Vol. 6 No. 6 Newfoundland and Labrador s Journal of Business and Politics September 1, 2011

Transcription

1 The Buine PoT Vol. 6 No. 6 Newfoundland and Labrador Journal of Buine and Politic September 1, 2011 Turning the corner Anaconda work out the kink at Pine Cove a revenue climb By Craig Wetcott The Buine Pot When Anaconda Mining executive cut the ribbon during the official grand opening of the company gold mine at Pine Cove on the Baie Verte peninula lat week, they may well have een it a a ymbol that the facility ha finally turned the corner. The company firt year of operation wa plagued by gremlin in the mill and a jotling for full control of the property from the original owner, New Iland Reource of St. John. In the end, a mutually agreeable plan of arrangement wa worked out between the hareholder of both companie and all that remained for the pat year wa to traighten out the milling ytem. Much of the reponibility for the latter job fell to Allan Cramm, a gregariou and laer-witted Baie Verte native with a long hitory in mining, including a tenure a the manager of Richmont Mine operation at nearby Hammerdown and Nugget Pond. I ve been the CEO ince September of lat year and there are day you wake up and go, Oh my goodne, it going to be a tough day, aid Angelo. But Allan everyday get up and he the one who puhing and looking for all the anwer. See He a pillar, page 2 Anaconda Mining preident, Dutin Angelo, centre, flanked by company official Stan Wojtazek, left, and Jordan Cramm during a conference thi pat ummer in Baie Verte. Angelo ay the company ha olved the mechanical problem in it mill and revenue are riing. Unauming but profitable Piper hake up it image By Craig Wetcott The Buine Pot Until now, one of the mot ucceful retail chain in the province ha been growing it buine by tealth. But that all changed for the 29-year old company lat month when it launched a major marketing campaign deigned to attract women in their 20, 30 and 40. With the Didn t I not ee you at Piper campaign, the brain behind the company are daring to poke a little fun at themelve a they ue humour to draw in more young women hopper, the mot coveted demographic group among retailer. The campaign wa launched with ditribution of Groucho Marxlike eyeglae and noe mak in the parking lot at Avalon Mall. Tucked under the wiper of car, the recipient were invited to ue the diguie in order to hop at Piper without being recognized. Thi wa accompanied by funny radio and televiion commercial voiced and acted by women in the targeted age group. Again, the pot hammered home the ame meage, that it cool now to hop at Piper. One of the bet pot include a bit where a woman find a friend pure. The recipient i delighted to have her pure returned until he realize the good Samaritan found it in the parking lot of Piper where it had fallen off her vehicle. So he denie ownerhip. Thi i the firt time that we ve ever gone with a major advertiing campaign that wa ort of out of the box, aid company preident and founder Jamie Alliter of St. John. We wanted to put a ene of humour into it and catch people See You have, page 4

2 new Page 2 The Buine PoT Vol. 6 No. 6 He a pillar and he perevered for a long time Continued from page 1 And it becaue of hi leaderhip and hi pereverance that we ve made it through to where we are He a pillar and he perevered for a long time. To nobody urprie, expect perhap hi own, the Canadian Intitute of Mining and Metallurgy Newfoundland Branch named Cramm Developer/Miner of the Year lat year. With Cramm uperviing the mine and mill and Angelo pearheading operation in the boardroom, the ky i looking pretty blue for Anaconda thee day. Or hould that be golden? We re turning the corner, aid Angelo. It been pretty tough going, but we turned the corner and found the olution we think and we ve hit another level: our recoverie are up and our throughout i up where we want it to be and now we re tarting to make ome money and look ahead to ee how we increae our yield, find more reource and etablih ourelve. Angelo allowed that high gold price certainly helped thing. At an average cah price of $1,498 an ounce in June and July, Anaconda generated over $2.8 million in revenue, which allowed for nearly $514,000 in EBITDA (earning before interet, taxe depreciation and amortization). The average production cot for thoe month wa $1,224. That wa with a mill recovery of jut 74 per cent, becaue of mechanical problem with a drum filter. In Augut, the price Anaconda received for it gold ranged from $1,650 to $1,850 an ounce. And recovery rate in the mill are expected to improve a new drum filter are The Pine Cove mine on the Baie Verte peninula. intalled over the next couple of week. A a company, we only have one operating mine and if the mine i not working well, then the company doen t have a diverity of aet, aid Angelo. And where we have a mall mine, we don t get the large cale, but it all relative to the capital we put into it. At a thouand tonne a day with two gram a tonne at thi gold price, the mine can make a lot of money. But there i le room for error in our ituation, o you have to keep the recovery up, you have to keep the throughput up, and you have to keep the grade up. Other than the gold price, thoe are your three main factor that baically put you in either the red or the black. With the bug being worked out and production improving, Anaconda ha directed ome of it focu to finding more gold on it property and expanding it reerve. If it ucceful, and gold price tay high, the life of the mine will be extended pat the originally etimated even or eight year of production life. Angelo admitted that Pine Cove ha taught Anaconda a few leon about the mining bui- Allan Cramm ne. For one thing, it take a lot of money to reach production. Mining i capital intenive and there i a lot of variability and a lot of rik, he noted. So the more capital