Trading Summary (May 21, 2003)

The Toronto market was just on the losing side Wednesday as the TSX Composite index fell 5.71 points to 6,726.40. Most market sectors were little changed on the day, although the TSX Gold index had its second strong day in a row, jumping 3.67 points to 168.83.

The day saw Eldorado Gold rebound strongly from the previous day’s loss, which had been sparked by the company’s decision to scale back production at its Sao Bento mine in Brazil. Eldorado was the top percentage gainer on the gold board on Wednesday, adding 9 to close at $2.15 on a volume of 5.9 million shares.

Close behind was Agnico Eagle Mines, which advanced 59 to close at $15.33, and Kinross Gold, which rose 36 to $9.43. Kinross was also the most active of the seniors, with 2.5 million shares moving.

The only two golds on the index to fall back were Iamgold, which was off 9 at $7.41, and Gabriel Resources, which slipped 15 to $3.05. Gabriel announced that former chairman Frank Timis was retiring from the board of directors.

The TSX Metals and Mining index didn’t fare as well as its precious-metal cousin, falling 0.87 points to 116.41. That included slumps in Noranda, which was off 34 at $11.71, and Falconbridge, which was down 40 at $15.40.

Inco was the most actively traded of the base metal stocks, with 1.9 million shares moving, and it slid 40 to $25.15. Other nickel producers were also lower: Sherritt International fell 4 to close at $4.05 and LionOre Mining International fell 10 to close at $5.45.

On the plus side, Cameco gained 88 to finish at $38.45, and Aur Resources was 7 better at $3.37.

Canada’s junior exchange ended the session basically unchanged with gains in diamond-related issues offset by losses in technology stocks. The S&P-TSX Venture Exchange composite index dropped 0.55 of a point, and closed at 1,078.41.

Investors snapped up shares in Kensington Resources following news that joint venture partner De Beers has recovered a 10.23 carat diamond from the 140-141 kimberlite on the Fort a la Corne property in Saskatchewan. The diamond is a dodecahedral aggregate stone with two dimensions measuring 14-by-15 mm. The value of the stone remains undetermined, as is the potential impact on grade forecasts and average values for the kimberlite. Kensington, which holds a 42.25% stake in the property, ended the day up 52 to $1.25 on over 1.8 million shares traded.

Fellow Saskatchewan diamond explorer Shore Gold got a boost from Kensington’s news, soaring 19 to close at 96 on just over 1.1 million shares traded. The junior is in the midst of a bulk sampling program on its Star kimberlite property.

American Bonanza Gold Mining held onto recent gains, adding a penny to close at 30 on 1.1 million shares traded. The junior recently began exploration over the Gold Bar property in the Battle Mountain – Eureka mineral trend in central Nevada. The junior is also in the midst of underground exploration at its Copperstone gold property in Arizona.