Trading Summary (May 24, 2002)

The markets had a generally poor day Friday, partly driven by pre-holiday selling on U.S. exchanges. The Toronto Stock Exchange Composite Index posted a 57.33-point loss, giving up about two-thirds of Thursday’s gains in much lighter trading. All market sectors except real estate fell back, although the base metals were close to finishing even; the TSX Mining index lost only 0.01 point to close at 146.26.

Noranda led the group downward, falling 41 to close at $18.76. Falconbridge lost 18 and finished at $19.05.

Teck Cominco was the exception, with the B-series shares up 35 or 2.5% for a closing price of $14.25 following an upgrade by investment house Goldman Sachs. It was only a “market perform” rating, but investors sometimes take what they can get.

Inco was up 7, closing at $33.82, on news that the Labrador Inuit Association (LIA) has reached an impact and benefit agreement with the company for the development of the Voisey’s Bay nickel deposit. The LIA joins the Innu Nation, which reached a similar agreement on Wednesday. Both communities vote on the proposed agreement in June.

Moving higher without any news was LionOre Mining, which added 10 to finish at $4.25. LionOre recently signed deals with Anglo American, to take over Anglo’s interest in Botswanan nickel miner Tati Nickel, and with BHP Billiton subsidiary QNI for an option to take over the Maggie Hays nickel project in Western Australia. It has an active drill program at its Waterloo nickel project, also in Western Australia.

Profit takers were out in the gold market. The TSX Gold index gave up a little of the recent gains, falling 2.76 points to 225.51. Meridian Gold was the big mover, taking a 91 hit to close at $27.80. Kinross Gold continues to be heavily traded, with 7.2 million shares crossing the counter today; it was down 11 at $4.12.

Active trading continued in some of the off-index golds, including McWatters Mining (down 2 to 18), TVX Gold (up 4 to $1.80), and Echo Bay Mines (up 11 at $1.67). Two off-index golds had solid gains: Miramar Mining was up 13 at $2.01 on positive news from its Hope Bay exploration project in Nunavut, and Wheaton River Mining, reinventing itself as a silver producer, added 23 to $1.85.

Canada’s junior exchange ended the week by posting solid gains. The S&P-TSX Venture Index gained 3.73 points, or 0.3% and closed at 1,224.15.

ECU Silver Mining topped the most actively traded chart, gaining 2 to close at 9 on 4.17 million shares. The junior recently inked a deal for the use of a flotation and cyanidation mill with a 200 tonnes per day milling capacity, situated some 110-km south of its La Esperanza silver-gold project in Mexico.

Donner Minerals added 9 to close at 55 on 2.8 million shares. Late last year, Northern Abitibi, together with South Voisey Bay Nickel, Donner Minerals, Major General Resources and Pallaum Minerals entered into an option earn-in agreement with Falconbridge, whereby Falconbridge can earn a 50% interest in the entire South Voisey Bay nickel project in Labrador by spending $23 million.

Kalahari Resources continued t move higher on news that it has six gold properties drill ready in Ontario and Quebec. Shares in the junior added 3 to close at 15 on a volume of 2.5 million.

Caussa Capital soared 2 to close at 3 on nearly 1.3 million shares. The company recently secured an option to earn a 100% interest in the Churchill gold property in Ontario. The Churchill property is located in the Shining Tree area and includes two new gold occurrences discovered by local prospectors last year.

American Bonanza Gold Mining ended the session flat at 18, on just over 1 million shares. The junior holds the low-grade Copperstone gold project in Arizona.