kalum ventures ltd. spring 2011

8/6/2019 Kalum Ventures Ltd. Spring 2011

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S P R I N G 2 0 1 1

POBOX922TERRACEBCV8G4R2|PH250-635-8060|FAX250-635-8062|1-888-635-8060

Lyle Bolton Forest Operations, General Manager Joe Bevan Controller Troy Sam GIS Technician

[email protected] [email protected] [email protected]

KALUMVENTURES

-Creating profit and capacity with employment and entrepreneur opportunities for the people of Kitsumkalum-

Troy Sam of KVL, Wayne Bolton of Kitsumkalum Band, Lyle Bolton of KVLKVL Repaying The Band $183,000


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2 KalumVentures

LoggingOperationsHarvesting operations began again at the end ofMarchontheDeepCreekCP023block.KVLisinthemidstofpoolingsomevolumewiththe

followinglicensees.TerraceCommunityForest(TCF)andA&ATrading.As Kalum Ventures Ltd. draws closer to theconclusionofthetwocurrentlicenseswemanage,itwasdeterminedthatpoolingourremainingvolumeswouldbenefitKVLmorethandoingthisonourown.The market responseto our pooling has resulted inhigherChinalogsalesvaluesforthethreelicensees.

As mentioned in an earlier report, KVL will plan toengineer and harvest approximately 100,000m3 ofwood to wrap up the two current licenses in 2011.Achieving this volume will obviously be dependentoncontractorpricingandmarkets.Asallareaswithintheprovinceincreasedharvestingactivity in 2010, contractor equipment andmanpower capacity has become an issue. Securingcontractor services will be a challenge to moveprojected volumes for all licensees both regionally

andprovincially.

MarketsCedar: Cedar prices are up 10.00 per meterfrom a low of 70.00 per meter Fall 2010.MarketisexpectedtogounchangedoverQ1andQ2.LocalsalesandtheVancouvermarketarethecustomersforgangandstandardlogs,

withlittleornovalueonutility.Cedarshakecontinuestobedifficulttomarketaswell,aslocal users such as Greenville and CopperMountain shingle mills are operating on asporadicbasis.Hemlock/Balsam Sawlog: China marketcontinues to strengthen as forecasted. Pricesare up to 10-15% since last Fall withcustomerswillingto increasepricingforfirmdelivery schedules and substantial volumes

(poolingvolume).Thismarketisprojectedtoremain strong with the possibility of furtherpriceincreasesinQ3.Pulp: The pulp market has made a slightincrease in pricing. Pulp can now be paid at$30/m3deliveredtoKitimat.Theincreaseindemandinthesouthhashelpedinpulppricesgoingup.

Deep Creek Bridge Decking

End Fill Town End


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SPRING2011

EngineeringKVL has approximately 100,000m3 of woodto engineer in 2011. This will substantiallyconclude our allocation for the two currentlicenseswemanageforKitsumkalum.Allthis

wood will be located within KVLs ForestDevelopmentUnit.

SilvicultureSilviculture surveys conducted in 2010indicate that KVL is on track to meet itsreforestationcommitmentson17ofthefirst19 blocks logged. The two blocks not yetdeclared are expected to be declaredreforested in the Spring of 2011. Thisachievement of meeting the significantmilestone of reforestationhas resulted in anassessment by Northwest Timberlands ofKalum Ventures silviculture liabilities versusmoniesaccruedonblocksloggedtodate.Furthersilviculturesurveysandassessmentsarescheduledfor2011tomonitorplantationsuccesses, competing brush levels and theinfillofnaturalregeneration.

EconomicDevelopmentNewForest Tenure: NegotiationscontinuewiththeprovinceregardingtheForestTenuresOpportunity

(FTO/FRA). A meeting on February 11th

2011 washeld with the Ministry of Forests and Range todiscuss the Tenures Opportunity Agreement (TOA)The ministry has agreed to work togetherwith theFirst Nationsto help resolvethe exclusivityclausethat was added into the agreement. Letters havebeen sent out torequest a meeting with the ForesMinistertoalsohelpresolvethisissue.

Joe Bevan & Lyle Bolton at Deep Creek

Bob Cat on First Rows of Sub Deck

First Two Rows of Sub Deck


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KalumVentures SPRING201

www.kitsumkalum.bc.caCheckouttheKVLnewsletter,pastandpresent,onlineattheKitsumkalumwebsite.

Creek Crossing

Installing Running Deck

The KALUM VENTURES Team:

Lyle Bolton Forest Operations, General Manager [[email protected]]

Joe Bevan Controller [[email protected]]

Troy Sam GIS Technician [[email protected]]

POBOX922TERRACEBCV8G4R2|PH250-635-8060|FAX250-635-8062|1-888-635-8060

kalum ventures ltd. spring 2011

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