you have, the more ability you have to weather any torm. Looking back on it, we probably could have done ome thing differently, but we are where we are and we ll jut try to move forward on the bai of what we have. Liten to thee world renowned peaker: Unlock the knowledge you need a companie and world-renowned expert preent the big picture on the global economy and the outlook for bae and preciou metal, iron ore and indutrial mineral. Thoma G. Donlan Barron' National Buine and Financial Weekly Peter Grandich The Grandich Letter John Kaier Kaier Reearch Online Robin B. Kozar RBC Capital Market Geordie Mark Haywood Securitie Inc. Keith Schaefer Oil & Ga Invetment Bulletin Jay Taylor Jay Taylor Mining & Stock Newletter Hear From Thee Great Companie Alderon Reource Corp Altiu Mineral Corp Aurion Reource Ltd Barkerville Gold Mine Ltd Benton Reource Corp Buchan Mineral Corp Callinan Mine Ltd Canada Fluorpar Inc Carlile Goldfield Ltd Catillian Reource Corp Champion Mineral Inc Cornertone Capital Reource Inc Crohair Exploration & Mining Corp Dalradian Reource Inc Golden Dory Reource Corp Gold Standard Venture Corp PLATINUM P L AT I N U M GOLD GO LD Marathon Gold Corp Meina Mineral Inc Metal Creek Reource Corp Millrock Reource Inc Mountain Lake Reource Inc New Millennium Iron Corp Paragon Mineral Corp Pretium Reource Inc Quet Rare Mineral Ltd Rambler Metal & Mining PLC Rare Earth Metal Inc Rye Patch Gold Corp Silver Spruce Reource Inc Temex Reource Corp Vulcan Mineral Inc (709) Our Our Sponor Sponor SILVER S I LV E R BRONZE B RONZE

3 The Buine Pot Vol. 6 No. 6 new Page 3 Speaking up Independent pharmacit ay their mall buinee are being threatened but government won t liten Hebron Public Review Commiion Pat O'Keefe can't figure it out. For three year the provincial government ha refued to meet with repreentative of independent pharmacy owner throughout Newfoundland and Labrador who are concerned about the viability of their buinee in the face of a looming government plan to pocket their rebate from drug companie. According to a report by economit Wade Locke, the change could teal more than 10 per cent of the pharmacie' revenue in one troke of the pen, forcing many of them into the red and unable to continue in buine. The thing that trouble O'Keefe, the owner and operator of Precription Plu Pharmacy Solution in the Gould, i Health Miniter Jerome Kennedy' refual to meet with the indutry. Peronally, that' the bigget problem (for me): They won't it down and talk, aid O'Keefe, who ha been providing pharmacy ervice in the Gould for decade. What are they afraid of, to have a dicuion about the problem a we ee them? They don't have to act on them. We're not aking for increae in (dipening) fee or anything like that, we're jut aying, 'Sit down and liten to what we have to offer.' According to Locke' reearch, the $7.15 dipening fee that independent pharmacy owner receive from the provincial government to provide drug to citizen covered by the Newfoundland and Labrador Precription Drug Plan motly enior citizen, low income worker and people on ocial aitance don't come cloe to matching the cot of the ervice actually provided. Take the cae of O'- Keefe. He built hi buine on making free Suite 903, The Forti Building, 139 Water Street, St. John, NL Canada A1C 1B2 Telephone (709) Fax (709) Augut 30, 2011 Iuance of Sixty Day Notice for the Hebron Public Review Seion The Hebron Public Review Commiion would like to inform the public that Public Review Seion concerning the Hebron Development Application are cheduled for November 2011, at leat ixty (60) day after Augut 31, Exact date and location for thee Public Review Seion will be announced no later than thirty (30) day before the cheduled tart of the eion. The commencement of the Hebron Public Review wa formally ignalled on Augut 25, 2011 with the referral of the Hebron Development Application to the Commiioner by the C-NLOPB. The Commiioner, Miller Ayre, welcome public involvement at every tage of the review proce. For the Commiion Term of Reference and Operational Procedure, and information on the proce of making a ubmiion, pleae viit the Commiion webite Pharmacit Pat O'Keefe in hi dipenary at Pharmacy Solution in the Gould. O'Keefe i one of 62 mall buine owner who have been trying to get a meeting with the provincial government for the pat three year to dicu looming change to the pricing of generic drug. deliverie of hi precription to the door of hi cutomer, a valuable ervice for people who don't own a car or who have a hard time getting around. Then there' the compliance package, epecially for enior citizen, that O'Keefe prepare, taking the time to apportion out a week or a month' worth of drug in individually marked container to enure the patient take the right amount of medication at the right time every day. It' labour intenive work that the dipening fee doen't cover. The dipening fee itelf, meanwhile, han't changed for more than 30 year, except the time that Liberal finance miniter Lloyd Matthew cut it in half to $3.50. That happened when Walmart firt came to Newfoundland promiing cut rate dipening fee. The government figured if Walmart could dipene drug for a fraction of the cot other pharmacie hould be able to get by on lower fee too. But when it became obviou that cutting the dipening fee wa hurting precription drug uer and placing pharmacy owner in untenable poition financially, the government revered itelf. That ent the fee back to $7.15 per precription. According to Locke, by the time you add up all the ancillary ervice provided by a pharmacit, a well a employee, overhead and other buine expene, the actual cot to the independent pharmacy owner of filling a precription i about $ That wa three year ago. The cot ha likely increaed further ince then. The reaon indpendent pharmacy owner, a well a the operator of the bigger chain, have been able to urvive i that