China has uncovered vast gold deposits that could be the largest in the world

A significant gold deposit has been discovered in China’s Hunan province, with experts estimating its value at around £66 billion. The find, reported by the Geological Survey of Hunan Province (GBHP) on November 20, 2024, is described as one of the largest known reserves of the precious metal. The deposit, located in the Wangu goldfield, is believed to contain 1,100 tonnes of gold, making it potentially the largest single deposit in the world, according to mining specialists.

Discovery details and potential

Report indicates that more than 40 gold veins have been identified during drilling operations at a depth of 2,000 meters. Visible gold was observed in many of the recovered rock cores, with some sections showing grades of up to 138 grams of gold per tonne of ore. Mining experts predict that the deposit could extend to a depth of 3,000 meters, based on advanced 3D modeling conducted during the exploration phase.

Chen Rulin, an ore prospecting expert at GBHP, noted in a statement to Chinese state media that the deposit represents an exceptional concentration of gold. Additional reserves may be present in surrounding areas, as indicated by preliminary testing exercises conducted away from the primary site.

Global implications

According to the report, the new discovery, if confirmed, would exceed the gold reserves of South Africa’s South Deep mine, which contain approximately 930 tonnes. Experts have warned that this discovery, while monumental, will only partially meet China’s gold consumption needs. Currently, the country produces 10 percent of the world’s gold but consumes three times as much gold, relying heavily on imports from countries such as Australia and South Africa.

Economic impact

Following the announcement, gold prices rose to nearly GBP 2,180 (approximately Rs. 2.3 lakhs) per ounce, approaching the record highs reported earlier this year, as reported. The discovery is expected to impact both global markets and domestic mining activities as extraction plans progress.