Trading Summary (February 04, 2002)

A 4.4% gain by the gold issues wasn’t enough to counter broad losses on the Toronto Stock Exchange on Monday. The Gold & Precious Minerals subindex jumped 255.37 points to end at a new 52-week high of 6,055.09 points, spurred on by news of major hedging cuts by South African gold giant AngloGold. The technology stocks went the other way plummeting 3.8%. The base metal issues got caught in the red tide losing 67.16 points to 4,344.25 points. The Oil & Gas subindex was the only other group to post a gain, 7.63 points, on the day.

The yellow metal itself gained US$3.10 per oz. to finish at US$289.00 per oz. in New York. Silver dropped a penny to US$4.29per oz.; platinum and palladium put in modest gains. The base metals were little changed in Europe.

The country’s gold miners followed gold’s lead. TVX Gold was the most traded mining stock on the day gaining 2 to hit 94 with about 6 million shares on the move. Kinross was right behind gaining 7 to reach $1.70 on 5.9 million shares. Diamond miner Tahera remained in investors’ sights grabbing half a penny to settle at 26 on a volume of nearly 3.5 million shares.Other gold miners enjoying heightened activity on gold’s surge included: Barrick Gold, up $1.17 to $28.70; Placer Dome, 82 higher at $21; Bema Gold, up 12 to 84; Eldorado Gold, plus 9 to 71; and Franco-Nevada Mining, which added $1.39 to reach $30.41. All of the issues saw more than 1.5 million shares traded.

A raft of junior gold miners saw nice percentage gains. Aurizon Mines gained 24%, McWatters Mining 12.5%, Claude Resources 16.3%, Dayton Mining 21%, Geomaque Explorations 32%, Etruscan Resources 30%, and Chesbar Resources 53%.

The base metal miners were not as fortunate with most of the majors posting losses. Inco dropped 53 to $28.27; Falconbridge slid a nickel to $16.45; Sherritt International fell 19 to $4.26; Noranda shed a dime to $15.60; and Teck Cominco’s B series has 30 shaved off to hit $13.30. Standing out with gains were: Boliden, up 19 to $6.99; Aur Resources, 8 higher at $3.80; and Breakwater Resources, climbing 2 pennies to 29.

LionOre Mining International gained 40 or 15% to $3. On Monday, the company announced that it has cut a new zone of nickel sulphide mineralization on the Waterloo prospect, part of its Wildara joint venture with Australian-listed Dalrymple in Western Australia’s northeastern goldfields.

Canada’s junior exchange fought off some strong selling pressure to end the day in the black. The S&P-CDNX Composite Index gained 2.74 points, or 0.2% to close at 1135.30.

Shear Minerals topped the most actively traded chart among junior explorers ending the session flat at 32 on 1.75 million shares. The company announced plans for a $625,000 financing. The proceeds are earmarked for new property acquisitions and to advance the company’s diamond project in the Birch Mountain area of northern Alberta.

Seahawk Minerals got a boost on news of a $100,000 financing. Shares in the company tacked on 1 to end the day at 6 on just over a volume of just over 1 million shares. The junior has been attempting to advance the Piteiras emerald project in Minas Gerais state, Brazil.

New Blue Ribbon Resources ended the day down 1 at 9 on 776,000 shares. The company recently signed a letter of intent to acquire a 90% interest in a second Lac Joubert diamond property, which is adjacent to the Majescor – BHP joint venture property in the Otish Mountains region of north-central Quebec.

GMD Resource added 1 to 21 on 339,000 shares. The company holds a stake in the Royce group diamond claims, in the Northwest Territories. The property lies 260 km southwest of the Ekati diamond mine.