many manufacturer of generic drug pay rebate to pharmacy owner for carrying their product. According to Locke, it' the value of thoe rebate that have enabled mot independent pharmacy owner to tay in buine. Even then, it' a near run thing for many of them. Locke found the average net profitability of pharmacie in thi province i jut 3.5 per cent of their ale. But with the provincial government now planning to ban thoe rebate to the pharmacy owner and make the drug upplier lower the cot of their generic product accordingly, many indpendent pharmacy owner around the province are facing potential ruin. Should there be no replacement of thi (lot) revenue through a change in the dipening fee, one hould expect that ome pharmacie will ceae operation, epecially in rural part of the province and are unlikely to be replaced by other pharmacie, Locke warned in hi report. A well, fee to patient and mark-up will increae in the majority of pharmacie to offet the revenue lo. Finally, there will be ome reduction in hour and employee a pharmacie attempt to find efficiencie to offet the revenue lo. O'Keefe and other independent pharmacy own- See We re a, page 10 Canada Pot Publication Mail Regitration Agreement #

4 Page 4 new The Buine PoT Vol. 6 No. 6 You have to hock people out of their old habit Continued from page 1 attention. Award winning Target Marketing of St. John met the requirement. Alliter and hi team had talked to a few different agencie. But we liked their approach, Alliter aid. It wa funny, it wa unconventional and that what we thought we needed. With the campaign barely a week old it too early to ay whether ale are up. But all the attention being paid to Piper certainly i. It not going to hurt u, Alliter aid. How much it will pay off I ll be able to tell you in about a year time. Alliter appreciate what at take. Baically we have a very loyal group of hopper, aid Alliter. And what we re after i their daughter. We ve been around for almot 30 year now and we have all the mother and aunt all acro the iland and we re after a younger, hipper hopper, who we think i our future. Alliter aid ome young women have been kittih about hopping at Piper, in part becaue their mom hop there. We re trying to tell them it cool and that they re mart if they hop at Piper. It cool to ave money and we have top quality tuff, aid Alliter. It jut a way of waking them up. The top quality tuff include London Fog jacket and Keurig café brewer alongide aile of bottom-priced tea towel, tinned food and vegetable. Alliter i hoping that once the young women get hooked on hopping at Piper, the company will keep them a cutomer for a long time. The goal of the advertiing campaign i to entice more young women through the door. We ve never been a flahy outfit. We ve alway put our money into (lowering) our price and not into flahy advertiing and tuff like that, but ometime you have to wake people up, aid Alliter. Thi i a way of waking them up. It an upide down campaign. While the marketing trategy may eem like a udden hift for a conervatively run company, Piper i not near a taid a ome might think. It management practice are quite progreive, in fact they are ahead of the pack when it come to mot companie, omething that can probably be attributed to Alliter, who ha a long background in retail ale management. The firt Piper opened on Water Street in 1982, right next to Woolworth. It wa a partnerhip of Alliter, who had worked with Montrealbaed Steinberg grocery tore and Hudon Bay Company, and Derm Bennett. The latter retired about 10 year ago. Alliter i now the ole owner. Hi connection to Newfoundland came through an uncle who kept a dairy farm at Stephenville Croing. Alliter pent a couple of ummer a a teenager working there. I alway loved Newfoundland, he aid. Since tarting Piper, Alliter ha built a management team compoed of people who have tremendou loyalty to the company, uch a general manager Glen Skinner, who ha been with Piper 25 year. We have tremendou employee retention, aid Alliter. And that a key to our ucce. Piper provide it taff Covering the mover and haker of Newfoundland and Labrador buine community. The Buine PoT with a penion plan and profit-haring. The company even employ a pychologit to make ure everyone i creative and happy. It help our upervior to upervie correctly, and it help our employee deal with our management taff when they have problem, aid Alliter. It ha been a phenomenal help to our company. It really helped our taff to be repectful, reponible and productive. For all that, the Piper Reaching more buine operator than any other buine publication in the province Call Shopper hunt for bargain at the Piper tore in Mount Pearl earlier thi week. tore have generally been viewed a low end alternative to the Wal- Mart and Winner of the world, a couple of grade above the dollar tore. But Alliter aid the company ha been evolving for everal year by prucing up mot of it location. The opening of a bright, colourful new fifth location on Elizabeth Avenue in St. John erved a a catalyt to take the change further. To create new hopping pattern you have to ort of hock people out of their old habit, aid Alliter. I think the new tore wa an opportunity to wake people up who haven t been normal Piper hopper. Our competition i pretty ophiticated - Winner and Sear and WalMart and we re only a mall player. It war all the time. Every buine i war. Piper main claim to fame - it low price - won t change, according to Alliter. We work very cloely with our local up- plier and that really our ecret The key to our ucce really i that we re able to buy merchandie very, very well. And we re able to keep our cot down and provide low price. Still, wa Alliter normally publicity avere management team nervou about uddenly calling attention to itelf? Alliter laugh. It a fine line, he aid. I gue we feel we re trong enough to handle any competition now.

