Hedge funds slash bullish wagers on gold before war jitters
Speculators have reduced net-long positions by 3.6%.
China Daily reports local land and mineral resource officials in the Qinghai province estimate that the Dachang gold mine in the Tibetan autonomous prefecture of Yushu is likely to become one of the largest gold mines in Asia with 300 tonnes in proven reserves.
The geological exploration was conducted jointly by Qinghai mining development bureau and TSX-listed Inter‐Citic Minerals with a total investment of $31.3 million. The project is at an elevation of approximately 4,500 meters and consists of five exploration licenses covering some 279 square kilometers. Tiny Inter-Citic says it allocated $6.3 million in exploration expenses for this year.
The current proven reserve at the Dachang mine in the Tibetan autonomous prefecture of Yushu is 195 tonnes, with another 35 tonnes expected to be confirmed by the end of 2011, according to the Qinghai Land and Resources Department.
The Province of Qinghai is endowed with rich mineral resources. The proven gold reserves of the province’s six mines, including Dachang, is 430 tonnes. The Dachang Gold Project is located approximately 160 kilometers from the City of Golmud.
Image is of the Qinghai-Tibet highlands landscape in China.
3 Comments
Viresh Varma
Wondering would government of china will become more aggressive with this find ?
Mrkhrdr
300 tonnes is not a lot. Do you mean M tonnes?
Mrkhrdr
DUUHH! My bad. I was confusing tonnes with oz.