Trading Summary (October 05, 2001)

The golds enjoyed a strong finish to the day as traders loaded up on “safe-haven” equity just in case a shooting war finally breaks out over the weekend in Afghanistan. The Toronto Stock Exchange‘s Gold and Precious Minerals subindex led all others, rising 2.4% to 5,317.59 points while the broader TSE 300 eased off a few points to 6,894.24 points as the heavily weighted financial-services sector fell 0.76%.

The big boys of gold ended up in the black: Barrick Gold rose 35 to $26.95; Placer Dome jumped 65 to $20.20; Franco-Nevada Mining added a dime to reach $21.65; Kinross Gold was up 8 to $1.52; TVX Gold rose 2 to 77; and Cambior held steady at 84.

But it was the mid-tier producers that fared the best: Goldcorp shot up $1 to $19, Agnico-Eagle Mines soared $1.19 to $16.55; Meridian Gold advanced 60 to $17.10; Glamis Gold rose 27 to $5.75; and even McWatters Mining popped up 4.5 to 18

The best-performing junior gold explorer was Gammon Lake Resources, which advanced 15 to 65. The company announced on Thursday that it had raised enough money to complete a feasibility study at its promising Ocampo gold-silver project in Mexico.

The most active mining-related stock on the TSE was Denison Mines, which tacked on 2 to reach 13.5. The move was in response to yesterday’s after-the-bell announcement that it was acquiring privately held Innovative Energy. The price tag is $4.9 million, consisting of: the assumption of $2 million in debt; $1.9 million in cash; and the balance of $1 million by the issuance of Denison common shares.

The base metal scene was downright sleepy, with little movement either way in any of the major stocks. At least the group seems to have hit a price support level folowing September’s terrible declines in shares and metal prices.

Canada’s junior exchange ended the trading week strongly, led by a triple-digit surge in mining-related issues. The Canadian Venture Exchange ended the day up 10.77 points, or 0.4% to finish the day at 2,857.56. The Mining Index climbed 106.10 points, or 1.5%, to close at 7,276.79.

Poplar Resource once again led the list of most actively traded junior explorers, ending the day up 3 to close at 20 on 631,300 shares. The market is awaiting initial drill results from the Bottenbacken polymetallic project in Central Sweden. At last report, the company’s 65%-owned subsidiary is currently drilling the third of a planned 20-hole program over the property.

Cash-strapped Foran Mining closed out the week by gaining 1 to close at 4 on 401,000 shares. The junior recently announced a $12 million write-down on its McIlvenna massive sulphide project in Manitoba. A $7 million balloon payment is due on the property within the next 60 days and Foran is continuing to seek financing or other means to meet the required property payment.

Masuparia Gold continued to attract investor interest ending the day up a penny at 12 on 375,800 shares. The junior announced a $250,000 financing comprising 2.5 million units priced at 10 each The company is in the middle of a 1,000-metre drill program over the Greywacke property north of La Ronge, Saskatchewan.

Thomas Patton-led Quaterra Resources fell 2 to close out the week at 21 on 243,500 shares. Initial drill results from a 4-hole program over the Union Bay platinum project in Alaska are expected any day now.

Anooraq Resources managed to tack on 1 to close at 60 on 151,200 shares. The Hunter-Dickinson led company anounced that it had been granted a 5-year exploration renewal over its Platreef platinum-palladium properties in South Africa.