$83 Billion Gold Deposit Unearthed In China – Is This The Largest Find In History?

Geologists have discovered a large gold deposit in Hunan Province, China and experts call it a "supergiant." The Geological Bureau of Hunan Province announced their discovery in the Wangu gold field. It is estimated to contain 1,000 metric tons of gold, valuing around 600 billion yuan or almost $83 billion. However, some experts question the feasibility of this finding and whether the scope is as large as estimates say. 

The Discovery

According to Xinhua News Agency, the deposit was identified through extensive exploration, which included drilling 150,000 meters and analyzing 40 distinct gold veins. The highest-grade samples contained 138 grams of gold per ton of ore, surpassing the typical benchmark of eight grams for high-grade deposits. The initial exploration discovered 300 tons of gold at depths of up to 2,000 meters. Further analysis suggests that the deposit could extend up to 3,000 meters. 

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Liu Yongju, vice head of the Geological Bureau of Hunan Province, said that technological advancements like 3D geological modeling played a large role in uncovering the deposit. Visible gold in rock cores was among the evidence supporting the claim of vast reserves.

Comparisons and Skepticism

If verified, this discovery could rival South Africa’s South Deep Mine, which holds approximately 900 metric tons of gold and is considered one of the largest deposits globally. However, some analysts, including those at the World Gold Council (WGC), remain cautious.

John Reade, WGC's senior market strategist, emailed The Northern Miner to label the estimate of 1,000 metric tons as "aspirational." He pointed out that much more exploration would be needed to confirm the full scale of the deposit. He noted that Chinese reporting standards differ from global frameworks like Canada's NI 43-101 and Australia's JORC code, making independent verification necessary.

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Challenges to mining at such depths – ranging from extreme heat to high operational costs – could delay or limit production. Reade noted that even if mining begins, the deposit would contribute only a fraction to global supply, approximately 3,600 metric tons annually.

Implications for China

China is already the world's largest gold producer, with reserves estimated at over 2,000 metric tons earlier this year, according to ScienceAlert. Yet, domestic production has declined due to environmental regulations and the closure of smaller mines. A find like this could bolster China's reserves and production capacity.

The discovery also comes as global gold prices rise amid economic uncertainty, increasing the potential economic impact of such a find. However, historical parallels, like the Sonbhadra gold deposit claim in India, which was debunked in 2020 according to Mining.com, underscore the need for rigorous verification.

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What Comes Next?

While the announcement has sparked excitement, experts urge caution. Developing a deposit of this size and depth will require years of investment and planning. Independent verification of the reserves will also be critical to establish credibility.

For now, the Wangu gold field represents a promising development in the global gold market, but whether it becomes a game-changer remains to be seen.

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