Trading Summary (February 04, 2003)

Toronto’s Gold Index left the other subindices in the dust on Tuesday soaring 8.01 points or 4.15% to 200.98 points. The rise was powered by the yellow metal, which ended the day US$8.10 higher at US$378.50 per oz. The diversified miners weren’t able to tag along dropping 4.06 points or more than 3%. Overall, the S&P/TSX Composite Index shed 48.94 points to end at 6,544.74.

Not surprisingly, gold miners dominated the TSX’s most active list; Wheaton River Minerals was the cream of the crop adding 4 to make $1.45 with just fewer than 15 million shares changing hands. Wheaton recently tabled plans to privately place US$150 million worth of shares and warrants to help cover the cost of buying the Peak gold mine in Australia and a quarter-interest in the Bajo de la Alumbrera mine in Argentina. The junior miner must pay Rio Tinto US$140 million before the titles are transferred and another US$70 million over the following two years. The deal is slated to close later this month.

Thistle Mining jumped 21 or about 33% to 85 with more than 8.3 million shares on the go. The company has so far sunk 4,800 metres of reverse-circulation drilling with the goal of restating reserves at the Masbate gold project in the Philippines. So far, gold contained in the Colorado and Montana deposits has been boosted by 10%. Drilling has also turned up at least one new ore zone within the Colorado area. Thistle plans another 5,400 metres of reverse circulation drilling and 1,500 metres of diamond drilling in the Holy Moses – Basalt and Main Vein deposits during the first quarter of 2003.

Most of the remaining gold issues put in gains. The three merger amigos led the way with Kinross Gold and TVX Gold climbing more than 14%. Kinross ended $1.49 higher at $12, and TVX grew by $3.25 to $25.80. The third member of the triad, Echo Bay Mines trailed a bit adding 21 to reach $2.05.

Canada’s remaining major gold producers followed suit with Placer Dome ending 82 higher at $25.57, and Barrick Gold tacking on 66 to make $17.75.

Inco was the most traded base metal miner tumbling $2.50 or about 7.5% to $30.65 on just under 3 million shares. Late on Tuesday, Inco posted a fourth-quarter net loss of US$1 million (or a nickel a share), compared with a year-ago net loss of US$5 million & per share). The latest fourth-quarter numbers include a non-cash charge of US$26 million relating to the review of the Goro project in the French overseas territory of New Caledonia.

Zinc miner Breakwater Resources stood out from the crowd with a 3 or 14.3% gain to 24. Breakwater and partner Agnico-Eagle Mines recently cut extensions to a gold zone Breakwater drilled in 1999 on its the Lapa property in Quebec. All four holes intersected mineralized zones with some visible gold, ranging from 4.9 to 10.4 metres in core length, and 3.2 metres to 4.9 metres in true thickness. Uncut grades ran from 5.8 to 20.6 grams per tonne; cutting back to 34.3 grams per tonne (1 oz. per ton) brought the highest grade down to 12.3 grams per tonne. A resource estimate at Lapa will be released with Agnico’s its year-end results. For their part, Agnico shares were 47 higher at $22.75.

Canada’s junior exchange made it two plus days in a row, helped by a surging gold price. The S&P-TSX Venture Exchange composite index gained 12.11 points, or 1.07% and closed at 1,130.07.

Investors took profits in yesterday’s big winners. Northern Empire Minerals dropped 25 to close at 85 on 3.2 million shares and partner Stornoway Ventures fell 14 to close at 92 on 2.8 million shares. News that diamonds have been recovered from two kimberlite showings on the partners Melville Peninsula project in Nunavut sent shares soaring. Located 850 km northwest of the territorial capital of Iqaluit, the Aviat project host at least two diamond-bearing kimberlites; the AV-1 kimberlite occurrence covers an 8-by-40 metre outcrop, where an 186.1 kg samples yielded 228 diamonds, with the largest stones measuring 2.2-by-1.86-by-1.32 mm, the second find comprises a series of angular boulders up to 50 cm in diameter. A 46-kg sample collected from the boulders yielded 92 diamonds with the largest stone measuring 1.02-by-0.62-by-0.52 mm.

Moving to yet another new 52-week high, American Bonanza Gold Mining ended the session at 37, up 2 on just over 2.45 million shares. Toronto-listed Gold Corp has taken a 10.4% stake in the junior by being the largest buyer of an 18.3 million unit private placement priced at 22 each. A unit holds one share and one half a warrant, which is exercisable at 28 for a year.

Investors continued to bid up shares in Radius Explorations. The Simon Rdigway-led junior hit a new 52-week high, gaining 10 to close at $1.22 on 529,400 shares. The junior holds a large land package in Guatemala.

National Gold added 3 to close at 47 on 854,500 shares. The junior is in the midst of merger with Alamos Minerals.