Trading Summary (May 07, 2001)

The Toronto Stock Exchange edged up 40.92 points, or 0.52%, to close at 8,022.6 on Monday. Leading the way was the Gold & Precious Minerals subindex, which tacked on 101.89 points, or 2.2%, to 4,683.17.

Placer Dome led the gold issues with more than 1.1 million shares on the go. The stock climbed 58 to $15.80. According to analysts, Placer is ready to buy the 50% interest (owned by Western Areas Gold Mining) in the South Deep gold mine in South Africa. Placer already owns the other 50%. The price tag is pegged at $170 million plus royalties.

Other gold issues on the rise were Barrick Gold, up 85 to $25.75, TVX Gold, up 14, or 13.2%, to $1.20, and Franco-Nevada Mining, up 20 to $18.20.

Sherritt International was one of the exchange’s most active issues with just more than 1.8 million shares changing hands. The issue gained a penny to $4.30.

The company’s sweetened offer for all of the outstanding units and debentures of the Luscar Coal Income Fund expires May 8. Sherritt and its partner, the Ontario Teachers’ Pension Plan, have offered $4 or one share of Sherritt per unit. The partners will also be redeeming Luscar’s $100-million convertible debenture issue for cash. The fund’s trustees have unanimously recommended acceptance of the offer and have said they intend to tender all of their units and debentures. For its part, the fund was down a penny to $4.01.

Other active base metal miners were Inco, Teck and Cominco. Inco slid 91 to $27.79 on 751,067 shares. Teck dropped a penny to $15.55 on 770,419 shares and Cominco shed a penny to $33.40 on 606,433 shares. These two companies have cooled in recent days, since they announced their merger proposal. Overall, the base metal issues edged up just 2.95 points to 4,717.64.

The resource sector took centre stage as Canada’s junior exchange managed to post gains despite a 1.1% drop in technology issues. The Canadian Ventures Exchange gained 4.94 points, or 0.2%, to finish the day at 3,131.46. The Mining Index surged 42.26 points, or 0.7%, to close at 6,520.53.

New Blue Ribbon Resources topped the most actively traded chart for the second straight session, gaining 6 to 39 on just over 3.8 million shares. The company recently announced that the first two holes on the Moose diamond project in Manitoba hit significant widths of sulphides.

International Annax Ventures dropped 5 to 65 286,000 shares. The junior recently announced that the first hole of this year’s drill program on the Dairi massive-sulphide project in Indonesia returned 15.4 metres averaging 17.5% zinc.

Investors continued to drive the shares of Hunter Dickinson-led Rockwell Resources lower. The company recently announced the assay results from the first 12 holes targeting the Esbarro zone on the Pedra Branca platinum-palladium property in Brazil. Rockwell ended the day down 6 to 37 on a moderate 55,000 shares.

Montello Resources continued to trade heavily on news that the company can earn a 66.6% interest in certain gas leases in eastern Tennessee. Shares in the company tacked on 3 to 14 on a volume of 391,500. The junior also holds a stake in the Legend diamond property in Alberta, where recent tests on the Kendu pipe failed to show any diamonds.

Inter-Rock Gold ended the day flat at 7 on 1.6 million shares. The junior’s U.S.-based wholly owned subsidiary posted a 10% jump in sales during the past year. MIN-AD is a producer and marketer of a specialty mineral for the U.S. livestock feed industry.