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

Discovery Details and Potential

Report indicates that more than 40 gold veins were identified during drilling operations at depths of 2,000 metres. Visible gold was observed in many of the rock cores retrieved, with some sections recording a quality of up to 138 grams of gold per metric tonne of ore. Mining experts predict that the deposit could extend to depths of 3,000 metres, based on advanced 3D modelling conducted during the exploration phase.

Chen Rulin, an ore-prospecting expert at GBHP, noted during a statement to Chinese state media that the deposit represents an exceptional concentration of gold. Additional reserves may exist in surrounding areas, as suggested by preliminary test drills conducted beyond the primary site.

Global Implications

According to the report, if confirmed, the new discovery would surpass the gold reserves of South Africa’s South Deep mine, which has approximately 930 metric tonnes. Experts have cautioned that this discovery, while monumental, will only partially address China’s gold consumption needs. Currently, the nation produces 10 percent of the world’s gold but consumes triple that amount, relying heavily on imports from countries like Australia and South Africa.

Economic Impact

Following the announcement, gold prices surged to nearly GBP 2,180 (roughly Rs. 2.3 lakhs) per ounce, approaching record highs reported earlier in the year, as reported. The discovery is expected to influence both global markets and domestic mining operations as extraction plans progress.