Trading Summary (May 22, 2002)

With the notable exception of precious metals stocks, trading was rather depressed today, as almost 50 points were shaved off the S&P/TSX composite index, leaving it with a finish of 7,638.38.

Gold led the precious metals in a rally not seen in some time, rising to a London morning fix of US$318.25. Silver edged ahead to US$4.82 per oz.; platinum to US$541 per oz.; and palladium to US$364 per oz.

In step with the yellow metal, the gold index tacked on 1.63 points to end the day at 220.81.

Once again, Kinross Gold was the most active among Canada’s major producers, rising 6 to $4.06 on a volume of 12.6 million shares. Barrick Gold dropped 22 to $34.68 and Placer Dome climbed 45 to $21.26.

Among the mid-tier producers, Meridian Gold retreated 44 to $27.46, Goldcorp sagged 34 to $16.55, and Agnico-Eagle Mines jumped 23 to $25.60. Rumours were swirling (again) about a deal between Inco and the Newfoundland government that would allow construction to start on the stalled Voisey’s Bay nickel project in Labrador. Both parties are still tight-lipped, which, given their volubility at times when no progress was being made, could be a sign of something brewing.

Inco, which rose 50 to close at $32.90, was the subject of a more substantial rumour than the Voisey’s noise: Japanese industrial conglomerate Sumitomo told financial newspaper Nihon Keizai Shimbun that it was in talks to take up a 25% interest in Inco’s Goro nickel laterite project in New Caledonia.

Presumably, that interest would include the 15% held by French state agency Bureau de recherches geologiques et minieres, which has been looking to turn its minority share into cash.

Canada’s junior exchange posted solid gains, with investors snapping up shares in gold-related issues. The S&P-TSX Venture Composite Index surged 13.59 points, or 1.1% and closed at 1,216.00.

Topping the most actively traded chart, National Gold added 5 to 52 on just over 1.2 million shares. The Albert Matter-led company has joint venture partner Alamos Minerals drilling the large Salamandra gold project in Mexico. Alamos ended the session up 1 to 65 on 214,753 shares.

IMA Explorations gained 10 to close at 71 on just over 1 million shares. The junior recently closed a $775,000 financing and has been gearing up to resume drilling on the Rio Tabaconas gold property in northern Peru.

Candente Resource hit a new 52-week high of 60, up 5 on the day with volume hitting 781,944. The company has been busy acquiring gold properties in the Botwood Basin area of central Newfoundland. The junior recently picked up 10 more properties in the area, which is considered prospective for hosting "Carlin-style" gold mineralization.

Joining the gold parade, Madison Enterprises added 1 to close at 21 on 456,200 shares. The junior has resumed work on the Mt. Kare gold property in Papua New Guinea.

Philex Gold moved higher, gaining 23 to close at $1.80 on 130,750 shares. The junior recently announced that its joint venture partner Anglo American cut 366 metres grading 21.7% copper and 4.5 grams gold at the Boyongan prospect in the Philippines.

Nevada Pacific Gold tacked on 5 to close at 70 on 381,500 shares. Newmont Mining has launched a fourth round of drilling over the junior’s Limousine Butte gold project located on the Carlin Trend in Nevada