Trading Summary (July 17, 2002)

After opening higher, the S&P/TSX Composite Index glided into the red in the afternoon, but was saved by a late-day mini-rally to close at 6,699.66 points, 4 points up on its previous close. The gold index led declining subindices with a 5.93-point or 3.2% fall to 177.59 points. The base metal miners went the other way tacking on 1.94 points or 1.5% to 131.35, making it the biggest percentage gainer.

Placer Dome was Canada’s busiest gold miner falling 67 to $15.43 on a volume of nearly 3.7 million shares. Placer recently extended, for a second time, its hostile, all-share offer for Australian-listed AurionGold. The new deadline is Aug. 7. Aurion Gold’s management has rejected the offer outright as it wrangles for a cash sweetener.

Meridian Gold slipped 12 to $25.35 despite posting second-quarter net income of US$11.3 million (or 15 per fully diluted share) on revenue of US$34.3 million on Wednesday. The recent figures compare with year-ago net income of US$10 million (14 per share) on US$27.8 million.

Glamis Gold sagged 30 to $13. The company recently wrapped up its merger with Francisco Gold. Under the deal, Francisco is now a wholly owned subsidiary of Glamis and its shares have been de-listed from the TSX Venture Exchange. To complete the merger, Glamis issued more than 25.8 million common shares and now has about 110.6 million issued and outstanding shares.

The base metal miners were led by Alcan, which slipped 78 to $47.86 on more than 2 million shares. On Tuesday, Alcan posted second-quarter income attributable to common shareholders of US$70 million (US22 per diluted share) on sales and operating revenue of US$3.2 billion. This compares with a profit of US$72 million (22 per share) on US$3.2 billion in revenue during the corresponding period of 2001.

Inco was next in line gaining 72 to $30.22 with about 1.9 million shares changing hands. Others on the rise were Falconbridge, plus a quarter to $17.35, Sherritt International, up 13 to $5.15, and Noranda, 19 richer at $17.19.

Teck Cominco finished 19 higher at $13 even. The company recently inked an a deal with Vancouver-listed Wolfden Resources to participate in the exploration of the High Lake volcanogenic massive sulphide property on Bathurst Inlet in Nunavut.

Canada’s junior exchange slipped further into the red on heavy volume. The S&P TSX Venture Exchange composite index lost 2.76 points or 0.25%, and closed at 1,102.61.

Investors sold off shares in East West Resources following the release of drill results from the Norton copper-nickel-platinum-palladium-cobalt project near Thunder Bay, Ontario. Hole A yielded 0.54% nickel, 0.58% copper, 0.44 gram platinum-palladium and 0.76 lbs Cobalt over 10 metres. The company also recently dealt an option over its Hepburn gold property near Timmins, Ontario to fellow junior Piper Capital. The project covers a 9 mile section of the Abitibi Fault and hosts boulders of carbonate rocks, some of which ran over 1 oz gold per ton. Shares in East West ended the day at 18, down 5, on a volume of 330,100.

Arctic Star Diamond continued to attract interest, gaining 3 to close at 29 on 314,000 shares. The junior’s joint venture partner Oasis Diamond Exploration recently identified metamorphosed kimberlite on the Enigma diamond property near Wawa, Ontario.

Donner Minerals ended the session flat at 39 on 311,900 shares. Falconbridge is expected to begin drilling any day now of its South Voisey Bay project in Labrador. Some 12 to 20 holes are slated to be drilled.

American Bonanza Gold Mining ended the day unchanged at 18 on 478,000 shares. The company is aiming to advance the Copperstone project in Arizona, which hosts an estimated total resource of 2.1 million tons grading 0.58 oz. gold per ton.