Trading Summary (July 15, 2002)

Another day, another long drop in the equity markets. The Toronto Stock Exchange followed most other bourses around the world downward today, with the TSX Composite index slding 142 points to close at 6,677.76, a loss of 2.1% on the day. Interestingly, apart from the sad-sack telecommunications sector, the major losers today were the “defensive” market groups like health care and consumer products. Only the real estate groups posted a net gain.

Some speculation that the Bank of Canada would crank up interest rates in the coming weeks may have contributed to the downturn, but the misery was shared around the world as U.S. and the “big three” European indexes all slumped as well.

The Toronto golds started the day in positive territory, but headed down with the broad market, losing 5.72 points to finish at 186.54. Oddly, this happened as gold bullion prices went up a further US$2.30, with the London afternoon fix at US$319.

It was Barrick Gold that pulled the index down the most, losing $1.59 to finish at $26.70. Placer Dome was weak as well, with 50 sliced off the price for a close of $16.20. For those keeping score, Placer’s bid for Aurion Gold now values that company at A$3.30 per share.

On the base metal side, the market decline was general. Noranda had the steepest loss of the day, falling 94 to $16.95, and stablemate Falconbridge was down 80 at $17.20. Inco, which was down $1.22 at $29.33, saw the heaviest trading, with 1.8 million shares changing hands.

Cameco, seemingly bottoming out after the fatal rock slide at its Kumtor gold mine in Kyrgyzstan, was off 19 at $36.80.

Two smaller companies had good days on the TSX board. Eldorado Gold was up 4 at $1.29, though there has been no recent news out of the company’s Turkish exploration projects. Pioneer Metals, which is spinning off its uranium projects in a new public company, to be called UEX Corporation, was up 2 at 11.

Canada’s junior exchange fared better than the major bourses but still ended the session deep in the red. The S&P TSX Venture Exchange composite index lost 9.31 points or 0.8%, and closed at 1,118.19.

TNR Resources topped the most actively traded chart, losing 1 to close at 15 on just over 1.6 million shares. The company is awaiting final approval for its deal over Toronto-listed NovaGold Resources’ Rock Creek gold property in Alaska. Under the terms of the agreement TNR can earn a 49.9% interest in the property by spending US$10 million over 3 years. The Rock Creek deposit lies on the Seward Peninsula near Nome.

Making a nice percentage move on news that its joint venture partner Oasis Diamond Exploration has identified metamorphosed kimberlite on the Enigma diamond property near Wawa, Ontario, Arctic Star Diamond added 5 to close at 27 on 689,800 shares. The results were based on 11 rock and three drill core samples. The report, completed by C.F. Mineral Research states: “Based on the presence of diamonds, Ti-chromites and other kimberlitic indicator minerals, the lack of lamproitic indicators and geological logging, it is concluded that the Oasis samples are metamorphosed xenolithic kimberlites and not lamproites or lamprophyres.”

American Bonanza Gold Mining ended the session flat at 19 with just over 1 million shares traded. The company is aiming to advance the Copperstone project in Arizona, which hosts an estimated total resource of 2.1 million tons grading 0.58 oz. gold per ton.

A rising gold price helped International Wayside Gold Mines close at 21, up 1 on 262,500 shares. The Frank Callaghan-led company has been drill testing the extension of the Bonanza ledge discovery near Wells, B.C.