Trading Summary (December 18, 2002)

Toronto stocks dropped another 60.59 points to 6,560.93 on Wednesday, their second straight day of losses. The only glimmer on the Toronto Stock Exchange was provided by the Gold Index, which rebounded to the tune of 5.36 points of 2.8% to make 198.78. Gold itself enjoyed a US$4.60-per-oz. climb to US$341.80 per oz. in New York. The Diversified Metals & Mining Index joined just three other advancing subindices, gaining 0.45 of a point to hit 127.49.

Barrick Gold was the lone major producer to put in a loss, falling 20 to $24.45 with around 5.5 million shares crossing the floor. New Orleans-based gold and coin dealer, Blanchard & Co., has filed an anti-trust lawsuit alleging gold price fixing against Barrick Gold and J.P Morgan Chase. Blanchard is looking end trading agreements between the two, and other bullion banks. It is also looking to recoup losses its clients suffered thanks to the alleged price manipulation. Blanchard claims that J.P Morgan financed Barrick’s repeated short selling.

Kinross Gold surged 37 or more than 11% to make $3.62 on more than 9.35 million shares. Placer Dome rounded out the major producers with a 56 gain to $17.65.

Cambior rose a nickel to end at $2.30 with about 1.25 million shares on the go. The government of Suriname has granted Cambior a 25-year renewable exploitation licence, and construction and development permits for its Rosebel gold project. Cambior still needs to secure political risk insurance before a 12-month construction phase can begin. Commercial production is slated for the beginning of 2004.

McWatters Mining jumped 2 pennies or nearly 11% to 20.5. McWatters traded with almost 8 million, enough for a rare appearance on the TSX’s top ten traded list. The company recently bust results from a feasibility study of its East Amphi gold project, near Val d’Or, Que. The study indicated a pre-tax internal rate of return of 43.6% for the $13.5-miillion, stand-alone project. On Wednesday, McWatters tabled some encouraging drill results form an underground drilling program at its nearby Kiena gold mine, which has been idle since September.

Pan American Silver and Corner Bay Silver headed in opposite directions. Pan Am finished 34 higher at $10.80, while Corner Bay slipped 2 to $3.60. The two have extended the closing of their merger until Feb. 28. The combination is hung up as Corner Bay negotiates for water rights for the Alamo Dorado silver-gold project in Mexico. Mexico’s Federal water governing body has to rubber stamp a letter of intent spelling out the transfer of water rights from an individual agricultural unit to Corner Bay. A Hydraulic Committee is slated to meet before year-end.

Fording was the most traded of the diversified miners. The coal miner added 9 to reach $33.30 on more than 1.1 million shares. Sherritt International and the Ontario Teachers’ Pension Plan have mailed out dissident proxy packages to Fording shareholders looking to stop Fording’s plan to join forces with Teck Cominco and Westshore Terminal Income Fund and convert into an income trust. Fording is urging shareholders not to tender their proxy votes. A special shareholders’ meeting to vote on the conversion has been delayed until Jan. 3. Sherritt slipped 3 to $4.15.

For their parts, Teck’s B series came in 2 higher at $11.55; Westshore units did the same finishing at $4.75.

Tiomin Resources rose a penny and a half to 28.5. Tiomin was finally granted a 16-year Special Mining Lease for its embattled Kwale titanium-sands project, southwest of Mombasa, Kenya. After years of study, the lease, which can be extended for 10 years, still needs to go through a 90-day period of public scrutiny before being formalized.

Gold explorers helped Canada’s junior exchange end the day firmly in the black. The S&P-TSX Venture Exchange composite index added 6.26 points, or 0.62% and closed at 1,008.96.

Pan Asia Mining continued to trade heavily on news that WSAS Capital Limited agreed to loan Pan Asia US$1.5 million to complete the purchase of a 50% interest in the Mengyin VVS1 Diamond Co, which owns the Changma diamond mine in China. Shares in the junior lost 3 to close at 14 on a volume of nearly 1.8 million.

TNR Resources added 1 to close at 20 on over 1 million shares. The junior reported new results from the ongoing exploration program with Toronto-listed NovaGold Resources at the Rock Creek gold deposit in Nome, Alaska. Drill results include up to 18.89 grams gold over 2 metres at the Albion zone.

Making a nice percentage gain Radius Exploration jumped 9 to close at 46 on 591,500 shares. Driving the stock was drill results from the Holly gold property in eastern Guatemala. Hole 4 cut 6 metres grading 43.56 grams gold and 1,617 grams silver.

American Bonanza Gold Mining rode a rising gold price by adding 2 to close at 22 on just over 1 million shares. The junior is aiming to advance the Copperstone gold project in Arizona.