Trading Summary (September 26, 2002)

The Toronto Stock Exchange’s gold stocks saw a wild reversal of fortunes on Thursday after the yellow metal suffered a US$5.55 per oz. set back in London. The Gold index plummeted 11.3 points or 5.8% to 183.56 after the Swiss National Bank announced plans to sell a further 283 tonnes of gold during the next year. Bullion fixed at US$319.60 in the PM in London, and shed US$1.90 to come in at US$320.40 in New York. By day’s end, the S&P/TSX Composite Index was 14.39 points higher at 6,179.42.

Barrick Gold was the most traded gold major, dropping $3.21 or more than 11% to $24.86 on 7.5 million shares. The gold miner revised downward its third-quarter earnings guidance on lower production and higher costs. Placer Dome and Kinross Gold were dragged along. Placer fell 76 to $14.54 and Kinross dropped 23 to $3.31.

Orezone Resources joined the major producers on the top ten traded list, but managed to put in a 2.5 gain to make 35 with 3.3 million shares making the rounds. The company recently tabled plans for a $2.7-million work program on its five advanced gold projects in Burkina Faso, West Africa. Most of the remaining gold issues put in losses.

The country’s base metal miners fare a bit better as the Diversified Metals & Mining index rose 1.73 points to 109.98. Alcan was again the most active trading nearly 1.5 million to a 29t gain to $39.57. Plus-4% gains were put in by: Inco, up $1.01 at $26.13; and LionOre International Mining, which tacked on 15 to hit $3.60.

Swedish miner Boliden regained 20 or more than 7% to settle at $3. Boliden is claiming at least E107 million in damages from Spanish construction company Grupo Dragados. The claim is in relation to the 1998 failure of a tailings dam at the Los Frailes mine in southern Spain. Last November, a criminal cleared Boliden of all responsibility, but that hasn’t stopped the Spanish Ministry of Environment from making a EUR45 million claim against Boliden for costs of the recovery efforts following the failure.

Canada’s junior exchange continued to hit new 52-week lows with investors finding little reason to buy stocks. The S&P TSX Venture Exchange composite index lost 3.85 points or 0.4%, and closed at 957.48.

Pan Asia Mining ended the session flat at 2 on 714,000 shares. The cash strapped junior has been attempting to advance a series of diamond projects in China.

A big percentage loser, Ontzinc dropped 2 to close at a 52-week low of 5 on 333,000 shares. The company is in the midst of acquiring the remaining 50% interest it does not own in the Scotia zinc mine near Halifax, Nova Scotia.

Starfield Resources managed to tack on 2 to close at 35 on 207,000 shares. The junior’s stock has been hit in recent months after reporting lower than expected grades from its on going drill program at the Ferguson Lake nickel-copper-platinum-palladium project in Nunavut.

Sultan Minerals failed to get a boost on news that the drill rigs are turning on the Kena gold property near Nelson, BC. Shares in the company lost 1 to close at 22 on 121,755 shares.