Trading Summary (March 28, 2002)

The Toronto Stock Exchange closed fractionally higher on Thursday, with the TSE 300 composite index up 15.57 points at 7,851.47. The tech-heavy Industrial Products subgroup posted the biggest gains, with media and bank stocks also gaining ground. The golds retreated from highs they had reached in a strong run since the beginning of the week.

The metals and minerals index advanced 18.52 points to close at 4,731.96, its 0.4% advance beating the broad market even though heavyweight Inco slid 19 to close at $31.05. Most companies on the index were higher, with Alcan up 33 at $63.03, Noranda advancing 18 to $18.85, and a big gain from Falconbridge, which added 79 to close at $18.80.

Among the smaller base metal producers, Aur Resources was up sharply. Aur, which recently closed the purchase of the Duck Pond base metal deposit in Newfoundland from juniors Thundermin Resources and Queenston Mining, added 18 to close at $4.32, a gain of just over 4%.

The golds fell sharply, despite the metal’s move over US$300 per oz. in the London fixing sessions. The TSE gold and precious minerals index was off 157.25 points, or 2.5% of value, closing at 6,191.78.

Activity centred on Kinross Gold and TVX Gold, two middle-tier producers that have been the object of recent market whisper. Kinross, which yesterday was rumored to be readying itself for a takeover bid on either or both of TVX and Echo Bay Mines, slid 7 in active trading to close at $2.03 on a volume of just over 3 million.

TVX traded as actively as Kinross, with 3.4 million shares changing hands, but rose 3 to close at $1.20. Echo Bay, which had been driven higher based on the takeover speculation, was off 5 at $1.48. A takeover on Echo Bay would be daunting, as Kinross would need to secure the controlling block of the company, currently held by Franco-Nevada Mining. Franco was off 88 at $44.17.

Canada’s junior exchange ended the holiday-shortened trading week by posting solid gains. The S&P-CDNX Composite Index added 11.78 points, or 1% to close at 1186.52.

Shares in Kensington Resources continued to catch the eyes of traders, gaining 8 to end the day at $1.72 on a heavy volume of 1.73 million. Diamond recovery results for 10 holes drilled at the Fort la Corne diamond project in Saskatchewan are expected any day now.

American Bonanza Gold Mining lost 2 to close at 13 on a heavy 1.61 million shares. The company holds the Copperstone gold property in Arizona.

ECU Silver dropped 1 to close at 5 on 635,000 shares. The company holds the Velardena property, which hosts 2.5 million tonnes grading 269 grams silver and 2.8 grams gold.

Intercontinental Mining gained 9 to close at 42 on 730,900 shares. The company recently converted debt into shares in an effort to clean up the balance sheet and find new business opportunities.

Shore Gold added 1 to 99 on 409,400 shares. The junior holds the Star kimberlite body near Kensington’s ground in Saskatchewan. Results from a mini-bulk sample on the Star kimberlite are expected shortly.