Trading Summary (March 05, 2002)

The Toronto Stock Exchange failed to extend two straight days of gains on Tuesday as the 300 Composite Index slipped 5.73 points to 7,856.1. The Pipelines subindex led the TSE eight declining subindices with a 2.6% fall. The Gold & Precious Minerals subindex fell 79.4 points to 5,760.91 and the Metals & Mineral subgroup fell 57.57 points to 4,700.13. The Bank of Canada on Tuesday left its trend-setting interest rate alone citing a more upbeat outlook for the economy.

Embattled TVX Gold dropped another 6 to 96 with just fewer than 10 million, enough to rank as the TSE’s second busiest issue. The company announced plans for up to $250 million in writedowns, the bulk on its Olympias gold project in Greece, against fourth quarter 2001 earnings. The company will also put a 10-to-1 share consolidation to a shareholder vote.

Placer Dome fell 69 to $17.35 on about 3.8 million shares to place as the only other mining issue on the TSE’s top ten traded list. Barrick Gold fell 15 to $28.15; Kinross Gold gained a penny to 95 and GoldCorp dropped 46 to $24.97.

Ivanhoe Mines grabbed 21 to make $3.36. The company announced the discovery of anew zone of copper-gold mineralization at its Turquoise Hill project in southern Mongolia. The company also extended porphyry-style gold and copper mineralization in the project’s Southwest Oyu discovery zone.

Inco was the nation’s busiest base metal miner falling 48 to $29.70 with about 1.35 million shares changing hands. Inco recently appointed Farokh S. Hakimi as executive vice-president and chief financial officer. Hakimi replaces George Halatsis, who resigned from both positions in order to work for another firm.

Canada’s junior exchange managed to hold onto its recent gains ending the day virtually unchanged on modest volume. The S&P-CDNX Composite Index gained 1.44 points, or 0.1% to close at 1,133.10.

Shares in Madison Enterprises continued to trade heavy on no new developments. The company plans to hold its Annual General Meeting on April 17. Over the past three years the company has been trying to advance the Mt. Kare gold property in Papua New Guinea. Madison ended the session flat at 13 on 1.34 million shares.

A nice percentage mover, International Kirkland Minerals added 3 to close at 23 on 802,500 shares. The junior recently closed a $100,000 financing and is in the midst of filing up to four Prospecting Licenses in Botswana, Africa. The licenses are for the exploration of base, precious, industrial metals and several rare earth elements.

Foran Mining lost 1 to close at 6 on 355,000 shares. The cash-strapped junior missed a $4 million property payment on its McIllvenna Bay project on February 28, 2002. In anticipation that the deadline would not be met, the company wrote down this asset from $12 million to a nominal value at June 30, 2001.

Sultan Minerals lost 2 to close at 24 on 273,000 shares. The junior is focussed on advaning the Gold Mountain zone on its Kena property near Nelson in southeastern BC. A 1,500-metre drill program is slated to begin shortly.