Trading Summary (October 16, 2002)

The Toronto golds were one of just three subindices in the black on Wednesday, regaining 2.34 points or 1.4% to 166.16 points as gold climbed US$1.30 per oz. to US$313.70 per oz. in New York. Overall, the S&P/TSX Composite Index shed 62.38 points to settle at 6,157.06 points.

Canada’s big three gold producers all saw gains on the day. Barrick Gold was the most heavily traded gold issue, advancing 9 to $22.56 on around 3.2 million shares. Placer Dome was next in line, tacking on 6 to reach $13.36 with just more than 3 million shares on the go. Kinross Gold rounded out the triad, finding 2 to make $2.81.

On Wednesday, Placer extended for the tenth time its $1.2-billion offer for now-compliant AurionGold. The latest extension give the Aussie’s shareholders time to take payment of the special dividend and consider their position in light of the change in Aurion’s recommendation.

Kinross’ 54.7%-owned Russian subsidiary, Omolon Gold Mining, has inked a deal with the Magadan administration and a majority of its Russian shareholders that will see loans from the administration to the shareholders become paid in full. Kinross hopes the deal will allow it to bring the Birkachan deposit into production in 2004.

TVX Gold managed to weather reports that Greece’s supreme administrative court, the Conseil d’Etat, has blocked the company’s Stratoni silver-lead-zinc operation under pressure from local protestors. The company shares grabbed 21 to hit $18.11.

There was more red inked splashed around on the base metal miners, as the Diversified Metals & Mining Index shed 2.38 points or about 2% to 113.11 points. Alcan led the slide, losing $1.02 to $42.96 after posting higher third-quarter earnings. The aluminum giant also warned that fourth-quarter results would suffer from low aluminum prices and an uncertain global economic environment.

Inco slipped 30 to $28.45. On Wednesday, Reuters reported that Inco had signed a letter of intent to up its stake in the Goro nickel project in New Caledonia. The nickel giant plans to buy a 15% interest held by Bureau de recherches gologiques et minires (BRGM), an agency of the French government. The company says the move is aimed at establishing a new partnership with Japan’s Sumitomo Metal Mining, which has agreed to take a 25% share.

Canada’s junior exchange continued to move lower with decliners leading advancers by a 263-to-230 margin. The S&P TSX Venture Exchange composite index dropped 3.02 points, or 0.3% and closed at 899.66.

Spider Resources ended the day unchanged at 5 on 942,000 shares. The junior reported encouraging rock samples values from its Wawa diamond property in northern Ontario. Spider’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.

Canadian Royalties dropped 16 to 70 on 111,500 shares. The company reported that the arbitration decision, which was tentatively scheduled to be rendered on October 15 will be delayed until October 31. The decision will cover a dispute between the junior and joint venture partner Ungava Minerals regarding the Expo Ungava nickel-copper-platinum-palladium project in Quebec.

Eurozinc Mining added 1 to close at 6 on 128,000 shares. The company has been trying to advance the Aljustrel zinc property in Portugal over the past few years but poor commodity prices have slowed the advancement of the project.