5 The Buine Pot Vol. 6 No. 6 ucce Lawyer Che Crobie flying over the Eagle River, in Labrador. Making ucce a habit By Craig Wetcott The Buine Pot Che Crobie i regarded by hi peer a one of the mot diciplined and aggreive lawyer in the province. A a peronal injury lawyer, he ha virtually pioneered the concept of the cla action lawuit in Newfoundland, winning award for, among other group, women whoe breat cancer were midiagnoed becaue of faulty teting in the pathology lab at Eatern Health. More recently, he ha been puhing for road afety improvement a the repreentative of familie who have lot loved one in car accident involving mooe. Depite hi buy law practice, Crobie make time to read, epecially buine and peronal improvement book. For him, a for thouand of other, one of the claic of the genre i Steven R. Covey The 7 Habit of Highly Effective People: Retoring the Character Ethic. Crobie read it about a decade ago, but it leon have tayed with him. You could argue that it one of the great book of the lat hundred year, aid Crobie. Before he wrote the book, Covey et out to review American ucce and elf-improvement literature. Thi book repreent hi attempt to analyze the bet of that and bring it together in a ynthei and I think he done an excellent job, aid Crobie. It good reading for anybody. If you ve got a book club and you re ued to reading novel, it probably worth the group effort to top reading fiction for a change and take up Covey book - you never know what it can lead to. Which of Covey 7 habit are mot relevant to Crobie? It pretty important for anybody to tart with the end in mind, aid Crobie. It ound a bit cryptic, but I gue what he getting at i that in everything you do, you need to have clarity about what your goal are. In the long term, we don t know if we ll be alive tomorrow, o the challenge for all of u i to get what we can out of life that i ultimately atifying. You can call that variou thing - peace of mind might be one - and on a more mundane level you probably have certain material thing that you want to achieve in life a well, or other goal. Maybe if you re 20 year old, you want to gain entrance to medical chool. There are habit you need to implement and thing you need to et out to do in order to achieve that longer term goal. So tarting with the end in mind i important. What become clearer to him over time, aid Crobie, i the importance of writing down your goal and periodically reviewing them. He keep three year goal, one year goal and quarterly goal. If you don t write down what your goal are then you ll be following an agenda and you ll be achieving ome goal, but they may not be your goal, they re probably going to be omebody ele, Crobie noted. Unlike much of the other ucce literature on the market, Covey focue on character and ue baic value uch a honety, repect for other and integrity a the foundation tone for the See Uing, page 10 The NL Employer' Council (NLEC) Founding Chair' Scholarhip, etablihed by Vince Wither, conit of a $1500 cah prize awarded to a tudent puruing a coure of tudy that i related to labour and employment. Eligibility: Founding Chair' Scholarhip 2011 Thi cholarhip i open to any full-time tudent regitered at an accredited pot-econdary intitution in Newfoundland & Labrador whoe coure of tudy i related to employment. Thi include, but i not limited to, human reource/labour relation, law, journalim and economic (at any tage of the program). Submiion Detail: To apply, intereted tudent mut ubmit confirmation of full-time regitration, an original trancript, and a reume, a well a an editorial or critique (to a maximum of 1000 word) on the topic of: "Realitie of a tight labour market" The cholarhip winner will be offered the opportunity to preent their ubmiion at the NLEC Fall Conference on November 17th, 2011 at the Sheraton Hotel & Conference Centre in St. John'. Submiion mut be received by October 31t, 2011 For more information, viit

6 Page 6 Mineral exploration The Buine Pot Vol. 6 No. 6 Chaing Jack dream Triple Nine Reource hoping good luck and hard work will prove out vanadium depoit Long time propecting geologit Vic French of Clarke Beach find himelf thee day a the only non- Aboriginal peron in a company working to prove out a vanadium depoit that i located, literally, on the Burgeo Highway. The play, called the Four Corner property, i being worked by a company called Triple Nine Reource. We think it ha the potential to be a mine, aid French. The property wa initially dicovered by a propector named John (Jack) Keating of Stephenville Croing, who identified the property a a hill of magnetite way back in It (exploration) went at a nail pace until 2009, French joked. That when Len Muie, a veteran miner and propector, and other principle of Triple Nine got involved. Since then we ve been on a very fat piral upward, aid French. Our company logo i the Dream Catcher. Jack Keating felt he had omething that wa real and had a lot of potential. Our objective i to fulfill hi dream. The company draw it name from the fact that Muie redicovered the property on the 9th day of the 9th month of With the Burgeo Highway running through the middle of it, the Four Corner property i eaily acceible, aid French. Nearby hydro line mean power will be available to develop the property, hould French and hi team prove out a mine-ized depoit. An airborne urvey conducted by Fugro lat year found a trong electromagnetic anomaly and extended the trike length to ix kilometre. The repone they got wa o high, their oftware package couldn t proce it, aid French. They had to end it to an independent lab to proce the data. After that, Triple Nine conducted ome trenching and increaed the number of claim it had in the area from 40 to 264. The company ha ince extended the ize of the trike length to 21 km. We ve had a $100,000 drilling program - and that one of the great thing about the property, you can drill at a very low cot, aid French. We drilled five hole and teted only 300 metre of the more than ix kilometre zone. But we had to tet the weaker ection becaue at the time we drilled we till hadn t received the reult back from Fugro. That wa lat fall. French aid it wa the only drill program he wa ever on where he had to ample every bit of the core, all 956 metre of it. The aay that came back recorded a weighted average of per cent vanadium pent oxide, 6.00 per cent titanium oxide and See No plan, page 10 TSXV:SSE / OTCBB:SSEBF Head Office info@ilverprucereource.com RARE EARTH, URANIUM & PRECIOUS METAL EXPLORATION IN CANADA Silver Spruce i a diverified junior explorer with a portfolio of rare earth, gold/ilver and, for the longer term, uranium project in Newfoundland and Labrador. PLANNED WORK FOR THE REST OF 2011 & 2012: Detailed and regional exploration, including trenching, channel ampling, and diamond drilling, on the high-grade, road acceible, Pope Hill REE trend (Pope Hill, MRT and Pope Hill JV project), located along the Tran Labrador Highway, where grab ample value up to 25.5% TREE have been found and follow-up diamond drilling on the Big Eay gold/ilver zone, in eatern NL.

