China has announced the discovery of a significant gold deposit in Pingjiang County, Hunan Province.
Valued at approximately $83 billion at current prices, the deposit is estimated to contain over 1,000 tonnes of gold, marking a notable development for the global and domestic gold mining sectors.
Details of the Discovery
The deposit was identified by experts from the Geological Bureau of Hunan Province, who located more than 40 new gold veins less than 2,000 metres underground. These veins alone are projected to yield 300 tonnes of gold. Additionally, reserves extending down to 3,000 metres increase the estimated total yield to over 1,000 tonnes.
Core samples indicate a gold concentration of up to 138 grams per tonne, significantly exceeding the 8 grams per tonne commonly classified as high-grade in underground mining.
A Global Comparison
To understand the scale of this discovery, it can be compared to Nevada Gold Mines in the United States, currently the world’s largest gold-producing operation. Nevada Gold Mines produced slightly over 100 tonnes (3.3 million troy ounces) in 2022. The newly identified deposit in China surpasses this output in terms of reserve potential.
Implications for the Jewellery Industry
This discovery could affect global gold supply and pricing trends, especially given China’s prominent role in gold mining and consumption.
If developed, this deposit may contribute to a steadier gold supply for China’s domestic jewellery industry and reduce reliance on imported materials. International jewellers may wish to monitor its development for potential effects on gold sourcing.
Outlook
While the discovery has been categorised as “massive” by Chinese authorities, further analysis and mining feasibility studies will likely follow before large-scale extraction begins. The operational timeline for such a deep underground reserve will be a key factor in determining how quickly the jewellery and gold markets might feel its effects.
