Trading Summary (February 09, 2004)

Toronto’s gold sector led a market-wide advance on Friday jumping 8.45 points, or more than 4%, to end at 214.78. The yellow metal finished US$5.20 higher at US$403.20 per oz. in New York thanks to a weaker greenback. The diversified miners chipped in a 5.94-point rise to 216.27 to help the S&P/TSX Composite Index 1% higher to 8,638.61.

Tahera grabbed top spot among the mining issue again, this time the on some news. On Friday, Tahera said that the Nunavut Impact Review Board (NIRB) recommended approval of the environmental impact statement (EIS) for its Jericho Diamond project, with some conditions, which will be released in the coming weeks. The next hurdle for Jericho is approval by the Minister of Indian and Northern Affairs. The issue advanced a nickel, or more than 9%, to a new 52-week high of 59 with about 15.4 million shares traded.

Turning back to gold, Glamis Gold said it expects to produce 265,000 oz. of gold at total cash costs of US$170-US$180 an oz., thanks to increased output from the Marigold in Nevada and the planned fourth-quarter start-up of El Sauzal mine in Mexico. In 2003, the company churned out 230,294 oz. at US$184 per oz. Glamis grabbed 77 to make $20.67.

Golden Star Resources stood out with a 10% gain to $7.86. The company recently reported record net income of US$22 million along with record gold production (174,315 oz.), revenues (US$64.4 million) and cash flow from operations (US$29.1 million) for 2003. The improvements are thanks to increased output from the Bogoso/Prestea gold mine and stronger gold prices.

Inco was the busiest base metal miner climbing $1.25 to $47.38 on 3.1 million shares. Inmet Mining added another $1.22 to reach $17.50. The company recently posted fourth-quarter net income of $127.6 million (or $3.21 per share), compared with year-ago income of $400,000 (1 a share). The increase is thanks to $110.9 million in proceeds from the successful outcome of the Troilus litigation, plus higher metal prices and the inclusion of strong earnings from Ok Tedi.

Vancouver Canada’s junior exchange bounced up with bullion as advancing stocks pummeled declining stocks 523-to-350. The S&P-TSX Venture Exchange composite index closed at 1817.73, up 41.30 points, or 2.32% with 76.8 million shares traded.

Diadem Resources closed at 13, up 1.5 with 1.31 million shares traded. The company recently inked a deal with Darnley Bay Resources for a half interest in a large diamond exploration area near Paulatuk in the Northwest Territories. Diadem agreed to expend $5.0 million on diamond exploration over the next two years for its half interest, with the right to go to a 75% interest by financing a feasibility study for a diamond mine.

Spider Resources and joint venture partner KWG Resources hold the McFauld’s Lake property in the James Bay Lowlands of northeastern Ontario. Winter drilling at the McFaulds No. 3 occurrence has intersected a 36-metre section of massive sulphide mineralization. Diagem International Resource stands to earn an 8% interest in the project by investing $2 million in the project, however, the interest can be converted at the request of either of the parties into an equity interest in Spider and KWG. Spider closed at 18 up half a penny, with 1.2 million shares traded.

ECU Silver Mining closed at 28, down 2 with 874,300 shares changing hands. The company recently announced that it has entered into a private placement financing worth $999,000. The money will be used to pay for exploration drilling at the Santa Juana mine, as well as for general production costs in Mexico.

Stornoway Diamonds finished the day up 23 to $2.80 with 844,473 shares traded. The diamond explorer has acquired over 5.8 million additional acres of federal prospecting permits and claims in eastern Nunavut, and has entered into an agreement with BHP Billiton to explore new landholdings on the Melville Peninsula.