A large-scale gold deposit whose value is estimated at $2.38 billion was recently discovered in Urad Middle Banner of Bayannuur in the Chinese autonomous region of Inner Mongolia, during a geological exploration, China Daily reported.
The total amount of gold available likely amounts to about thirty-eight metric tons, according to the report. Fifty-seven exploratory holes were drilled at the Tugurige Gold Mine, where the gold deposit was discovered. The precious metal is distributed over approximately 2.52 square kilometers underground.
Ongoing exploratory work will provide a geological basis for the development and utilization of the gold and extend the service life of the mine, the report said. Within Urad Middle Banner, there are sixty-eight types of mineral deposits—coal, oil, iron, lead-zinc, silica, crystalline graphite, granite, gold, and silver.
Mongolia home to some of the largest gold deposits in the world
Proven gold reserves amount to 143 tons in an area with a total reserve of about 300 tons. Annual gold extraction is around 4.8 tons, which puts the banner among the top ten counties and cities in the country, the news outlet reported.
Mongolia is home to some of the largest gold deposits in the world, making it a major player in the global gold mining industry. The country’s gold resources are primarily found in three main regions: the South Gobi, the Altai Tavan Tolgoi, and the Khangai Mountains.
The country produces an estimated twenty-four to twenty-eight tons of gold per year, making it the thirteenth largest gold producer in the world. Gold accounts for about eighty percent of Mongolia’s exports and over seventy percent of foreign investment in the country.
Price of gold sets new record on international markets
The discovery of the new deposits in Mongolia comes as gold prices notched another record last week—with spot prices coming to $2,100 an ounce, as the global rush for bullion appears set to continue.
Gold prices are on course to reach new heights next year and could remain above $2,000 levels, analysts said, citing geopolitical uncertainty, a likely weaker U.S. dollar, and possible interest rate cuts, CNBC reports.
Prices of the yellow metal have risen for two consecutive months with the Israel-Hamas conflict boosting demand for the safe haven asset, while expectations for interest rate cuts have provided further support. Gold tends to perform well during periods of economic and geopolitical uncertainty due to its status as a reliable store of value.
According to a recent survey by the World Gold Council, 24 percent of all central banks intend to increase their gold reserves in the next twelve months, as they increasingly grow pessimistic about the U.S. dollar as a reserve asset.