Mining stocks were among the few bright spots within equities today as worry over Friday’s payroll report and a recent plunge in consumer sentiment lead gold higher. For months it was presumed that gold would be a bubble but continued threats of European debt contagion and ongoing weakness in consumer reports continued to drive it back to highs.
Extreme volatility is prompting many investors to hang onto their positions in gold or consider mining stocks as a means of profiting from the gold demand at a cheaper entry point. The slow down in global growth and rampant unemployment stateside are likely to keep the dollar from flourishing in the near future. This in turn will lead gold higher and create demand and greater profit potential for miners.
There is a growing body of evidence supporting ongoing strong demand for gold and continued strength for miners. The weak payroll expectations tomorrow could lengthen the market volatility and continue to strengthen commodities and miners.
This may be disappointing for the overall economy but it could help support Samaranta Mining Corporation (SAX.TSXV), which announced promising results from its 501 line kilometer Helicopter Magnetometer and Gamma Spectrometer survey on four of their properties in August. The survey yielded several areas of interest, including their Guadalupe property in Colombia.
The data, while still raw and unfiltered, prompted a preliminary surface investigation of select areas of interest and other targets. Existing data is being processed in an attempt to identify anomalies which may represent massive sulphide mineralization. Should the mineralization exist as the company expects, Samaranta’s properties have the potential to drive massive profits. This is especially true during periods of economic uncertainty like this one.
Samaranta is in the early stages of an aggressive diamond drill program of the most prospective targets. The programs are intended to reveal further data regarding the company’s profit potential. Top officials at the company are enthusiastic about what results the drilling might yield and how that could help them achieve increased profit potential, especially in the current economy.
The history of nearby success in gold mining and the similarities between the properties that have previously yielded impressive quantities of gold lead Samaranta’s President and CEO, Dr. Volkmar Hable to optimistic conclusions.
Hable is reportedly eager to see the interpretation of the airborne survey and how it fits with the known mineralization at Frontino. He has expressed confidence in the property’s contents on the basis that the adjoining property has been mined for over 150 years, while this is the first investigation into Guadalupe.
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