Trading Summary (February 01, 2002)

Gaining steam over the afternoon, the Toronto Stock Exchange finished the week off with a 42.01-point gain to end at 7,690.5 points. The golds issues were out in front with a 135.24-point or 2.4% rise to 5,799.72. The oil sector chipped in with a 1.7% gain. The Metals & Minerals subindex was one of just three of the TSE’s fourteen subindices to incur a loss dropping 3.31 points to 4,411.41.

In the big apple, gold gained US$3.70 to hit US$285.90 per oz. Gold futures prices soared as much as US$5 per oz. on Friday to touch their highest level in two weeks.

Canada’s gold miners rode the wave gold surge created. Kinross Gold continued to pique investor’s interest gaining 11 on more than 7.2 million shares, enough to rank as the country’s second most traded stock. Barrick Gold gained 23 $27.53 with about 6 million shares traded. Franco-Nevada Mining hit a 2-year high of $29.02, thanks to a gain of $1.27.

In the lower ranks nice percentage gainers included: High River Gold, which climbed 21 or 22% to $1.15; Cambior, up 16 or almost 15% to $1.24; Viceroy Resources 4 higher or 21% at 23; Hope Bay Gold gained 3 or 9% to reach 36; and Golden Star Resources soared 26 or 22% to $1.42.

On Friday, High River announced that Sprott Securities has agreed to act as lead agent for an offering of up to 11.1 million units of High River, on a best efforts basis, at a price of 90 per unit for aggregate proceeds of about $10 million. One unit comprises one High River share plus half a share purchase warrant. One warrant is exercisable to acquire one common share at $1.20 for one year. The offering is scheduled to close by Feb. 18, 2002.

Teck Cominco’s B shares were the most traded of the base metal issues. The stock gained 64 to $13.60 on the backs of just less than 900,000 shares. On Thursday, the company posted a lower fourth-quarter profit thanks to low prices for zinc and the electricity it exports from its Trail, British Columbia, smelter.

Breakwater Resources slipped 3 or 10% to 27. The cash-strapped zinc miner said on Friday it would issue five-year warrants to Dundee Bancorp to buy 15.4 million of its shares after the banking group guaranteed a $6.5 million increase to an existing term loan. The warrants are exercisable at 20per share.

Breakwater said it had previously agreed to issue Dundee with warrants to purchase up to 50 million Breakwater shares, and the remainder of the issue would take place after a rights offering, which is currently being prepared. The issue of the initial warrants will increase the interest of Dundee in Breakwater to about 38.5 percent on a partially diluted basis, the company said.

The country’s remaining base metal miners mostly traded sideways.

Canada’s junior exchange ended the trading week by posting solid gains. The S&P-CDNX Composite Index gained 14.03 points, or 1.3% to close at 1132.56.

Eurasia Gold topped the most actively traded stocks among junior explorers gaining 1 to close at 3 on nearly 1.9 million shares. The cash-strapped company has been working two small heap leach gold mines in the Republic of Kazakhstan. The Central Mukur and Myaly mining licences host 59 known zones of oxide mineralization, of which six were mined during the year 2000.

Mandalay Resources ended the day at 15, up 4 on 797,772 shares. The junior is attempting to raise $300,000 to advance its 7 mineral concessions comprising the El Puclaro copper-silver property some 45 km northeast of La Serena, Chile.

Rubicon Minerals added 4 to close at 94 on 790,522 shares. The junior recently picked up the McFinley gold project in the heart of Ontario’s prolific Red Lake gold camp.

Investor bid up shares in Valerie Gold following news that drilling is about to start on the Crystal Lake diamond property in Manitoba. The Frank Lang led company also managed to fend off a proxy fight for control on the Valerie Gold board. Stock in the junior added 18 to close at 44 on 123,703 shares.

Northern Empire Minerals ended the week at 90, up 10 on the session with 556,991 shares crossing the floor. The company acquired the 152,000 acre Peregrine diamond property in the Coronation Bay area of Nunavut.

Major General Resources recovered from yesterday’s sell-off, climbing 2 to close at 14 on 395,000 shares. The company is planning a reorganization calling for a 3-for-1 rollback and the formation of a new diamond company.