Gemini Explorations is a mining company focused on exploring, developing and mining gold properties. The Company’s main projects are located in the heart of Colombia’s undeveloped gold districts, including La Planada in Sotomayor, Nariño and Los Chorros Gold Mine in El Bagre-Zargoza, Antioquia. The Company also has a mineral claim encompassing a total of 16 adjoining cells in British Columbia, Canada.
According to a recent report from MPGS, the latest exploration results indicate samples from the Company’s Los Chorros Gold mine are averaging 41.94 grams of gold per ton of ore. Consequently, Gemini Exploration has increased the projected production yield from 12 to 20 grams of gold per ton of ore and increased monthly revenue estimates from $0.9 to $1.5 million.
The estimated amount of gold mine production in 2006 was more than $65.3 billion, or a 22% increase compared to 2005. During the first six months of 2007, demand for gold was already 11% higher than 2006 in tonnage terms and 24% in terms of U.S. dollars. As gold prices rise because of the demand, mining profits rise and exploration activities increase. As a result, gold mining should remain one of the strongest industries over the next decade.
The Beacon Equity Analyst concluded the report stating, “The encouraging results of the Company’s fall 2007 exploration programs suggest Gemini Exploration has a better-than-average likelihood of success. Moreover, rising gold prices create a favorable outlook for gold mining companies. We believe Gemini Exploration is significantly undervalued at current share price levels and are initiating coverage of the Company with a Speculative Buy rating and a $1.23 price target.”
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