Trading Summary (June 14, 2001)

The Toronto Stock Exchange fell below the 8,000-point mark on Thursday on more profit warnings and the prospect of the death of a proposed merger between U.S. giants General Electric and Honeywell International. The TSE 300 composite index lost 92.64 points to end the day at 7,920.1. The gold & precious minerals subindex, which gained 106.76 points, or 2.2%, was one of just two of the TSE’s 14 subindexes to make gains on the day.

Kinross Gold was among the TSE’s 10 most active issues with about 3.8 million shares changing hands. The stock climbed 7, or 4.7%, to $1.55. Kinross, North America’s fifth-largest gold producer, said the New York Stock Exchange has begun a review of its shares and those of its subsidiary, Kinam Gold, to decide if they still meet the market’s listing requirements. Kinross said the review was prompted solely by the fact that its shares have been trading at less than US$1 per share. A 1999 NYSE rule prohibits this.

Other gold issues making gains were Barrick Gold, up 39 to $26.38, Placer Dome, 71 higher at $17.65, Cambior, up 12, or 15.6%, to 89 and Agnico-Eagle Mines, up 53, or 4.5%, to $13.10. Agnico-Eagle has announced plans to raise up to $108 million by offering 9 million common shares for public sale. The proceeds are earmarked for a recently announced expansion at the LaRonde gold-copper mine, near Val d’Or, Que. Most of the others saw decent gains.

Alcan, with just 864,638 shares on the move, was the country’s most active base metal issue. The stock fell $1.75 to $62. The aluminium giant recently cut production at its Kitimat smelter in B.C., due partly to low reservoir levels. The company generates its own hydroelectric power there. The biggest percentage loser in the group was Boliden, which dropped 8, or 11.8%, to 60. The company recently agreed to sell its two Chilean copper assets to Falconbridge. Most of the others saw more modest losses. Going against the stream were Inco, up 12 to $26.77, Falconbridge, a dime higher at $18.45, and Aur Resources, which gained a penny to $2.89.

Despite a rally in the resource sector, Canada’s junior exchange still lost ground. The Canadian Venture Exchange composite index lost 9.41 points, or 0.3%, to finish the day at 3330.15. The mining index tacked on 47.86 points, or 0.6%, and closed the day at 7411.48.

Transpacific Resources was the day’s volume leader with 1.6 million shares changing hands. The junior closed flat at 2. At last report, the company was set to resume its quest for a diamond deposit on its 4,000-acre property at Kirkland Lake in northern Ontario. Previously, a limited till-sampling program yielded two diamonds and a number of diamond indicator minerals.

Kensington Resources lost 4 and closed at 88 with 838,000 shares traded. The company is a joint-venture partner in the Fort la Corne Diamond Project with DeBeers Canada Exploration, Cameco and its wholly owned subsidiary, UEM. A budget of $4.79 million has been approved by the partners for this year’s exploration program.

Rhonda found a nickel and closed at 55 on 263,000 shares. The company, with joint-venture partner De Beers Canada Exploration, reports that the first three holes of a core drill program have been completed on the Knife kimberlite pipe, 270 km north of Ekati in the Northwest Territories. The pipe now has a drill-confirmed east-west dimension in the order of 230 metres. Geophysics indicate the north-south dimension is substantially greater.

Skeena Resources remained steady at 14 with 159,000 shares traded. The company is gearing up for its diamond exploration programs on the Weirdale kimberlite cluster in the Fort a la Corne district of Saskatchewan and the Elkford district of southeastern British Columbia. Skeena tacked on 2 and closed at 15.

Quatarra Resources treaded water and closed at 12 on 195,000 shares. The company has kicked off an exploration program on its Alaska platinum project in Union Bay. Field crews are starting the sampling process with the goal of delineating targets for a drill program.

Trilogy Metals closed at 16, up 2 with 134,000 shares changing hands. The company is gearing up to drill its Muskox North property in early July. The deep diamond drill hole will target both platinum group metal layers as well as nickel-copper massive-sulphide mineralization. Trilogy Metals plans to drill the deepest hole on the Muskox Intrusion since it was discovered in the 1950s.