Trading Summary (September 24, 2001)

The U.S. markets finally bounced on Monday and finished in positive territory after an abysmal week last week. The Dow Jones Industrial average reclaimed 4.5% to 8,603.44, the Nasdaq index rose 5.4% to 1,499.41 and the S7P 500 gained 3.8% to 1,002.72.

Technology shares, up more than 5% and banks, 4.5% higher, led the Toronto Stock Exchange to a rare positive close on Monday. By day’s end, the TSE 300 composite index was up 148.87 points or 2.3% to 6,662. Reversing its fortunes of late, the Gold & Precious Minerals subindex fell 207.93 points or nearly 4% to end at 5,193.85. The base metal issues gained 93.73 points or 2.8%.

In New York, the shinnies were lower across the board. Gold retreated US$2.10 to US$288.55 per oz., silver slipped a penny to US$4.57 per oz., platinum shed US$11 to US$467 per oz. and palladium lost US$9 to US$423 per oz. Copper was the lone base metal to advance on the London Metal Exchange adding US$9.50 to hit US$1,422 per tonne.

Placer Dome was the most active gold issue slipping 88 or more than 4% to $19.95 on a trading volume of about 3.3 million shares. Most of the others fell in line behind. Barrick Gold dropped 87 to $26.13, Kinross Gold fell 7 to $1.49, TVX Gold was off 8 to 81, Franco-Nevada Mining lost 76 to $21.01 and Goldcorp was 79 lower at $17.65.

A few of the smaller producers fared better. McWatters Mining gained 2 pennies to 18, Etruscan Resources rose 2 to 24 and Golden Star Resources added a dime to hit $1. Denver-based Golden Star recently announced that all approvals necessary to close a transaction with Barnato Exploration and commence mining at the Prestea gold mine in Ghana have been obtained. The company has a program of surveying and grade-control drilling underway. The first ore from Prestea is expected in mid-October.

The country’s base metal miners saw some modest gains. Inco found 40 to reach $20.20, Falconbridge gained a dime to $15, Noranda rose 41 to $15.05 and Alcan was $1.75 higher at $47.50. Teck Cominco climbed a quarter to $10.15.

According to Reuters, Teck Cominco said that while unionized workers at its Trail, B.C. lead smelter and zinc refinery complex are still not talking with the company, it doesn’t expect the situation to delay the facility’s planned restart. The company has received regulatory approval to resume repair work on the furnace area of the lead smelter. The work was suspended in August after about 60 contract worker were exposed to toxic thallium. The lead smelter is expected to gear back up by November 1, a month later than scheduled. Zinc processing is slated to resume full speed by Oct. 1. That side of the operation was shut down during the third quarter as the company elected to sell electricity to the United States from the complex’s hydro power plant.

Canada’s junior exchange managed a modest rally following last week’s sell-off. The Canadian Venture Exchange gained 25.62 points, or 0.9%, to finish the day at 2,787.32. The Mining Index followed suit, tacking on 40.36 points, or 0.6%, to close at 7,090.51.

Cantex Mine Development topped the most actively traded chart among junior explorers, ending the day flat at 6 on just more than 1.1 million shares. The Charles Fipke led company has been exploring its wholly owned Wadi Qutabah and Suwar massive sulphide properties, as well as the Sadah gold property, all three in Yemen.

Shares in Poplar Resources continued to trade in a narrow range, ending the day unchanged at 27 on a volume of 187,000. The company’s 65%-owned subsidiary is working the Sundsvall diamond and Bottenbacken polymetallic project, both in Sweden.

War Eagle Mining Company lost 2 to close at 10 on 174,000 shares. The company recently granted Great Western Gold a one-year extension on its option over the Candle Lake diamond property. The junior also holds an interest in the Mac tantalum project in the Yukon.

Investors appear to be holding firm ahead of initial drill results from its Union Bay platinum-palladium property in Alaska. Shares in Quaterra Resources ended the day unchanged at 23 on a volume of 191,000.