Trading Summary (July 12, 2002)

A drop in U.S. consumer sentiment pushed Toronto stocks to their lowest level in more than nine months. Despite a small rally in Heathcare related issues the TSX fell for the fifth straight session on Friday with the S&P/TSX Composite Index loosing 43.57 points or 0.63% finishing the day at 6819.76. The gold index edged its way up adding 0.26 of a point, or 0.63%, to close at 192.26.

Kinross Gold was the day’s resource leader with 3.6 million shares changing hands. Four of the recent S&P500 Index rejects remained among the TSX’s most traded issues. Aluminum giant, Alcan, lost 72 and closed at $49.85 on 2.48 million shares. Placer Dome tacked on a dime and closed at $16.70 on 2.2 million shares. Barrick Gold lost $0.36 and closed at $28.29 on a volume of 1.8 million shares. Nickel giant, Inco, lost 85 and closed at $30.55 on 2.0 million shares

Bema Gold found a penny and closed at $2.07 on 1.2 million shares traded. The company has arranged a brokered flow-through private placement with Canaccord Capital, Haywood Securities, Sprott Securities and Dundee Securities. Bema will issue 1,304,348 flow through shares at $2.30 for gross proceeds of $3 million. Proceeds from this financing will be used for exploration at the high-grade Monument Bay gold property in northeastern Manitoba.

The S&P TSX Venture Exchange composite index finished the day down 3.99 points or 0.35%, and closed at 1,127.50 with a volume of 25.4 million shares.

American Bonanza Gold Mining continues to be the junior market’s darling. The company lost a penny and closed at 19 with 761,185 shares traded. The junior miner lost 2 and closed at 19. The company has $2 million set aside for advancing the Copperstone project in Arizona, which hosts an estimated total resource of 2.1 million tons grading 0.58 oz. gold per ton.

Diagem International Resource was active on the junior exchange but remained flat at 24 by the end of the day with 519,000 shares changing hands. The company recently announced that it recovered 112 diamonds from surface gravels and kimberlitic material located on its 1000 property in Brazil. Thirty-five diamonds, including one stone weighing 4.2 carats, were recovered from a 25 cubic meter sample from surface gravels immediately overlying the ARP-1 kimberlite. The 1000 property is held 51% by Diagem and 49% by its partner Juina Mining.

Donner Minerals traded 519,000 shares and remained steady at 39. The Harvey Keats-led company is gearing up for a 3,500-metre, 12-20 shallow hole, drill program on the South Voisey Bay project in Labrador. Initial drilling will focus on electromagnetic anomalies outlined by the 2001 UTEM survey.

Spider Resources stayed at 6 on 404,500 shares. Spider and partner KWG Resources hold the Wawa and Spider #1 diamond properties in Northern Ontario. They are also involved in a multi-year joint venture with De Beers Canada Exploration on the Spider #3 area, also in northern Ontario.

International Wayside Gold Mines lost 2 and closed at 19 with 296,000 shares traded. The company holds properties in central British Columbia. The Cariboo gold project includes the Cariboo Quartz, Island Mountain and Mosquito Gold Mines. In early spring of 2000 the Wayside discovered the Bonanza Ledge zone and is currently exploring the zone to define its parameters.

Solitaire Minerals added 3 to its value and closed at 17 on 270,500 shares. The company has entered into an option agreement with King’s Bay Gold to acquire up to a 50% interest in the Headway gold project situated in the Balmer and Dome townships approximately 1,200 metres southwest, and directly adjacent, to Goldcorp’s Red Lake Mine in Ontario.