Samaranta Mining Could Rise on Strength of Gold

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Gold has been on the rise lately, reaching a two-week high, as a tenuous economic landscape has many investors on edge and seeking out safe havens. The precious metal has been on more than a decade long bull run that has seen its price increase by more than 250 percent. Economic volatility has defined the market through 2011, as the uncertain direction of the U.S. dollar continue to prompt peaks and plunges. Global investors, in recognition of the desire to protect capital in the market, have been aggressively pursuing gold and related miners.

Miners represent a more affordable entrance point into the gold trend and many people have been pursuing this path as demand for physical gold continues to rise. Just today, the Market Vectors Gold Miners ETF (GDX) rose by over 7 percent as investors prepare for a global shake up alongside shifts in Europe.

"Technically [gold] was due for a breakout. I think once the market gets a chance to digest what happened today with liquidity and rates (regarding central banks efforts to help Europe), gold really goes higher," said Zach Oxman the managing director at brokerage TrendMax in a Wall Street Journal article published today, "People are realizing that we've got a world that's hell-bent on printing money," which should boost demand for gold "as a store of value instead of fiat currencies."

The rise in gold demand, should Oxman be right, could have a positive correlation for miners. Samaranta Mining Corporation (SAX.TSXV), a mining company with several interests across Colombia, by extension could see some of these economic factors working its favor. With a rich mining industry but vast expanses of unexplored opportunities Colombia remains among the top destinations for miners.  Recognizing the compelling qualities offered by the region, Samaranta has been aggressively exploring properties in the across the nation in the hopes of profiting from the rich presence of gold and favorable economic influences.

Samaranta’s chief focus has been on their Guadalupe property. Recent promising results from a 501 line kilometer Helicopter Magnetometer and Gamma Spectrometer survey identified several areas of interest. 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 and could benefit the future of Samaranta.

This, in addition to several other projects, could position Samaranta for the next several years if gold follows the trajectory many analysts feel that is could.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

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