Trading Summary (July 08, 2003)

The Toronto Stock Exchange’s gold index dove 2.59 points to 168.41, as the yellow metal shed US$3.90 to US$344 per oz. in New York on Tuesday. The diversified miners managed to scrape together 0.9 of a point to hit 130.13. Overall, the S&P/TSX Composite Index ended 17.08 points higher at 7,085.51.

Junior Thistle Mining made a surprise appearance as the nation’s most traded mining stock, finishing a penny cheaper at 51 with nearly 3.6 million shares on the go. Thistle plans to issue US$24 million worth of 10% convertible loan notes, which have been conditionally placed by Canaccord Capital. The loan mature in July 2008 and are convertible, at the holder’s option, into Thistle shares at 65 apiece. Proceeds will be used to pay down existing bank debt and complete a feasibility study of the Masbate gold project in the Philippines.

Placer Dome finished well of the pace despite launching a friendly, US$255-million bid on for Aussie-based East African Gold Mines, which owns the North Mara open-pit gold mine in northern Tanzania that was commissioned in September. The mine is expected to produce around 220,000 oz. a year at a total cost of US$252 each. At the end of 2002, reserves were pegged at 24.6 million tonnes grading 3.7 grams per tonne. The issue ended 41 lower at $16.19 with about 1.4 million share traded.

Fellow major gold producer Barrick Gold dropped 20 to $23.70 on more than 2.9 million shares after announcing management changes at it troubled Bulyanhulu mine also in Tanzania. Rene Marion, previously the company’s head of business evaluation and development, will now manage the company’s sole African producer.

Kinross Gold rounded out the majors with a 7 drop to $8.84 with just more than 1.1 million shares changing hands.

Alcan, fresh off its E3.4 billion offer for French rival Pechiney, climbed $1.13 to $42.69 on a trading volume of about 2.9 million shares to leave the rest of the base metal miners in the dust.

In the junior ranks, Ivanhoe Mines tacked on a penny to make $3.31 on more than 1.3 million shares. On Tuesday, the company tabled very high-grade copper and gold intersections from the recent drilling along the northern projection of the Far North zone in Mongolia’s South Gobi region.