . bottom line’’, And according to- Junior Secondary will be treated to a ski trip to' Smithers. ‘. Monday, April 10 — Second term .report cards will be sent — home for Kiti K’Shan Primary students.’ . . . Reg Lightfoot | Skeena Cellulose Inc. - ; in Prince Rupert, BC. Repap . ANNOUNCEMENT Stu Taylor Jim Bowersock, President and Chief Operating Officer of Repap Enterprises Corp. Inc., " ispleased to announce the following appointments in Repap's British Columbia Division, ‘REG LIGHTFOOT becomes Senior Vice President, Operations, with operational - responsibility for Skeena Cellulose’s Prince Rupert and Terrace Divisions, as wellasGroot — ‘ Lumber in Smithers, B.C. - STU TAYLOR has been named Vice President, Pulp, and will act as the chief liaison officer on major construction projects. - ADRIAN DONDERS becomes General Manager of the Skeena Cellulose Pulp Mill . ‘Headquartered in Montreal, Repap Enterprises inc. isa fully-integrated forest products . company specializing in the. production of high quality coated paper, premium softwood kraft pulp and quality lumber. Founded in 1978, the company’s major operations how include Miramichi Pulp and Paper inc. in New Brunswick, Midtec Paper Com in 7 _ Wisconsin, US.A., and Skeena Cellulose Inc. in British Columbia. | Adrian Donders