The Associated Press

Thu, May 8, 2008 (7:07 p.m.)

A Canadian company is stepping up activities in Nevada with an eye on gold production.

Vancouver-based Fronteer Development Group Inc. is investing more than $14 million in Nevada through subsidiary NewWest Gold USA, created after Fronteer's acquisition last year of NewWest Gold Corp.

Fronteer also has gold, copper and uranium exploration interests in Canada's Yukon territory and copper and gold interests in Turkey. But Nevada represents its main business focus, officials said.

Plans call for moving the company's U.S. headquarters in Reno to a bigger office, increasing staff from six to 14, and opening an office in Elko.

Bob Felder, U.S. exploration manager, said his company is years away from gold production but said the potential for discovery is "quite high."

Nevada is among the top gold-producing entities in the world. And as the price has soared in recent years, reaching the $870-per-ounce range this week on the New York markets, Felder acknowledged Nevada has been "hit hard" by mining interests.

But he said land Fronteer plans to explore in Nye, Elko and Humboldt counties had been privately held, as opposed to public lands.

"We see that as a very significant advantage," Felder told the Reno Gazette-Journal.

---

On the Net:

Fronteer Development Group Inc.: http://www.fronteergroup.com

___

Information from: Reno Gazette-Journal, http://www.rgj.com