Trading Summary (September 07, 2001)

News that the jobless rate in the U.S. climbed to a four-year high of 4.9% in August sent North American markets reeling on Friday. The Dow Jones industrial index fell 2.3% on the day to 9,617.69, the Nasdaq index shed more than 1% to 1,687.65 points and the S&P 500 index fell nearly 2% to 1,085.78 points.

In Canada, the Toronto Stock Exchange 300 followed suit, dropping 47.18 points to 7,368.8. The Metals & Minerals subindex led the way, losing 124.62 points, or more than 3%, to 3,981.18. The golds fared better, gaining 79.79 points, or 1.7%, to 4,866.8, the best percentage gain among the TSE’s 14 subindices.

The precious metals were mixed in New York. Gold and silver were unchanged at US$272.90 and US$4.16 per oz., respectively. Platinum gained US$8 to US$440 per oz. and palladium fell US$4 to US$444 per oz.

Placer Dome was the country’s most active mining stock with almost 2 million shares changing hands. The stock climbed a dime to $17. Barrick Gold found 58 to hit $25.04, Wheaton River Minerals climbed 6, or 10.7%, to 62. Wheaton says that, with $24 million in its coffers, it intends to become one of the consolidators in the junior gold-mining industry and a mid-tier gold producer.

The base-metal majors followed the larger market trend, posting mostly losses. Alcan shed $2.51, or 4.4%, to $54.49, Inco lost 55 to $25.55, Falconbridge fell 37 to $16.23 and Teck Cominco was 42 lower at $11.84.

Ontario’s Ministry of the Environment has announced plans to order nickel giants Inco and Falconbridge to cut sulphur dioxide emissions from their smelting operations in Sudbury, Ont.

Teck Cominco has announced that an internal investigation determined that a failure in its testing methodology resulted in 65 workers at its Trail lead-zinc smelter in B.C. being contaminated with thallium, a highly toxic metal linked to nerve damage.

In diamond news, marine diamond miner Namibian Minerals shot up 7, or 21.5%, to 39.5, making it one of the TSE’s better performers on the day. Ashton Mining of Canada fell a dime, or 14.3%, to 60, despite announcing the discovery of a kimberlite on the Kikerk Lake property in Nunavut. The 15 claims cover 154 sq. km held 70% by Caledonia Mining, which gained a penny, or 20%, to 6.

Canada’s junior exchange bounced off yesterday’s lows led by a 1.3% surge in mining-related issues. The Canadian Venture Exchange gained 20.38 points, or 0.7%, to finish the day at 2,993.62. The Mining Index climbed 93.05 points, or 1.3%, to close at 7,515.55.

Shares in Poplar Resources broke out of a narrow trading range to end the day at 39, up 3 with volume hitting over 1.2 million The company’s 65%-owned subsidiary is working the Sundsvall diamond and Bottenbacken polymetallic project, both in Sweden.

Northern Empire Minerals jumped on news that Ashton Mining of Canada has cut a kimberlite on its 30%-owned Kikerk Lake property in Nunavut. Shares in the company ended the day up 4 to 23 on a volume of 782,000.

A big percentage loser, Ventures Resource lost 2 to end the day at 2 on 723,000 shares. The company is in the midst of a US$800,000 exploration program on its Veta property in east-central Alaska.

Quaterra Resources continued to move higher on news that the drill rig is on-site at its Union Bay platinum-palladium property in Alaska. Shares in the company tacked on 1 to 21 on volume of 601,700.

Shares in Leader Mining International lost ground on news that the company has inked a deal to acquire a 51% stake in two projects near Hope, B.C. Stock in the junior dropped 15 to $1.32 on a volume of 168,520. The new properties lie adjacent to the company’s Cogburn nickel project, some 100 km east of Vancouver.