Hunan Gold Shares Surge After Large Resource Found in China [Yahoo! Finance Canada]
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Source: Yahoo! Finance Canada
Most Read from Bloomberg The Geological Bureau of Hunan Province said on Thursday that it had detected more than 40 gold veins containing an estimated 300 tons of the precious metal beneath the Wangu Goldfield in Pingjiang county, at around 2,000 meters deep. Feasibility studies are still needed to identify the actual reserves, it said. 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 $3,000 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
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