Ongoing volatility in U.S. markets and global growth concerns have led gold to its highest historical levels in recent months. Divergence within the Eurozone on details within the Greece bailout and general worry regarding the state of the economy in mature nations has put investors on edge. These factors can be expected act as a continued obstacle against economic sentiments until a long term resolution is made or positive economic indicators reveal themselves . Until that time, safe havens like gold are likely to fluctuate with the overall market, as they have in recent trading, but remain in demand. The mounting evidence indicates the possibility of an extended high for gold, which inherently, would raise interest in mining and exploration ventures.
This trend has the potential to bolster growth for Samaranta Mining Corporation (SAX.TSXV), a resources exploration and development company that is actively exploring for gold and other precious metals with a main focus on Colombia.
Samaranta, alongside many other investors, is getting behind the notion that gold is still a go. In recent news, the company announced 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 has the potential to boost prospects for Samaranta, which is already engaged in the exploration of the Guadalupe property in Antioquia, Colombia. Current survey results indicate significant potential at Guadalupe property, but with current forces in play, Samaranta chose to continue to expand their access to gold.
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 is rare and during times of high gold demand, especially profitable. Volatility is more and more being referred to as the new standard of the markets, and investors continue to struggle with the fresh terrain. Their response in recent months has been to flee to safe havens with gold being the most obvious option.
The appeal of gold was compounded by Switzerland‘s choice to place a cap the price on its own currency. The Swiss Franc had been another draw for investors in search of a safe investment outside the tumult of equities, but the new limits have impinged on their ability to do so and added to gold’s appeal.
With a rising interest in physical gold and Samaranta’s aggressive exploration and acquisitions, the company is looking well-positioned for a continuance in this trend.