Samaranta Mining Corp. Seeks to Aggressively Capitalize on Long-Term Gold Strength

Brittney Barrett |

Gold has been on the equivalent of a ten-year bull run, gaining 250 percent over the past decade. Those gains have intensified this year as volatility became the new standard of trade.  Economic challenges facing European banks and global uncertainty are just two factors that could contribute to the strength of gold and by association, gold miners, in the coming months and years.

Frank Holmes, chief executive officer of U.S. Global Investors Inc, said he expects the price of gold to double over the next five years.

“Take a look at emerging market money supply growth,” Holmes said yesterday on Bloomberg Television’s “Taking Stock”,  “It’s been averaging close to 20 percent and anytime you have money supply growing at that rate it’s very easy for the price of gold to double over five years, it’s a simple math formula.”

Holmes also mentions competitive currency devaluation as a potential impetus for a higher gold prices. The rising cost of gold has the potential to positively impact miners on a number of fronts. Not only would gold be more valuable but its high price could make miners more appealing as a more accessible entry point into the bullish trend.

One company that could be affected in the event Holmes prediction is correct is Samaranta Mining Corporation (SAX.TSXV). Samaranta is a resources exploration and development company actively exploring for gold and other precious metals with a main focus on Colombia. Colombia remains a vastly unexplored region, creating unique opportunities to companies with involvement there.

Samaranta appears to be of the same mind as Holmes and has been actively and aggressively pursuing properties in this region. Earlier this month, the company signed a letter of intent with the Colombian Board of the High Community Council of Novita – Cocoman, which grants them a 90-day period of exclusivity to finalize terms and execute an agreement on a 117,647 hectare area in the Colombian department of Choco. The region where the property is located, the border between Colombia and Panama, has a long and successful history of gold production. Samaranta has high hopes for a continuation of that trend.

Beyond Choco, Samaranta is involved in an additional four mining projects in Colombia.

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