New York markets continue to slide

The market slump continued unabated for the June 6-10 period as The Dow Jones industrial average dropped 200 points to finish at 11,951.91, while the S&P 500 index was off 30 points to end up at 1,210.98.

The drop-off after market watchers digested Fed Chairman Ben Bernanke’s view on the economic recovery. With Bernanke stating that the Fed was not inclined to expand the loose monetary policy known as quantative easing two, equities sold off.

Coupled with Bernanke’s remarks was weak first quarter credit data showing the ongoing deleveraging process underway among US households.

While the period was tough on equities across the board, and miners in particular, a few junior gold miners still managed to scratch out some gains with Gold Reserve, Tara Gold and Douglas Lake Minerals at the front of the pack in terms of percentage point gains.

Alcoa shares were the most actively traded for the period as the aluminum producer fell 64¢ to finish at US$15.28. That lower price came despite the company announcing a new aluminum product line for the aerospace market. Alcoa says the new aluminum product is 10% lighter than current materials used and will results in a 12% increase to fuel efficiency.

Midway Gold shares were up 7% to finish the period at $1.74. The bump came after the company announced it had closed a bought financing deal that put US$12 million into its kitty by issuing 7.5 million common shares at a price of US$1.60 per common share. Midway says it will use the money to fund the development of a host of projects in Nevada.

And the U.S. Department of Justice said Hecla Mining has agreed to pay more than US$263 million to settle claims surrounding environmental damage caused by the release of waste. The funds will be paid to the U.S. government, the Coeur d’Alene tribe and the state of Idaho, and will go to restoring and remediating natural resources in the Coeur d’Alene Basin.

The Coeur d’Alene tribe sued Hecla and other mining companies two decades ago and in 1996 the government joined the lawsuit, seeking money for damage to water, fish and birds as a result of millions of tonnes of mining wastes released into the South Fork of the Coeur d’Alene River and its tributaries. Hecla shares were down 19¢ or 2.6% to $7.20 at press time.