China Gold Mine News: The world’s largest gold deposit has been discovered in central China. Chinese state media have announced the discovery of gold deposits in Pingxiang County, Hunan province, possibly the largest ever discovered and valued at approximately $83 billion. This reserve is estimated to be larger than South Africa’s South Deep mine, which contains approximately 900 metric tons of gold. Geologists have identified 40 gold veins at a depth of two kilometers, which shows that this discovery is unprecedented.
Gold deposits are usually formed by underground processes, in which gold-rich fluids flow through cracks in the Earth’s crust. Over millions of years, these fluids dissolve gold from rocks and deposit it as gold according to changing conditions such as temperature or pressure. A similar process is being seen at the Pingxiang Reserve, where preliminary estimates suggest there are 300 metric tons of gold in the veins identified. A modern 3D model estimates additional gold reserves to a depth of three kilometres.
Gold was discovered in many of the rocks excavated, with samples yielding 138 grams of gold per metric ton of ore. This is an unprecedented figure compared to the industry benchmark of eight grams per metric tonne for high grade ore. This shows that the newly discovered reserves are of extremely high grade.
The discovery is likely to increase China’s already significant influence in the global gold market. China will further strengthen its dominance as the leading gold producer with a ten percent share in global production and reserves of two thousand tonnes in 2024. This announcement led to a further rise in gold prices amid increasing global economic uncertainty.
On the one hand, while experts are debating the possibility of finding more significant gold reserves globally, this discovery confirms the possibility of the existence of economically viable reserves. The discovery also signals a promising future for China’s gold industry and the global market.
