Trading Summary (July 08, 2002)

The Toronto Stock Exchange weathered the latest report of creative accounting practices by drug maker Merck & Co. better than the other North American bourses suffering just a 0.3% fall. The gold index was the star of the show soaring 7.73 points or 4.3% to 186.22 points. The base metal miners dropped 0.12 of a point to 144.15. By day’s end, the S&P/TSX Composite Index was 20.48 points lower at 7,091.98.

Placer Dome was the nation’s most traded gold issue climbing 36 to $16.65 with just more than 6 million shares on the go. Barrick Gold was next in line gaining $1.03 to $28.23 on about 5 million shares. Kinross Gold made a nickel to hit $3.12 with a handful fewer shares traded. The yellow metal ended the day US$1 higher at US$312 per oz. in New York.

Most of Canada’s other gold miners put in similar performances. Aurizon Mines added another 8 to hit $1.50. On Friday, Aurizon announced hat it acquired TVX Gold’s residual interest in the Casa Berardi property in Quebec. For their part, TVX shares ended 31 richer at $19.62.

Inco was the busiest base metal miner gaining 16 to $33.91 with 744,545 shares changing hands. The nickel miner is slated to deliver its second quarter 2002 financial and operating results on July 23.

Other gainers were Sherritt International, plus 14 to $5.69, Teck Cominco’s B shares, which rose 12 to $13.68 and Boliden, up 20 to $5.90.

In diamond news, Diamond Fields International reported on Monday that partner South Africa-based Trans Hex Group has terminated their joint venture on DFI’s Mining Licence 111 off the coast of Namibia, as recovery rates weren’t meeting up to expectations. DFI shares plummeted 17 or nearly 23% to 58.

Back in Canada, SouthernEra Resources’ first hole into the Sue kimberlite pipe on the Yamba Lake property in the Northwest Territories has surrendered 95 diamonds. The company’s stock advanced 18 to $6.17.

Other diamond miners making moves were Ashton Mining of Canada, plus 30 or 12.5% to $2.70, and Rex Diamond Mining, up a nickel or 10% to 55.

The S&P TSX Venture Exchange composite index finished the day up 7.95 points or 0.70%, and closed at 1,145.28 with a volume of 25 million shares.

Moss Lake Gold Mines traded just over 1 million shares but remained flat at 12. The company recently announced a shares for debt agreement with majority shareholder River Gold Mines. Moss will issue 3 million shares at $0.15 per share primarily in settlement of outstanding debt with the balance being paid in cash. The junior will also commence a diamond drill program on their wholly-owned Moss Township gold property located in the Shebandowan Greenstone Belt, 100 km west of Thunder Bay, Ontario.

American Bonanza Gold Mining added 2 to its value and closed the day at 19 on 646,000 shares. The company has $2 million set aside for advancing the Copperstone project in Arizona, which hosts an estimated total resource of 2.1 million tons grading 0.58 oz. gold per ton.

Golconda Resources jumped 20 and closed at 55 on 437,750 shares. The company recovered 15 mircodiamonds and one macrodiamond from a 9.9 kg sample on its Shulin Lake property in Alaska. Golconda holds a 51% interest in the property with Shear Minerals and privately-owned Shulin Lake Mining dividing the remaining interest.

Gallery Resources lost 2 and closed at 18 on 436,200 shares. The junior recently signed an option agreement with BHP Billiton Diamonds for an opportunity to earn an interest in a number of Ni-Cu-PGM resource opportunities identified by BHP Billiton in eastern Canada.

Pacific Minerals closed up 6 to $1.18 on 367,239 shares crossing the floor. The junior has US$3 million thanks to a private placement with Ivanhoe Mines. A total of US$2 million will be used to advance the JBS platinum-palladium property and the 217 gold project, both of which are both in China.