As the price of gold continues to hover around US$1000 per ounce, Melbourne-based Range River Gold yesterday announced plans to significantly increase production at its Mt. Morgans project in Western Australia.
Range will increase production at Mt. Morgans from 30,000 ounces per year to 40,000 over the next five years, the company said.
According to Range managing director Rick Watsford, despite the plans for the increase being laid before the recent surge in gold prices, the company is very encouraged by the recent activity in the market.
“I am quite bullish that gold’s strength is going to continue,” he told MINING DAILY.
“We are confident that gold prices are going to stay up and stay firm in the coming years.”
Watsford said that as various government financial measure gradually recede from the Markey, gold will be continue to be seen by investors as a solid commodity in the market.
“The stimulus packages that all governments have been putting in place have got to come off at some stage,” he said.
“I think that is going to help fuel sentiment for the gold price in the next two years.
“And if inflation then appears to really set in over that time, we will see more strength in the gold price.”