Trading Summary (April 28, 2004)

The Toronto Stock Exchange plummeted 248.65 points, or nearly 3%, to 8,286.37 on Wednesday, thanks to a double whammy of falling metal prices and an accounting scandal at market heavyweight Nortel Networks. The TSX’s gold stocks stumbled to the tune of 12.78 points, or 6.5%, to 183.84 points as the yellow metal backtracked US$12.90 to US$385.50 per oz. in New York. The diversified miners didn’t fare any better dropping 12.57 points, or 6.1%, to 194.31 points as base metal prices slipped on fears over China’s efforts to cool off its economy.

No great surprise, Canada’s major gold producers took it on the chin, Kinross Gold was the worst off falling 66, or 8.1%, to $7.50, Placer Dome lost $1.18, or 5.8%, to $19.07, and Barrick Gold retreated $1.28, or 4.7%, to $26.00.

The picture was even more grim a few rungs down the ladder, Miramar Mining plummeted 31, or 15.3%, to $1.72, and Minefinders shed $1.67, or nearly 16%, to hit $ 8.85. Vancouver-based Minefinders plans to release an updated resource calculation for the Dolores gold-silver property in Mexico’s Chihuahua state as part of a final mine plan and feasibility study, scheduled for completion later this year.

Those losses were outpaced by that of gold explorer Pacific Rim Mining, which finished 23, or 18%, lower at $1.05. Pac Rim recently resumed drilling on the La Calera gold project in El Salvador. The company plans a 30-hole reverse-circulation drilling program to test targets recently identified via ground magnetic surveying.

Hardest hit on the diversified metals & mining index was Noranda, off $2.11, or nearly 10%, at $19.25. Noranda recently posted a first-quarter profit of US$153 million on the back of higher metal prices. Inco was the busiest with more than 3 million shares finding their way $2.38, or 5.6%, lower to $40.18.

There were a few glimmers of light on the day, Mazarin tacked on half a cent, or 15.5%, to make 4.5; Zaruma Resources grabbed 3 pennies, or 12%, to 28; and Exall Resources rose 3.5, or 10.5%, to 37. On Tuesday, Zaruma posted a net loss of US$2 million during 2003, compared with a year-ago loss of US$1.2 million, prior to a restructuring gain of $1.1 million. The company’s administrative costs fell almost 30% to US$524,000 Cash on hand at year-end was US$844,000.

On Monday, Exall, and Vancouver-listed partner Southern Star Resources reported more encouraging results from the Western Discovery zone on the Gold Eagle Mine property in Red Lake, Ont. The zone measures at least 225 metres by 190 metres, and remains open in all directions and at depth.