NEWARK, DELAWARE--(Marketwire - Oct. 23, 2012) - The Market Vectors Junior Gold Miners ETF (GDXJ) has climbed about 40% since the summer lows—a potential signal that the exploration side of the precious metals business is coming into its own, after lagging the resurgence in gold and silver prices and the share prices of senior miners. The ETF contains more than 80 small cap and early stage mining companies such as B2Gold Corp., Silvercorp (SVM), and Endeavor (EXK).
Many analysts believe, however, that investments in individual mining stocks can offer better bang for the buck than investing either in industry-tracking indexes or physical bullion. While diversification offers protection from downside risk, it also diminishes the opportunity to fully benefit from a high-flying company that makes a big discovery and outperforms its peers, or that is acquired by a mining major.
While Santo Mining Corp. (SANP) stock is not currently part of the GDXJ index, it is a small exploration company that could ride the rising tide of junior miners. The company has secured six claims in the Dominican Republic gold region, and has already begun the exploration process. On Monday, Oct. 23, the company announced it was in the process of negotiating an addition eight claims in the area: http://finance.yahoo.com/news/santo-mining-negotiating-pipeline-eight-130000378.html.
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 contains significant reserves of gold and silver. The area includes 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. Other companies active in the country include Goldquest, Newmont Mining, Eurasian, Everton, Brigus, Unigold, and Xstrata.
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.
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