Gold News

Gold Prices to rise after reassessment of mine deposits?

Gold Prices could potentially be affected by the recent revelation that the deposit strength of a Fijian-based mine was not as large as anticipated.

Following an independent investigation into mineral resources at the Fiji mine, owner Vatukoula Gold Mines has had to reduce the deposit estimates it made in 2008, although it has maintained that the ore deposits are still of exceptional quality.

The decrease in mine deposits will impact upon the supply potential of the facility and, potentially, on the widespread price of gold as a result of reduced availability to the buyer.

David Paxton, chief executive of Vatukoula, said: "As a result of using a more conservative methodology, the Mineral Resources are lower than those published in our 2008 admission document.

"Nonetheless this updated estimate continues to demonstrate that VGM has a world class gold deposit in terms of size, scale and potential."

The global supply of gold could become of increasing importance in light of recent suggestions that the Chinese are buying up the precious metal at record rates.

Xiam Zang, a bullion dealer in Beijing told Commodity Online: "Chinese people are buying more gold these days. In fact, many people are now convinced that gold is the best investment asset."

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