Trading Summary (January 16, 2004)

The S&P/TSX Composite Index gathered 98.32 points to end Friday’s trading session at 8,522.26. The golds and health care sectors chipped in plus-2% gains, while the tech stocks jumped more than 4.5%. The diversified miners managed to claim just short of 3 points to make 217.75.

McWatters Mining was far and away the TSX’s busiest mining stock on Friday with around 43.5 million shares plunging another 3, or 55% to 2.5. On Thursday, the company agreed to the appointment of a receiver under the Bankruptcy and Insolvency Act and plans to make a repayment proposal to its creditors. The company has 30 days to come up with a formal proposal for its creditors. Thereafter, the creditors have 21 days to decide on the proposal.

Shares in Perth, Australia-based Caldera Resources went the other way adding half a cent, or more than 3%, to make to 15.5. On Friday, Caldera said it recovered three microdiamonds from the Yilgarn Craton project, which is joint ventured with SouthernEra Resources. The stones were recovered from concentrates of two small loam samples derived from a pair of aeromagnetic anomalies in the Earaheedy Basin in Western Australia. They measure 0.2-0.3 mm in diameter. With an Aboriginal Site Clearance in hand, the pair plan a drill program to test up to fifteen targets, including the two anomalies, which have produced micro-diamonds. Caldera owns 49% of the project; SouthernEra has the balance. For their part SouthernEra shares ended 22, or 3.7%, higher at$6.16.

Yamana Resources stood out among the golds with a 30, or 10.7%, gain to $3.10. The company recently tabled a new reserve estimate for its Chapada copper-gold project in Goias State, Brazil. It also proposed its base case mine plan. Measured and indicated resources stand at 421.4 million tonnes grading 0.31% copper and 0.23 gram gold per tonne. Another 68 million tonnes of inferred material grades 0.20% copper and 0.14 gram gold. The mine plan envisages a large, shallow open-pit producing 12.7 million tonnes of ore per year to produce 2 billion lbs. copper and 1.32 million oz. gold over a 25 year period. An updated feasibility study is expected to wrap up in mid-2004. A production decision would follow with planned production in 2007.

Aur Resources was the big winner among the base metal miners tacking on 45, or more than 7%, to reach $6.65. Aur expects earnings of about US$11.3 million and cash flow from operating activities of US$61.0 million for all of 2003.

Canada’s junior exchange managed to end the week on a strong note. The S&P-TSX Venture Exchange composite index gained 21.18 points, or 1.21% and closed at 1,767.41.

China Diamond continued to recover gaining 2.5 to close at 37.5 on 2.9 million shares traded. The company, which changed its name from Pan Asia Mining, has a controlling interest in a Sino-Foreign joint venture company in the Shandong Province in the People’s Republic of China. The Joint Venture Company owns and operates the 701 Changma Diamond Mine.

Making a big percentage move, Cantex Mine Development added 4 to close at 10 on 2.2 million shares traded. The junior holds an exclusive Exploration License covering 1063 square kilometers located in the northwest part of the Republic of Yemen. The company also has a second project is in Nevada, where Cantex has a 51% interest in 10 gold exploration targets secured with 187 claims. Its third project is a 6,043 square kilometer license in western Greenland where its interest at the end of the reporting period was 10.16%.

American Bonanza Gold Mines added half a penny to close at 32.5 on 673,400 shares traded. The junior is in the midst of a underground drill program on its Copperstone gold property in Arizona.