On November 10, news reported that the Laizhou deposit, discovered by the Third Geological and Mineral Exploration Institute of Shandong Province, has been confirmed. Sanshan Island The gold deposits in the northern sea area contain gold resources totaling over 470 tons. The gold deposit discovered in the northern waters off Sanshan Island, Laizhou, is the first offshore gold deposit ever found in China.

However, since the beginning of this year, International gold price The price of gold jewelry in Beijing fell back to its lowest level in five years on November 10, after international gold prices ended an eight-week losing streak. According to the World Gold Council’s most recent survey, the global average cost of gold mining now exceeds US$1,150 per ounce (approximately US$1,150 per troy ounce). Given this trend, it appears that the SanShanDao seabed gold mine in Laizhou, Shandong Province, may be facing a situation where mining costs exceed gold prices.

Distribution of China’s Gold Reserves Across Provinces

In early 2015, the detailed exploration project for gold deposits in the northern waters of Sanshan Island successfully passed the review by an expert panel led by Chen Yuchuan, an academician of the Chinese Academy of Engineering. The project discovered gold reserves totaling 470.47 tons, with an average grade of 4.3 grams per ton.

According to international mining data, gold deposits located between 1,000 meters and 5,000 meters underground hold greater mining value. Although China is the world’s largest producer of gold, to date, China’s gold exploration and development have been confined to depths of no more than 1,000 meters underground—and in many cases, are concentrated on surface-level mining within 800 meters.

According to a report by Jiaodong Online, the northern waters off Sanshan Island have seen underwater drilling reaching depths of nearly 2,000 meters—a milestone of great significance in the field of rock gold exploration. This breakthrough provides crucial technical support for unveiling the “mysterious veil” over the subterranean “golden kingdom.” Currently, the deepest offshore borehole at Sanshan Island has reached a depth of 1,973.46 meters—nearly two kilometers beneath the sea surface. Drilling on this hole began in April 2013 and continued until October. According to relevant officials, the geological conditions at greater depths in gold deposits are highly complex. Not only is it extremely challenging to locate these deposits, but future mining operations will also pose even greater difficulties.

The photo shows workers at an oil drilling platform.

The World Gold Council’s latest survey shows that the global average cost of gold mining exceeds US$1,150 (approximately US$1,150 per ounce). From this perspective, Shandong Laizhou Sanshan Island The cost of mining seabed gold mines may fall below the price of extraction.

Finding gold mines is difficult; mining gold mines is even more challenging. Yet, in comparison... Gold price Looking at the total costs of major producers, we can see that their profits are being squeezed on two fronts: declining gold prices and rising costs.

Over the past week, international gold prices have continued to decline, hitting a three-month low of $1,085.20 per ounce—just one step away from the six-and-a-half-year low of $1,077 reached in July. So far this year, International gold price Has been on a downward trend all along, Gold jewelry Prices have fallen more often than they’ve risen. Following this price reduction, Gold jewelry The price has fallen to its lowest level in five years.

In Gold Investment On the other hand, industry insiders suggest that, since gold has been consistently... Federal Reserve Under the pressure of factors such as expectations of interest rate hikes, the outcome remains uncertain so far. We advise investors to adopt a cautious, wait-and-see approach and reduce high-price buying activities.

Although the ongoing global economic downturn has had a greater-than-expected impact on the gold industry, China’s gold sector has not “collapsed” in this economic chill.

In a speech on October 22, Song Xin, General Manager of China Gold Group Corporation and President of the China Gold Association, stated that since the beginning of this year... Gold price Compared with the same period last year, some newly commissioned projects are now facing the dual pressure of rising costs and declining profitability. Major gold enterprises are experiencing, to varying degrees, tightening cash flows and increasing debt ratios. In the coming years, low gold prices are likely to become the new normal, further intensifying the industry’s financial, cost, and profitability pressures. However, in the face of a global economic slowdown, Gold price Despite the grim situation characterized by sluggish economic growth, resource and environmental constraints, and increasingly fierce market competition, China’s gold industry has still achieved leapfrog development across the entire industrial chain—from exploration and mining to beneficiation, trading, design, processing, consumption, and investment.

“In 2014, our country...” Gold production Reaching 451.80 tons, China has been the world’s largest gold producer for eight consecutive years; its annual gold consumption reached 886.09 tons, once again making it the world’s largest gold consumer. According to Song Xin, as of the end of 2014, the country’s proven gold reserves totaled 9,816.03 tons, ranking second in the world.

Song Xin said proudly that China has already grown from a follower to a leader on the global gold map, and the Chinese gold industry now possesses the foundation and conditions to advance to a higher level.