1,000 tons of gold deposit that’s largest in world discovered in China

A massive gold discovery in central China has the potential to reshape the nation’s gold reserves and contribute significantly to global supply.

The Geological Bureau of Hunan has claimed that Chinese geologists have identified more than 40 gold veins, with reserves of 300 tonnes, at a depth of 2,000 meters (6500 feet) beneath the Wangu goldfield in Pingjiang County.

The total gold reserve at the site, extending to a depth of 3,000 meters (9800 feet), is estimated to exceed 1,000 tonnes. This massive reserve is valued at approximately 600 billion yuan (approximately $83 billion).

Discovery reveals visible gold in rock cores

A gold vein is a geological feature where gold accumulates within cracks in underground rock. These veins are formed by hydrothermal processes, where hot, mineral-rich fluids travel through fissures in the Earth’s crust.

Chen Rulin, an ore-prospecting expert at the bureau, noted that many drilled rock cores revealed visible gold, with one tonne of ore from the 2,000-meter range containing up to 138 grams of gold.

Liu Yongjun, the bureau’s vice head, highlighted the use of new ore prospecting technologies, such as 3D geological modeling, at the Wangu goldfield. Drilling around the site’s periphery has also uncovered promising prospects, Liu added.

The Hunan Provincial Geological Institute has classified the discovery as a “massive” gold reserve, with the institute emphasizing that the find is “significant in enhancing the country’s resource security.”

China leads global gold production 

In 2022, China’s gold mining production reached 403 tonnes. The Wangu goldfield is one of China’s key mining hubs, contributing to the nation’s position as the world’s leading gold producer, accounting for about 10% of global production in 2023.

Furthermore, over 100 million yuan ($13 million) have been invested in the area for mineral exploration since 2020, the South China Morning Post reported.

China is a global leader in mining, particularly in the production of precious metals used in next-generation batteries and electronics. Additionally, China leads the world in exporting mining technology, pioneering innovations to reduce carbon emissions in the mining process.

However, despite its substantial gold production, China’s consumption surpasses its mining capacity, resulting in significant imports from countries such as Australia and South Africa.

While global gold prices rose following the announcement of the discovery, the long-term outlook remains uncertain due to ongoing geopolitical tensions, which continue to create instability in global markets.

By the end of 2023, it is estimated that a total of 234,332 tonnes of gold have been mined throughout history, according to the World Gold Council. The majority of this gold extraction has occurred after 1950.

Beyond its monetary value and aesthetic appeal, gold plays a vital role in numerous technological advancements. Its unique properties, such as excellent electrical conductivity and resistance to corrosion, make it indispensable in electronics, aerospace, and even medical applications.

As technology continues to evolve, gold’s importance in facilitating innovation is likely to remain paramount.