For the past decade, gold has been on a bull run and recent months have served to further amplify that trend. Rising market volatility and waning global economic growth rates have signaled investors to flood safe havens. More and more, the market mantra seems to be the more gold the better. Samaranta Mining Corporation (SAX.TSXV) appears to be taking that sentiment seriously, announcing Wednesday that it has acquired an 80 percent interest in the 14,300 hectare Siguire property in the historically prolific Birimian Greenstone Belt in Guinea, West Africa.
The combination of current market attitudes and the history of success in the surrounding area of the project could be a potential boon for Samaranta, which is already engaged in the exploration of the Guadalupe property in Antioquia, Colombia. Thus far, the Guadalupe property has offered optimistic survey results, but given the current market forces, there is plenty of impetus to expand.
The latest property is located south and east of AngloGold Ashanti’s Siguiri Mine in north-east Guinea approximately 850 km from the capital city of Conakry. The surrounding property is recognized for its abundant gold production and Samaranta is confident that their latest acquisition will also host mineralization given that the strike projections of the AGA Siguiri Mine shear zones and veins trend toward the property.
A high quality gold property like Siguire does not come along often, especially during times of such high demand for gold. Volatility has morphed into the new standard in trading and investors continue to struggle with adapting to the changes. The solution has been to invest in well recognized secure zones, with gold being the primary play.
Adding to the power of the precious metal is the decision by Switzerland to cap the price on its own currency. The Swiss Franc has been looked upon as another potential safe haven in an uncertain market, but the new rules have limited trading possibility and further enhanced the power and price of gold.
These factors are likely to inspire continued elevated demand for gold and Samaranta, with its expanding array of properties and aggressive exploration is positioning itself well to profit from the shifts in the market.