Gold ticked higher on Tuesday, in spite of a positive turn for domestic equities. Ongoing concern regarding the Greek debt crisis, European debt contagion and a slowing global economy have led investors increasingly to gold. The recent limitation placed of the price of the Swiss franc has perhaps heightened the attraction for the precious metal, leaving it among increasingly few areas investors trust as a safe haven during the present economic climate. Metal miners have also risen alongside gold and boast further potential upside should it reach the levels some analysts are predicting.
The recent success of gold miners is encouraging for Samaranta Mining Corporation (SAX.TSXV), especially following Tuesday’s announcement concerning the company’s recent Magnetometer and Gamma Spectrometer (Radiometrics) survey. The survey, which occurred on four separate blocks, including the company’s key asset, the Guadalupe property, yielded optimistic results; identifying eight areas demanding follow up.
In a press release, the company detailed two of the larger areas, both residing adjacent to the northern boundary of the Frontino Gold Mines in Antioquia, Colombia. The areas 1km by 300m and 600m along strike and 250m across strike respectively, both yielded encouraging responses upon inspection.
In regards to the results, Dr. Volkmar Hable, President and CEO of Samaranta stated, “The interpretation of our airborne data has exceeded my expectations. The eight areas appear to all be geologically on trend with known and well established mines in the immediate neighborhood. This is a large step in Samaranta’s plan to generating viable drill targets.”
The region surrounding the targets has a history of strong gold production and company heads have long been under the impression that the less explored, nearby area might hold similar potential. Samaranta’s decision to begin the exhaustive diamond drilling and survey process on the property only relatively recently may be a boon for the company. While gold is valuable regardless of the state of the economy, its current levels are largely unmatched historically. A gold discovery at this time could be exceptionally profitable given economic conditions currently challenging not only the U.S. but nations across the globe.