Trading Summary (June 17, 2002)

The Toronto Stock Exchange’s S&P/TSX Composite Index pulled out of its 10-session skid gaining 108.4 points or 1.5% to hit 7,357.42 to start the week. No thanks were due the gold issues, which suffered a bout of profit taking and slumped 9.12 points or 4.5% to 191.84. The base metal issues managed to end in the black climbing 0.65 of a point to 144.79 points.

The participants of the latest proposed three-way merger in the mining industry remained among the most traded issues. Kinross Gold fell 8 to $3.22 with about 4.7 million shares traded. TVX Gold saw 2.8 million shares cross the floor only to lose 9 to hit $1.98. The remaining member of the triad, Echo Bay Mines, dropped 16 to $1.62 on a volume of less than 1.9 million shares.

There wasn’t much to cheer about among the golds as the yellow metal shed US$1.70 per oz. to US$317.30 per oz. in the Big Apple. Most of the country’s gold diggers brought out the red pens. Barrick Gold dropped 31 to $30.55, placer Dome fell 92 to $18.68. A glimmer of light from the junior ranks included Moydow Mines International, up 12 or 15% to 90, on the back of an upbeat annual meeting last week. Also making headway was Chesbar Resources, plus 3 or 12% to $28.

Silver miner Pan American Silver fell 44 to $11.01. On Monday, Pan Am announced that its has secured a US$10-million project debt facility from International Finance Corp. The money will be used to help fund an expansion at the company’s La Colorada silver mine in Mexico.

Noranda was the most traded base metal miner dropping 9 to $19.54 on about 869,000 shares. On Monday, Noranda said it plans to issue US$300 million of senior unsecured 10-year notes under its existing base shelf prospectus. The company will apply the proceeds to outstanding debt.

On the plus side were Inco, up 26 to $33.16, Falconbridge, which grabbed a penny more to make $19.46, Sherritt International, 2 pennies higher at $5.34, and Teck Cominco’s B series, which finished 6 higher at $13.36.

The S&P TSX Venture Exchange composite index dropped 14.34 points, or 1.2%, over the trading day, and closed at 1182.19 on a volume of 27.6 million shares.

Kensington Resources jumped 21 and closed at $1.35 with 797,000 shares traded. The company recently tabled encouraging macrodiamond recovery results from the 2001 drilling evaluation program at the Fort a la Corne Diamond Project in Saskatchewan with joint venture partners De Beers and Cameco.

Starfield Resources tumbled 16 and closed at 59 with 549,000 shares traded. The company released results from its Ferguson Lake nickel copper cobalt platinum and palladium project in Nunavut. Starfield hit 13.33 grams palladium and 1.11 grams platinum in hole FL-109, 30 metres below the massive sulphide unit in the West zone.

International Wayside Gold Mines closed up a penny to 18 on 339,000 shares. The company announced that it made the final payment to obtain a 100% right, title and interest in both the surface and underground rights to Crown Grant 2F, and Crown Grant 42F, properties in the Cariboo Mining Division of B.C. The company has also paid Mosquito Consolidated Gold Mines an additional $54,302.79 required by its option deal. International Wayside is earning a 100% right, title and interest in the Cariboo Gold Quartz mine, Island Mountain mine and Mosquito Creek Gold mines properties from Mosquito.

Donner Minerals lost 7 and closed at 43 on 335,000 shares. The company recently closed a private placement worth $1,600,000. Donner issued 4,000,000 units at a price of $0.40 per unit. Each unit is comprised of one common share and one non-transferable share purchase warrant. The warrant entitles the holder to one additional common share at $0.44 until June 4, 2004. The shares and warrants are subject to a hold period expiring October 5, 2002. Of the 4,000,000 units issued 1,325,000 were flow-through units.