Could Samaranta Benefit from Current Gold Bullishness?

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Could Samaranta Benefit from Current Gold Bullishness?A number of hedge funds have decided to increase their wagers on the higher price of gold as a result of the potential impact of the European debt crisis on U.S. financial growth this week. The demand for gold as a means of wealth protection could rise in the event that slow U.S. growth has a negative impact on the value of the dollar.

According to a Bloomberg survey, 28 of 32 participants predict that bullion to rise on the Comex in New York next week, the largest rise since Oct. 14 and the second consecutive increase. Money managers reacted by increasing their combined net-long position in New York gold by 8.7 percent this week according to U.S. government data.

The long-term bullishness on gold could continue to be a windfall for the price of gold miners. Market Vectors Gold Miners ETF (GDX), which tracks the price of gold is nearing its 52-week high already and another week of bullishness for the metal could help it set new records into the future.

If the hedge funds are onto something regarding the long-term strength of gold, Samaranta Mining Corporation (SAX.TSXV), could stand to benefit.  Samaranta is a resources exploration and development company actively exploring for gold and other precious metals with a main focus on Colombia. Colombia, vastly unexplored as it is, offers a unique mining advantage against some competitors with interests in areas that have been largely exhausted.

Samaranta, able to appreciate the unique potential of the region, has been aggressively expanding its holdings there with considerable success.

The company’s most recent interest is a 117,647 hectare area in the Colombian department of Choco, located on the border between Colombia and Panama. Gold mining has been traced as far back as the 1600’s in Choco and is the area’s chief source of income. Samaranta intends to leverage the potential in the area against the rising price of gold to bring in profits in the coming years.  The company recently filed a letter of intent to begin that process. In the event their intentions materialize, Samaranta will be on track to profit from some of the projected economic factors influencing the price of gold.

Outside of Choco, the company also acquired an 80 percent interest in the 14,300 hectare Siguire property in the historically prolific Birimian Greenstone Belt in Guinea, West Africa and continues to investigate its Guadalupe property.  Surveys of the latter have revealed promise on the site.

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