TSX tumbles during the July 25-29 period

The S&P/TSX Composite Index lost 549 points to 12,945.63 during the July 25-29 trading period, as both the U.S. and Canada posted weak economic data. But, all eyes during the week were focused on the U.S. debt talk gridlock.

The price of gold gained US$26.9 to US$1,627.20 per oz. as investors sought safer assets, fearing that the world’s largest economy may default. However, that gain didn’t stop the Global Gold Index from sliding 20.9 points to 376.21. Similarly, the Capped Metals & Mining Index tumbled 60.46 points to end at 1,387.31.

Golden Predator was the week’s largest percentage gainer, jumping 25.4% to $1.33 per share on the back of long gold hits from the new Sleeman zone at its flagship Brewery Creek project in the Yukon.

 Notable intercepts include: 191.5 metres grading 1.46 grams gold per tonne, 40.3 metres of 1.21 grams gold, and 24 metres of 1.65 grams gold. Due to the continuing success at Brewery Creek, Golden Predator plans to increase its 2011 exploration budget by $1.5 million to a total of $7.5 million.

The company also began a 1,500-metre diamond drill program at its Harlan gold project in Yukon’s Selwyn basin district. The undrilled property, about 90 km south of Atac Resources’ Osiris discovery, has two major drill-ready targets: the Vortex and West Porphyry gold zones.

Agnico-Eagle Mines‘ $70-million investment in Rubicon Minerals helped lift Rubicon’s shares by 25.2% or 81¢ to $4.02 on 10.1 million shares traded. Under a private placement, Agnico-Eagle will buy 21.6 million Rubicon shares at $3.23 apiece, and as a result, will own 9.2% of Rubicon’s outstanding shares. The proceeds will go towards developing the F2 Gold System at Rubicon’s Phoenix gold project, in Red Lake, Ont.

The Agnico investment came on the heels of Rubicon completing a positive preliminary economic assessment for the project in late June. The study envisioned the F2 Gold System producing 180,000 oz. gold a year, for 12 years.

Strong second quarter results pushed New Dawn Mining up 22.8% to $1.40 apiece. The Zimbabwe-focused miner produced 6,841 consolidated oz. gold and had consolidated gold sales of US$9.7 million, a 9.9% and 22.7% increase, respectively, compared to the previous quarter. Average sales price for the quarter ending June 30, 2011, was US$1,516 per oz.

Also on strong operating results for the quarter, Alacer Gold gained 60¢ to $9.28 per share. Alacer’s Higginsville, South Kalgoorlie, Frog’s Leg gold mines in Australia and new Copler gold mine in Turkey produced 101,348 attributable oz. gold, representing an 11% increase over the previous quarter. Most of those ounces came from Higginsville and Copler, which both produced more than 40,000 oz. over the quarter.

The mines generated US$89 million in cash operating margin, while group cash operating costs came at US$542 per oz.