Trading Summary (October 15, 2002)

Toronto’s gold index, suffering from a US$5.10-per-oz. drop by gold to US$312.40 per oz. in New York, dropped 3.74 points or 2.2% to 164.08 on Tuesday. In the end the golds were the only index in the red. The base metal miners went the other way gaining 5.26 points or 4.8% to 115.33 to rank among the leading subindices. Overall, the S&P/TSX Composite Index regained 240.78 points or more than 4% to make 6,219.44.

Placer Dome made news over the weekend, finally wearing down Aussie gold miner AurionGold. It took nine bid extensions, but with a rival bid nowhere to be found, AurionGold is finally recommending that its shareholder’s accept Placer’s offer of 17.5 of its own shares plus $28 in cash for every 100 AurionGold shares. Placer’s shares ended 45 lower at $13.30 with about 2.8 million shares on the go.

Barrick Gold was the nation’s most traded gold miner, dropping 43 to $22.47 on about 4.5 million shares. Barrick will present its third-quarter results on Oct.24. The company recently lowered its previous guidance for third-quarter and full-year results.

Canada’s remaining gold major, Kinross Gold shed 17 to $2.79 with around 1.7 million shares traded.

Most of the others sang a common refrain. Exceptions were: Glamis Gold, up 15 to $12.25; Richmont Mines, up 6 to $4.65; Golden Star Resources, plus 4 to $1.92; and Greystar Resources, which tacked on 14 to make $1.19.

The picture was brighter among the base metal miners with most posting gains. Alcan saw the most action, advancing $3.36 or more than 8% to $43.98. Work ultimately aimed at nearly doubling production at the 243,000-tonne, low-cost Aluminerie Alouette smelter in Sept-Iles, Que., has begun. Alcan recently doubled its stake in the smelter to 40%. The aluminum giant is set to report third-quarter earnings results on Wednesday.

Aur Resources put in an even better percentage gain, grabbing 40 or more than 16% to hit $2.85. Aur recently agreed to sell its 49% stake in the Turgeon polymetallic project in Quebec, to Cancor Mines in return for 100,000 shares plus a 2% net smelter return royalty. For their part, Cancor shares were off 2 or 10% at 18.

LionOre Mining International tacked on 15 to make $3.60. The company’s Aussie nickel subsidiary recently gave the nod to the parent’s A85-per-share cash offer for the 20% stake it doesn’t already own.

Rivals Inco and Falconbridge both saw more than a million shares cross the floor. Inco ended $2 higher at $28.75, while Noranda put in a $1.09 gain to settle at $15.20.

Canada’s junior exchange started the holiday shortened trading week off by moving lower. The S&P TSX Venture Exchange composite index dropped 3.58 points, or 0.4% and closed at 902.68.

Despite reporting the the first hole into its Del Norte property in the Eskay creek region of northern British Columbia cut 31.1 metres grading 0.1 oz gold and 4.32 oz silver per ton, investors sold off shares in Teuton Resources. Stock in the junior lost 10 to close at 15 on a volume of 461,200.

Spider Resources added 1 to close at 5 on 300,000 shares. The junior’s stock sold off last week after De Beers Canada announced that exploration drilling over the Spider #3 project claims failed to hit any kimberlites and as a result the major would stop working the property. Owners of the claims are Spider and KWG Resources.

Kensington Resources got a boost on news that large diameter drilling has begun and a new geophysical anomaly has been discovered at the Fort a la Corne diamond project in Saskatchewan. The news of a $5.2 million evaluation program drove shares 10 higher to 95 on a volume of 270,136.