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China has discovered a "massive" new goldfield in Hunan province, containing gold reserves valued at tens of billions of dollars.

Geologists have found more than 40 gold veins at the Wangu gold mine in Pingjiang County, located less than 2,000 meters underground.

The Hunan Provincial Geological Institute reported that the total gold resources in the mine's core area now amount to 300.2 tonnes.

The newly identified deposits, classified as a "massive" reserve, contain over 1,000 tonnes of gold, estimated to be worth around 600 billion yuan (approximately $82.8 billion) based on current market prices.

“This discovery is a major achievement for China’s mineral exploration strategy,” Liu Yongjun, vice president of the Hunan Provincial Geological Institute told South China Morning Post.

The Wangu goldfield has long been one of China’s most vital gold-mining hubs.

Since 2020, over 100 million yuan has been invested by provincial authorities in mineral exploration in the area.

In recent years, gold demand in China has surged as consumers and investors sought a haven amidst economic uncertainties.

However, this demand has eased recently after the central bank halted gold purchases in May and the yuan weakened against the dollar.

Gold prices have also dropped, hitting a near-two-month low.

Retail gold jewellery prices have seen a decline, with items from chains like Chow Tai Fook and Chow Sang Sang selling for 720 yuan ($99) per gram, down from 820 yuan earlier in the month.

China has been intensifying its investments in mineral exploration as part of its 2021-2025 development plan, which aims to expand domestic reserves of strategic resources.

Exploration investment in 2022 rose by 8% year-on-year, reaching 110.5 billion yuan.

This has boosted reserves of essential resources, including oil, natural gas, rare earths, and gold.

The country has made several significant discoveries recently.

In September, 4.96 million tonnes of rare earths were identified in Sichuan’s Liangshan Yi autonomous prefecture.