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Thursday, Apr 25, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Gold

China’s mineral resource authority discovers US$3B gold deposit

The deposit is situated in China’s eastern Shandong province and state media says it will produce 50 tonnes of gold

China’s mineral resource authority discovers US$3B gold deposit
Shandong province, China. Photo by yangguoquan via Shutterstock

China’s mineral resource authorities say they have discovered a gold deposit in the country’s eastern Shandong province estimated to be worth US$3 billion.

The country’s government-owned China Media Group announced the news on Sunday and said the deposit contains an estimated 50 tonnes of gold and will produce 2,000 tonnes of gold ores over the course of about 20 years.

“The deposit covers a large area and the ores are easy to mine and dress,” said the Shandong Provincial Bureau of Geology and Mineral Resources.

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The Shandong province is China’s most valuable gold asset

China Media Group says the Shandong province has produced more gold than anywhere in China over the past forty years.

“The prospectors drilled more than 250 holes as deep as 1,400 meters to find the deposit,” said Zhou Mingling, Deputy Head of the Shandong Provincial Bureau’s 6th Geological Brigade.

Major Chinese gold mining companies include Shandong Gold Mining Co., Ltd. (SH: 600547) (HK: 1787); Zhaojin Mining Industry Company Limited (HKG: 1818), Shandong’s largest gold producer; Lingbao Gold Group Company Ltd. (HKG: 3330), a state-owned gold mining enterprise in the country’s Henan province; and Zhongjin Gold (SHA: 600489).

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Read more: NevGold submits exploration and expansion plans for gold project in Nevada

China is the world’s largest single market for gold and produced more gold in 2021 than any other country at 332,000 tonnes, according to the World Gold Council. The country generated approximately nine per cent of the world’s gold that year.

According to Canada’s Trade Commissioner Service (TCS), China has over 1,500 major mining operations throughout the country — 75 per cent of which are underground. The TCS says the country’s mining industry generates about US$400 billion annually.

 

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