Trading Summary (February 19, 2002)

After sitting as the Toronto Stock Exchange‘s lone subindices on the plus side earlier in the day, the Gold & Precious Minerals subindex fell at midday and ended Tuesday’s trading session off 150.75 points or 2.5% at 5,843.81. The subindex’s performance mirrored that of gold, which sank US$4.50 to finish at US$293.70 per oz. in New York. The base metal issues were among the TSE’s nine declining subindices dropping 103.68 points or 2.3% to 4,454.24. Overall, the TSE 300 composite index shrank by 87.63 points to close at 7,471.

The other shinnies followed gold’s lead in the Big Apple. Silver dropped US6 to US$4.48; platinum fell US$4 to US$470 per oz.; and palladium shed US$3 to S$371 per oz. The base metals suffered across-the-board losses on the London Metal Exchange.

TVX Gold took the dubious top spot among the nation’s miners with more than 8.6 million shares crossing the floor only to lose a nickel to $1.11; Placer Dome was next in line with a 61 drop to $18.19 on more than 5.2 million shares; Kinross Gold rounded out the TSE five most traded issues sinking 6 to $1.54 with about 3.5 million shares changing hands.

Other active gold miners incurring losses were Franco-Nevada Mining, off 26 at $30.19 and Barrick Gold, which slipped 95 to $28.30.

Going against the grain, Cumberland Resources managed to tack on 3 to reach $1.35. On Tuesday, the company announced that it has approved a budget of $2.5 million for work at it’s Meadowbank Gold project, 70 km north of Baker Lake, Nunavut. Cumberland is looking to further improve the project’s economics by delineating enough resources to support a 10-year mine life.

St Andrew Goldfields fell half a penny to 18.5. On Tuesday, St Andrew announced that completed an oversubscribed private placement of 12 million units for gross proceeds of $1.8 million. Each unit comprised one share plus a purchase warrant.

Noranda was Canada’s most traded base metal miner with about 1.2 million shares on the move. The issue fell a nickel to $16.60. Noranda recently granted Toronto-based Tribute Minerals an option to acquire its 155-sq.-km Confederation Lake property some 40 km southeast of Red Lake in northwestern Ontario.

Falconbridge gained 8 to $17.40, while most of the others posted losses.

Canada’s junior exchange extended its losing streak as sellers stepped into the market. The S&P-CDNX Composite Index dropped 15.68 points, or 1.4% to close at 1116.95.

With drill results expected shortly from the Salamandra gold property in Mexico, shares in National Gold continued to move higher. The junior’s joint venture partner Alamos Minerals is drilling the property. The partners have their sights on developing the higher-grade core of the deposit, dubbed Estrella. National Gold ended the day up 6 to 45 on just over 1.1 million shares, while Alamos closed at 43, down 2 on the day.

TNR Resources gave back some of yesterday’s gains, losing 3 to close at 21 on 752,800 shares. Stock in the company jumped on news of a deal with Toronto-listed NovaGold Resources to earn a 50% stake in the Rock Creek and Shotgun gold deposits in Alaska.

Starfield Resources extended its losing streak, dropping 9 to close at 77 on a volume of 374,600 shares. The company recently retained Warrior, a division of Standard Bank of London to provide corporate finance and strategic advice for the Ferguson Lake nickel-copper-platinum-palladium project in Nunavut.

Leader Mining International lost 13 to close at $2.14 on 185,700 shares. The Calgary-based company has selected independent contractors to advance the Cogburn magnesium project near Hope, British Columbia through a full feasibility study. The study is expected to be complete by the end of 2002.