Trading Summary (May 27, 2002)

The golds led the Toronto Stock Exchange lower to start the week dropping 7.82 points or 3.5%. The Mining index managed to grab 0.85 of a point to end at 147.11. Overall, the S&P/TSX Composite Index shed 0.72 of a point to finish at 7,667.03 in light traffic as U.S. investors enjoyed the Memorial day holiday.

Placer Dome was the nation’s busiest issue falling $1.67 or 7.6% to $20.25 on 6.2 million shares. Late on Sunday, Placer announced a hostile US$1.1-billion all-stock bid for Australia’s AurionGold. The deal would create the world’s fifth largest gold miner with annual production of more than 3.8 million oz. AurionGold’s board has advised its shareholders to take no action at this stage of the offer.

Next in line was TVI Pacific, which gained 3 pennies or 30% to make 13. The company saw just fewer than 5 million shares trade hands. The Calgary-based company has a 2.5% NSR in the Rapu Rapu massive-sulphide mine in Albay province in the Philippines. The project consists of two past-producing deposits, Ungay Malobago and Hixbar. Reserves at the former are pegged at 4.9 million tonnes grading 2.71 grams gold and 30.39 grams silver per tonne, plus 1.38% copper and 2.43% zinc.

Wheaton River Minerals added 9 to hit $1.94, anew 52-week high, on 3.6 million shares, and McWatters Mining fell a penny to 17 on 2.4 million shares.

Inco was the most active base metal miner gaining $1.17 to reach $34.99, a new 52-week high. With many market watchers believing a deal is in the offing at Inco’s long-stalled Voisey’s Bay project in Labrador, Newfoundland Mines Minister Lloyd Matthews said on Monday that the nickel giant must change its negotiating stance or “there will not be a project deal.”

Teck Cominco’s B shares were a distant second falling 30 or 2% to $$13.95 with 866,417 shares traded. Also dropping about 2% were Sherritt International, and Boliden, finishing at $4.94 and $5.85, respectively.

Noranda grabbed 30 to make $19.06 and Falconbridge found 21 to settle at $19.26. On Monday, the two announced boardroom shuffles with Derek Pannell stepping down as Falco’s chief to concentrate on his new role as Noranda’s president and CEO.

Canada’s junior exchange started the trading week off by modest gains on weak volume. The S&P-TSX Venture Index tacked on 2.11 points, or 0.2% and closed at 1,226.26.

ECU Silver Mining traded over 4 million shares for the second straight session, closing flat at 9 on 4.07 million shares. The junior recently inked a deal for the use of a flotation and cyanidation mill with a 200 tonnes per day milling capacity, situated some 110-km south of its La Esperanza silver-gold project in Mexico.

Moving higher on rumors that Inco is closer to inking a deal with the Newfoundland government over the development of the Voisey’s Bay nickel deposit, Donner Minerals added 10 to close at 65 on 724,286 shares. Late last year, Northern Abitibi, together with South Voisey Bay Nickel, Donner Minerals, Major General Resources and Pallaum Minerals entered into an option earn-in agreement with Falconbridge, whereby Falconbridge can earn a 50% interest in the entire South Voisey Bay nickel project in Labrador by spending $23 million.

Making a nice percentage move, Castle Metals added 2 to close at 5 on 810,500 shares. The company is seeking shareholder approval for a 10-to-1 roll back in its stock and a name changed to New Castle Ventures. The vote takes place at its upcoming Annual and Special Meeting, to be held on June 19.

American Bonanza Gold Mining dropped 1 to close at 17, on 855,300 shares. The junior holds the low-grade Copperstone gold project in Arizona.