Selva Resources Corp. is a Nevada based refiner of gold and silver minerals. We invest in known mineral resources without incurring extraction cost or taking mining risks.
Our process stockpiles in Nazca, Peru has indicated $12 million of gold value and production is near fully financed with an expected 6 month payback from first investment.
Seva has entered into land contract and has begun environmental studies for the construction of the first licensed gold processing facility in Piura, Peru. Our strategic location is expected to reduce our cost by half of competitors when considering transportation expense. Having roots in these communities provides a sensitivity to social issues that is our business advantage. Selva management has important expertise in regional and federal agency relations necessary to pioneer processing in Piura. We are currently in the process of becoming listed OTC:BB. An engagement letter has been signed to prepare our financial statements for the anticipated audit.
Gold prices have increased somewhat regularly over the past twenty years at a rate similar to oil that has also reached its peak production rate. unlike other extractive resources though, gold has unusual demand and market dynamics.
Analysts price forecasts vary widely but a recent survey published at Bloomberg predicts volatility and appreciation.
Market intervention by central banks in the form of gold lending contracts are powerful short term influences. 4Q09 gold prices surged to a record $1,100 on the news that India’s central bank purchased 200 tons of bullion from the IMF. This amount equates to 8% of the global mine production and amounts to 6.2% of the countries foreign exchange reserves indicative of a global trend of sovereign dollar selling. Central banks collectively bought $28 Billion in gold over the quarter.
China has announced plans to increase its gold reserves to 6,000 metric tons within 3 to 5 years and possibly as much as 10,000 tons in 8 to 10 years. They indicated the Dubai debt crisis is an opportunity for it increase holdings.
West Africa is a fast growing region having a 9 year growth rate of 4% and is expected to surpass South Africa in 2 years. New mines opening this year in Siberia are expected to advance Russia from its present rake of 5th largest world producer.
The understanding of hydrothermal veins began in Europe and was perfected in the California gold rush. Since then most the world’s dry surface has been explored for significant surface minerals. New geophysical exploration techniques are revealing the jungles of Congo, Papua New Guinea and Indonesia and ice retreat in the Arctic reducing exploration and production costs there. The last frontier is subsea.