Trading Summary (September 08, 2003)

A 4.5% rise by the information technology subindex nearly single-handedly kept the Toronto Stock Exchange out of the red on Monday with most other subindices moving sideways. The golds slipped 0.88 of a point to 204.43 as the yellow metals shed US$2.10 to US$374.90 per oz. in New York. The base metal miners grabbed half a point to reach 153.82. Overall, the S&P/TSX composite index rose 23.51 to 7,636.01.

TVI Pacific joined Wheaton River Minerals in its usual spot atop the mining stocks. TVI surged 1.5, or nearly 18%, to a dime with more than 8.3 million shares traded. There was no immediate news out of the company. Meanwhile, sector leader Wheaton added another 3 to reach $2.72 on a volume of 9.6 million shares on recent acquisition news.

Ranking third activity-wise was junior Bema Gold, up 22, or 7%, to $3.34 with 7.3 million shares changing hands. On Monday, Bema released more high-grade drill results from the Kupol Property in Far East Russia. The Kupol mineralized epithermal vein has been traced for 3.5 km along strike; gold mineralization has been cut over 2.65 km of drilled strike length to a depth of at least 250 metres. The system remains open along strike to the north and south, and at depth.

Gabriel Resources made a penny to hit $3.30. On Monday, Gabriel announced a $45.8 million bought-deal financing co-led by Griffiths McBurney & Partners and BMO Nesbitt Burns. The underwriters will buy 15 million shares at $3.05 apiece. Proceeds will go toward the advancement of Gabriel’s mineral properties, and for general corporate purposes.

Southwestern Gold climbed another $1.05, or 7.3%, to reach $15.50. On Thursday, SWG reported some wide intervals of bonanza silver grades (plus some gold) from the first six holes on its Liam epithermal gold-silver project.

Canada’s major gold producers all suffered 14-15 losses.

Ivanhoe Mines was far and away the busiest base metal miner with about 3.3 million shares trading 48, or 7.4%, higher to $6.98, a new 52-week high. Ivanhoe recently said it would keep a majority stake in the Oyu Tolgoi copper-gold project in Mongolia, shooting down rumours it planned to sell the entire project.

Canada’s junior exchange started the trading week off by moving modestly higher despite the fact that declining stocks out paced advancing issues by a 411-to-377 margin. The S&P-TSX Venture Exchange composite index gained 3.68 points, or 0.27 and closed at 1,345.98.

Investors took a shine to Knight Resources following the initial results from the West Raglan property in northern Quebec. The 720-sq.-km project covers more than 70 km of the interpreted western extension of the favourable Raglan horizon, as well as 65 km of the western extension of the Expo-Ungava horizon, which hosts the Mesamax deposit. The best results came from the Frontier South area of the property some 7 km west of Lac Chukotat, where hole 8 cut 3.04% nickel, 1.13% copper and 0.08% cobalt over 14.8 metres from 17.2 metres downhole. Shares in the junior soared 35 to close at 83 on a volume of 3.6 million.

Donner Minerals added 7 on the news to close at 25 on over 4.5 million shares traded. The junior holds a 27% equity stake in Knight Resources.

Shares in Miranda Mining ended the day unchanged at 70 on a volume of nearly 2 million. Toronto-listed Wheaton River agreed to take over Miranda for US$38.62 million. The all-cash deal pegs the value of Miranada shares at $0.74, this marks a 49% premium over its $0.50 per share trading price before the deal was announced. Miranda’s large shareholders, who hold about 61.5% of the 71.9 million fully diluted shares, have agreed to tender their stock.