Trading Summary (June 26, 2003)

Toronto’s gold stocks managed to tack on 0.4 of a point to end at 164.59 on Thursday, despite a US$5.30-per-oz. slide by gold in New York. The yellow metal came to rest at US$343.60 per oz. its lowest level in about 2 months. The base metal crowd edged 0.27 of a point higher to 128.54. By day’s end, the S&P/TSX Composite was 20.78 points higher at 6,991.4.

Canada’s gold stocks were split on the day. Among the majors, Placer Dome gained 29 to $15.90 and Barrick Gold made 15 to reach $23.80, while Kinross Gold dropped 17 to $8.85.

Wheaton River Minerals remained the most active goldie, with more than 2.1 million shares trading their way 2 pennies lower to $1.62. The company recently boosted its stake in the Bajo de la Alumbrera gold-copper mine in Argentina to 37.5% by picking up half of BHP Billiton’s quarter-stake for US$90 million. Northern Orion grabbed the other half at the same price. For their part, Northern Orion shares made a nickel to end at $1.38.

In the junior ranks, Etruscan Resources climbed a nickel, or 6.4%, to 83. The company reports that reconnaissance drilling on the Finkolo permit in Mali has cut a new gold zone along the contact of a large intrusive porphyry. The holes were highlighted by 14.3 grams gold per tonne over 3 metres and 1.6 grams over 23 metres.

Alcan gained 85 to make $42.40 with nearly 1.1 million shares traded, more than doubling the volume of its nearest competitor, Inco, which gained half a buck to $28.30.

Noranda fell 11 to $12.88 in thin trading, as the company announced it would sell its remaining 12 million priority units of Noranda Income Fund at $9.85 apiece, to a syndicate of underwriters led by CIBC World Markets. and Scotia Capital. Proceeds will go to repay debt. The company will retain a quarter-stake in the fund via its holding of ordinary units, each of which it can exchange for one priority unit, but only upon some undisclosed events. The fund was originally created to acquire Noranda’s CEZinc processing facility and related assets in Salaberry-de-Valleyfield, Que.

Canada’s junior exchange managed to end the day in positive territory despite another nose dive in the bullion price. Advancing stocks lost to declining stocks, 288 to 303. The S&P-TSX Venture Exchange composite index closed up 1.49 points, or 0.14% higher and closed at 1,106.60 with 43.4 million shares traded.

Argent Resources closed the day up a penny to 17, on 1.7 million shares. The company has kicked off an exploration program at its Iron Lake project, situated in the Cariboo region of B.C. Argent has an option to earn up to a 70% interest in the Iron Lake copper, gold PGM property from Eastfield Resources.

Noront Resources closed at 16.5 , down 8.5 with 531,822 shares traded. The company has been advised by its joint venture partner Alto Ventures that Fury Explorations has completed a 4 hole 864 meter drill program on the company’s 50% owned Windfall Lake property located in Urban Township, Quebec. Fury has entered into an agreement with Alto whereby Fury may acquire up to a 75% interest in Alto’s 50% interest in this project. Highlights of the recent drilling include 22.85 metres averaging 10.25 grams gold per tonne in hole Fur-3. This included a 3.2-metre section that averaged 64.69 grams gold and a 1-metre interval that averaged 204.77 grams gold.

Diamond explorer Shear Minerals ended the day at $1.31, up 5 on 401,550 shares. Shares in the junior have been quite volatile over the recent couple of weeks following news that new kimberlites had been discovered at the Churchill diamond project north of Rankin Inlet in eastern Nunavut.

Fellow diamond explorer, Diamonds North Resources tacked on 9 and closed the day at 84, with 334,446 shares traded. The junior inked a deal with Toronto listed Teck Cominco. The major agreed to pick up 909,091 units in the junior at a price of $1.10 each. A unit holds one share and one-half warrant. A full warrant allows Teck Cominco to buy another share for $1.10 within a one-year period. Along with the $1 million financing, the companies will jointly fund a $3 million exploration program on Diamonds North’s Blue Ice property. In return, Teck Cominco will have the right to earn an initial 30% interest in the project by exercising the warrants for a price of $500,000 and by spending $9.5 million over 3 years. Teck Cominco can then elect to up its interest to 50% by spending another $5 million over 1 year. The major can boost its stake to 65% by completing a bankable feasibility study within the next three years and add another 5% by arranging project financing.