Trading Summary (November 07, 2002)

Toronto’s gold stocks managed to scrape together 0.32 of a point to end just in the black at 183.36 points on Thursday, as the yellow metal reclaimed US$3.10 per oz. to make US$320.30 per oz. in New York. The Diversified Metals & Mining index led the 6 modestly advancing subindices, grabbing 1.2 points or nearly 1% to hit 124.98. In the end, the S&P/TSX Composite Index drifted 53.49 points lower to 6,384.42 points.

Placer Dome enjoyed robust activity again, but slipped 15 to $16.18 with nearly 8 million shares traded enough to make it the TSX’s second most traded issue. Canada’s remaining gold majors finished on the other side of the fence. Kinross Gold found a dime to hit $3.03; Barrick Gold rose 16 to $25.66.

Splitting the gold majors activity-wise was diamond miner Tahera, which ended unchanged at 17 with about 4 million shares changing hands. On Tuesday, Tahera said it will file a final environmental impact statement for its wholly owned Jericho diamond project in Nunavut. The statement will be filed in January, and the company expects to begin construction in 2004. Production is slated to begin in 2005, and is projected to average 375,000 carats over 8 years. Other gold issues making nice gains were: Royal Gold, plus $3.35 to $30.94; Rio Narcea Gold Mines, which added 11 to make $1.64; and Geomaque Explorations, up half a penny to 6.5.On Thursday, Denver-based gold royalty company Royal Gold posted higher third-quarter earnings of US$1.4 million (or 8 per basic share). Revenue climbed 19% to $3.4 million. Rio’s third-quarter earnings came in at US$2.4 million (or 3 per share) on US$15.5 million in revenue. Geomaque recently posted a smaller loss of $680,000 (nil per share).

Fording returned much of Wednesday’s gain, dropping 30 to $32.70 with more than 1.35 million shares on the go. The company says it will open a data room to stir up rivals to Sherritt International‘s bid. Sherritt shares were unchanged at $4.25.

Other losers were: Swedish metal group Boliden, off 35 or 12.5% to $2.45; LionOre Mining International, down 8 2 to $4.35; Aur Resources, a nickel poorer at $3; and Alcan, which shed a dime to $$45.90.

Canada’s junior exchange had another heavy trading day with 34 million shares crossing the floor. Advancers edged out decliners 272-to-270 and the Venture Exchange S&P Composite Index added 3.90 points, or 0.41% to its value and finished the day at 948.19.

American Bonanza Gold Mining was the day’s volume leader with 1.8 million shares traded. The junior closed at 16, up 3. The company has completed an option agreement on its wholly owned Gold Bar and Pamlico properties, both located in Nevada. American Nevada Gold (formerly Mask Resources) stands to earn up to a 50% interest in both the Gold Bar and Pamlico properties over a three year period, by making an initial cash payment of $107,500 and issuing 800,000 common shares of American Nevada and funding exploration expenditures of $3,600,000 over a three-year period.

International Wayside Gold Mines closed at 9, up a penny, on 645,500 shares. The company, together with Golden Cariboo Resources is acquiring the Xmas claims and the Crown Grant 17F claims, south of the Bonanza Ledge discovery on Barkerville Mountain in British Columbia. The properties are contiguous to one another and are in the Bonanza Ledge stratagraphic setting.

GGL Diamond lost 4 and closed the day at 19 with 462,000 shares crossing the floor. The company reports that the highlight of this year’s exploration program was the discovery of a cluster of three kimberlites 40 km southwest of the Ekati Diamond Mine on its 100% owned Seahorse claims in the Northwest Territories. The junior expects to continue drilling kimberlite targets for the remaining part of 2003 and explore new target areas for drilling in 2004.