Stocks Digest LLC

Stocks Digest LLC

November 02, 2012 09:47 ET

Could November Gold Strength Bode Well for Santo Mining Corp. (SANP)?

NEWARK, DELAWARE--(Marketwire - Nov. 2, 2012) - If history is a guide, recent data indicates that November could be time for another move up for gold after an October correction. Bloomberg's "Gold Seasonality" data shows that November returns have been the strongest month for the past five, 10 and 30 years, with an average five-year return of 5.6% and 10-year return of 5.1%. Combine that with gold mining stocks trading at a P/E of 17 (the lowest in nearly a decade), swelling profits, and cash flow, and it would seem that the stage is set for the miners to finally catch up with bullion prices.

A number of factors contribute to November's relative outperformance, such as investors fearful of October crashes and financial crises, and coming back into the market after following the traditional advice of "sell in May and go away." This year, the approach of the "fiscal cliff" could make the fear trade even more acute, not to mention skittish investors sitting on the sidelines before the U.S. Presidential election. Culture has an impact as well, for example, with advance purchases of precious metals before the traditional December wedding season in India.

Although many investors have been using ETFs to gain exposure to the precious metals market, those investments do not offer the potential outsized returns that can come with individual stocks. One such example would be Santo Mining Corp. (SANP), a junior gold mining exploration firm that has secured seven claims in the Dominican Republic gold region. On Wednesday, October 31, the company acquired its newest claim, Eliza, with 243.75 hectares of explorable land: The company has already announced plans for a near-term preliminary geochemical survey, consisting of stream sediment, soil and rock sampling.

Santo Mining's claims and proposed acquisitions lie within the Hispaniola Gold-Copper Back-Arc, a volcanic belt running the width of the island that includes mines operated by Goldquest, Newmont Mining (NEM), Eurasian (EMXX), Everton, Brigus (BRD), Unigold, and Xstrata. In particular, Santo Mining has targeted claims proximate to the 25.3-million-oz. Pueblo Viejo mine, operated by the world's largest mining producer in partnership with Goldcorp, and Perilya's Cerro de Maimon.

About Santo Mining Corporation

Santo Mining Corporation is an aggressive junior minerals exploration and development company, based in the Dominican Republic. The company is actively acquiring and exploring its properties, which are strategically located in the prolific and highly prospective Hispaniola Gold-Copper Back-Arc area in the Dominican Republic. A detailed description of the Company's activities is available at

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