7

8 Page 8 opinion The Buine Pot Vol. 6 No. 6 The Buine PoT Newfoundland and Labrador Journal of Buine and Politic Vol 6 No. 6 September 1, 2011 Publiher & Editor Craig Wetcott editor@thebuinepot.ca Manager of Advertiing Sale Lynn Emberley lynn@thebuinepot.ca Office 302 Main Road, The Gould Mailing Addre 18 Monument Road Conception Bay South, NL A1W 2A4 Tel Fax Advertiing advertiing@thebuinepot.ca Canada Pot Publication Mail Regitration Agreement # Publihed Monthly Printed at Trancontinental, St. John Buinee receiving The Buine Pot a unaddreed admail: - 4,310 St. John & Mount Pearl Conception Bay South Paradie the Gould - 45 Portugal Cove- St. Philip - 64 Torbay Plu 3,000 copie ditributed at ome 150 coffee hop, hotel and other location on the Northeat Avalon. Total Circulation: 8,000 copie Begin - to begin i half the work, let half till remain; again begin thi, and thou wilt have finihed. Marcu Aureliu The dangerou legacy of Jack Layton Jack Layton wa a gifted politician. Hi pereverance and communication kill are to be admired. I even believe he might have made a decent Prime Miniter if not for hi untimely death. While he wa a committed ocialit, unlike many of hi party confrere, Layton had a ene of balance and though he wa ambitiou about hi political goal, they were for the mot part realitic. Perhap not quite a fically reponible a a Tommy Dougla, till Layton would not likely have been a danger to the country, fically peaking. One of Layton gift wa that he could meh eemingly contradictory idea and iue and find an outcome that made ene. No urprie perhap for the Montrealraied on of a Conervative cabinet miniter who went on to become a pokeperon for the homele and underprivileged during hi A they turn their mind to a future without Jack Layton, the New Democrat can count on one mall bleing. They need not worry about a reurgent Bloc Québécoi breathing down their neck any time oon. Far from being awah in buyer' remore, many firt-time Quebec NDP upporter eem willing to cut the grieving federal party ome lack while they et their ight on reformatting the provincial cene. Since the orange wave that engulfed the Bloc lat May, the overeignty movement ha been plagued by public diviion. Over the pat few week, it trouble have been compounded by a volley of ominou polling number. Support for overeignty ha fallen Pillar to Pot Craig Wetcott tenure a a city councillor in Toronto. Federally, Jack Layton leave a tremendou legacy. He ha built more than a beachhead in Quebec: If handled right, it could be a bulwark for federalim in a province that badly need to reclaim it tatu a a founding partner in thi wonderful country of Canada. The urging NDP preence in the federal Houe of Common alo erve poitively a a warning for the national Liberal Party to get it act together. That party ha coated for too long on National Affair Chantel Hebert below it long-tanding 40 per cent floor and the Parti Québécoi look like it i headed for a wall and, poibly, electoral annihilation in the next provincial vote. Leader Pauline Maroi, who ecured a maive vote of confidence from her party only a few month ago, i now a leader on life upport. Meanwhile, the lit of propective candidate to lead the moribund Bloc i hrinking by the platitude and an unwie ene of entitlement to the claim of being Canada natural governing party. So good on you, Jack Layton. Cloer to home Jack Layton legacy worrie me. Not becaue the NDP are tronger here federally than they have ever been: Jack Harri ha been one of the mot effective tatemen in Parliament and I am proud to have him a my repreentative in Ottawa. Ryan Cleary too ha performed trongly and look to be tarting a long and ucceful career a a Member of Parliament. What worrie me i the provincial NDP and the teady growth in popular upport for a party that few people really undertand. Lorraine Michael herelf in t the iue. Of the 48 member in the Houe of Aembly for the lat four year, Michael wa one of the mot intelligent, hardworking and day. With the PQ hip at rik of inking, there are preciou few hand available to teer the BQ lifeboat. For all that, the New Democrat cannot afford to miread the term of Quebecer' allegiance to the party. With every paing week, it i more evident that the momentum that carried the New Democrat to their May 2 Quebec victory had le to do with the party' left-leaning agenda than with a collective deire to engage in politic on different term than thoe impoed by polarization over the province' political future. At the provincial level, that ame deire i benefiting the right-of-centre movement of former PQ miniter Françoi Legault. effective repreentative, if not the mot intelligent. That depite the fact he didn t raie one quetion about the Mukrat Fall deal in Quetion Period. I have no doubt that he wa the mot honet MHA. The problem i the party hierarchy. It i a captive of big union, principally public ector union. That dangerou in a province that already ha more than 50,000 people on the provincial payroll and i looking at a decade of billion dollar deficit and an oil upply that i rapidly petering out. The cariet thing about the NDP and it leading light i that they have no concept of how eriouly public debt contrain a government ability to provide ervice. I ve often heard my friend Lana Payne, who i the preident of the Newfoundland and Labrador Federation of Labour, ay omething to the effect that deficit are not While the focu ha been on the future of the NDP in the Quebec, the ongoing change in the paradigm of the province i of profound conequence to all the major federal player. That include the Liberal but alo Prime Miniter Stephen Harper. Hi party only eem immune to the current that are rehaping the landcape over which he preide. Thee are both propitiou and dangerou time for the Conervative. On paper, their dominance of the political cene i unchallenged. But Harper' bigget aet i not the void created by Layton' paing. The top ace up hi prime miniterial leeve wa alway a divided oppoition. That i a true today a it wa before real, that they are jut number on paper. It i thi kind of naivety, that if ever unleahed upon the rein of power, would quickly drain the public pure and mire thi province in tack of debt that could detroy our ability to provide critical ervice uch a health care and education. That why I m worried about Jack Layton legacy in thi province. The NDP were urging here anyway. If ympathy for the departed federal leader tranlate into vote, the provincial branch of the party could gain quite a number of eat thi election. If we were electing a party of Jack Layton, it wouldn t worry be too much. But it the thought of electing thoe wilder-eyed and irreponible character who formed the poe around Layton and who advocate an unretrained form of tax and pend ocialim that give me the hiver. Federal partie will face fallout from hifting Quebec the untimely death of hi NDP rival. Jean Chrétien held the ame card for the duration of hi three majority mandate. Going forward though, the unravelling of the overeignty movement make a divided oppoition le of a certainty. With the Bloc out of the federal mix, the poible payoff for uniting the country' progreive force under a ingle federalit banner ha become bigger. By the ame token, the potential prize for becoming leader of a tand-alone Liberal or New Democrat party ha become maller. On the core of a rapprochement, the fact that both federalit oppoition partie are now devoid of an obviou leader i a much a com- See Five, page 10

