Trading Summary (January 14, 2003)

Toronto’s gold stocks suffered a second straight day of losses sliding 9.24 points or about 4.7% to 187.7 on Tuesday. The yellow metal itself lost dropped US$2.70 per oz. to US$351.70 per oz. in New York. The Diversified Metals & Miners picked up 1.32 points worth of slack to come in at 141.68 points on four days of gains. Overall, the S&P/TSX Composite Index managed to scrape together 1.1 points to hit 6,810.98 points.

Platinova resources surged on to the TSX’s most traded list jumping 3.5 or 87.5% of value to 7.5 with more than 7.6 million shares changing hands. The company said it knew of no specific reason for the increases share activity. In July, Platinova announced plans to merge with a privately held, Swedish-based exploration firm, Scandinavian Gold Prospecting. Platinova holds mining projects in Greenland and tantalum properties in Canada. SGP most advanced project is its fully owned Keivitsa base metal deposit in Finland.

A host of declining gold miners fell in line behind Platinova. The three major producers were no exception. Kinross Gold fell 24 to $3.53, Placer Dome ended 94 poorer at $17.11, and Barrick Gold shed 73 to hit $23.12.

Cambior lost 16 to $2.01. On Monday, the mid-tier producer said that during 2002, it poured 568,900 oz. of gold, down from 614,900 oz. in 2001. The company pegs production in 2003 at 522,000 oz. at a mine operating cost of US$227 per oz.

Meridian Gold finished off $1.13 at $23.16. Meridian’s 2002 gold production came to 437,000 oz. at US$87 apiece. For 2003, Meridian expects to pour 410,000 oz. at around US$100 each. Meridian expects its Esquel project in Argentine to pour its first gold in mid-2004. Permitting, a final feasibility and 12-15 months of construction are still required.

Fording‘s shares continued a nickel lower to $33.60 on about 3.5 million shares. The company’s partners in a new three-way deal all made gains. Sherritt International rose 30 to $5.10, Teck Cominco‘s B series gained half a loonie to $13, and Westshore Terminals Income Fund grabbed a dime to make $5.10.

Uranium miner Cameco grew by 27 to end at $39. Reuters reports that the Canadian Nuclear Safety Commission has approved the refueling of two Bruce Power’s nuclear reactors, paving the way for one of the reactors to restart in April. Formal approval is still required for the resumption. Late last year, Cameco joined forces with TransCanada PipeLines and BPC Generation Infrastructure Trust to sign an agreement to buy 79.8% of Bruce Power Ltd. Partnership from ailing U.K.-based nuclear utility giant British Energy, which currently holds an 82.4% interest.

Canada’s junior exchange closed the day with 57.4 million shares traded valued at $20.8 million. Advancers lost to declincers 259-to-348. The S&P-TSX Venture Exchange composite index dropped 12.07 points, or 1.08%, and closed at 1,110.57.

Masuparia Gold was the mining resource sector’s volume leader with 1.2 million shares traded. The junior released results of its 2002 exploration program at the Greywacke Lake gold property northeast of La Ronge, Saskatchewan. The average grade of ten holes drilled tallied to 0.220 oz. gold per ton over a true width of 9.13 metres. Masuparia closed flat at 10.

IBI Corp remained steady at 5 with 727,000 shares traded. The vermiculite producer recently finalized an agreement on its first five year long-term contract which will supply 2,500-to-3,000 tonnes of vermiculit from its mine in Uganda.

American Bonanza Gold Mining closed the day at 23 down a penny on 536,000 shares. The company reports that it has completed the mobilization of personnel and equipment its Copperstone gold project in Arizona in order to resume underground drifting operations. Exploration drilling on the project outlined four zones of mineralization defined as the A, B, C and D. A scoping study evaluated the underground mine development of only the C and D zones, and estimated a geological resource for these two zones of 2.0 million tons at an average uncut grade of 0.58 oz gold per ton. At the company’s Pamlico project in Nevada American Bonanza has completed its eight hole drill program. Assays are pending.

ECU Silver Mines lost 2 and closed at 11 with 535,500 shares traded. The company reports that there is no specific event that can explain the recent activity of its stock in the market. ECU has 77.2 million shares issued, and 103.3 million shares on a fully diluted basis. Mining of the first two levels of the vein La Esperanza, has been completed. If the mill grades are economic the company plans to present the next development stage to Hecla Mining for approval.