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Following an optimistic data from across the world, we are seeing rally in the Global stocks market and US markets was not an exception. However, investors are still cautious about the pace of the economic although now analysts are predicting that possibility of double dip recession is almost nil. In such confusing situation, we are seeing heavy buying activities in Yellow Metal also know as Gold. Gold tends to rise when the economy is not performing as expected. Over the past three years, prices of Gold have almost doubled and made a new record recently of around $1263. Now analysts are seeing the Gold to touch $1500 and some are even betting $2000 an ounce over the next few years.
With such a bright prospects, out team is available with a OTC stock which has strong portfolio of Gold and Silver. The company is Gold American Mining Corp. (OTC:SILA). Let’s review what are the key factors which could drive the stock higher from the current price.
Gold American Mining Corp., formerly Silver America Inc., is a precious metals exploration company focused on the acquisition and exploration of holdings with silver and gold production. The Company has already developed a portfolio of international properties. The properties of the Company include Keeno Strike Property and Guadalupe Property.
Strong Projects in Process
Gold American Mining Corp currently has interest in two projects – keeno Strike Property, which is located in Goodsprings/Yello Pine Mining District Clark Cunty, Nevada, containing 240 acres of copper, cobalt nickel, zinc and lead. The company holds 72% interest in the property and under the agreement it has agreed to pay a royalty of 4$. There are around 2.14 million ounces of gold potential. The district is a rich a mineral and has historically generated over 1.40 ounces of Silver and 20.50K ounces of Gold apart from deposits of copper, cobalt nickel, zinc and lead.
Guadalupe property , which is located d in one of Mexico’s oldest mining districts, roughly 5 miles north of the Fresnillo (Proaño) Mine, the world’s richest underground silver mine, operated by Fresnillo plc. SILA’s Guadalupe Property contains two historically significant mines. Historic records containing references to the Santa Rita and San Antonio mines suggest that both mines were important and reached their height of production between 1910 and 1920 but were last in production in the 1980's. The property is completely surrounded by land controlled by Peñoles (either through Fresnillo or other subsidiaries and partners).
Concluded Geophysics Program At Its Guadalupe Property
The company has recently confirmed that it has identified multiple potentially significant geophysical anomalies after studying geophysics program. The geophysical survey was designed to test down to depths of 500 metres.
“The final results and interpretation of the geophysics results on our Guadalupe property have given us very attractive drilling targets. We are in the process of acquiring firm bids from several qualified drilling contractors and initiating the permitting process for the next phase of exploration of this exciting project,” commented Johannes Petersen, President of Gold American. “Gold American is well on track to initiating drilling operations on Guadalupe during the fourth quarter of 2010,” added Mr. Petersen.
Initiate Field Operations at La Escondida Project
The company announced that it has got an approval from its Board of Directors to commence first phase of field operations at its La Escondida Project in Sonora State, Mexico after completed the initial evaluation of all historical data on the La Escondida property.
This phase will consist of detailed sampling within the mineralized zones, mapping, and a structural evaluation of the area. Subject to the results of this phase, the Company will decide to proceed with the second phase, which would consist of a comprehensive geophysics program of the property.
La Escondida property is comprised of two mineral concessions that cover 439.8 acres. It is located approximately 124 miles northeast of the city of Hermosillo in Sonora State, Mexico. The property is located in a region that has seen significant recent activity by foreign mining companies.
Growth Through Acquisition of Mineral Rich Assets
Growth through merger & Acquisition in the Gold Sector is a tradition. The company has an aggressive plan to acquire minerak rich assets in order to axpand its existing portfolio. The company is basically considering some key factors while acquiring such as – stable political environment, sound economics and friendly business environment.
The company recently secured equity financing agreement of $7.5 million which will allow the Company to pursue ongoing aggressive acquisition and exploration of existing holdings.
Conclusion
Gold American Mining Corp has a strong portfolio with an estimated potential of 400 million ounces of silver and 2.1 million ounces of gold could translate into a multi-billion dollar opportunity at current market prices. The company is targeting more acquisition to diversify its assets quality and to make its portfolio mineral rich. With the Gold Prices setting record highs, there is no doubt that the company should be in better position to take the advantage of rising prices.
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