Regal Group International: Gold Fields Ltd. expects gold’s rally to continue.

Oct. 14, 2010 - PRLog -- Regal Group International has learned that Gold Fields Ltd.'s Chief Executive Officer Nick Holland has told reporters that he sees strong fundamentals for the gold sector.

He said that a number of new projects across the industry will be coming on line soon and that these projects were all expected to deliver lower gold grades.

"There isn't a significant amount of supply coming out anywhere, the average value and size of exploration discoveries has declined significantly,” Regal Group International believes he said in the interview."Gold has a reasonable underpin at $1,000 an ounce and I don't think it is easily going to go below $1,000."


Gold has recently soared to record highs of around $1,375, driven by dollar weakness and market anticipation that the U.S. Federal Reserve is soon to embark on a fresh round of economic stimulus measures.


"The price has had a good run and we should expect that it could possibly consolidate for a while at these sort of levels," Holland told Regal Group International sources.



The Gold Fields CEO went on to say that the mining giant intended making a decision later this year as to when proceed with its plan to build a uranium plant, which would amount to the group's "fifth mine" in South Africa.
The company has previously stated that the proposed plant would treat 402 million tonnes of historical tailings dams on surface, sufficient to produce 58 million pounds of uranium and around 4.2 million ounces gold in total.


"We are quite bullish on uranium, the price is certainly going to go higher. It is something that will definitely get off the ground, the only question is when," Holland told Regal Group International, adding that the firm may decide to develop the project with a partner.

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