GOLD STOCKS NEWS – Gold stocks plummeted on Friday, as the Market Vectors Gold Miners ETF (GDX) fell $4.27, or 7.2%, to $55.03 per share. The sell-off in gold stocks and the GDX was fueled by significant liquidation in COMEX gold futures, which plunged $106.70, or 6.1%, to $1,635.00 per ounce. In Canada, gold stocks came under heavy selling pressure as well, with the S&P/TSX Global Gold Index tumbled 6.5% to 389.84.
With today’s weakness in gold stocks, the GDX extended its weekly loss to $9.08, or 14.2%. In September the gold stocks ETF is now down 12.4%, and by 10.7% year-to-date. The most telling statistic, however, may be the fact that the GDX is now on pace for its worst week since a 17.9% drop from October 20-24, 2008.
Barrick Gold (ABX), the GDX’s largest component, retreated $2.88, or 5.9%, to $45.88 per share on Friday and is now lower by 14.4% this week. Newmont Mining (NEM), the largest U.S.-based gold company and the only gold stock included in the S&P 500, slid $3.77, or 5.8%, to $61.47 per share today. For the week, NEM is now down 6.5% – making it one of the top performers in the sector.
Other notable large-cap gold stocks moving lower on Friday included Agnico-Eagle Mines (AEM), Randgold Resources (GOLD), and Royal Gold (RGLD). AEM, GOLD, and RGLD dropped 6.5%, 8.3%, and 8.2%, respectively.
The Market Vectors Junior Gold Miners ETF (GDXJ) – a basket of small- and mid-cap gold stocks, plunged $2.57, or 8.1%, to $29.12 per share today. For the week, the GDXJ is now lower by 20.5% and is likely to post its worst week ever (the GDXJ was formed only in November 2009, however). Previously, the GDXJ’s largest weekly loss was a 13.1% decline from May 17-21, 2010.
Aurizon Discovers Two New High Grade Gold Zones at Marban
- The best results from the new High Grade Western Zone include 906.2 grams per tonne (g/t) of gold over 2.9 meters (m) at hole MB-11-198 at a vertical depth of 175m and 5.9 g/t of gold over 15.7m at hole MB-11-195 at a vertical depth of 125m.
- The Eastern Down Dip Zone is located approximately 400m east of the former Marban mine shaft and includes 6.1 g/t of gold over 12.6m at hole MB-11-242 at a vertical depth of 350m.
- A resource estimate will be completed by the end of the year on the Marban property and will be based on new results obtained.
