Industry News

The largest single gold deposit discovered domestically so far is expected to be injected into the listed company Shandong Gold (600547. SH).

On the morning of August 10th, Interface News learned from the press conference on the exploration results of Xiling Gold Mine by Shandong Gold Group that on August 2nd, after being recorded by the Shandong Provincial Department of Natural Resources, Shandong Gold Group discovered the largest single gold deposit in China - Xiling Gold Mine. On the basis of a detailed investigation and record of 382.58 tons of gold metal in 2017, an additional 209.606 tons of gold metal were added, and a total of 592.186 tons of gold metal and 590 tons of associated silver were discovered, with an estimated potential economic value of over 200 billion yuan.

Li Hang, Deputy Secretary of the Party Committee, Director, and General Manager of Shandong Gold Group, stated at a press conference that "Xiling Gold Mine is located in Laizhou City, Shandong Province, in the Jiaodong metallogenic region, which is the third largest gold mining area in the world and an important gold enrichment area and national level comprehensive exploration area in China. Its gold reserves and gold production rank first in the country. The Xiling Gold Mine resources are mainly distributed between elevations of -1000 meters and -2500 meters, and it is currently the deepest single gold deposit discovered in China.

It is reported that the maximum strike of the Xiling gold deposit is 2085 meters, the maximum slope depth is 2057 meters, the average thickness is 8.13 meters, and the thickest part reaches 66.52 meters. The confirmed amount of gold ore is 147 million tons, with an average grade of 4.02 grams per ton. If the production scale of the mine is 3.3 million tons per year, it can serve the mine for more than 40 years.

It is worth mentioning that the Xiling gold mine took 23 years from census to exploration stage. During this period, Shandong Gold Group has invested approximately 880 million yuan, drilled 180 boreholes, and completed mechanical core drilling of over 300000 meters. Among them, 50 boreholes were drilled at depths of over 2000 meters, and the "China's First Deep Drilling for Rock Gold Exploration" was designed and implemented, with a final hole depth of 4006.17 meters.

Interface News noticed that the exploration right holder of Xiling Gold Mine is Shandong Gold Geological Mineral Exploration Co., Ltd. (hereinafter referred to as "Shandong Gold Geological Exploration Company"), a wholly-owned subsidiary of Shandong Gold Group. Shandong Gold Geological Exploration Company has been conducting exploration work within the exploration right scope of Xiling Gold Mine since 2000. Shandong Gold Group is the controlling shareholder of the A-share listed company Shandong Gold. As of the end of the first quarter of this year, Shandong Gold Group held 37.87% of the equity of Shandong Gold.

Regarding the issue of the exploration rights of Xiling Gold Mine, Shandong Gold issued a statement on May 18th stating that "according to the commitment to avoid industry competition between Shandong Gold Group and Shandong Gold, when the exploration rights of Xiling Gold Mine meet the transfer conditions, Shandong Gold Group will urge Shandong Gold Geological Exploration Company to inject the exploration rights of Xiling Gold Mine into Shandong Gold Mine according to the promised procedures." "The company has organized the implementation of relevant facts on the exploration of gold resources, and when the exploration rights of Xiling Gold Mine meet the conditions, they will be injected into the company according to the procedures.