$83 billion discovery throws global gold ore market into frenzy

Have earth scientists stumbled upon a Chinese El Dorado*, the mythical South American city of riches?

It seems Hunan* Geological Bureau* geologists* may have found a mountain of hidden wealth worthy of a fable*.

Scientists have suggested it might be the largest precious metal* deposit ever discovered.

The jackpot was found beneath the Wangu goldfield in Pingjiang County, about an hour and a half northeast of the Hunan province’s* capital Changsha.

Initial drilling 2011m beneath the surface has uncovered more than 40 gold veins*.

This early find alone was estimated to hold around 330 tonnes, equivalent to 330,000kg, of gold ore.

It has already been classified as a “supergiant” gold ore deposit.

3D modelling revealed the deposit could stretch nearly 3048m down, and sitting deep within the Earth at those depths could be a mind-blowing 1100 tonnes of gold ore.

The estimated value? A staggering $83 billion.

To put that figure into perspective, South Africa’s “South Deep” goldmine, currently one of the world’s largest, holds around 1025 tonnes. In other words, this new Chinese discovery could potentially be the largest gold mine on the planet.

Other major players globally are located in Indonesia, Russia, New Guinea, Chile and the USA.

It’s not just the volume either – the quality has been reported as being extremely high.

The deposit was averaging 138 grams of gold per metric tonne of ore, which experts described as a valuable rate “not often found in gold mining.”

According to Bureau ore-prospecting expert Chen Rulin, “Many drilled rock cores showed visible gold” in samples.

The discovery has come at a crucial time for China. The nation was already the world’s top gold producer, accounting for about 10 per cent of global production. However, China also remains heavily dependent on gold, using approximately three times more than it mines annually thanks to booming demand for jewellery, tech, and central bank reserves.

As China looks to protect itself from geopolitical* risks – especially ongoing trade tensions and the threat of financial sanctions* from the US under President Trump – this breakthrough was expected to reduce the country’s reliance on imports and boost its self-sufficiency in a critical resource.

According to the New York Post, the news “put the world’s gold markets on notice.” Following the announcement, gold prices reportedly surged to $130 per gram, as reported by CCN.

This jump in gold prices could bring both opportunities and challenges for Australia.

In the short term, higher prices may benefit Aussie gold miners through increased profits.

But over time, global demand for Australian gold could decline – putting pressure on the broader trade relationship between the two countries.

Geologists also believed the nearby geological formations could be part of a much larger, interconnected system.

According to the Bureau’s vice head Liu Yongjun, additional gold ore was found during drilling in the areas surrounding the main discovery site, suggesting the “supergiant” find could potentially be just the beginning.

Historically, 233,000 tonnes of gold have been mined worldwide, with two-thirds of that mined since 1950.

Unlike many other natural resources, gold is resistant to corrosion*, and nearly indestructible – which means that virtually all of the gold ever mined is believed to still exist in some form.

POLL

GLOSSARY

• El Dorado: Spanish explorers searched South America in the 16th century looking for the fabled city of fabulous wealth but it was never found
• Hunan: landlocked, mountainous province south of the Yangtze River
• bureau: organisation or a business that collects or provides information about something
• geologists: scientists who study the physical features and history of Earth
• province: like a state, region, territory
• precious metal: metal that is valuable and usually rare, like platinum and gold
• fable: fairytale, myth, often with a moral or a lesson
• gold veins: natural concentrations of gold within rock formations, typically found in fractures, faults, or cracks
• geopolitical: concerning the way a country’s size, position and so on influence its power and relationships with other countries
• sanctions: penalties, restrictions on activities relating to particular countries, its goods and services and other concerns
• corrosion: when a metal degrades due to reacting to its environment

EXTRA READING

Second gold rush on Oz horizon

American trade tariffs explained

Trump’s Fort Knox treasure hunt

QUICK QUIZ

1. Initial drilling 2011m down found how many gold veins?
2. How much gold ore were these estimated to hold?
3. How far down did 3D modelling suggest the deposit could reach?
4. What was the estimated value of the find?
5. China but produces 10 per cent of the world’s gold but it uses how many more times that?

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CLASSROOM ACTIVITIES
1. Impacts of a goldmine
What is it about this site in China that makes it so valuable for mining?

What are the global economic and environmental/social impacts of this mine? List them below:

ECONOMIC

ENVIRONMENTAL/SOCIAL

Time: allow 15 minutes to complete this activity
Curriculum Links: English, Science, History, Intercultural, Personal and Social, Critical and Creative Thinking

2. Extension
How did geologists discover this gold more than 2000m below the Earth’s surface? What sort of machinery and technology does this type of discovery require?

Time: allow 10 minutes to complete this activity
Curriculum Links: English, Design and Technologies, History, Personal and Social, Critical and Creative Thinking

VCOP ACTIVITY
I spy nouns
Nouns are places, names (of people and objects), and time (months or days of the week).

How many nouns can you find in the article?

Can you sort them into places, names and time?

Pick three nouns and add an adjective (describing word) to the nouns.