Trading Summary (October 02, 2001)

A half-point cut to interest rates by the U.S. Federal Reserve had a limited effect on the major North American markets on Tuesday. The latest reduction brings the federal funds overnight lending rate to 2.5%, its lowest level since 1962. With a late-day surge, the Dow Jones Industrial Average rose 1.29% to 8,950.45, the Nasdaq gained 0.8% to 1,492.31 and the S&P 500 climbed 1.16% to 1,050.57.

Similarly in Canada, the Toronto Stock Exchange recovered from a mid-afternoon dive to end 31.99 points or 0.5% higher at 6,831 points. The Utilities far outpace the other five advancing subindices with a 4.2% rise to 11,677.23 points. The golds edged up 6.64 points to 5442.4 while the base metal issues slid 7.5 points to 3,452.63.

Palladium managed to pull out it s recent dive to regain US$11 to US$334 per oz. in New York. Sister metal platinum shed US$8 to US$415 per oz. Gold dropped US$2.25 to US$288.80 per oz. and silver fell 4 pennies to US$4.60 per oz. Lead was the lone base metal to suffer a loss on the London Metal Exchange; the rest made modest gains.

Falconbridge took top spot among Canada’s miners with nearly 2.2 million shares on the move. The nickel producer’s stock slid 55 to $14.05. Gold miners Barrick Gold and Placer Dome were right behind both with just less than 2 million shares changing hands. Barrick gained 29 to $28.14, while Placer finished 16 lower at to $20.40.

Other gold miners on the slide were Kinross Gold, off 2 to $1.50, Franco-Nevada Mining, down 35 to $22.22, Goldcorp, 22 lower at $18.48 and Meridian Gold, which dropped 15 to $17.20.

Teck Cominco was the busiest of the remaining base metal miners with just more than 1 million shares traded. The issue edged up a nickel to $11. Most of the others traded sideways. Inco dropped a quarter to $19.75 and Sherritt International rose 19 to $3.89. Foundering Breakwater Resources reclaimed 4 or 25% to hit 20.

The U.S. rate cut helped Canada’s junior exchange post modest gains on strong volume. The Canadian Venture Exchange ended the day up 12.36 points, or 0.4% to finish the day at 2,827.29. The Mining Index followed suit, climbing 45.55 points, or 0.6%, to close at 7,183.31.

Cantex Mine Development gave back a healthy portion of yesterday’s gains, losing 3 to end the day at 7 on 310,000 shares. The Charles Fipke-led company got a boost after its joint venture partner in Greenland, Citation Resources cut one large kimberlite body during the recently completed 1,000-metre drill program. Citation lost 3 to end the day at 8, on a light 20,500 shares.

Poplar Resource continued to lose ground ahead of drill results from the Bottenbacken polymetallic project in Central Sweden, Poplar Resources dropped 1 to close at 23 on 282,500 shares. The company’s 65%-owned subsidiary is currently drilling the third of a planned 20-hole program over the property.

War Eagle Mining Company managed to tack on 1 to close at 12 on 194,500 shares. The junior holds a stake in the Mac tantalum property in the Yukon. Initial results from a channel sampling program over the mineralized dykes, which are located at the southern end of the claim block are expected any day now.

Investors ignored news that Mindoro Resources cut 37.1 metre grading 0.8% copper and 1.9 grams gold per tonne in the third hole at the Valderama Hill zone on the Pan de Azucar property in the Philippines. The Tony Climie-led company ended the day unchanged at 10 .

Continuing to attract investor interest, Masuparia Gold ended the day down a penny at 11 on 388,000 shares. The company is in the middle of a 1,000-metre drill program over the Greywacke gold property north of La Ronge Saskatchewan.