Trading Summary (October 02, 2003)

Toronto stocks tacked on another 31.75 points to end Thursday’s trading session at 7,541.42; the technology stocks led the way with a 1.7% rise to 25.31 points. The golds joined the rest of the market with modest gains, adding 0.2 of a point to make 193.85. The diversified miners fared better, rising 1.9 points to 165.90.

After announcing a deal with the world’s largest gold miner, Southwestern Resources saw its shares soar $3.30, or more than 20%, to end at a new 52-week high of $19.50. The deal allows the major to take a 50% stake in Southwestern’s Liam gold-silver project in Peru by spending US$5 million over three years. The pair will also launch a five-year, US$5-million exploration program in the Laim region. Also under the deal, Newmont will buy $6.75 million worth of Southwestern shares, which are subject to a 12-month hold period.

Canada’s most traded miner was McWatters Mining, which mercifully ended unchanged at 5.5 with more than 14 million shares changing hands. The company has suspended mining operations at its Sigma-Lamaque open-pit mine in Quebec to stop the outward flow of cash.

Shares in Thistle Mining added another 6, or 11%, to hit 61 with about 1.8 million shares traded, on no immediate news. Other gold stocks on the rise were Barrick Gold, plus 12 to $25.62, Placer Dome, a nickel higher at $18.70, Iamgold, which tacked on 14 to reach $8.84, and Eldorado Gold, plus 11 to $3.50.

Ivanhoe Mines was the nation’s busiest base metal issue, with more than 3.3 million shares finding their way 26, or 3.5%, higher to $7.75. Also on the plus side were Inco, up 47 to $38.45, rival Falconbridge, 14 higher at $22.84, Noranda plus 27 to $14.45, and zinc miner Breakwater Resources, which rose 1.5, or nearly 4%, to 39.5.

Vancouver — Canada’s junior exchange ended the trading day on an up note with advancing stocks beating declining stocks 366 to 338. The S&P-TSX Venture Exchange composite index closed up 8.32 points, or 0.60%, to 1393.04 with 58 million shares traded.

ECU Silver Mining continued to trade heavily loosing 2 and finishing the day at 12 with 2.1 million shares traded. The stock resumed trading Aug. 8 after a cease-trading order was lifted. The original vendors have challenged ECU’s ownership (through a subsidiary) of the mining properties in the Velardena area of Mexico. The dispute has resulted in a production shortfall: only 2,606 tonnes were milled between March 24 and May 4 instead of the 5,000 tonnes planned. The average grades for that period were 6.15 grams gold and 299 grams silver, with recoveries of 75% for gold and 38% for silver.

PMI Ventures jumped 5.5 and closed at 30.5 with 2.1 million shares traded. The junior released encouraging results from its second drill program on its Ashanti-2 gold project in southwestern Ghana. Highlights include; 41 metres averaging 1.15 grams gold per tonne; 18.45 metres averaging 2.42 grams gold and 12 metres averaging 3.34 grams gold.

Goldnev Resources closed at 14 up a penny on 1.05 million shares. At last report, the company was negotiating the acquisition of a mineral resource property known as the Paymaster project, located in Esmeralda County, Nevada. Goldnev intends to conduct a 10-hole drill program for precious metals and lithium upon completion of successful negotiations.