During the Nov.26-30 trading week investors paid close attention to U.S. lawmakers negotiating a budget deal to avoid the approaching “fiscal cliff” or automatic tax hikes and government spending cuts set to start on Jan. 1, 2013. If a deal isn’t reached shortly, the U.S. economy could fall back into a recession.
The Dow Jones Industrial Average closed at 13,025.58, up 16 points. The Standard and Poor’s Index gained 0.5% or 7 points to 1,416.25, while the Nasdaq Composite Index added 1.46% or 43 points to 3,010.24.
The Philadelphia Gold and Silver Index slipped 4 points to 170.20, as the spot price of gold dropped US$36.70 per oz. to US$1,715.20.
Pacific Booker Minerals, which is advancing the Morrison porphyry copper-gold-molybdenum deposit in central British Columbia, was the week’s largest percentage and value gainer, adding 65% or US$2.66 to US$6.76 per share.
On Nov. 28, the Vancouver-based firm provided more details on the effects of the Morrison project on the Morrison Lake water quality. It said an assessment report found that the changes in the estimated lake metal concentration due to the project were below the BC water quality guidelines and slightly above baseline. Therefore, Pacific Booker concluded the risk of significant adverse effects to the environment is minimal.
Canarc Resource, which aims to develop its flagship New Polaris gold project in B.C., also made decent percentage gains during the week, adding 22% to close at US14¢ after announcing a C$600,000 private placement financing with some of its shareholders.
The company is offering 5.6 million units at 11¢ each, with each unit consisting of one share and one warrant. Canarc’s management, directors and insiders will take up 50% of the offering. The net proceeds will be used for general working purposes.
Santa Fe Gold got a boost after it made two announcements. On Nov. 29, it reported bonanza grades of 265 grams gold per tonne and 9,248.6 grams silver per tonne over mineable widths at its Summit gold-silver mine in southwestern New Mexico. This is the best assay released to date at the project.
Earlier in the week, it said shareholders of Australia-based International Goldfields approved a proposed merger with Santa Fe. The merger is expected to conclude in early 2013 following regulatory approval among other consents.
The company ended up 11% at US35¢.