Trading Summary (October 07, 2002)

Toronto’s Utility sector was alone in the black at the end of trading on Monday, but just barely as it edged up just 0.03 of a point to 135.14. The golds lost much of their recent glitter surrendering 7.05 points or nearly 4% to settle at $174.15. The base metal miners slipped 0.93 of a point to 108.11. By day’s end, the S&P/TSX Composite had slipped further below the 6,000-mark, ending off 94.36 points at 5,840.97 points.

Kinross Gold finished 22 poorer at $3.04 as nearly 7.1 million shares crossed the floor. Bema Gold wasn’t far behind, dropping 23 or 12% to $1.68 after announcing an even share swap to merge with EAGC Ventures, which owns three gold operations in South Africa. Bema expects the deal to boost its annual production to about 315,000 oz. gold at a cash cost around US$135 per oz.

Canada’s remaining gold majors put in similar performances. Barrick Gold dropped half a buck to $24.39 and Placer Dome fell 52 to $13.75. Most of the country’s other gold stocks performed as miserably.

Inco was the busiest base metal miner falling 75 to $25.20 on about 1.3 million shares. On Monday, Inco said it has inked definitive agreements with the government of Newfoundland and Labrador regarding the development of the Voisey’s Bay nickel-copper-cobalt project. The agreements are intended to implement the terms of the non-binding statement of principles reached in June. For the agreements to become effective overall, Inco must complete a bankable feasibility study of the project and secure financing by the end of March.

Cameco was next in line volume-wise among the Diversified Metals & Mining subindex residents, climbing 75 to $29.75 with more than 1.3 million shares traded. Among the few others on the plus side were: Teck Cominco‘s B series, plus 4 to $10.29; and Fording Coal, up 20 to $23.32.

On the diamond watch, Namibian Minerals shot up 3 or nearly 19% to 19. On Monday, the marine diamond miner announced record third-quarter production of 117,050 carats of diamond, eclipsing the previous quarterly production record of 116,560 carats set in the first quarter of 1999.

Canada’s junior exchange started the trading week off in similar fashion to last week’s action, by losing ground. The S&P TSX Venture Exchange composite index lost 5.88 points, or 0.63% and closed at 933.19.

Anooraq Resources managed to buck the negative tone, gaining 14 to close at 55 on 158,500 shares. The Hunter Dickinson led junior reported that hole 8 into its Rietfontein property in South Africa cut 90.6 metres grading 1.1 grams combined platinum-palladium-gold per tonne, plus 0.45% nickel and 0.35% copper. Included in this interval was a higher-grade portion running 1.66 combined platinum-palladium-gold, 1.38% nickel and 1.1% copper over 7 metres from 124 metres downhole.

Starfield Resources gained 3 to close at 41 on 192,200 shares. The junior has been aggressively drilling its Ferguson Lake platinum-palladium-nickel-copper project in Nunavut.

Desert Sun Mining added 2 to close at 59 on 267,400 shares. The junior recently inked a deal to acquire the outstanding ownership balance of 49% in the Jacobina gold mine in Brazil. Desert Sun is currently spending U.S.$2 million on the Jacobina Mine to earn an initial 51% interest.