On Tuesday, June 12, Gold prices surged over $8 reversing the 5 day recline the commodity had been experiencing.  Though Gold has been experiencing a lull as of late, numerous analysts remain bullish in the mid to long term.  Short-term, gold is subject to the whims of the marketplace which should be conducive for a continued uptick.  Geopolitical tensions have begun to spike within the Middle East with flare-ups in Lebanon, Gaza, and Iraq.  The most telling flare-up has been the cross border fighting between Kurdish rebels located in northern Iraq  and the Turkish Army, which has seen several cross border raids.  If fighting intensifies this could send the region into a wider war and spark a flurry of buying into safe-haven investments, which historically have included gold.  Iran’s threat to missile any states that help in any perceived attack on its nuclear facilities has also ratcheted up tensions in the region.

Dhanoa Minerals could stand to benefit from the continued tensions in the Middle East while it works to develop its mining properties.  A recent independent report on the company’s Bonanza  properties (a region in Ecuador)concluded that the area was well above the industry standard for gold mining properties.  The company’s projected production levels of 100,000 ounces in the first year and 250,000 ounces by the second year should generate substantial revenue for Dhanoa.

About Dhanoa Minerals Ltd.