VANCOUVER — The S&P TSX Venture Composite Index declined in tandem with broader market sentiment during the Nov. 12-16 trading sessions, falling 5% or 65 points before closing the week at 1,235.34 points.
Markets continue to view the fiscal cliff situation in the U.S. with skepticism, while further struggles in the European Union and a stumble in China’s recovery served to compound bearish sentiments during the week.
Global concerns took a toll on natural resources with gold prices declining US$17 en route to a US$1,714.70 per oz. weekly close, while December contracts on the New York Mercantile Exchange for benchmark oil dropped US4¢, hitting US$85.41 per barrel on Nov. 16. Copper prices maintained more solid footing, closing out the week relatively unchanged at US$3.45 per lb.
Vancouver-based explorer Ascot Resources received a welcome boost on the back of drill results from its historic Premier gold-silver property north of Stewart, B.C., in the Cassiar mining district. Ascot led the value-added category during the week by jumping 14¢ to a $1.31 close. The company's 2012 drill campaign focused on its Big Missouri, Martha Ellen, and Sparky zones.
On Nov. 14, the company announced it had cut one metre of 126.5 grams gold per tonne and 622 grams silver per tonne in hole 12-426, which was collared on the Calcite Cut zone in the Big Missouri area. Other highlights from the program include 35 metres grading 2.11 grams gold in hole 12-430 and 24 metres averaging 2.04 grams gold in hole 12-426. Ascot's drilling has now extended over roughly 5.5 km, and the company continues to report good continuity.
Yukon-focused Kaminak Gold saw its shares fall 35¢ during the week following the release of final drill results from a 2012 program at the company's Coffee gold project in the Yukon's White Gold district. The company closed at $1.41 per share.
On Nov. 14, Kaminak announced it had concluded a 69,000 metre drill program, and had received final assays, which will be applied to an upcoming maiden resource estimate scheduled for first quarter 2013. The company extended its oxidized gold zone at Coffee's Supremo T5 target by 200m north along strike, with highlights including: 58 metres grading 1.72 grams gold from 36 metres depth in hole 342; 23 metres averaging 3.63 grams gold from 61 metres depth in hole 339; and 14 metres of 4.96 grams gold from 44 metres depth in hole 341.
On the financing side, B.C.-based Diamcor Mining announced it had raised an additional $4 million from its strategic partner, luxury diamond retailer Tiffany & Co. The financing includes a $2.4 million term loan and a $1.6 million convertible debt debenture.
Tiffany & Co. agreed in March 2011 to a strategic alliance wherein the luxury jeweller would have a first right of refusal to purchase 100% of future production from Diamcor's Krone-Endora at Venetia project located in South Africa's Limpopo province. Diamcor purchased Krone-Endora from DeBeers in Feb. 2011 and the company is in the process of commissioning and expanding its project in a bid to pursue near-term production.
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