9 editorial The Buine Pot Vol. 6 No. 6 Page 9 A deal o bad, it troubling There ued to be a fellow around here who accued anyone who diagreed with him a being a traitor. Take the cae of the Grand Fall lawyer who dared to raie quetion about the provincial government expropriation of the AbitibiConolidated propertie. The man wa catigated publicly. Even hi law partner wa ubjected to one of the infamou telephone tirade that were even more tartling than the public dreing down. Having your patriotim publicly called into quetion by the premier of the day mut do wonder for your law practice. It turned out though that not only did the provincial government jump the gun by running a century old indutry - and hundred of high paying job - out of Central Newfoundland, it alo didn t do it homework. The government accidentally expropriated the pulp and paper mill too, taking on potentially hundred of million of dollar in environmental liabilitie. At the time, Nalcor preident Ed Martin wa hauled in before incredulou MHA to lend a patina of expertie to the ruhed, and ultimately botched, exercie. We have to move now, Martin counelled the two Oppoition partie. We have to protect thee aet. What nobody ever aid wa, protect them from whom? Nor did they ay what we would do with the aet once we had them (nor did anybody quetion the logic of expropriating aet - tree, river and land - that we already owned, but had imply rented out). So far, the aet remain idle, giving the province no economic benefit, but hundred of million of dollar in liabilitie. That beide the $130 million penalty the federal government had to pay on our behalf becaue the expropriation broke North American free trade law. We mention thi, becaue it i the ame cat of character who are reponible for the Mukrat Fall deal, a deal o bad the temptation i great to decribe it a traitorou. But that would be lowering ourelve to the gutter politic of one who ued to employ that callou lur unconcionably. But how ele to decribe an agreement to give away thi province They claim we need to develop Mukrat Fall becaue demand for electricity on the iland i increaing. But where? aet for free, to ell ome more of them at cut rate price, while at the ame time doubling or trebling the cot of the ue of thoe ame aet for the people of Newfoundland and Labrador themelve? You could blame it on tupidity, but frankly we don t think the folk at Nalcor or in the enior level of the provincial bureaucracy are that tupid. So how do you explain a $6.4 billion project to ell power to ourelve for five or ix week a year at double the price we would normally pay, while giving power to Nova Scotia for free and then even more power to them at a fraction of the rate we will pay ourelve? Becaue, if the premie of thi cheme i to replace the thermal generating plant at Holyrood, that all the power we need: Enough juice to get through the five or ix coldet week of the winter. The ret of the time the iland enjoy a urplu of hydro power from Cat Arm, Bay D Epoir and other river. I it really worth ubidizing power to Nova Scotia to pretend that there i a paying cutomer for thi power other than ourelve? The claim - by Nalcor, Premier Kathy Dunderdale (who wa Miniter of Natural Reource at the time of the AbitibiBowater expropriation) and current Natural Reource Miniter Shawn Skinner i that there i more to it than that. They claim we need to develop Mukrat Fall becaue demand for electricity on the iland i increaing. But where? Demand i actually down the pat five year thank to the - wait for it - cloure of the AbitibiConolidated pulp and paper mill at Grand Fall and Stephenville - and the lo of ome 80,000 reident to other province ince the cod fihery collape. Now if you want to believe Mr. Martin and M. Dunderdale claim that demand i going to increae becaue, a M. Dunderdale told the legilature, more people are buying plama creen TV thee day, well there not much we can ay to that level of gullibility. But even the mot lamblike among u ought to wake up and take notice when a jointly-appointed federal and provincial panel of expert rule that it can ee no need for the Mukrat Fall project and that it cannot accept the validity of Nalcor financial projection. That in itelf hould be the end of thi folly, but it i not. Given that the provincial government and Nalcor have inveted o much political and financial capital into thi boondoggle, company executive and government MHA will now engage in a full court pre of public relation to ave it. Be- A but of Rene Leveque guard the corner of Hydro Quebec headquarter in Montreal. Proponent of Nalcor deal with Emera Energy of Nova Scotia maintain that giving away 20 per cent of Mukrat Fall power i neceary to gain a tranmiion route outide the boundary of Quebec. However, no cutomer have been identified for any of the power. Nalcor ha admitted that the only paying cutomer for Mukrat Fall power are reident on the iland of Newfoundland. One ha to wonder, would the famou Quebec nationalit have ever conented to uch a giveaway of hi province power? caue the implication for them, hould thi project be dropped, are unacceptable: It would be een a an admiion that they were wrong, that they were either too tupid to recognize it a a giveaway of our reource, or too afraid to tand up to a man who demanded a $6.4 billion (already the price tag ha moved up $200 million according to the panel) vanity project. If they can make it through the next 41 day, they will be alright. They will have nuck thi boondoggle pat the noe of Newfoundlander, putting them on the hook for billion of dollar in debt, exorbitant electricity bill and a 50 year obligation to ubidize energy going into Nova Scotia. Only their concience and the verdict of hitory will be left to torment them. However, we think the olution i a lot impler. And cheaper. If the fellow who i reponible for thi madcap cheme really wanted a monument that badly, all he had to do wa ak. Surely hi ucceor would have been happy to commiion a but for the lobby of Confederation Building. That way, hi eye could have eternally preided over the coming and going of the elevator to the eight floor, hi 80 tyle hairdo olidly encapulated in bronze. Given the way Kevin O Brien and Steve Kent fawned over him while he wa in power, they hould have had no qualm volunteering to dut off hi but. It may have looked illy, but it would have been a lot cheaper. And even if it wa foolih, it would be a lot le embarraing than waking up on November 30 and realizing we jut igned the econd bigget giveaway in our hitory. Quite a legacy indeed.

