Trading Summary (October 01, 2001)

Profit taking sent the Toronto Stock Exchange down 39.56 points to 6,799 in thin trading on Monday. Jittery investors stay mainly on the sidelines ahead of Tuesday’s rate cut decision by the U.S. Federal Reserve. Many look to the Fed to cut rates by 75 basis points, saying that a 50-basis-point cut has already been factored into the market already. The Gold & Precious Minerals and Financial Services sectors gained 0.35% and 0.22%, respectively, as the only advancing subindices. The base metal issues fell 1.99 points to 3,460.14 points. Similar results were seen on the major U.S. markets. The Nasdaq fell 1.25% making it the biggest mover on the day.

All of the precious metals started the day off lower in Europe and finished it in similar fashion in New York. Palladium continued to slide, falling another US$29 to US$323 per oz., platinum dropped US$9 to US$421 per oz. Gold shed US80 to US$291.05 per oz., and silver lost a penny to US$4.64 per oz. The base metals suffered a similar fate on the London Metal Exchange.

Gold miner Barrick Gold was Canada’s busiest miner with just more than 1.4 million shares on the go. The stock gained 26 to $27.85. Placer Dome saw about 1.3 million shares cross the floor and gain 11 to $20.56. On the flip side were Kinross Gold, off a penny to $1.52, Franco-Nevada Mining, 48 lower at $22.57 and TVX Gold, down 3 to $75.

On Monday, Franco inked a deal to sell a 2% net smelter royalty on the first 175,000 oz, of gold produced from its Briggs mine in California, to Canyon Resources. In return, Franco gets a 7.3% stake in the junior producer, plus an additional 1% net smelter royalty on gold production greater than 175,000 oz.

NovaGold Resources climbed 2 pennies to $2.16. The latest drill results from the Acma target on the 13-million-oz. Donlin Creek gold deposit in southwestern Alaska continue to expand the high-grade core.

Alcan was the most active base metal issue falling 28 to $47.14 on about 804,000 shares. Others on the slide were Falconbridge, off 40 to $14.60, Boliden, down 0.5 to 26 and Aur Resources, which shed 8 to $2.40. Small gains were made by: Inco, up 30 to $20; Noranda, 22 higher at $14.72; and Teck Cominco, which rose 20 to $10.95.

Canada’s junior exchange started the week off by drifting lower on light volume. The Canadian Venture Exchange ended the day down 24 points, or 0.8% to finish the day at 2,814.94. The Mining Index slumped 80.53 points, or 1.1%, to close at 7,137.77.

News that its joint venture partner in Greenland, Citation Resources cut one large kimberlite body during the recently completed 1,000-metre drill program, propelled shares of Cantex Mine Development higher. The Charles Fipke-led junior soared 4 to end the day at 10 on over 1.5 million shares. Citation posted similar gains ending the day at 11, up 4 on 63,500 shares.

Masuparia Gold lost 2 to close at 12 on 475,000 shares. The company is in the middle of a 1,000-metre drill program over the Greywacke gold property north of La Ronge Saskatchewan.

TNR Resources managed to gain 1 on news that it has inked a deal with New Brunswick-based Crystal Gold Resources to earn a 25% interest in the Spring gold project by spending $50,000. The junior ended the day at 10 with just over 1 million shares changing hands.

Ahead of drill results from the Bottenbacken polymetallic project in Central Sweden, Poplar Resources dropped 1 to close at 23 on 404,000 shares. The company’s 65%-owned subsidiary is currently drilling the third of a planned 20-hole program over the property.

Inca Pacific Resource ended the day 18, up 2, on 185,000 shares. The company’s joint venture partner on the Magistral copper property in Peru just completed a drill program, while to the north, another joint venture partner is in the midst of a 5,000-metre drill program over the Cueva Blanca gold property, both in Peru.