STOCK MARKETS — Canarc shares react to Barrick arrangement

Western markets took a bit of a breather during our report period ended Feb. 8, reflecting somewhat unsettled trading on major markets in the east.

With gold holding steady above the US$380-per-oz. level, the VSE resource index managed to tack on more than 16 points to close at 1,810.8. The composite index headed in the other direction, slipping almost 6 points to close at 1,150.5.

The formation of a “strategic and financial arrangement” with American Barrick Resources boosted Canarc Resource to a high of $5.63 before the issue slipped back to $5.25, for a loss of 13 cents on the week.

Barrick agreed to purchase 1.094 million units of Canarc at $4.57 per unit. Proceeds of the placement will be used to explore and acquire gold properties in Venezuela, Guyana and Suriname.

High-grade values from underground sampling on a new potential ore shoot at the Table Mountain mine near Cassiar, B.C., gave owner Cusac Industries a lift. Underground sampling returned 54 metres grading 42.4 grams gold per tonne over a true vein thickness of 1.5 metres. Cusac added 50 cents to close at $2.

Trading in Goldbelt Resources picked up, pushing the issue ahead 22 cents to 74 cents on more than 2.4 million shares. Mike Muzylowski, company chairman, tied the move to increased investor interest in the company’s gold tailings project in Kazakhstan.

On the diamond exploration front, ASE-listed partners Aaron Oil and Rhonda Mining took a jump on drilling results from their Snowden, Sask., ground. The best intersection returned a 1.17-metre bedded tuff unit containing an average of 52 carats per 100 tonnes. It should be noted that the grade is an extrapolation based on two diamonds measuring greater than 0.5 mm in 3.9 kg of sample. Rhonda jumped $1.38 on the news to $7.13 while Aaron added 35 cents to close at $1.99. Lucky Break Gold, which holds a 10% interest in the project, finished up 23 cents at 70 cents.

News that 29 circular features have been identified on the Black Lake property in the Northwest Territories did little to help owner Kalahari Resources. The issue slipped 23 cents to close at $1.18.

Southern Copper took a hit, slipping 17 cents on more than 2.1 million shares. The company recently announced a private placement of one million units at $1 per unit to fund the establishment of an alluvial diamond recovery operation in Brazil.

Trading in War Eagle Mining topped 1.9 million shares and pushed the issue a high as $6.75, before closing up 63 cents at $5.75. The company, along with joint-venture partner Great Western Gold, has intersected four separate kimberlite pipes at the Candle Lake project in Saskatchewan. Initial results on diamond content in the core are expected soon. Great Western Gold finished unchanged at $5.13.

Vera Cruz Minerals reports that kimberlite has been encountered in its initial hole on the Vera Cruz Bucke kimberlite target in the Cobalt area of northeastern Ontario. Vera Cruz finished up 25 cents at $1.05 on the news and has sent the core out for diamond analysis.

A report that Royal Bay Gold plans to invest US$5 million in the Avino silver mine in Mexico gave 49% owner Avino Mines & Resources a 31 cents boost to $1.31. The project will be owned 33.3% by each of Royal Bay, Avino and a private Mexican company after the agreement is complete. Royal Bay, which has yet to come up with the funds, slipped a dime to finish at 60 cents. International Curator Resources did well, adding 39 cents to close at $1.79. Curator and joint-venture partner Coeur d’Alene Mines have been receiving encouraging results from development work at their Boleo copper-cobalt project in Mexico.