Hunan Gold has some mines in the goldfield, the company told Securities Daily. However, the commercial value of the resource is unclear given its depth. It’s uncertain whether development is possible or economically viable, the company said in the report.
Gold prices have hit successive records this year on US rate-cut expectations and geopolitical tensions. Goldman Sachs Group Inc. is forecasting they will reach US$3,000 ($4,036.20) an ounce by the end of next year, about 12% higher than current levels.
The bureau also estimated there’s another 1,000-ton gold resource at the site at a depth of more than 3,000 meters. China’s total gold reserves are about 3,000 tons, and the nation is also the world’s biggest consumer of the precious metal.
Phone calls to Hunan Gold weren’t immediately answered.