10 Page 10 Advice The Buine Pot Vol. 6 No. 6 Uing time to enure you have a fulfilling life Continued from page 5 only have o much of it. Crobie ugget itting down and liting ometime review bui- D.C.. The member So how do you ue time even habit he ugget in an effective way o your lifetime goal in ne book together. Six can lead to long term ucce and peronal fulfill- life? peronal health and fun. cued Covey claic. that you have a fulfilling term of buine, family, month ago they diment. Crobie think the Ak yourelf what it i It not much challenge to read a book, A lot of what he talk book ha made an improvement to hi life, but Crobie. What are your Crobie repeated. To that you want, aid about i integrity, aid Crobie. Integrity in a only to the extent that I important goal? And implement it and put it variety of area, but alo implement it, he admitted. That the chal- can I implement in the the real crux of it. That then ak yourelf, What leon into practice i time integrity. He look at being effective along a lenge with all of the next three month that where working with time axi - how you manage your time. You can Reading it i only the be- cloer to thi? That the tant, I think, becaue ucce literature. can actually bring me other people i impor- look at the book a a ginning: You ve actually important part. they hold you accountable. It eaier to be ac- philoophical work in a got to implement it in Sharing your goal way, but what intereting about it i he look at portant way i to actually added. The St. John it i to be accountable to variou way. A very im- with other can help, he countable to other than what important in life have a frank converation with yourelf: It termind group that Crobie reviewed hi lawyer i part of a ma- yourelf. through the axi of time. And a we all know, we not eay to do. baed near Wahington own goal jut lat week. Continued from page 3 er are haking their head at the government' determination to puh ahead, all in the hope of aving perhap $5 million a year through aving in the Newfoundland and Labrador Precription Drug Plan. The $5 million aving may be a mall amount in the overall provincial government budget of more than $7 billion a year, but divided among the mall pharmacy owner it portend to be a huge hit. O'Keefe reckoned that ome 50 to 55 per cent of hi ale are to people who are covered by the Newfoundland and Labrador Precription No plan to take Triple Nine Reource public, ay French Continued from page per cent iron oxide. Triple Nine, which i till a privately held company, quickly took the reult to the market and Drug Plan. It' our livelihood that' going to be affected, aid O'Keefe. There' no way that you can live on a dipening fee alone. Kennedy meanwhile, i refuing to even talk with the Council of Independent Community Pharmacy Owner (CICPO), which peak for O'Keefe and other pharmacy owner uch a Medicine Corner in Bay Bull, Baltimore Pharmacy in Ferryland and St. Mary' Pharmacy in St. Mary'. Rather the miniter appear to have ramped up a public relation campaign on open line radio conducted a third round of financing, thi time at $1.20 a flow through hare, well up from the 10 cent hare the company had old previouly. how uing hi fellow cabinet miniter to peak out againt the independent pharmacy owner. And he i initing that if the mall buine owner want their concern raied they will have to let the Pharmacit Aociation of Newfoundland and Labrador (PANL), a profeional body that include all pharmacit in the province including thoe who work at hopital and other who are directly employed by the provincial government, do it. It doen't make ene, aid O'Keefe. We're a buine organization i what we are... In April, the company raied money again, thi time at $2 a hare. Mot of the hareholder bae i in Newfoundland, French noted, though PANL doe not repreent independent pharmacy owner in rural Newfoundland. They can't. To O'Keefe and the owner of the other 61 independently-owned pharmacie that are member of CICPO, Kennedy' tance i unfair: How can a pharmacit who work for the provincial government peak for the interet of a mall buine owner in Bay Bull or St. Mary'? Miniter Kennedy ay that we're a plinter group and that he' not going to bargain with different group, even though he doe bargain with pharmacit who are there are hareholder prinkled throughout the United State, Europe and Africa. We re till very much at a graroot (tage), He mied doing it in June. But looking back on it I could ee that I wa making progre in the thing that are important, he aid. I had achieved a number of thing and that gave me ome atifaction and o I ort of renewed my goal for the remainder of the year. Editor note: Thi i the firt egment in a recurring erie that will reviit claic buine and elf-improvement book. If you have a book that you think hould be We're a buine organization i what we are government employee and a number of other group that have their own bargaining unit, aid O'Keefe. Back in June, frutrated after enduring three year of ilent treatment from the provincial government, CICPO erved Kenndy 30 day notice that it would top providing ervice to Newfoundland and Labrador Precription Drug Plan client unle he agreed to come to the table. Kenndy and hi cabinet collegue waited until nearly the lat minute before the notice expired before changing regulation under the aid French, who neverthele i obviouly feeling bullih about the project. The plan for now i to keep exploring. Some 30 Five political partie, but two political tribe part of the erie, pleae e- mail u at editor@thebuinepot.ca. Pharmaceutical Service Act to force CICPO to tender 120 day notice before withdrawing ervice. That moved their deadline pat the October 11 provincial general election date. I don't know where it' going to leave u, aid O'- Keefe.But if the provincial government doe puh through with it plan and rural pharmacie end up cloing becaue of it, O'Keefe aid he'd like to know how thoe ervice will be replaced. It' going to be very cotly for them, aid O'- Keefe. And not very practical. people have been employed on the project thi pat ummer. Continued from page 8 mon opportunity a it i a eparate challenge. If the Layton-related political tetimonie of the pat week have demontrated anything, it i that where there are five federal partie, there are really only two political tribe in the larger ideological ene of the word. In the recent pat, many in the Liberal and NDP etablihment have been wilfully blind to that reality. Former Liberal leader Michael Ignatieff wa one of thoe. But on hi Facebook page on the day of Layton' funeral, he wrote about hi party and the NDP: "The word we care about - generoity, jutice, hope - they care about them, too. We don't own thee word and they don't own them either. Thee value are bigger than all of u, bigger than our diviion and our argument. It wa good to put the pat behind u for an afternoon and imagine what the future of our country might look like if we put thoe value firt." Harper ha more caue to worry about uch thought gelling into action than about the advent of an improbable new champion of the Canadian left. Chantal Hébert i a national affair writer. Copyright 2011 Tortar Syndication Service.

