Trading Summary (June 05, 2002)

A US$7.20-per-oz. slide by gold in New York sent the Toronto Stock Exchange’s Gold index reeling to the tune of 9.83 points or 4.3% to end at 216.64 points. The Metals & Mining index went the other way gaining 2.19 points or 1.4% to make 154.10. But, in the end, the five subindices to advance weren’t strong enough to pull the S&P/TSX Composite Index into the black. It finished off 20.09 points at 7,547.93 points.

Kinross Gold was the most active gold major dropping 24 to $3.94 on 5.5 million shares. Placer Dome fell 39 to $20.62 and Barrick Gold lost $1.01 to $32.79.

Mid-tier producer GoldCorp sagged $1.12 to hit $16.75. On Wednesday, GoldCorp announced that its options have been listed for trading on the Pacific Exchange (PCX) in San Francisco and the Montreal Exchange.

NovaGold Resources had finished 40 lower at $4.50 despite announcing continued drilling success at its Donlin Creek gold project in Alaska. The junior recently cut two new zones of mineralization on the property.A host of other gold miners sunk along with the yellow metal. Suffering better than 10% losses were Richmont Mines, off 76 to $5.69, Chesbar Resources, down 3 pennies to 23.5, Golden Star Resources, 63 lower at $2.95, St Andrew Goldfields, minus 4.5 to $30.5, and Orezone Resources, which slipped 9 to 44.

Falconbridge edged out Inco for top spot among the base metal issues. Falco gained 90 to hit $20.55 on 1.35 million shares. Inco saw a handful fewer shares cross the floor to gain 40 and reach $36.25. Also breaching the 1-million-share mark were Noranda, plus 55 to $20.12 and Sherritt International, a penny poorer at $5.25.

On Wednesday, Falco announced the completion of a public offering of US$250 million aggregate principal amount of its 7.35% 10-year notes due June 5, 2012. The proceeds will be used to repay amounts outstanding under its commercial paper program.

On the diamond watch, SouthernEra Resources shed 35 or 4.4% to $7.55. The company has secured a bought deal to raise about $36 million, which it will use to fund a US$22-million shaft deepening at its Messina PGM project in South Africa. Part of the proceeds will also be used to up its stake in the 70.4%-owned project.

A falling gold price propelled investors to take profits driving Canada’s junior exchange deep into the red. The S&P-TSX Venture Index plunged 26.33 points, or 2.1% and closed at 1,217.39.

American Bonanza Gold Mining topped the most actively traded chart, ending the session flat at 18 on 1 million shares. The junior holds the low-grade Copperstone gold project in Arizona and exploration ground in Nevada.

National Gold fell 10 to end the session at 54 on 364,560 shares. The company is currently raising $1.5 million to meet obligation payments for its Salamandra gold property in Mexico.

IMA Exploration dove 14 to close at 80 on 266,500 shares. The junior recently picked up 8,000 ha of ground just 5-km west of Barrick Gold’s latest gold find in northern Peru.

Seabridge Resources followed the other gold explorers lower. The company lost 48 on the session to close at $2.98 on 272,438 shares. Seabridge holds a number of advanced gold projects in North American and recently inked a deal to add the Tundra property in the Northwest Territories to its portfolio.