Trading Summary (October 07, 2003)

With gold adding US$4.40 per oz. to end at US$376.90 in New York, Toronto’s gold index managed to regain another 2.71 points to reach 190.4 on Tuesday. The diversified miners outpaced the golds gaining 2.89 points, or 1.7%, to make 170.97. In the end, the S&P/TSX composite index finished 1.66 lower at 7,561.21.

South American Gold & Copper vaulted to the head of the mining class, adding 2, or nearly 30% of value, to make 9 with nearly 12 million shares traded. On Tuesday, SAG announced that a study by Pincock Allen & Holt has confirmed the economic viability of reviving the Pimenton gold-copper mine in central Chile. The report suggests the operation is capable of generating an internal rate of return as high as 117%, with a net present value (at a 10% discount) of US$15.9 million.

Bema Gold was next in line with about half as many shares making their way 23, or 7%, higher to $3.50. Zinc miner Breakwater Resources continued its climb, rising another 10, or 23%, to 54 on a handful fewer shares.

On Tuesday, Placer Dome tabled plans to sell $500 million worth of unsecured debentures to institutional buyers. Sixty-percent of the notes will not carry a convertible option and will mature in 32 years; the balance will mature in 20 years, and early takers will have the option of buying an addition $30 million worth of similar-type notes. The proceeds are earmarked for refinancing, with a portion aimed at funding budgeted capital expenditures and development costs. The issue slipped 2 pennies to $17.98.

Canada’s other major gold producers went parted company, Barrick Gold dropped 1 to $24.84 while Kinross Gold finished 37 higher at $10.07.

The newsmaker among the base metal miners was Falconbridge, which ended a dime higher at $23. On Monday, the company said it has resumed operations at its Kidd metallurgical plant in Timmins, Ont. The zinc refinery had been shutdown a month longer than expected thanks to low metal prices.

Canada’s junior exchange marched higher with investors finding a renewed appetite for gold-related issues. The S&P-TSX Venture Exchange composite index gained 10.44 points, or 0.76%, and closed at 1,393.25.

Inca Pacific Resources added half a penny on news that hole 1 into the Antoro Sur project in Central Peru returned 38.3 metres grading 1% copper and 0.33 gram gold per tonne. So far, 12 holes have been completed in a planned 19-hole, 2,000 metre program. Results for the remaining holes are pending. Inca Pacific ended the day at 15.5 on just over 4.1 million shares traded.

Alamos Gold added 17 to close at $1.95 on 109,900 shares traded. The company launched an underground drill program over its Salamandra gold property in Mexico.

Shares in Roca Mines plunged after the junior reported that the initial drill program over the BRT massive sulphide showing on the Foremore property in British Columbia failed to return any base metal values. Roca ended the day at 20, down 12 on 794,029 shares traded.