Trading Summary (May 31, 2002)

The S&P/TSX Composite Index rebounded to the tune of 75.57 points or 1% to end the week at 7,656.13 points. Save for the tech stocks, the Toronto Stock Exchange’s thirteen subindices saw across-the-board gains. The gold index grabbed 2.18 points or a shade less than 1% to make 221.95. The base metal miners rose 2.43 points or 1.7% to 148.04 points.

Bema Gold was Canada’s most traded mining issue climbing a dime to $2.32 on more than 6.8 million shares. On Friday, Bema announced the closing of a bought deal involving about 16.7 million shares at $1.50 apiece for gross proceeds of $25 million. An over allotment option of $10 million was fully subscribed. Proceeds will go toward drilling at the company’s Julietta mine in Russia.

Next in line was Placer Dome, which lost the same to $$20.89. Placer’s bid for Aurion Gold is facing some resistance as the Aussie miner says the market calls for a sweeter deal. Aurion’s managing director Terry Burgess has recommended that shareholders take no action on the offer. A formal recommendation is expected sometime next month.

Rounding out the top ten list were Kinross Gold, plus 7 to $3.97, TVX Gold, a penny higher at $1.62, Barrick Gold, which fell 18 to $33.32, and Eldorado Gold, a penny poorer at $1.40.

Alcan was the busiest base metals major edging up 40 to $58.87 on a handful more than 1 million shares. Also on the plus side were Inco, up 46 to $34.75, Falconbridge, plus 74 to $19.75, Teck Cominco’s B series, 52 higher at $14.27, and Cameco, 85 to the good at $42.10.

A hearing to decide whether or not a $750-million environmental class action lawsuit brought by residents of Port Colborne against Inco will be held next week in Toronto. The residents claim exposure to carcinogenic nickel oxides from Inco’s refinery in the city. The province of Ontario, the Niagara regional government and the city of Port Colborne are also named as defendants.

One of the TSX’s best percentage gainers on the day was Channel Resources, which jumped 3 or 27% to 14. On Thursday, Channel and partner Solomon Resources granted Orezone Resources an exclusive 60-day option to acquire up to a 70% stake in the Bombore permit in Burkina Faso, West Africa, plus Channel’s Barbados-based subsidiary. To acquire its stake Orezone is responsible for a cash payment of $40,000, issuing 150,000 shares plus $2.0 million in expenditures. Ore can boost its stake to 70% by completing a bankable feasibility study.

Canada’s junior exchange ended the trading week in fine form, as junior explorers continue to attract investor interest. The S&P-TSX Venture Index gained 9.92 points, or 0.8% and closed at 1,237.51.

ECU Silver Mining continued to dominant the most actively traded chart, climbing 2 to close at 10 on just over 1.9 million shares. The company holds the Esperanza silver-gold property in Mexico.

Masuparia Gold added 2 to close the week at 17 on 1.45 million shares. The junior is currently working the Greywacke project north of La Ronge, Saskatchewan and in tandem with Golden Band Resources and Viceroy Gold is looking at acquiring the nearby Jolu Mill.

International Coromandel Resources ended the week up 1 at 13 on just over 1 million shares. In February, the junior entered into an agreement with Toronto-listed Campbell Resources to purchase all of the issued shares of Recursos Escondidos, S.A. de C.V. for the sum of US$1.00, 50,000 shares and US$0.10 per ton of ore mined to a maximum of US$2 million. The company’s main asset is the Roca Roja property in Sonora, Mexico which is adjacent to its Santa Gertrudis property.

American Bonanza Gold Mining lost 2 to close at 16, on nearly 1.5 million shares. The junior holds the low-grade Copperstone gold project in Arizona.