Ar-Rehman: November 2024

'Supergiant' gold deposit discovered in China, Worth over US$80 Billion

Scientists in China have uncovered a "supergiant" deposit of high-quality gold ore hidden near some of the country's existing gold mines. The vast reserve, which could be the largest single reservoir of the valuable metal left anywhere on Earth, is worth billions of dollars and caused the global price of gold to skyrocket to near-record highs. A deposit of high-quality gold ore containing around 1,000 metric tons (1,100 US tons) of the precious metal has been discovered in central China. Valued at approximately 600 billion yuan or US$83 billion, the discovery could be considered the largest and most lucrative reservoir of gold ever uncovered, surpassing the 900 metric tons estimated to lie within the mother of all gold reserves, South Deep mine in South Africa.

The new deposit was uncovered at the Wangu gold field in the northeast of Hunan province, representatives from the Geological Bureau of Hunan Province (GBHP). Workers detected more than 40 gold veins, which contained around 330 tons (300 metric tons) of gold down to a depth of 6,600 feet (2,000 meters). However, using 3D computer models, mining experts have predicted that there could be up to 1,100 tons (1,000 metric tons) of gold, roughly eight times heavier than the Statute of Liberty, hidden at depths of up to 9,800 feet (3,000 m). The Geological Bureau of Hunan Province announced the detection of 40 gold veins within a depth of 2 km's (1.2 miles) in the northeast Hunan county of Pingjiang. These alone were thought to contain 300 metric tons of gold, with 3D modeling suggesting additional reserves may be found to a depth of 3 km's. "Many drilled rock cores showed visible gold," says Chen Rulin, an ore-prospecting expert with GBHP.

If true, the entire deposit is likely worth around 600 billion yuan ($83 billion), GBHP officials said. Officials revealed that the maximum quality of the new deposit was 138 grams of gold per metric ton of ore, which is relatively high compared with most other gold mines around the world. More gold was also found during test drills around the new site's "peripheral areas," suggesting there are more large deposits waiting to be tapped in the future, experts said. Core samples suggest every metric ton of ore could contain as much as 138 grams (nearly 5 ounces) of gold, an extraordinary level of quality considering ore excavated from underground mines is considered high grade if it contains more than 8 grams. China already dominates the world's gold market with reserves considered to be in excess of 2,000 tons earlier in 2024, its mining industry contributing around 10 % of the global output.

It is hard to keep track of the amount of gold left in the various mines across the world due to fluctuations in the rate of extraction at each site and a lack of transparency in reporting results. However, as of 2022, the largest known remaining gold reserves on Earth are found in South Africa's South Deep gold mine, which has around 1,025 tons (930 metric tons) of gold, according to Mining Technology. This means the new deposit could be the largest known natural stockpile of gold on the planet. Announcements of the findings have contributed to a further increase in the already skyrocketing gold price as demands for the resource continue to rise amid global uncertainty. Just how many bonanzas of the valuable ore remain yet to be discovered around the world is unclear, with experts divided on whether we've reached peak gold.

News of the discovery sent ripples through the mining community and the wider global economy. The price of gold jumped to around $2,700 per ounce ($95,240 per kg), just below a record high set earlier this year. Forged in the furnaces of embracing stars long before Earth was formed, our planet's glittering veins are a finite resource which take eons to precipitate into an easily mineable form. The new discovery is estimated to contain around 1,000 metric tons of gold. Based on these latest findings, we might be far from exhausting economically viable reserves. Core samples taken around the periphery of the Hunan site hint that the deposit may extend even further than initial predictions, making the reservoir beneath its soil a true dragon's haul.

It's been a notable year for gold discoveries. China is already the biggest producer of gold in the world, accounting for around 10% of global output in 2023. However, the country still uses more gold than it can produce, consuming around three times as much of the precious metal as it can dig up. As a result, China relies heavily on importing gold from countries like Australia and South Africa. The new gold deposit could help alleviate this issue but will not solve the problem completely. Based on current consumption rates, the entire deposit would only supply the country's needs for around 1.4 years. In March, a treasure hunter in England found what was estimated to perhaps be the biggest gold nugget ever found in the country. The large gold nugget, nicknamed "Hiro's Nugget," weighs 64.8 grams.

By the end of 2023, an estimated total of 234,332 tons (212,582 metric tons) of gold have been dug up in human history, with more than two-thirds of this being extracted since 1950, according to the World Gold Council. And just two months ago, research by scientists in Australia discovered a new mechanism that may lead to the formation of gold, suggesting the seismic activity of earthquakes actually plays a role in the creation of large nuggets. But that's not all. In addition to learning more about how gold naturally forms, scientists are also investigating new things which can be done to manipulate the precious resource. A study published in April reported the creation of a new kind of two-dimensional gold called 'goldene', measuring only a single layer of atoms in height, which has some interesting properties not seen in the three-dimensional form of gold. While gold is an ancient metal that has been prized all throughout human history, there's clearly a lot we're still finding out about it. This may seem like a lot. But if you were to melt down all the gold ever mined and put it into a single cube, it would only be around 72 feet (22 m) across, according to the World Gold Council, slightly shorter than the length of a blue whale.