Trading Summary (December 05, 2002)

The Toronto Stock Exchange ended 68.39 points lower at 6,541.97 on Thursday. The gold index led five advancing subindices, gaining 2.39 points to finish at 176.81, as the yellow metal tacked on US$2.30 per oz. to settle at US$324.50 per oz. in New York. The base metal miners dropped 0.6 of a point to 126.32.

Inco led the declining base metal miners. Late on Thursday, the nickel giant announced a comprehensive review of its $1.4-billion Goro nickel project in New Caledonia as estimates of the project’s capital cost could balloon by 30-45%. The review is slated for completion by mid-2003, and will not affect development of the Voisey’s Bay project. Inco shares finished off $1 lower at $32.

Rival Noranda slipped 17 to $14.27. Noranda’s CEO, Derek Pannell, met striking workers from its Horne copper smelter on Thursday and urged them to accept the company’s latest, and final, offer. The workers have been on strike for five months. They recently rejected the offer, citing concerns over seniority, health, and job security.

More bad news from marine diamond miner Namibian Minerals (Namco), which has been forced to shut down some of its South African and Namibian subsidiaries. The company has failed to round up new financing from its bankers and principal lenders. Also, the company’s shares are being reviewed by the TSX to see if they will continue to be listed for trading. Suspended during a large part of the day, the shares ended a penny higher at 10.

Eldorado Gold managed to end the day 8 or 5.1% higher at $1.65. Drilling at the Brumal project, 5 km from the Sao Bento mine, has failed to outline sufficient near surface mineralization to support a mining operation. Eldorado aims to test the deeper portion of the mineralization next year.

Canada’s junior exchange gained more ground as advancing stocks lead declining stocks 301 to 275. The Venture Exchange S&P composite index closed up 7.01 points, or 0.73%, to 965.76 on a volume of 39.1 million shares.

Rhonda Corp., tacked on 1 and closed the day at 21 with just over 1.0 million shares traded. The company announced that it proposes to raise up to $540,000 in a private placement by selling up to 3,000,000 flow through units at $0.18 per unit. Each unit will consist of one flow-through common share and one non-flow-through common share purchase warrant. Each warrant entitles the holder to purchase one common share for 24 months at $0.23 per share.

American Bonanza Gold Mining closed up 1 to 19 with 490,000 shares changing hands. The company reports that it has resumed exploration and development activities at wholly-owned Copperstone gold project in Arizona. Contractors will begin dewatering the existing underground decline shortly. Once completed, drilling, blasting and mining operations will begin, extending the decline to the bonanza grade D-Zone target area.

Pan Asia Mining closed at 10, up a penny on 448,000 shares. The company recently agreed to a private placement of up to 2 million units at a price of $0.05 per unit for a gross proceeds of $100,000. Each Unit will be comprised of one common share and one non-transferable share purchase warrant. Each warrant will entitle the holder to purchase one additional common share of the company for a period of one year at a price of $0.10 per share. A portion of the proceeds will be applied to the 701 diamond joint venture in China.