Trading Summary (January 28, 2002)

The Toronto Stock Exchange saw early gains erased to end Monday’s traded session at 7,643.7 points, off 15.59 points from Friday’s close. The golds, conglomerates and consumer products all put in plus-1% losses to lead the slide. The merchandising sector went the other way gaining 1% to 6,599.19. The base metal issues shed 10.57 points to end at 4,384.8.

TVX Gold, with just more than 1.4 million shares on the go ranked as Canada’s most traded mining stock. The issues dropped a penny to 83. Nickel miner Inco fell a penny too as about 1.3 million shares crossed the floor.

Most of the country’s gold miners suffered modest losses on the day. Barrick Gold shed 50 to $26.75; Placer Dome fell 34 to $18.95; and Franco-Nevada Mining ended a dime lower at $26.65, after hitting a new 52-week high during the day. Franco’s shareholders will vote on the company’s proposed merger with Newmont Mining on Wednesday.

Also hitting a new year-high was Aber Diamond, which gained 79 to reach $23.09. On Monday, the company announced that it and partner London-based Rio Tinto are more than halfway through construction of their $1.3-billion Diavik diamond mine in the Lac de Gras region, 300 km northeast of Yellowknife. Production is slated for the first half of 2003.

The country’s remaining base metal miners were a quiet bunch. Alcan fell 37 to $60.98 on about 670,000 shares; Teck Cominco’s B series fell 27 to $13.35 on 535,000 shares; and Noranda gained 18 to $15.84 with 405,000 shares traded.

Falconbridge rose 30 to $16.75. On Monday, the company said it had, as planned, restarted its Falcondo ferronickel mine and refining complex in the Dominican Republic after a three-month shutdown that began in October. It should take 2 to 3 weeks for the operation to hit full steam. High energy prices forced the shutdown, which shrank the operation’s 2001 to 21,000 tonnes from the expected 29,000 tonnes.

Canada’s junior exchange started the trading week by continuing its march forward. The S&P-CDNX Composite Index gained 7.05 points, or 0.6% to close at 1117.44.

International Chalice Resources doubled in value to 6 on over 1.5 million shares. No new news was announced but late last year the junior’s joint venture partner in Chile, Samex Mining cut two narrow zones of anomalous polymetallic mineralization at the Core zone of the Eskapa property. Hole 11 intersected two intervals (444.90 to 447.00 and 456.85 to 457.10 metres) of sulfide-veinleted vuggy silica rock containing anomalous gold, copper, silver, bismuth, and antimony.

Homer Gold Mines added 4 to close at 24 on 1.16 million shares. The company is mainly focused on advancing the Loma Hierro Silver project in Cuba. An independent feasibility study has been complete and currently, a joint venture operating agreement is being finalized with its Cuban partner. The junior also holds the Timmins gold project in Ontario, where drilling has outlined a mineral resource estimated at 2.14 million tons averaging 0.23 oz. gold per ton.

Shares in Starfield Resources continued to move higher, adding 14 to close at $1.07 on a volume of 579,450. The company is gearing up to resume drilling on its Ferguson Lake nickel-copper-platinum-palladium property in Nunavut.

IMA Exploration added 1 to 50 on 333,500 shares. The junior recently announced a $1-million financing to resume drilling the Rio Tabaconas gold project In Peru.