Trading Summary (May 08, 2001)

The Toronto Stock Exchange gained 41.6 points to close at 8,064.2 on Thursday after higher-than-expected U.S. labour costs put a scare into investors in the morning. Six of the TSE’s 14 subindexes finished in the red. The gold and base metal issues were among that number. The Gold & Precious Minerals subgroup fell 6.56 point to 4,676.61 and the Metals & Minerals subindex slipped 77.54 points to 4,640.1.

Barrick Gold was the country’s most active mining stock with nearly 2.1 million shares on the move. The issue fell 20 to $25.55. Barrick said its $950-million Pascua-Lama gold deposit in Chile has received the go-ahead from that country’s environmental authorities. At the end of 2000, Pascua-Lama hosted proven and probable reserves containing 17.5 million oz. gold and 594 million oz. silver. Construction has been deferred until gold prices improve.

Placer Dome went the other way, gaining 15 to $15.95 on 1.4 million shares. Also continuing its rise of late was TVX Gold, which gained 20, or 16.7%, to $1.40. Other gold miners making gains were Franco-Nevada Mining, up a dime to $18.20, Goldcorp, up 15 to $12.709, and Meridian Gold, up 56 to $12.23.

Teck and Cominco continued to command investors’ attentions. Teck fell 41 to $15.14 on 1.7 million shares and Cominco dropped 65 to $32.75 on 1.3 million shares. Most of the other base metal issues followed suit. Inco fell 39 to $27.40, Falconbridge dropped 33 to $17.55, Noranda shed 17 to $16.52 and Sherritt International lost 2 to $4.28.

Canada’s junior exchange ended the trading day mixed on very low volume. The Canadian Venture Exchange tacked on 16.85 points, or 0.5% to finish the day at 3,148.31. The Mining Index lost 20.29 points, or 0.3%, to close at 6,500.24.

Profit taking drove shares in New Blue Ribbon Resources lower. Stock in the junior has doubled in the past two weeks on word that the first two holes drilled on the Moose diamond project in Manitoba cut significant sulphide mineralization. A well-known US-based newsletter writer reported significant skepticism of the potential discovery. New Blue Ribbon ended the week at 34 cents, down 5 cents on over 2.5 million shares.

Despite returning consistent grades of platinum-palladium mineralization at the River Valley property in Ontario, investors sold off shares in Pacific North West Capital. The results from the last 10 of the 33 holes completed to date continue to show a broad envelope of low-grade, potentially bulk-mineable grades with narrower higher-grade zones. The Harry Barr-led junior lost 13 cents on the day to close at $1.01 on 275,500 shares.

Pacific Amber Resources got a modest boost after announcing that in view of the difficult conditions of the mineral exploration sector, the company has been reviewing opportunities in the oil & gas sector. Shares in the junior tacked on a penny at 15 cents on a heavy volume of 880,000.

Rockwell Ventures touched a new 52-week low at 30 cents, down 7 cents on 73,000 shares. The Hunter Dickinson-led junior has lost half its value since analysts returned from a tour of the Pedra Branca platinum-palladium project in Brazil.