Trading Summary (June 08, 2001)

A 173.52-point, or 3.7%, gain by the gold and precious minerals subindex was not enough to save the Toronto Stock Exchange on Friday. Overall, the TSE’s 300 composite index lost 63.09 points, continuing the week’s trend, to end at 8,128.4 points. The base metal issues slipped 88.41 points to 4,692.52.

Canada’s gold majors basked in gold’s instant lustre. The yellow metal gained US$7.30 from about midday on to end at US$273.30 per oz. in New York. Placer Dome added 72, or 4.5%, to hit $16.70 on 2.5 million shares, Barrick Gold climbed 98, or 4%, to $25.30 on 1.5 million shares and Kinross Gold rose 17, or 13.8%, to $1.40 on 1.5 million shares. All three issues were among the TSE’s most actively traded.

It was hard to find a loser among the golds. Nice percentage gainers included Cambior 9, or 13%, higher at 78, Echo Bay Mines, up 17, or 13.3%, to $1.45 and Hope Bay Gold, up 4.5, or 12%, to 42.

Stealing the spotlight among the base metal miners was Swedish-Canadian miner Boliden, which has agreed to sell its two Chilean copper assets to Falconbridge. Boliden recently pulled out of the deal after announcing a financial restructuring which entailed its keeping the assets. The company agreed to sell after Falconbridge and Noranda filed a lawsuit. The news sent Boliden plummeting 12, or 15%, to 68. For their parts, Noranda edged up a penny to $16.75 and Falco gained a dime to hit $18.95.

Alcan was the busiest base metal issue with more than 1.7 million shares changing hands. The stock fell $1.58, or 2.3%, after the aluminum giant announced that it would further cut back production at its Kitimat smelter in B.C. Beginning the week of June 18, the smelter will run at half its 275,000-tonnes-per-year capacity.

Canada’s junior exchange posted gains on all fronts except the oil and gas sector. The Canadian Venture Exchange composite index jumped 41.26 points, or 1.2%, and closed at 3398.92. The mining index rocketed 158.27 points, or 2.2%, and finished the day at 7403.86.

Eastfield Resources was today’s high-flyer tacking on 4 and closing at 20 with 1.9 million shares crossing the floor. At last report the company had raised $192,000 in private placements to be used to finance mineral exploration activities on the company’s Jajay-Lorraine copper-gold-palladium property in north-central British Columbia as well as augment general working capital.

Spider Resources remained flat at 7 with 570,000 shares traded. Recently the company, together with joint venture partner KWG Resources tabled initial sampling results from the diamond-drill program on the Kyle #3 kimberlite. The property is located in the James Bay Lowlands area of Northern Ontario. Highlights include one 27.37-kg core sample, which yielded 11 macrodiamonds (>0.425 mm) and 50 microdiamonds (<0.425 mm). A total of 28 samples still require processing.

Gulf International Minerals lost a penny and closed at 66 on 374,000 shares. The company holds interests in undeveloped gold and silver deposits in Tajikistan, a central Asian Republic and former member country of the Soviet Union. The company has the Inel and McLymont gold properties northwest of the Eskay Creek Gold deposit in British Columbia.

Classic Gold Resources added 9 to its value and closed the day at 59 on 342,000 shares. The company recently announced a private placement worth $200,000. Classic Gold has an option with LMX Resources to acquire a 50% interest in the Haines-Gabbro property, located near Shebandowan, Ontario.

Pan Asia Mining lost a penny and closed at 5 with 275,000 shares changing hands. The company failed to post its nine-month interim financial statements with the BC securities commission and has been listed as a delinquent filer. Pan Asia is earning an interest in the 701 diamond mine in China.

Aurcana remained steady at 3 on 263,000 shares. At last report the company’s shareholders passed the special resolution calling for a four-to-one share consolidation. Aurcana can earn up to a 60% interest in the 11,189-ha San Carlos porphyry copper-gold and skarn project in Mexico.