Trading Summary (February 25, 2003)

PLEASE NOTE: Technical problems have delayed The Northern Miner daily news service. Normal service will resume on February 27.

A US$4.20-per-oz.drop in the price of gold in New York sent Toronto’s gold stocks 5.13 points lower to 172.14 on Tuesday. The yellow metal finished the day at US$351.40 per oz. The TSX’s Diversified Metals & Mining Index performed about as well dropping 1.65 points or more than 1.2% to 131.55.

Canmine Resources ranked as the most traded mining issue, and the Exchange’s second busiest, dropping half a penny to 2 on the backs of more than 5.1 million shares. On Friday, the court-appointed monitor in its bankruptcy protection case recommended that protection under the Companies’ Creditors Arrangement Act not be extended.

Placer Dome was next in line dropping a further 79 to $13.89. On Tuesday, Placer outlined plans to spend US$60 million on exploration in 2003, up from US $52 million in 2002. Some US$36 million will go to explore around existing operations, including $8 million for the newly acquired Kalgoorlie district.

Meridian Gold continued lower shedding another 79 to $19.07 on about 1.9 million shares. Meridian recently tabled higher net income of US$41.5 million and revenues of US$133.6 million for the year.

Northern Orion Explorations made a rare appearance of the TSX’s top ten traded list ending a penny poorer at 15.5. The company recently inked a binding agreement to buy BHP Billiton’s stake in the Agua Rica copper-gold-molybdenum project in Argentina and thus become its sole owner. For US$12.6 million, the junior gets 750 million tonnes of resources grading 0.99% copper-equivalent. The first instalment of US$3.6 million is due in late April; the rest, in mid-2005.

Zinc miner Breakwater Resources grabbed a penny to make 26. On Tuesday, the company announced additional results as well as an inferred mineral resource from Agnico-Eagle Mines’ drill program on Breakwater’s Lapa gold property in northwestern Quebec. Inferred resources stand at just under 3 million tonnes running 8.5 grams per tonne, based on a US$300-per-oz. gold price and a cutting factor of 50 grams gold. Agnico can take a 60% stake in the property for $3.7 million over five years.

Falconbridge dropped 9 to $17.35 after announcing that it would extend a planned two-week shutdown at its Kidd zinc refining operation to eight weeks this summer. The company said, “low revenue from treatment charges and metal premiums, high operating costs and low metal prices has made it more attractive to take an extended maintenance and summer shutdown.”

Canada’s junior exchange closed the day with advancers loosing to decliners 270 to 372. The S&P-TSX Venture Exchange composite index lost 7.22 points, or 0.65%, and closed at 1,103.26, with 54 million shares traded.

First Au Strategies closed at 14, up a penny on 3.4 million shares. The company has arranged a private placement of up to 12 million units at $0.10 per unit for gross proceeds of up to $1.2 million. The units will comprise both flow-through units and non flow-through units. The proceeds will be used for exploration and drilling on the company’s Argosy Mine property in the Red Lake District, Ontario, and the Thorn Property in northwestern British Columbia. First Au is earning a 51% interest in each of these properties.

American Bonanza Gold Mining lost 3 and closed at 28 on 1.8 million shares. The company recently completed its 1,608 ft. drill program on the Pamlico project in Nevada. Highlights include 1.62 oz. gold per ton over 3 ft and 2.79 oz. of gold per ton over 1 ft.

Northern Empire Minerals and Stornoway Ventures lost some of the gains they made in the previous week. Northern Empire’s issue dropped 15 and closed at $1.46 on 1.07 million shares. Shares of Stornoway lost 18 and closed at $1.46 on a volume of 741,000 shares. The partners have traded heavily since announcing the discovery of two diamond-bearing kimberlites on the Melville Peninsula in Nunavut. They also recently picked up more ground in the vicinity of their Aviat project located 850 km northwest of the territorial capital of Iqaluit.

Donner Minerals closed up 4 to 25 on 1.02 million shares. The company expects drilling to begin on the Stephens Lake project in Manitoba by the end of February. Drilling will be carried out on targets identified by an airborne GEOTEM survey and verified by ground magnetic and electromagnetic surveys.