Trading Summary (August 15, 2001)

Market heavyweight Nortel Networks, which hit a new 52-week low, dragged the Toronto Stock Exchange lower on Wednesday. By day’s end, the TSE 300 composite index was off 72.82 points, closing at 7,532.7. The gold and precious minerals subindex, which gained 68.04 points, was one of just four subgroups to finish in the black. The base metal issues shed 46.25 points to hit 3,887.94.

All of the precious metals suffered losses in New York. The base metals did just the opposite on the London Metal Exchange. Nickel tacked on US$210 to hit US$5,510 per tonne.

Gold miners Kinross Gold and Barrick Gold made appearances on the most active list with 2.4 million and 1.7 million shares traded, respectively. Kinross ended the day up 3 at $1.40 and Barrick rose 44 to $25.05. TVX Gold put in the best percentage increase, rising 11, or nearly 19%, to 69. Most of the remaining gold issues followed suit. Outcasts included Franco-Nevada Mining, off a nickel at $20.35, Meridian Gold, which fell 22 to $14.60, Hope Bay Gold, a penny lower at 31, and Miramar Mining, down 5 to $$1.10.

Hope Bay and Miramar completed the sale to Sherwood Petroleum of more than 10,000 hectares on the Elu greenstone belt in Nunavut. The deal gives each company about 27% of the issued and outstanding shares of Sherwood.

Swedish-Canadian miner Boliden jumped 4, or more than 13%, to 34 to lead the base metal issues. Going the other way was Breakwater Resources, which sank 11, or nearly 16%, to hit a new 52-week low of 59. The zinc miner delayed the release of its second-quarter results for the second time and postponed a conference call with analysts at the last minute. In June, Breakwater said it was deferring the next three payments of its $31.5-million loan to conserve cash as zinc prices hit eight-year lows. The stock has plummeted 71% year to date. The company says the results will be released as soon as possible.

Others heading south included Inco, off 45 to $24.45, Falconbridge, down a nickel to $15.70, Sherritt International, a penny lower at $4.88, and Alcan, which shed $1.15 to $53.10.

Canada’s junior exchange struggled to find direction with technology issues continuing to weigh down the market. The Canadian Venture Exchange gained 9.94 points, or 0.3%, to finish the day at 3,090.56. The Mining Index followed suit, climbing 24.78 points, or 0.3%, to close at 7,489.40.

Rubicon Minerals dropped 2 to 40 on a heavy 537,000 shares. The junior recently picked up two properties adjacent to Freewest Canada Resources’ recent high-grade gold discovery in southwest New Brunswick.

Kalahari Resources failed to get a boost following an exploration update on the Back Lake diamond project in the Northwest Territories. Shares in the junior fell 1 to end the day near a 52-week low at 8 on 200,000 shares. The company holds a 26.8% stake in the property.

Shares in Leader Mining International moved back towards the higher end of its 52-week range, tacking on 2 to 92 on a volume of 196,700. The company recently announced that $25,000 has been budgeted for further exploration on its Cogburn nickel project in B.C.

Shares in Radius Exploration continued to trade in a narrow range ahead of further drill results from the Tambor gold property in Guatemala. Stock in the Simon Ridgway-led company ended the day flat at 98 on 193,085 shares.

North American Tungsten jumped 10 to 61 on 61,000 shares. The company signed a road maintenance agreement with the Yukon government supporting the reopening of the CanTung tungsten mine.