Trading Summary (October 29, 2001)

The conglomerates subindex led the eleven declining subindices on the Toronto Stock Exchange on Monday with a 364.7-point or 3% loss to 11,720.55. The Metals & Minerals subindex lost 97.83 points or 2.6% to 3,639.44 points. One of just two advancing subgroups, the Gold & Precious Minerals subindex gained 33.65 points to 4,913.03 points, the best performance of the day. Overall, the TSE 300 composite index lost 108.62 points or more than 1.5% to end at 6,896.3 points.

Kinross Gold was the busiest miner on the day with nearly 1.1 million shares on the move. The issue was unchanged at $1.30. Barrick Gold lost a nickel to $24.85 on about 856,879 shares. Others gold miners on the slide included TVX Gold, off a penny to 66, Cambior, 1 lower at 82 and Novagold, which dropped 6 to $1.82.

Standing out on the plus side was Viceroy Resources, which shot up 4 or nearly 31% to 17. On Friday, the junior announced that it has met conditions set out in a forbearance agreement, executed earlier this summer, with NM Rothschild & Sons and Macquarie Bank. The agreement relieves Viceroy and its North American subsidiaries of their obligations under agreements guaranteeing certain borrowings and hedging arrangements relating to Australian operations.

Thistle Mining soared 7 or 39% to 25. The company has inked an agreement to acquire, for $32 million, three companies, which own and operate five underground gold mines in the Free State region of South Africa from Johannesburg-listed President Steyn Gold Mines. The deal is expected to become effective on January 1, 2002.

In other gold news, Eldorado Gold gained 2 to hit 27. On Monday the company posted a third-quarter loss of US$900,000, or US1 per share, compared with a year-ago loss of US$300,000, or nil per share.

Most of the country’s base metal issues suffered losses. Among them was zinc miner Breakwater Resources, which shed 1.5 or about 8% to 17.5. On Monday, Breakwater announced that due to depressed zinc prices the Nanisivik mine, in Nunavut, will close in September 2002.

Noranda hit a new 52-week low of $13.75, off 21. Weak base metal prices and a recently posted third-quarter loss of $60 million are to blame. Going the other way was Teck Cominco, which gained a nickel to $10.35. On Saturday, the company announced that workers at its Trail, British Columbia, smelter ratified a new four-year collective agreement.

Canada’s junior exchange closed the day down on all indexes except oil and gas. The Canadian Venture Exchange composite index lost 21.15 points, or 0.7% to finish at 2,944.00. The mining index lost 22.05 points, or 0.3% to close at 7,515.10.

Starfield Resources tacked on 4 on 743,000 shares. Investors appear to be speculating that the company will find further indications of the high-grade, platinum-palladium zone cut in hole 101, which returned 103 grams palladium and 27 grams platinum over 0.35 metre.

Popular Resources posted some drill results from its 100% owned Bottenbacken polymetallic project. Borehole BB-5 was drilled into the Storuggen South induced polarization anomaly. A 0.6-metre test section of the hole returned 0.96% copper, 1.42 grams palladium, 0.86 grams gold, 0.06 gram platinum and 5.7 grams silver per tonne. More assays will be submitted for the hole shortly. Further drilling in the BB-5 area is also planned. The company lost a penny and closed at 13 with 477,000 shares traded.

Sultan Minerals remained flat at 48 with 226,000 shares changing hands. The junior is currently drilling the Gold Mountain zone on the Kena gold property near Nelson, BC. The latest hole returned 172.1 grams gold over a 2-metre interval.

Masuparia Gold announced results from diamond drill holes GW-01-47, GW-01-48 and GW-01-49, drilled on its Greywacke gold property in northern Saskatchewan. The holes averaged 10.30 grams over 6 metres; 5.75 grams over 9.48 metres and 10.26 grams over 6.5 metres, respectively. The Greywacke project is under option from equal partners Shane Resources and JNR Resources. Masuparia can earn up to a 70% interest property. The company’s issue closed up a penny to 9 on 139,000 shares.

Inlet Resources announced that it has entered into an agreement to acquire up to a 60% interest in the Cliff Gold Mine project in the State of Alaska, from Western Warrior Resources. The Cliff Gold Mine is a former high-grade gold producer located seven miles from the Port of Valdez on ice-free tide water. Inlet closed up 2 to 8 on 201,000 shares.