Trading Summary (July 06, 2001)

The Toronto Stock Exchange ended the holiday-shortened week on a sour note, falling 88.87 points, or more than 1%, to 7,594.1 in quiet action. Leading the slide was the tech-heavy industrial products subindex, which lost 133.48 points, or about 3.2%. By day’s end, just five of the TSE’s subgroups remained in the black. The golds and base metal issues were among that number, but just barely, edging up 4.36 points and 2.49 points, respectively.

All of the precious metals were lower in London to end the week. The opposite was true for most of the base metals on the London Metal Exchange.

Barrick Gold, which last week announced a $2.3-billion all-shares takeover of rival Homestake Mining, remained in investors’ sights, falling 3 to $22.40 on more than 2.3 million shares. Junior Gabriel Resources fell 12 to $3.55 on more than 1.5 million shares. Both issues were among the TSE’s most active. Subject to regulatory approval, Gabriel will issue 3 million shares at $3.50 apiece to raise $10.5 million in gross proceeds. The deal eliminates the need for a bridge financing with Resource Capital Fund. It lays the foundation for another financing after the completion of a feasibility study at the Rosia Montana gold project in Romania.

Other gold issues making gains were Placer Dome, up 8 to $14.85, Kinross Gold, 6 higher at $1.29, Franco-Nevada Mining, up 28 to $19.70, and Hope Bay Gold, up 3 to $38.

TVX Gold gained a penny to 75 and Aurizon was unchanged at 35. TVX has granted Aurizon a two-year extension on a $4-million payment related to its acquisition of the Casa Berardi gold property in Quebec.

Among the base metal miners, Alcan was the most active with more than 760,00 shares on the move. The issue lost 16 to $64.25. Breakwater Resources added a nickel, or 4.9%, to hit $1.07, making it one of the group’s better percentage gainers. Gains among the remaining mixed issues were more modest. Uranium producer Cameco found 65 and hit $31.90. The company has announced that it has wrapped up the sale of $50 million worth of 7% debentures.

Another gainer was diversified miner Teck, whose B series rose 15 to $13.30. Merger partner Cominco grabbed a dime to reach $29.80.

Canada’s junior exchange ended the week mixed, with gains in resource-related stocks offset by weakness in technology issues. The Canadian Venture Exchange composite index fell 7.67 points, or 0.2%, and closed the day at 3,184.40. The Mining Index surged 58.33 points, or 0.8%, and closed at 7,519.55.

Molycor Gold dropped 2 to end the day at 12 on 221,000 shares. The junior is working on the Pongo polymetallic property, some 75 km northeast of Kamloops, B.C.

Poplar Resources tacked on 2 to end the day at 18 on 273,800 shares. The company’s 65%-owned subsidiary is exploring the Bottenbacken polymetallic project in central Sweden. Poplar has signed a letter of intent to acquire 100% of the subsidiary.

Starfield Resources gained 1 to 58 on 184,400 shares. Stock in the junior has drifted lower over the past week as investors wait for new assay results from the Ferguson Lake nickel-sulphide project in Nunavut. The junior has two rigs turning. A third is slated to begin soon.

Quaterra Resources tacked on 1 to 20 on 170,000 shares. The Tom Patton-led company is gearing up to launch a drill program over the Union Bay platinum project in Alaska.

Philex Gold managed to post gains for the first time in over a week, climbing 5 to $1.25 on a moderate 51,000 shares. The company’s stock price has been on a slide since it hit a 52-week intra-day high of $2.60 just three weeks ago. The junior’s joint-venture partner, Anglo American, has three rigs turning on the Boyongan copper-gold prospect in the Philippines.