Trading Summary (July 30, 2003)

A US$4.90-per-oz. tumble by gold to US$356.50 in New York sent Toronto’s gold stocks down another 1.51 points to 176.83 on Tuesday. The diversified miners chipped in a loss of 0.94 of a point to help the Composite Index 22.36 points lower at 7,204.99.

South American Gold and Copper made a rare appearance as the nation’s busiest mining stock with nearly 7.6 million shares traded. There was no immediate news out of the company. SAG is working to resume production at its Pimenton gold-copper mine in central Chile. Mineralization at Pimenton is characterized by high-grade, narrow quartz-sulphide veins. The issue ended unchanged at 5.

Ivanhoe Mines was next with about 5.6 million shares gaining 18 to hit $4.18. On Tuesday, Ivanhoe said an independent assessment indicates that large aquifers near its Turquoise Hill project in Mongolia will support the processing requirements of a planned a 100,000-tonne-per-day operation.

Dynatec finished unchanged at 71 on 4.4 million shares after reporting a second-quarter net loss of $300,000, compared with a year-ago net loss of $1.2 million.

Placer Dome fell 35 to $17.10 on about 34 million shares. On Tuesday, Placer posted second-quarter earnings of US$66 million (or 16 per share), including a US$16 million derivative gain and US$39 million tax benefit.

The remaining gold majors went separate ways. Barrick Gold dropped 44 to $23.85 while Kinross Gold finished 24 higher at $9.24. On Wednesday, Agnico-Eagle Mines inked a deal to acquire Barrick’s Bousquet mine, immediately to the southwest of its LaRonde mine in northwestern Qubec. The price tag comes in at $5 million in cash and $2 million in shares. Agnico-Eagle also assumes reclamation obligations, excluding certain employment-related liabilities. Barrick retains a 2% net smelter return royalty. Agnico also posted a second-quarter net loss of $3.8 million, compared with year-ago net earnings of $3.4 million.

Noranda dropped another 13 to $12.78 with about 3.6 million shares crossing the floor. The company recently announced a 40% cut to its 20-per-share dividend, part of a larger recapitalization plan. Also under the plan, the company said it plans on issuing at least 40 million shares at $12.65 apiece by Aug. 18.

Canada’s junior exchange made yet another new yearly high as investors found an appetite for biotechnolgy-related issues. The S&P-TSX Venture Exchange composite index added 3.36 points, or 0.28%, and closed at 1,193.45.

Shares in Far West Mining gave back a small portion of yesterdays 75 gain, losing 3 to close at $1.47 on a volume of 415,405. Stock in the junior soared following the release of drill results from the Candalaria iron oxide copper gold project in northern Chile. The best results came from the first hole, which tested the 4c3 target and returned 2.47% copper and 0.33 gram gold per tonne over 60 metres from 28 metres downhole.

The falling price of bullion impacted shares of American Bonanza Gold Mines. The company is currently drilling the Copperstone gold project in Arizona and the Gold Bar property in Nevada. Shares in the junior lost 2 to 28 on a volume of 877,500.

Alamos Gold gained a nickel to close at $1.30 on 366,366 shares traded. The junior is looking to advance the large Salamandra gold property in Mexico.to 51% from 25.5% to 51%.