Trading Summary (November 02, 2001)

The Toronto Stock Exchange seemed to shrug off poor employment figures on Friday. After opening lower, the TSE gained steam over the day to finish at 7,024 points, 39.39 points up on Thursday’s close. Leading the charge were the Conglomerates and Gold & Precious Metals subindices, both with plus-2% gains. The Conglomerates ended the day at 12,113.28 points and the golds at 5,167.98 points. Overall, Ten of the TSE’s fourteen subgroups ended the week in the black.

Palladium ended the week on a high note in New York, gaining US$18 to hit US$330 per oz. Sister metal platinum went the other way losing US$2 to US$420 per oz. Silver shed a dime to US$4.11 per oz., as gold did the just the opposite to rise to US$279.70 per oz. The base metals were mostly lower on the London Metal Exchange. Zinc lost another US$13 to US$748 per tonne.

Teck Cominco was the nation’s most actively traded mining stock with just more than 1.1 million shares changing hands. The stock climbed 90 to $11.50. Other base metal miners on the rise were Inco, up 21 to $22.10 and Sherritt International, 3 pennies higher at $4.23. Most of the others suffered modest losses. Aur Resources continued its recent yo-yo act, losing 15 to $2.60.

Breakwater Resources slipped 1.5 or 8.8% to 15.5. On Friday, the zinc miner announced that it has failed to raise $10 million in additional financing by the end of October, as required under its banking facilities. In addition, Breakwater said it is now in default of certain financial covenants contained in the credit agreement for its banking facilities. Financial restructuring talks are underway with the company’s banking syndicate.Overall, the TSE’s Metals & Minerals subindex gained 27.41 points to reach 3,670.92 points.

Placer Dome gained 40 to $18.75 on just more than million shares, making it the most traded gold miner in Canada. Similar modest gains were seen among most of the rest of the lot. Barrick Gold rose 58 to $25.58; TVX Gold added 2 to hit 66; Franco-Nevada Mining gained 44 to $23.06; and Normandy Mining found a dime to settle at $11.15.

Making a nice percentage move was International Freegold, which soared 2 or 40% to 7. A four-hole drill program at the Union Bay project in Alaska has returned narrow zones of high-grade platinum-palladium mineralization.

In diamond news, Aber Diamond gained 51U to $17.50. Aber announced on Friday that it has arranged a US$230-million loan from a lead group of five banks to cover Aber’s share of all budgeted expenditures to complete the C$1.3-billion Diavik project, including ongoing exploration. Construction of the mine is about 60% complete and remains on budget and on schedule.

Canada’s junior exchange managed to go into the weekend on a positive note led by another strong showing in mining-related issues. The Canadian Venture Exchange gained 31.27 points, or 1.1% to finish the day at 2,997.11. The Mining Index surged 153.44 points, or 2%, to close at 7,672.30.

Starfield Resources continued to dominate the trading chart among junior explorers, adding 2 to close at 48 on 646,234 shares. The company reported that it has intercepted another high-grade platinum-palladium zone, this time in the footwall at its West zone on the Ferguson Lake project in Nunavut.

Investors sold-off shares in Muskox Minerals following news that the proposed joint venture with London-based Lonmin had been terminated. Shares in the junior ended the day down 14, at 35 on a volume of 252,100.

Rock Resources lost 1 to end the day at 1 on 333,333 shares. The cash-strapped company can earn up to a 100% interest in the Margarita property in the Oro Blanco Mountains in southern Arizona by issuing 775,000 common shares and paying $950,000 over an eight-year period. The company is attempting to raise the capital necessary to fund both the option agreement and the initial exploration work.

Oliver Gold continued to attract trading interest ending the day up 1 to 21 on 308,400 shares. The company recently proposed a merger with privately held Hasting Resources. Hastings’ principal asset is the right to acquire a 100% interest in the Ona-Puma nickel laterite property in Para, Brazil from Inco. Oliver’s annual general meeting is slated for Dec. 21.

Leader Mining International added 2 to close at $1.65 on 190,500 shares. The junior has been busy tying up ground near Hope, BC. The Harrison Lake property covers an ultramafic belt that extends over 60 km northwest from the B.C. Nickel mine, which mined and milled a reported 4.2 million tonnes grading 1.19% nickel and 0.46% copper.