Trading Summary (May 14, 2003)

With gold US$2.20 higher at US$352.10 per oz. in New York, Toronto’s gold stocks jumped 3.31 points or 2.1% to 162.58 on Wednesday. Just two of the TSX’s subindices managed to end in the red, the diversified miners was one of them, dropping 0.2 of a point to 118.84 points. In the end, the S&P/TSX Composite Index was 39.47 points higher at 6,742.38.

Kinross Gold ranked as the nation’s busiest miner, grabbing 37 to make $8.71 with about 5.4 million shares traded. On Monday, the world’s seventh-biggest gold miner, said it’s considering laying off 75 workers at the Lupin gold mine, 80 km south of the Arctic Circle in Nunavut. The miner posted a US$13.3-million loss in the recent quarter and says the layoffs would result in savings of US$8-10 million annually.

Canada’s remaining major gold producers also made gains. Barrick Gold rose 61 to $24.09 and Placer Dome ended 29 higher at $14.88. Late on Tuesday, the world’s second largest gold company said it had wrapped up the paperwork required for its previously announced US$500-million share-buyback program on the New York Stock Exchange. Barrick still needs to finalize documentation with the TSX. Barrick plans to buy back up to 35 million shares, or about 7% of its public float, to help prop up it share price.

Inco was the busiest base metal miner with just short of 2 million shares finding their way 38 lower to $25.80. On Tuesday, Inco said it hasn’t seen any signs of nickel inventory reductions in China. Last year, Asia accounted for 36% of Inco nickel sales, including China, which has been hit hard by the outbreak of sever acute respiratory syndrome.

LionOre Mining International added 12 or 2.1% to reach $5.77 on nearly 1.1 million shares. LionOre provides Inco with nickel in concentrate from its Emily Ann mine in Western Australia. Inco recently inked a similar deal at LionOre’s nearby Maggie Hays mine. Production at the former is slated to begin in 2004. Concentrate from the two mines will be processed at Inco’s operations in Thompson, Man.

Canada’s junior exchange managed to gain ground despite declining stocks beating advancing issues by a 330-to-289 margin. The S&P-TSX Venture Exchange composite index added 2.39 points, or 0.22%, and closed at 1,070.79.

Wolfden Resources ended the session unchanged at $1.83 on over 1.1 million shares. The junior, which holds a large land package in the Red Lake mining camp of northern Ontario, recently resumed exploration at its High Lake massive sulphide property in the Northwest Territories. Currently, the drill- indicated resource stands at 5.3 million tonnes averaging 4.05% copper, 2.36% zinc, 1.76 grams gold and 31.73 grams silver per tonne.

Shares in Spider Resources continued to drift lower on heavy volume. The junior recently reported drill results from the Spider #3 massive sulphide project in the James Bay Lowlands of Ontario. Hole 6 drilled below the previously reported massive sulphides in the first two holes intersecting 2.9% Copper and 0.45% zinc over 5.6 metres and a deeper zinc-rich section running 5.4% zinc and 0.3% copper over 9.65 metres. Holes 3 and 4 were drilled 100 metres to the northeast with hole 3 yielding 5.25% zinc and 0.58% copper over 3.95 metres. Hole 4 testing the down dip continuation of the mineralization intersecting 2.41% zinc and 0.495% copper over 8.7 metres. Spider holds a 47.66% interest in the ground with KWG Resources having the remaining 52.34%. KWG ended the day at 13, down 3 on 374,200 shares. Spider ended the day down a penny at 9 on over 1.3 million shares.

Rockwell Ventures closed at a 5, flat on the day with 586,000 shares traded. The company holds a 100% interest in the Ricardo copper property in Chile and is currently seeking a partner.