Trading Summary (June 05, 2001)

Investors on the Toronto Stock Exchange reacted negatively on Tuesday to market heavyweight Nortel Network’s re-pricing of options on some 111 million shares on Monday. After some early gains, the 300 composite index lost 42.41 points to end the day at 8,258.8.

Nortel plans to scrap and replace the options held by employees to protect them from slumping stock prices. By day’s end, just four of the TSE’s 14 subindexes finished in the black. The metals and minerals subgroup was one of those, tacking on 18.10 points to hit 4,956.28. The gold issues was not, falling 31.54 points to 4,852.37.

Sherritt International saw more than 5 million shares change hands. The issue rose 18 to $5.89, a new 52-week high. Diversified miner Teck gained 44 to hit 16.95 on nearly 3 million shares. Both issues graced the TSE’s most actively traded list. Most of the other base metal issues followed suit with modest gains. Some that didn’t included Inco, down 2 to $28.90, Boliden, off a nickel to 75, and Aur Resources, which reversed direction and fell 4 to $3.24.

Placer Dome was the busiest gold stock with just less than 1.9 million shares on the go. The issue fell 15 to $16.70. Barrick Gold fell 35 to $25.25. On the flip side, Kinross Gold climbed 4, or 3%, to $1.35. Echo Bay Mines did the same, ending at $1.37, and Wheaton River Minerals gained 2 pennies to 86.

In diamond news, Band-Ore Resources reported high diamond counts from some small (24-kg) bedrock samples from Area E on its GQ property near Wawa, Ont. The news sent the stock up 13, or more than 18%, to 85.

Tahera was unchanged at 17 on 378,200 shares. The company announced the discovery of a new kimberlite body on its Rockinghorse property, 120 km northwest of Jericho.

With the exception of the oil and gas sector, Canada’s junior exchange lost ground today on all fronts. The Canadian Venture Exchange composite index dropped 12.64 points, or 0.4%, and closed at 3,354.67. The mining index followed suit, dropping 20.78 points, or 0.3%, and closed at 7,228.19.

Hunter-Dickinson-led Anooraq Resources was the day’s leader, tacking on 4 and closing at 69 with 1.5 million shares crossing the floor. The junior will acquire a 100% interest in its Platreef PGM property in South Africa from Denver-based Pinnacle Resources in return for a 30% equity interest in Anooraq.

Pan Asia Mining remained steady at 60 with 549,000 shares traded. At last report, Pan Asia was arranging to make payments to earn its 50% interest in the 701 Diamond mine in China. The company is selling some of its shares privately to help fund the 701 mine development.

New Blue Ribbon Resources lost a penny and closed at 13 with 288,000 shares traded. The issue was hit hard last week after assay results from the first round of drilling on the Moose diamond property in Manitoba dudded. Blue Ribbon’s joint-venture partner, BHP Diamonds, tested seven magnetic anomalies on the project without hitting kimberlite.

Cantex Mine Development closed the day flat at 11 with 247,000 shares traded. The Chuck Fipke-led company recently discovered a gossan formation, 24 km north of the Suwar nickel-copper-cobalt prospect in Yemen. Assays are pending.