Trading Summary (May 15, 2003)

Toronto’s gold stocks slipped 0.35 of a point to 162.23 as the yellow metal flat-lined at US$352.10 per oz. in New York on Thursday. The base metal miners managed to pull out of their mini-slide to gain 0.21 of a point to 119.05. Overall, the TSX’s composite index gained 16.05 points to 6,758.43.

Junior Tahera was the most traded mining issue on the day, falling 1.5 to 12 with nearly 10.8 million shares changing hands. Tahera recently posted a first-quarter loss of $529,000 (2 per share), compared with a year-ago loss of $558,000 (nil per share).

Northgate Exploration was next in line with a 7 fall to $1.32 on about 3 million shares. The company recently announced a first-quarter loss of US$4.4 million (or 2 per share) on revenue of US$26.4 million, compared with US$3.5 million (16 a share) on US$25.5 million a year ago.

Canada’s major gold producers went their separate ways. On the plus side was Barrick Gold, which ended 18 higher at $24.27. On Thursday, New Orleans-based bullion dealer Blanchard & Co. said it plans to beef up its anti-trust suit against Barrick with information regarding “previously undisclosed information about J.P. Morgan’s ownership interest in Barrick and Morgan’s monopoly position in the U.S. market for gold derivative contracts.”

On the minus side were Placer Dome, off 4 at $14.84 and Kinross Gold, 3 lighter at $8.68. Most of the other gold issues performed about as well.

Inco remained at the head of the base metal class, gaining a dime to $25.90 on nearly 1.1 million shares. Ivanhoe Mines made just a penny to hit $3.18 after announcing it has inked a deal with Inner Mongolia Huayu Geology and Minerals Exploration Co., to explore, mine and process gold, copper, silver and other metals and minerals in China’s Autonomous Region of Inner Mongolia. Under the deal, Ivanhoe would have the right to earn an 80% interest in exploration and mining licences over 400 sq. km of Inner Mongolia.

Western Silver (formerly Western Copper) dropped a nickel to $3.40 even after announcing the discovery of a new polymetallic zone on its wholly owned Penasquito property in Zacatecas state, Mexico.

Canada’s junior exchange ended the session virtually unchanged despite moderate buying of select base metal explorers. The S&P-TSX Venture Exchange composite index gained 0.88 of a point and closed at 1,071.67.

Sherwood Mining tacked on 1 to close at 7 on 768,000 shares traded. The junior is exploring for massive sulphide deposits on its Elu belt project in Nunavut. So far, the company has completed ground geophysics, limited diamond drilling, geological mapping.

Donner Minerals added 1 to close at 18 on 403,000 shares traded. A 2,200 line km MegaTEM geophysical survey has begun on the eastern half of the South Voisey Bay nickel sulphide project. Toronto-listed Falconbridge is carrying out the 2003 program. The major can earn a 50% interest in the project by spending $23 million on exploration over a five-year period. Falconbridge had spent approximately $2.3 million by the end of 2002 and is required to spend an additional $1.7 million in 2003 to maintain its option.

There are four ownership blocks in the project: Donner’s wholly- owned SVBN property; the Donner/Northern Abitibi joint venture property; the Donner/Commander joint venture property; and the SVBN/Palladium Minerals joint venture property.

Shares in Spider Resources continued to trade at a hectic pace. The junior recently reported drill results from the Spider #3 massive sulphide project in the James Bay Lowlands of Ontario. Hole 6 drilled below the previously reported massive sulphides in the first two holes intersecting 2.9% Copper and 0.45% zinc over 5.6 metres and a deeper zinc-rich section running 5.4% zinc and 0.3% copper over 9.65 metres. Holes 3 and 4 were drilled 100 metres to the northeast with hole 3 yielding 5.25% zinc and 0.58% copper over 3.95 metres. Hole 4 testing the down dip continuation of the mineralization intersecting 2.41% zinc and 0.495% copper over 8.7 metres. Spider ended the day flat at 9 on over 1.1 million shares.