Trading Summary (August 20, 2003)

Toronto’s gold stock jumped 6.54 points, or 3.4% of value, to hit 200.98 points on Wednesday. The climb was powered by the yellow metal, which added US$3.60 to close the day at US$365 per oz. in New York. Taking a co-starring role, the diversified miners tacked on 3.73 points, or 2.5%, to make 151.97, a new 52-week high. In the end, the S&P/TSX Composite index was 16.16 points higher at 7,419.07, itself just shy of a new year high.

Orezone Resources jumped to the head of the mining class volume-wise, adding 2 pennies to make 72 with more than 5.4 million shares traded on no immediate news. Bema Gold was close behind with about 4.8 million shares finding their way 2 higher to $3.01. Bema recently released encouraging drill results from its Kupol gold project in the Far East region of Russia. So far, the program has traced an epithermal vein system over a strike length of 2.8 km and to a depth of 250 metres below surface.

McWatters Mining took the bronze climbing 1.5 to 16.5 on a shade more than 4.5 million shares. McWatters’ just posted a second-quarter net loss of $3.5 million (a penny a share), compared with year net earnings of $700,000 (nil per share).

The country’s major producers fell in line behind the trio of juniors. Kinross Gold ended 41 higher at $9.98, Barrick Gold rose $1.35 to $27.70, and Placer Dome made 56 to reach $19.10.

Etruscan Resources put in a 9% gain, climbing 11 to $1.34. Etruscan and partner Semafo report that the Samira Hill Gold project in Niger is on budget and schedule for production in the third quarter of 2004.

Falconbridge outpaced its base metal counterparts with about 3.2 million shares trading a nickel higher at $20.75. Falco’s Ontario-based mining operations resumed on Monday following last week’s power blackout. The company’s Sudbury smelter lost three days of nickel matte production.

LionOre Mining International stood out retreating 6 to $6.70. The company recently posted record second-quarter profits of US$11.1 million, or $0.07 per share in the three months ended June 30, compared with a loss of US$600,000, or $0.01 per share in the corresponding period of 2002.

Canada’s junior exchange surged higher for the second straight day with advancing stocks outpacing declining issues by a 391-to-277 margin. The S&P-TSX Venture Exchange composite index gained 22.65 points, or 1.81%, and closed at 1,272.38.

Strongbow Resources was the most actively traded issue, adding 3 to close at 33 on nearly 3.7 million shares traded. The junior recently shifted exploration focus to the search for gold and diamonds in northern Canada. As part of this strategy, Strongbow acquired 247,600 acres of ground in the Coronation Gulf and 465,000 acres in the Melville Peninsula areas of Nunavut.

The latest drill results from the Golden Hills property in Mongolia sent shares of QGX higher. The junior cut up to 13.8 grams gold per tonne over 31.5 metres at the South zone within the Central Valley Zone. Stock in the company soared 51 to close at $1.76 on 941,900 shares traded.

Klondike Gold announced a gypsy swap where certain officers and shareholders have arranged a sale of 1.5 million shares at a price of 37.5 cents each. The proceeds will be used to fund the private placement of 1.5 million shares at a price of 35 cents per share. The company holds a stake in 15-sq-miles of prospective gold ground in northern Nevada. The junior ended the day at 43, down 5 on just over 1.5 million shares traded.