Trading Summary (February 04, 2004)

Toronto’s gold stocks got caught in the red tide on Wednesday dropping 2.4 points to 202.92; the diversified miners didn’t fare any better finishing off 1.89 points at 208.35. By day’s end, the consumer staples sector was alone in the black, up 0.36 of a point. Overall the S&P/TSX Composite Index fell 122.58 points to 8,538.12.

Tahera was the nation’s busiest mining issue with just short of 6.5 million shares finding their way a nickel, or nearly 12%, higher to 47.5. The junior diamond developer is awaiting the Nunavut Impact Review Board’s recommendations regarding its Jericho diamond mine. Federal approval of the recommendations is required before permitting and financing can begin.

Jaguar Nickel fell 16, or 11%, to $1.29 with nearly 2.1 million shares changing hands. There was no immediate news out of the company. Jaguar is in the midst of an environmental baseline study at its Sechol property in Guatemala. The study is focused on the El Inicio starter pit, and on the Cahabon and Polochic Rivers and Lake Izabal, 43 km east of the property.

Likewise, Agnico-Eagle Mines saw its shares slide 65, or 3.7%, to $16.90 after reporting that an underground explosion at its LaRonde gold-copper mine in northwestern Quebec killed one contract worker. Underground production at the mine will run at a reduced rate during the ongoing investigation.

On Wednesday, Reuters said that Falconbridge has denied reports that it would shut down its Kidd Creek copper-zinc operation, near Timmins, Ont., next month. The major did say the plant will be shut down for regular maintenance during the summer, when electricity prices are higher. The zinc refinery will close for two months between July and September. At the same time, the copper smelter will shut for 5 weeks. Falconbridge finished 95 lower at $29.65.

Teck Cominco shares rose 65 to $21 even. On Wednesday, Teck said it has postponed until Thursday its probe into the damage caused by Monday’s explosion in the furnace area at its Trail, British Columbia, lead processing facility. The accident is likely to cut into lead and precious metals production; zinc output is expected to remain unaffected. No workers were injured.

Canada’s junior exchange edged back into bear country as advancing stocks lost to declining stocks 416-to-471. The S&P-TSX Venture Exchange composite index closed at 1787.59, down 0.60 of a point, or 0.03% with 72.7 million shares traded.

JNR Resources closed up 7 to 34 with 1.13 million shares traded. The company optioned its Moore Lake and Lazy Edward Bay uranium properties in northern Saskatchewan to International Uranium (IUC). IUC can earn a 51% interest in the Moore Lake property by spending $2.2 million over the first two years and can increase its option to 75% by spending an additional $2.2 million over years three and four. In addition, IUC can earn a 75% interest in the Lazy Edward Bay project by spending $500,000 over two years.

Dumont Nickel finished the day at 46, up 3 with 1.06 million shares traded. The company is one of the largest land holders in the Attawapiskat diamond area in the James Bay Lowlands. The company also is operator of the Utah joint venture which now comprises approximately 30 contiguous sq. miles of mineral properties across the historic Clifton-GoldHill gold-silver-copper mining district.

Excellon Resources closed at 25, up half a penny with 1.02 million shares traded. The company is in the process of acquiring all of the outstanding shares of Destorbelle Mines at a price of 94 per share. The two companies currently share ownership of the Platosa/Saltillera silver project in Durango State, Mexico. Destorbelle currently has 6.4 million common shares outstanding.