11 The Buine Pot Vol. 6 No. 6 Mineral exploration Page 11 Life after banking T he lure of propecting ha attracted people from all walk of life in Newfoundland and Labrador over the year: Now it can lay claim to having lured a banker. But Wade Guinchard i probably not the firt one of hi profeion to feel the tug toward propecting. The Flower Cove native - a grandon of the late famou fiddler Rufu Guinchard - now live in St. John after having pent 36 year working a a banker with Scotiabank. The job took him all acro the iland. About 15 year ago he took up propecting, part time. I had an interet in a property back home and one thing led to another, aid Guincchard. I ended up doing a propecting coure out of Memorial Univerity about 12 year ago and that got me really intereted. Since then he ha been working a couple of propertie, one bae metal, the other gold, both near Gander. Once he retired from banking a year-andhalf-ago, Guinchard took up propecting pretty well full time. I waited until I retired before I really got at it in earnet and I really enjoy doing it, he aid. I enjoy being out in the wood. There nothing healthier than taking the compa and going and plitting ome rock. In the evening, Guinchard work the computer, earching out old information on claim and mineral work. Lately, he been reearching ome uranium anomalie. Guinchard aid hi banking experience come in handy when he trying to ell interet or raie money to work a claim. I dealt with international lender and all kind of commercial thing, o I know about doing deal, aid Guinchard. You run into all kind of people in all buinee, but in the propecting buine a well, o it ure help to be able to look omeone in the eye and have a good converation and connect. The banking buine alo taught him the importance of doing your due diligence and making ure all the I are dotted and the T croed, he added. That important, he aid, when you re dealing with omeone about optioning a property. With more and more people attracted to propecting, you might get the impreion that the wood are filling up. But then the wood - and barren - are pretty big. It can be competitive, but for the mot part I find other propector very helpful, aid Guinchard. They are a great reource of information. And the guy at the Department of Natural Reource? They are abolutely fabulou. Very good people, very helpful. Wade Guinchard went propecting full time after 36 year in the banking buine. Advancing the Little Deer Copper Depoit The Little Deer Copper Project i a joint venture between Thundermin Reource Inc. and Cornertone Reource Inc. Project i located jut 10 km north of Springdale in the hitoric Whaleback Mine area, proximal to exiting infratructure and a killed labour force. Over the pat 4 year, the joint venture ha completed over 48,000 m of diamond drilling and expended $7 million. The Little Deer Depoit contain Indicated Reource of 1,911,000 tonne grading 2.37% Cu (99.8 million lb Cu) and Inferred Reource of 3,748,000 tonne grading 2.13% Cu (175.9 million lb Cu). Metallurgical tet work how excellent reult with production of a aleable, high grade copper concentrate grading over 28% Cu with over 97% copper recovery. An Internal Scoping Review i in progre. Thi tudy i evaluating a range of potential mining and operating cenario for the project, and will provide preliminary information on the economic viability of developing a new copper mine at Little Deer. TSX: THR TSXV: CGP F: GWN OTC: CTNXF

12 with a $40 voice and data plan New activation only G BONUS: $70 IN-STORE CREDIT 1 3-yr. term $99 $ No term 952 NOW $ Bet BlackBerry Bold. Bet network acro Canada. Bet of both world. The new BlackBerry Bold TM G martphone. With touch creen navigation, a powerful 1.2 GHz proceor and maximum 4G peed of 14.4 Mbp 3, it the mot powerful BlackBerry Bold yet. And even better, it available on the larget and fatet 4G network acro Canada 4. Now the time to make the bold choice. witching to Bell jut got better Available at the following Bell Aliant tore: Torbay 1234 Torbay Rd Offer end September 30, Available within network coverage area available from Bell Mobility. Paper bill charge ($2/mo.) applie unle you regiter for e-bill and cancel your paper bill. Other monthly fee, e.g., 911 (New Brunwick: $0.53, Nova Scotia: $0.43, P.E.I.: $0.50, Quebec Municipal Tax: $0.40/mo.), and one-time device activation ($35) apply. Upon early termination, price adjutment apply; ee your Service Agreement for detail. 30 day advance notice of termination required where not prohibited by law. Subject to change without notice; not combinable with other offer. Taxe extra. Other condition apply. (1) With new activation on a pot-paid voice and data plan or a pot-paid voice plan and a data feature with a min. value of $40/mo. Credit applie at the time of purchae on the price of the device intore before taxe. (2) With new activation on a pot-paid voice and data plan or a pot-paid voice plan and a data feature with a min. value of $40/mo. (3) Thi i a theoretical peak download peed. Actual peed may vary due to topography, environmental condition, device type and other factor. (4) With compatible device. Baed on comparion of national network: (a) fatet network in more place, according to tet of average upload and download peed in large urban centre acro Canada (b) larget network, baed on total quare km of coverage, and (c) average call failure rate on par, baed on tet including network acce failure, blocked call and dropped call in large urban centre acro Canada; all on the hared HSPA+ (4G) network available from Bell, v. Roger HSPA/HSPA+ network. Exclude roaming partner HSPA and GSM/EDGE coverage in certain part of Manitoba. Speed may vary due to topography, environmental condition, device type and other factor. See bell.ca/network for detail. BlackBerry, RIM, Reearch In Motion and related trademark, name and logo are the property of Reearch In Motion Limited and are regitered and/or ued in the U.S. and countrie around the world.