The demand for gold has sky rocketed in the past few years as shaky currencies are challenging the U.S. and eurozones. The Greek financial crisis, which has reached a temporary resolution, has many losing faith in the strength of the U.S. dollar and euro, upping the demand for Gold and helping shares of miners push higher alongside them. In order to account for the heightened demand, Samaranta Mining Corporation (SAX:CA) has been pursuing gold on the Guadalupe Gold Property located contiguous with the northern boundary of the Frontino Gold Mines in Antioquia, Colombia. The company believes that there is significant value and gold potential in their acquisition on the basis that it is underlain by the same granodioritic rock as Frontino, which historically recorded 4.6 million ounces of gold production.
Antioquia, Colombia is among the nation’s primary gold producing regions and is primarily underlain with rocks of pre-Cambrian, Paleozoic and Jurassic ages, and cut by a series of major fault zones belonging to the Palestina-Bagre-Nus-Otu system. Mineralization in the historic Frontino Gold Belt is controlled by the Otu Fault. The north-south trending mineralized belt (approximately 60 kilometers by 10 kilometers) contains gold mineralization associated with the Jurassic Batholith of Segovia, which intruded the older rocks. Gold mineralization in the area has been occurring for over 200 years, by artisanal miners, and numerous mining companies. Now Samaranta is beginning exploration of the adjacent area on the basis that there is much more gold to be mined.
Dr. Volkmar Hable President and CEO of Samaranta is confident in the potential of the area.
“Given the orientation of some of the vein trends and the continuity along strike and to depth, we believe several of these vein sets may trend onto Samaranta’s concessions. I am pleased that Samaranta was able to acquire a property of such caliber directly adjacent to a prolific producer. We are aggressively planning our million dollar exploration program on the Guadalupe Gold Property,” he said.
Should the exploration be successful as Hable anticipates, Samaranta, which as of May merged with Legion Resources Corp and began trading under their current ticker, could begin to see considerable profits in the near future. The timing of the exploration appears to be well-aligned with market conditions for gold.