Trading Summary (September 22, 2003)

Toronto stocks were mainly weaker on Monday, as the TSX Composite index fell 35.70 points to 7,566.51. But with the day’s financial news dominated by the U.S. dollar’s weakness, the TSX Gold index shot up 4.24 points to 203.66, trailing only the real-estate group in its gain on the day.

The most active on the index was silver miner Wheaton River Minerals, which added 16 to close at $2.86 on a volume of 14.9 million shares. Another heavy trader was Kinross Gold, which was 16 better at $10.79, as 6.4 million shares changed hands.

The biggest movers were Gabriel Resources, up 30 at $3.55, and Iamgold, up 53 at $8.50.

New boys Cambior and Golden Star Resources picked a good time to be reinstated to the gold index: Cambior was up 15 at $4.18 and Golden Star up 31 at $5.99.

Agnico-Eagle Mines was the only one left behind today, falling 18 to $18.02. It announced it had closed its deal with Barrick Gold to take over the Bousquet property in northern Quebec, where Barrick finished mining last year. Barrick was up 18 to $27.07.

Off the gold index, Queenstake Resources rose 6 to 80, on a volume of 3.1 million shares. On Friday Queenstake announced a new reserve figure for its Jerritt Canyon gold mine in Nevada.

The base metal stocks headed downward on generally pessimistic economic news. The TSX Metals and Mining index was off 1.88 points, closing at 163.90. Even at that, two of the most heavily traded stocks were gainers.

Ivanhoe Mines, which rose 27 to $7.95 on a volume of 2.1 million shares, announced that drill holes on the northwestern extension of the Oyu Tolgoi deposit in central Mongolia had encountered bornite-rich mineralization with copper grades in the 3% range.

Noranda was up a nickel with nearly a million shares moving, and closed at $14.35. Speaking of nickels, stablemate Falconbridge was up 23 at $22.58 as spot nickel prices broke through US$10,300 per tonne.

Elsewhere in the nickel world, the other three nickel producers on the index each gave up a little of last week’s gains. Inco was off 57 at $37.89, Sherritt International was down 16 at $4.91, and LionOre Mining International backed up 6 to $7.17.

Off the base metals index, development-stage junior Canadian Zinc was traded heavily, rising 18 to close at 60 on a 3.4-million-share day. Last week the company announced its Prairie Creek zinc-silver project in the Northwest Territories had received permits for a metallurgical pilot plant and for an extension to the existing decline into the deposit.

Canada’s junior exchange started the trading week off by following the major bourses lower. The S&P-TSX Venture Exchange composite index lost 1.76 points, or 0.13%, and closed at 1,382.24.

ECU Silver Mining closed at 11.5, up 3 with 3.5 million shares traded. The stock resumed trading Aug. 8 after a cease-trading order was lifted. ECU’s ownership (through a subsidiary) of the mining properties in the Velardena area of Mexico has been challenged by the original vendors. The dispute has resulted in a production shortfall: only 2,606 tonnes were milled between March 24 and May 4 instead of the 5,000 tonnes planned. The average grades for that period were 6.15 grams gold and 299 grams silver, with recoveries of 75% for gold and 38% for silver.

IMA Explorations lost 20 to close at $2.30 on over 2.3 million shares traded. Canaccord Capital and First Associates Investments have agreed to purchase, on a bought-deal basis, 2 million units of the company at a price of $2.25 each. A unit holds one share and half a warrant. Each full warrant will entitle the holder to purchase one share at a price of $2.80 for a one year period. Stock in the junior has been on a tear as investors have high hopes for the yet, un-drill tested Navidad silver-copper-lead discovery in Patagonia, Argentina.

Investors sold off shares in Shear Minerals following the micro diamond results from the first eleven kimberlites discovered on the Churchill diamond project in Nunavut. Shear and partners Stornoway Ventures and BHP Billiton reported up to only 8 stones from a 157.6 kg sample. Micro diamond results for a further five kimberlite pipes discovered in the second phase of drilling are expected before the end of the year. Shear ended the day at 61, down 34 on 1.8 million shares traded.