Seeing the bigger picture is often lost with many American corporations. The next quarter is the cry from Wall Street and companies’ cow-tow to it. Ultimately, however, they miss the opportunities that strategic long-term planning offer. In most instances, finding a company that forgoes quarterly expectations of Wall Street in favor of longer term stable profits is a solid investment strategy for the long term investor. The preference for these types of companies (long term players) may not be as glamorous as companies that rise and fall by the quarter, but they are companies that will produce over the long haul.
Global Gold Resources Inc., an international gold and uranium exploration and development company, works to discover and extract gold and uranium deposits primarily in Chile, Canada and Armenia. The company is currently focusing its efforts on a substantial gold find in Armenia.
Although most natural resources companies understand the long term nature of their industry, Global Gold puts it to good use. It fully expects that it needs to understand a particular site, geographic region and culture if it is to optimize its profit potential. The company’s recent gold find in Central Armenia is a case in point. Since Armenia is not generally in most people’s minds when it comes to gold, the company needed to understand how the government and equipment sourcing process could work most efficiently.
Beginning its efforts in 2005, the company started its due diligence so that, once a find had been established, it could extract its metal from the ground more rapidly. In this regard, the company has upgraded gravitation and floatation equipment at the site and constructed a tailings dam. Additionally, the company has made solid efforts to keep the government informed so that full cooperation can be granted to facilitate further needs (infrastructure, environment) as they may arise.
The site in Central Armenia is comprised of approximately 51 square Km. The initial find is located right in the middle of the overall site and is approximately 2.2 square Km. Within that zone, testing has identified 18 zones with a 1.5km mineralized long strike. The company has only tested 20% of this overall area but has found indications of 2.5 million oz. of gold and 11.9 million oz. of silver - based on a vein size of 1-1.5m in two of the 18 sites identified to date.
From all appearances, Global Gold Resources has a solid find on their hands. As operations begin to ramp toward extraction, there should be a solid stream of gold and silver offering profit for the longer term.
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