Chinese mining firm claims discovery of nation’s largest gold seam
Shandong Gold Group says reserves have potential value of more than US$22 billion
A gold deposit with an estimated worth of more than US$22 billion has been announced by Shandong Gold Group, the nation’s second-biggest producer by output, state media reports.
Shandong Gold said on Wednesday it had already detected more than 382 tonnes of gold at the mine in Xiling, according to People’s Daily.
The report said the total volume of gold from the mine could reach about 550 tonnes once exploration was completed in two years. It is expected to take 40 years before the deposit is exhausted.
The mine is located in the Laizhou-Zhaoyuan region of northwest Jiaodong peninsula, an area which contains a quarter of the nation’s gold deposits, according to the Ministry of Land and Resources.
Shandong Gold saw its share price rise by as much as 2.8 per cent in Shanghai upon news of the find. The listed unit said on Monday its net profit doubled to 1.29 billion yuan last year from a year earlier as gold prices rebounded.