Affinity Gold Corp (AFYG)

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WHY PERU?

Mining and agriculture are the fundamental pillars of Peru's growing economy. The country is rich in mineral resources and the government continues to implement mining-friendly policies to promote exploration.

Because of this, Peru attracted over $600 million in gold mineral exploration financing in 2009, more than Russia, Chile and Brazil. Overall, foreign mineral investment totaled $2.7 billion in 2009, an increase of 68 percent from 2008 (source: Peru Annual Mining Report, released by Ministry of Energy and Mines, page 45-47).

The country is the leading producer of gold in Latin America and the fifth largest in the world, exporting almost $7 billion worth of gold in 2009 alone, representing a 22 percent increase over 2008.


When the rest of the worlds major economies were shrinking in 2009 due to the financial crisis, Peru was one of only a few countries that saw GDP growth, attributed mostly to mining exports. According to the Ministry of Energy & Mines, Peru is home to over $35 billion of mineral projects.

Peru plays host to some of the largest and lowest cost precious and base-metal mines in the world, including Alto Chicama, Yanacocha and Antamina. Many of the world's major mining companies, including BHP-Billiton, Newmont, Phelps Dodge and Barrick have operations in the country.