Shandong Gold Group has discovered a gold reserve in the eastern part of China, which is potentially the country’s largest ever deposit.
The newly discovered mine is located in Xiling of Shandong province and estimated to contain 382.58t in gold reserves with a potential value of over CNY150bn ($21.7bn).
The Laizhou-Zhaoyuan region is known to host China’s most important gold deposits. Xiling mine is also situated in this region, adjacent to the Sanshan Island gold mine.
Xiling gold deposit is reported to be more than 2,000m-long and 67m thick in places, reported Sdchina.com.
The reserves in Xiling indicated an average gold grade of 4.52g/t. Results have been reported to the Shandong Provincial Department of Land and Resources and now the mine officially has entered into the stage of exploration.
Operating at the full capacity, the mine is expected to produce 10,000t of ore a day for 40 years.
In the following two years, more than 550t of gold resources are estimated to be recovered.
Last month, China's Ministry of Industry and Information Technology announced its plan to increase domestic reserves by 3,000t to 14,000t by 2020 that encouraged miners in the country to increase their exploration activity and acquisitions, reported Bloomberg.