Stocks Digest LLC

Stocks Digest LLC

October 02, 2012 14:06 ET

Santo Mining Corp. (SANP) Capitalizes on New Dominican Gold Rush Alongside Goldcorp (GG) and Newmont Mining (NEM)

SANTO DOMINGO, DOMINICAN REPUBLIC--(Marketwire - Oct. 2, 2012) - China, Australia and the U.S. may top the charts as the world's largest gold producers, but a resurgence of mining projects is bringing the Dominican Republic back into prominence not seen since the days of Spanish New World explorers.

Indeed, with production begun on the 25.3-million-ounce Pueblo Viejo gold mine venture in mid-August, the Dominican gold rush appears to be well on its way. The majority owner of Pueblo Viejo, the world's number-one gold producer, expects to harvest nearly 100,000 ounces of gold in 2012 and approximately 650,000 ounces of gold in 2013; their 40% partner, Goldcorp (GG) is projecting as much as 85,000 ounces through the end of this year. Total cash costs are anticipated to average $300-$350 per ounce over the course of the first five years of operation. Nearly $4 billion in direct foreign investment has gone into the project, the largest in Dominican Republic history.

Mining-friendly policies and the existence of the Hispaniola Gold-Copper Back-Arc, a geological volcanic formation running northwest to southeast through the Caribbean island's mountainous interior, have made the Dominican Republic a magnet for precious-metal mining companies. Beyond the two majors in Pueblo Viejo, key players also include Newmont Mining (NEM), Xstrata, Perilya, Everton Resources, Brigus Gold, Unigold, and PanTerra Gold.

The most recent company to join the Dominican Republic fray is a junior gold exploration firm, Santo Mining Corp. (SANP). Seeing the opportunity, and based on President and CEO Alain French's extensive experience and connections within the country's mining industry, the company has moved decisively to acquire three high-potential claims within the gold region. On Friday, September 28, the company also announced completion of a $500,000 private placement to be used for geochemical exploration.

The resurgence of mining has jumpstarted an economic boom for the Dominican Republic. Assuming continued strength in gold prices, mining is projected to become the country's largest source of income, taking the lead spot from tourism. And ultimately, what's good for the country will be good for companies such as Santo Mining, helping it extract its most valuable resources.

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 SantoMining.com.

Further information on the Company and its filings can be found at www.sec.gov.

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