Trading Summary (May 18, 2001)

A US$12.65-per-oz. rise in the price of gold in New York sent the Toronto Stock Exchange‘s gold issues soaring on Friday. The Gold and Precious Minerals subindex climbed 260.16 points, or more than 5%, eclipsing a 218.69-point gain on Wednesday, to end at 5,417.85. The base metal issues edged up 19.71 points to 5,080.01. Both subindexes advanced their recently set 52-week highs. Overall, the TSE’s 300 composite index gained a modest 41.61 points to end at 8,270.6 — nearly 300 points higher than the beginning of the week.

Not surprisingly, the country’s gold miners were well represented on the TSE’s most active list. Kinross Gold was the busiest issue with 9.3 million shares on the go. The stock gained 15, or 11.5%, to $1.45. Barrick Gold was the next miner in line, rising $1.35 to $29.20 on 4.2 million shares. Placer Dome rose 78 to $18.70, a new 52-week high, on about 3.8 million shares.

Others on the list included copper miner Aur Resources, which was unchanged at $2.92 on volume of 3.3 million shares. Diversified miner Teck rounded out the field with 3 million shares crossing the floor to add 63 and hit $16.25.

Swedish-Canadian miner Boliden plummeted 18, or more than 21%, after it announced that it will go ahead with a financial restructuring that precludes the sale of two copper projects to Falconbridge. Falco has warned Boliden not to renege on the deal and is reviewing Boliden’s decision. For its part, Falco gained a dime to $19.10.

Canada’s junior exchange posted stellar gains with a US$12 jump in the price of gold propelling the Mining Index to triple-digit gains. The Canadian Ventures Exchange gained 43.76 points, or 1.4%, to finish the week at 3,275.78. The Mining Index surged 232.17 points, or 3.4%, to close at 7,050.30.

American Bonanza Gold Mining, formerly Asia Minerals, topped the most actively traded chart, ending the day unchanged at 5 on over 3.5 million shares. The junior has been attempting to advance the Copperstone gold project in Arizona.

Shares in Tan Range Exploration climbed another 10 to 60 on 179,700 shares. The company’s stock has been running up over the past two weeks on news that drilling on the Golden Horseshoe Reef zone in Tanzania has extended the mineralization to a vertical depth of 440 metres. The project is a joint venture with Barrick Gold.

After taking a breather for the past two sessions, shares in New Blue Ribbon Resources tacked on 7 to 34 on 870,840 shares. Drill results from the Moose diamond property in Manitoba are expected shortly. The Edmonton-based junior’s stock had doubled on news that joint-venture partner BHP has hit significant sulphides on the first two holes drilled into the property.

The jump in gold saw Philex Mining tack on 24 to $1.80 on nearly 150,000 shares. The junior operates the Bulawan gold mine. Its joint-venture partner, Anglo-American, is outlining a promising copper-gold system known as Boyongan. Both projects are in the Philippines.