Trading Summary (May 29, 2002)

Investors made for the exits at the Toronto Stock Exchange sending the S&P/TSX Composite Index 48.67 points lower to end at 7,611.91. Just four of the TSX’s thirteen subindices managed to finish in the black. The gold index was not one of them dropping 2.85 points or 1.2% despite a US$1.20-per-oz. gain by gold in New York. The yellow metal ended the day at US$325.10 per oz. The base metal miners didn’t fare any better dropping 0.6 of point to 145.95.

McWatters Mining was the busiest mining issue unchanged at 18 with more than 9 million shares crossing the floor. Echo Bay Mines was close behind gaining 7 to $1.97 on 8.4 million shares. Rounding out the TSX’s top ten traded list were Kinross Gold, plus 2 pennies to $$4.19, Placer Dome, off 52 to $21.21, TVI Pacific, down 2 to 15, Eldorado Gold, minus 7 to $1.47, and TVX gold, which finished unchanged at $1.84 with 4.4 million shares traded.

Canada’s remaining gold major Barrick Gold slid $1.12 to $34.30 on 3.3 million shares.

Some junior gold issues seeing activity were bema Gold, off 15 to $2.55 on 3.2 milliion shares, Iamgold gained the same ending at $8.10 on 1.6 million shares, and Geomaque Explorations dropped 1.5 to 21.5 with 2.6 million shares on the go.

Inco was the busiest major base metal miner dropping 60 to $34.05 on a volume of 1 million shares. Amid rumours of a near deal at the company’s long-stalled Voisey’s Bay nickel project in Labrador, Inco has inked a memorandum of understanding to jointly develop its nickel reserves in Southeast Sulawesi with Indonesia’s state-owned miner PT Aneka Tambang (Antam). The estimated 10 million wet tonnes of high-grade nickel ore are adjacent to Antam’s smelting facilities, but about 200 km away from Inco’s operations.

Ivanhoe Mines gained a penny to $3.68 with nearly 1.2 million shares changing hands. On Wednesday, Ivanhoe reported that the latest drill results from the Southwest Oyu discovery zone at the Turquoise Hill project in Mongolia has significantly extended gold and copper sulphide mineralization to a true vertical depth of more than 950 metres.

Canada’s junior exchange bounced back from yesterday’s lack lustre session by posting solid gians. The S&P-TSX Venture Index jumped 7.07 points, or 0.6% and closed at 1,232.38.

ECU Silver Mining topped the most actively traded chart among junior explorers, dropping 2 to close at 7 on just over 4.3 million shares. The company recently inked a deal for the use of a flotation and cyanidation mill with a 200 tonnes per day milling capacity, situated some 110-km south of its La Esperanza silver-gold project in Mexico.

American Bonanza Gold Mining managed to hold onto yesterday’s gains, ending the day flat at 22, on over 2.5 million shares. The junior holds the low-grade Copperstone gold project in Arizona.

Madison Enterprises made a big move, jumping 8 to close at 31 on just over 1 million shares. Investors bid up the stock on news that exploration on the Mt. Kare gold property in Papua New Guinea is proceeding and talks are underway to acquire a new project in Nevada.

IMA Exploration added 5 to close at 84 on 821,295 shares. The junior just closed a $750,000 financing and is planning to resume drilling on the Rio Tabaconas gold property in northern Peru.