One of the world's largest gold deposits worth £64bn discovered in an ancient country

Significant Gold Deposit Unearthed in Hunan Province, China

A substantial gold deposit, estimated to be worth £64 billion ($83 billion), has been discovered in China’s Hunan province, according to reports from Chinese state media. This potential find, publicized in late 2024, is speculated to be among the planet’s most expansive high-grade gold reserves, potentially exceeding even South Africa’s South Deep mine, which is known to contain approximately 900 metric tons of gold.

Doubts Raised Over Size and Viability of Chinese Gold Find

Despite the initial reports, some industry professionals are expressing reservations regarding the actual magnitude and practicality of this purported discovery. The World Gold Council (WGC) has cautioned that China’s protocols for reporting mineral resources may not align with international standards. This discrepancy suggests the actual gold reserves could be considerably less than the initially stated figures. According to information released by the Geological Bureau of Hunan Province, the deposit was located within the Wangu gold field in Pingjiang county. Preliminary surveys indicated the presence of 40 gold veins extending to depths of two kilometres (1.2 miles). These were initially calculated to hold around 300 metric tons of gold.

Revised Estimates Suggest Larger Gold Reserves at Greater Depths

However, subsequent 3D modelling studies have proposed the possibility of additional reserves at depths of three kilometres. This analysis suggests a potential total of 1,000 metric tons (1,100 US tons).

High-Grade Gold Samples Bolster Claims

Chen Rulin, a prospector from the Bureau, stated that core samples extracted from the site displayed visible gold. Notably, some high-grade sections showed concentrations up to 138 grams per metric ton, which is considered an exceptionally high level relative to standard global mining benchmarks.

Market Reaction and Industry Caution Regarding New Gold Discovery

The announcement generated significant interest within global markets, particularly as China is already recognized as the world’s leading gold producer, responsible for about 10% of the global gold output.

Potential Impact on China’s Gold Reserves

If validated, this discovery could substantially augment the nation’s reserves, which were already reported to be in excess of 2,000 metric tons earlier in 2024.

Experts Urge Measured Expectations for Hunan Gold Deposit

Nevertheless, sector analysts have advised a cautious approach. John Reade, senior market strategist at the WGC, commented that while the 300-metric-ton figure seemed plausible, the 1,000-tonne estimate was likely more “aspirational” and lacked robust substantiation.

Challenges of Deep Mining Operations

“Considerably more exploratory drilling is necessary to convert this into a proven reserve,” Reade stated in communication with Mining.com.

Technical and Economic Hurdles in Deep Gold Mining

He further emphasized that mining operations at such extreme depths—ranging from 2,000 to 3,000 metres—pose considerable technical challenges. These include issues related to intense heat, seismic instability, and elevated operational expenses.

Deepest Mines Face Profitability Issues

Even South Africa’s Mponeng mine, currently the deepest gold mine globally at over 4,000 metres, encounters difficulties in maintaining profitability, despite utilizing advanced mining technologies.

Verification Concerns and Comparisons to Past Claims

A further critical aspect is independent verification. Unlike established frameworks such as Canada’s NI 43-101 or Australia’s JORC code, China’s reporting standards do not fully conform to international norms. This difference complicates the process of confirming the precision of the gold deposit claim.

Recalling India’s Sonbhadra Gold Discovery

Certain analysts have drawn parallels with the 2020 Sonbhadra gold discovery in India. In that instance, local authorities initially proclaimed the finding of 3,000 metric tons of gold.

Discrepancy in India Gold Reserves Highlight Verification Needs

However, a subsequent assessment by the Geological Survey of India determined that the actual reserves amounted to only 160 kilograms—a minuscule fraction of the original assertion.

Potential for Reassessment of Hunan Gold Deposit

Should a similar re-evaluation occur in China, the Hunan discovery could ultimately prove to be significantly smaller than initially publicized.