Trading Summary (May 17, 2002)

The S&P/TSX Composite Index slipped 11.08 points to finish the week off at 7,727.03 points. The Gold Index was the cream of the crop climbing 2.6% to 202.21. The base metal miners were less fortunate falling 1.18 points to 144.13 points.

Kinross Gold was the most traded gold miner finding a nickel to reach $3.20. Other miners making waves were Eldorado Gold, up 8 $1.18, Wheaton River Minerals, plus 24 or 20% to $1.44, contract miner Dynatec, down 3 pennies to 66, Echo Bay Mines, 2 higher at $1.27, and Bema Gold, which gained another 15 or 8% to hit $2 even.

An arbitrator recently ordered Fluor Daniel Chile Ingenieria y Construccion, Fluor Daniel, and Fluor Daniel Wright to pay Bema and Kinross US$20 million for damages plus interest accumulated since July, 1999, to recover costs related to design and construction flaws at the Refugio mine in Chile.

Canada’s two other major gold producers, Barrick Gold and Placer Dome made decent gains. Barrick added $1.19 to make $33.79 and Placer grabbed 47 to reach $19.97.

Moneta Porcupine Mines lost a penny to 19.5. The company has cranked up exploration on its Golden Highway project on the Destor Porcupine fault zone in northeastern Ontario. The company is the third largest landowner in the region.

The country’s base metal miners were mostly lower across the board. Inco fell 35 to $32.60, Falconbridge slipped a dime to $19.20, Noranda shed 52 to $18.90, Teck Cominco’s B series lost a dime to $14.10, and Sherritt International dropped a nickel to $4.90.

Ivanhoe Mines gained 13 to $3.54 despite posting a loss of US$85 million for 2001. The loss comes thanks to US$59.2 million in writedowns on its iron ore assets in Australia and Norway.

On Friday, Noranda said that the underwriters for the Noranda Income Fund offering have partially exercised the over-allotment option and acquired another 2.55 million units at $10 apiece. The move drops Noranda’s stake in the Fund to 49.9% from 55%. The underwriters still have until June 3 to acquire another 825,000 units at the same price.

The S&P/TSX Venture Index climbed 14.13 points or 1.2% to end the week at 1,182.11 points. Donner Minerals was the most traded of the junior explorers jumping a nickel or 11% to 50 with 824,336 shares changing hands. Donner holds a 75% interest in SVB Nickel, which holds the South Voisey’s Bay project, 90 km south of Inco’s deposits. The project comprises 3,700 contiguous claims equivalent to about 1,000 sq. km.

Consolidated Puma Minerals rocketed 50 or 250% to 70. On Friday the company announced that its aprent company Bema Gold has entered into an agreement to earn an 80% interest in the East Pansky platinum-palladium property in the Kola peninsula of Western Russia. Bema will transfer its interest to Consolidated Puma. Bema holds a majority ownership in Puma.