Massive gold discovery: $80 Billion worth of gold found in China
Scientist in China have discovered a large gold deposit valued at an estimated 80 billion dollars.
In Piajuang County, located in Hunan, China, a recent discovery was made: An impressive gold reserve. The 40 gold veins contained approximately 300 tons of gold that were hidden 2,000 meters below the surface. The estimated value is 80 billion dollars worth of gold.
Shortly after the discovery, Chinese researchers dug even deeper—3,000 meters—in hopes of finding more gold down there. Experts say that one gold vein contains 138 grams of gold per ton of minerals. The total gold resources in the mine’s core area rise to 300.2 tonnes, as the Hunan Provincial Geological Institute said in an online statement about the achievement.
What does this mean for Hunan?
Liu Yongjun, the institute’s vice-president, claimed the discovery of this gold deposit represents a major moment for China’s mineral exploration strategy. In the statement, the finding was described as a “significant in helping safeguard the country’s resource security”.
This discovery could be a great opportunity for investors in China. On the other hand, the Hunan province could also benefit from it and become a leading gold market. It is important noting that China is the world’s top gold producer, with about 10 percent of global production. The country is heavily dependent on the metal, as it uses about three times more gold than it mines per year.
How was the gold found?
In order to locate the deposit, 3D geological modeling technology was used by scientists. This allowed them to map the area as well as identify the most gold-rich zones below the surface.
Other modern techniques such as Deep drilling technology and Advanced sampling methods were used. The first one enabled exploration at unprecedented depths, and the second one ensured accurate assessments of ore quality and quantity, providing critical data for planning and operation.
Impact on gold prices
The finding has already influenced global gold markets. Prices are near $2,700 per ounce, showing an elevated curve and forcing other countries to compete with China.
Even if this discovery has caused temporary fluctuation in the gold market, long-term effects on global prices depend solely on extraction rates and other geopolitical dynamics. As mentioned before, China is a highly domestic consumer, which might limit global supply increases of gold.