Trading Summary (August 26, 2003)

Toronto’s gold index rebounded to the tune of 0.51 of a point to make 193.46 on Tuesday, but the star of the show was the financial sector, which added 1.33 points, or more than 1%, to make 121.57, as the Royal Bank, BMO and Scotiabank reported earnings. In the end, the S&P/TSX composite index managed to avoid a third day of losses by scraping together 1.67 points to hit 7,442.82.

With gold gaining US$4.40 per oz. to US$365.30 in New York, it was no surprise that a gold miner ended as the most traded mining issue. Some 3.1 million shares in Queenstake Resources found their way 11, or 16.4% of value, higher to 78, making it the most traded mining issue on the day. The junior recently acquired the Jerritt Canyon gold mine in Nevada, and beefed up its board.

Eldorado Gold was next in line gaining 3 to make $3.19. On Monday, the company announced it had closed a previously announced financing of 25 million units for gross proceeds of $77.5 million. The net proceeds will go toward construction of the Kisladag mine in Turkey.

Also on Monday, Wheaton River Minerals closed its own $100-million bought deal financing, with proceeds to be used for advancement of its mineral properties, potential acquisitions and for general corporate purposes. Wheaton’s stock gained a penny to $1.98 with just short of 1.5 million shares traded.

Sulliden Exploration regained 30 to hit $1.82, after shares plummeted 51 on Monday after the company released preliminary drill results from the Shahuindo epithermal gold-silver property in north-central Peru.

The country’s major gold producers put in modest gains, Kinross Gold was the busiest trading nearly 1.9 million shares 6 higher to $9.70.

Nickel giant Inco was the most traded base metal miner, falling 30 to $34.14 on more than 1.8 million shares. On Tuesday, Reuters reported that Inco and the United Steelworkers of America had reached a tentative agreement, paving the way to end a 13-week strike at the company’s Sudbury operations.

Canada’s junior exchange finished the day on an up tick despite the fact that advancing stocks lost to declining stocks 324 to 361. The S&P-TSX Venture Exchange composite index tacked on 3.89 points, or 0.31%, and closed at 1275.61 on a volume of 51.7 million shares.

Mosquito Consolidated Gold Mines closed at 12.5, up half a penny with 1.4 million shares traded. The company reports that it has inked a new property option agreement with International Wayside Gold Mines for a 50% interest in the Cariboo Gold Quartz mineral claims and a 100% interest in the Mosquito Mine and Island Mountain Mine mineral claims. According to the new agreement, Wayside pay Mosquito a total of $6 million in staged payments with the final $3.5 million due on December 31, 2006. Wayside is also responsible to maintain the properties in good standing and satisfy all outstanding environmental and reclamation compliance issues.

ECU silver Mining closed at 8, down a penny, with 1.2 million shares traded. The company owns the Velardena silver mine in central Mexico which has a resource of 2.4 million tonnes grading 269 grams silver and 2.80 grams gold per tonne.

Cangold lost a penny and closed at 13 with 582,500 shares traded. The junior is earning a 51% stake in the Thorn property some 130 km south east of Atlin, BC. The ongoing field program includes backhoe trenching, mapping and prospecting, to be followed by a second phase program of diamond drilling. The Thorn property is a silver and gold-rich high sulphidation epithermal target.