Trading Summary (April 07, 2003)

The Toronto market followed other world stock markets higher on Monday, partly on the strength of indications that the Western coalition was nearing control of Iraq. The TSX Composite index rose 39.35 points on the day to a level of 6,434.33 at the close.

Predictably enough, gold and energy stocks were almost alone in declining. The TSX Gold index slid 0.35 points to 151.93, as bullion prices fell again. Gold was almost US$4 lower in the London afternoon fix, settling at US$319.90, though it rallied in later New York trading to the US$321 range.

A few of the gold stocks actually rose, led by Agnico Eagle Mines, which was up 15 at $15.60, partly in anticipation of further exploration results from the Lapa property, near its LaRonde mine in northwestern Quebec. Barrick Gold was also better, rising 13 to $22.23.

Meridian Gold, which rose 13 to $13.63, announced it was beginning a community relations campaign at its Esquel property in Argentina, the object of its buyout of Brancote Holdings. Local opposition to the development of the project has come to the fore in recent weeks, culminating with the passage of a municipal law restricting some industrial land uses, including mining.

Most active among the golds was new index component Eldorado Gold, which fell 7 to $1.79 on a volume of just under 6.2 million shares. Eldorado has recently announced a 370-metre shaft extension project at its Sao Bento mine in Brazil.

The TSX Metals and Mining index was up 0.5 points at 122.39, with most stocks advancing. The big mover was Cameco, which fell $1.40 to $38.10 after announcing that it was experiencing a flood at its MacArthur River uranium mine in northern Saskatchewan. The company is expecting a shutdown of at least two weeks’ duration while it deals with the water problems.

Inco was the most actively traded on the index, with just under 800,000 shares moving. The nickel miner gained 58 to close at $27.75. Another big gainer was Aur Resources, which tacked on 15, a 4% gain, to close at $3.75.

Canada’s junior exchange started the trading week off in the red as investors found little reson to buy speculative stocks. The S&P-TSX Venture Exchange composite index dropped 10.04 points, or 0.95%, and closed at 1,046.69.

Spider Resources continued to be the most actively traded junior explorer, ending the day off 2 to 18 with 5.86 million shares traded. The junior and joint venture partner, over the counter-listed, KWG Resources have launched a 1,000 metre diamond drilling program on their Spider #3 base metal prospect in the James Bay Lowlands of Northern Ontario. At last report three holes were completed with assay results due any day now.

Deloro Minerals jumped to life, gaining 3 to close at 4 on just over 1.9 million shares. The junior’s principal asset is the Dingman gold property in Madoc and Marmora Townships Ontario. A 1998 study estimated an indicated mineable open-pit resource 5.6 million tonnes grading 1.05 grams gold per tonne.

Nickel explorer Canico added 35 to close at $5.55 on 484,180 shares. The junior has been busy drilling off the Unca Puma nickel deposit in Brazil.